SESB plans 700MW power plant to completely solve the load-shedding problem in Sabah
Published on: Friday, October 20, 2023
By: []
Madius said he and other elected representatives from Sabah have been highlighting in the Dewan Rakyat for a long time that Sabah is the only region in Malaysia that still suffers from load shedding.
Kuala Lumpur: Sabah Electricity Sdn Bhd (SESB) plans to build a power plant with a capacity of 700MW to completely resolve the load-shedding problem in Sabah.
Tuaran MP Datuk Seri Wilfred Madius Tangau, who is also SESB Chairman, said to realise the plan, SESB needs help and support from the Federal and State governments.
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“SESB plans to build a Combine Cycle Gas Turbine (CCGT) power generator plant that is wholly owned by it with financial assistance through the Belt and Road Initiative (BRI) in collaboration with China.
“Towards this end, Tuaran requests the support of Prime Minister Datuk Seri Anwar Ibrahim to include the plan in the discussion agenda with China President Xi Jinping during his visit to our country in conjunction with the 50 years of friendship between China and Malaysia next year,” said Madius during the debate on the 2024 Budget in the Dewan Rakyat.
He assured that SESB would make the best preparations and give high commitment to making the plan a success.
“This proposed 700MW power plant will operate using gas. Therefore, Tuaran requests that the Government instruct Petronas to supply gas at a rate of RM15/mmBTU to SESB for the purpose.
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“With full support from all parties, we hope the power plant can be completed in less than two years after approval is obtained….this step is very important to stabilise electricity supply in Sabah,” he said.
Madius said SESB would also implement an energy storage system through batteries with a capacity of 100MW as a short-term measure to overcome the load-shedding problem in Sabah.
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According to him, the matter has already been approved by the Malaysian Energy Commission (ST).
“SESB hopes the Electricity Supply and Tariff Planning and Implementation Committee Meeting (JPPPET) will consider the decision of the ST positively for the common good and wellbeing.
“This Battery Energy Storage System (BESS) will store electricity that is not used during non-peak hours (off peak load) from around midnight to 7am.
“This energy supply will be a backup to cover the high demand of users at peak times (peak load), especially during hot weather or due to other related factors, including in the event of a system breakdown,” he said.
Madius said he and other elected representatives from Sabah have been highlighting in the Dewan Rakyat for a long time that Sabah is the only region in Malaysia that still suffers from load shedding.
“This situation occurs because of the low existing generation capacity, which is with a reserve margin below the 12 per cent level. This reserve margin means a stock of electricity for use during an emergency, especially in the event of a system breakdown or in the event of high demand beyond normal among electricity users.
“In connection with that, Tuaran deeply appreciates the Malaysian Energy Commission for the decision to approve the installation of a 100MW-capacity battery storage.
“However, this step is temporary and certainly cannot solve the problem of low reserve margins,” he said.
Madius said Sabah needs to emulate the electricity supply governance system of the Federal Government and Sarawak when governance is handed over to the State Government next year.
“When the electricity supply governance is handed over at the beginning of next year, we hope the governance system will be improved.
“The Sabah Government should emulate the Federal and Sarawak governments where there are three main components in energy governance.
“For example, at the Federal level, there is a policymaker, namely the Natural Resources, Environment and Climate Change Ministry; a regulator, namely the Energy Commission (ST); and a utility company, namely Tenaga Nasional Berhad (TNB).
“These three components work together as a team or a seamless governance instead of working in silos trying to outdo one another,” he said.
Madius said the Sabah Government needs to be reminded that although electricity supply is a Federal matter as stipulated in the 1963 Malaysia Agreement, the Federal Government has given responsibility for this utility to the region since the formation of Malaysia.
“However, in 1982, the Sabah Government handed over the administration of electricity supply to the Federation due to the pressure of financial sustainability issues.
“And today, due to financial sustainability, the Federal Government has returned the responsibility of managing electricity supply affairs to Sabah.
“Tuaran hopes this reassignment will last forever and not the other way around,” said Madius, while reiterating his stance on the issue of water supply in Sabah.
He said the clean water supply issue has been haunting Sabah for a long time.
“There was also a specific announcement about the intervention of the Federal Government recently but, until now, the people are still waiting when the plan will become a reality.
“The fact is that the people are going through the hardships of dealing with water supply rationing for days.
The reserve margin is already at a negative level, and the trucks that deliver the water supply are not enough.”
He added that water supply governance in Sabah should also follow steps similar to what has been done at the Federal level.
“There is a policymaker which is the Ministry; there also needs to be a regulator such as the National Water Service Commission (Span); and then there is a utility company to carry out water supply treatment and distribution operations.
“This August House does not need to be reminded about the case of abuse of power in the Sabah Water Department which has been tried for years without an end.
The people are wondering when this case will be finished,” stressed Madius.
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