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SABAH and Sarawak Gentari Sdn Bhd Head Zaman Ahmad said Sabah’s renewable energy goals would not work unless the local communities are included and old power systems are upgraded fast.

“Renewable energy is not just about putting up solar farms or putting up a future dam and such, but it is really about the communities that are there,” he said citing India and Australia where local communities were upskilled to maintain renewable energy facilities.

“In the largest island continent in the world, Australia, finding the right land close to a grid and off-taker is a problem. So, for Sabah and Sarawak, it is probably going to be the same,” he added.

He said this at the at the inaugural Sabah Renewable Energy Conference 2025’s Panel Session 4, which centred on the topic titled Collaboration and Partnership: Building a Sustainable Renewable Energy Future. 

Panel moderator, MARC Solutions Sustainability Head Leslie Jong Vui Min opened the discussion by asking panellists about the most critical non-monetary contributions that effective collaboration between different stakeholders can bring to Sabah’s renewable energy transition.

Zaman pointed out the need for four key parties to come together, namely, project developers, off-takers, regulatory frameworks and financing.

“In the Malaysian context, we have a secret glue that can bring all these four parties together. Teh Tarik. Sit in a mamak stall with some teh tarik, kurang manis, of course, and if the four parties can say, on the grid that is nearby, the land will be available, we can do a lease on it for 25 years, off-taker is good, policy is in place,” he said.

On Sabah’s clean energy landscape, Zaman said Sabah has renewable energy potential but face infrastructure challenges.

“Renewable energy is nice, but there is one problem. It is never really in the place where you want it to be,” he said.

 He pointed out that while there is potential for wind energy in Kota Belud and Kudat and biomass in Sandakan and Tawau, grid infrastructure remains a limitation.

“You need to upgrade the grid. You need to do it quick but to build a grid is not quick. It is going to take you 10 years,” he said.

He estimated that Sabah has about 80-gigawatt peak potential of solar energy but there is the need for developers, off-takers and financing to realise this potential.

“An investor can come in, build a grid alongside Sabah Electricity and then later BOT back in 30 years because that grid lasts for 100 years. It is a no-brainer,” he said, suggesting that the grid challenge could be addressed through public-private partnerships.

“For me, renewable energy, we do not have a choice. We have got to do it. We have got to do it fast. Time is running out,” he said.

CIMB Group Project Finance Advisory Regional Head Azwan Abu Bakar said preparedness in leveraging existing policies and programmes is important.

“Sabah Energy Roadmap, National Energy Transmission Roadmap, it is all there. The government has all these programs,” he said, adding that the 13th Malaysia Rolling Plan will include incentives and initiatives for Renewable Energy.

Azwan pointed out infrastructure as a key element, citing the planned Asean legacy grid that would connect Sabah to other Southeast Asian countries.

“Borneo, East Malaysia, is one of the highest counts of renewable energy parts of the world. The rainforest is comparable to South America and all that. So, Borneo and Sabah will always be part of that grand plan,” he said.

“When we actually go into an advisory mandate, one of the key things we look at is a risk matrix,” he said, identifying sponsor risk, construction risk, legal risk and operational risk as critical factors to consider. 

“At CIMB, sustainability is more than a strategy or a goal. It is integrated and built-in into the way we do business nowadays. If you do not tick those boxes of sustainability, it is difficult to get financing out there,” he said, pointing out the growing importance of sustainability in financing. 

“On top of collaboration, we need coordination. All the stakeholders have the same goals. I think that is key, up to sponsors all the way to financers,” he said.