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Fundamental shift must in addressing Sabah’s energy needs
Published on: Sunday, October 29, 2023
By: Datuk Seri Panglima Wilfred Madius Tangau
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Madius in talks during his China visit
The proposal was as bold as it was necessary – the construction of a combined-cycle gas turbine (CCGT) power generator with a capacity of 700MW to obliterate the ominous shadow of load-shedding looming over Sabah.
I understand this has caused great confusion and many are asking, why not just focus on renewable energy like solar power and so on? Although I agree It’s a great idea and we should move towards it, it is however not an instant fix.
Transitioning to renewables takes time and a lot of planning. In order to pave the way for Renewable Energy (RE) plans, SESB as a utility company must first assess our current situation and that is the problem of our baseload.
The cause of this is to some extent very technical. Sabah's electricity generation falls short of our requirements. In simple terms, our current power plants are inadequate, and we lack sufficient backup electricity for emergencies or periods of high demand (peak load). So, when there's a sudden surge in demand, the system can't cope, leading to those frustrating power cuts.
Currently, Sabah is operating on a meagre supply of power with maximum electricity demand around 1086.58 MW but our power plants could only churn out 1217.9 MW.
That leaves us with a meagre reserve margin of 131.3 MW or 12.1pc assuming all sets are available, meaning we don’t have much wiggle room when demand spikes.
This is why SESB must own the capacity to generate at least 70pc (about 700MW) of its own electricity in order to have control of Sabah’s base load power requirements before going into renewable energy. We will only be effective once the baseload matter is solved.
We cannot deny there were pivotal moments that echo the consequences of missed opportunities. One such instance lies in the heavy opposition faced by projects like the Liwagu Dam and the Coal Power Plant in Lahad Datu, thwarted by diverse groups and organizations.
Looking back, it's evident that these oppositions cost us dearly – a significant 300 MW of potential power generation. If embraced, these projects could have shielded Sabah from the power woes we face today: the all-too-familiar load shedding and short electricity supply that disrupt our lives.
Yet, dwelling solely on past missteps isn't the answer. Instead, it serves as a stark reminder of the price we pay for inaction. Now, standing at a crucial juncture, we must not replicate past errors.
To address this pressing issue, I proposed a practical solution: the adoption of a 100MW Battery Energy Storage Systems (BESS).
BESS can be viewed as a giant, high-tech battery that stores electricity once charged and releases it when we need it the most.
Think of it as a backup power bank for the entire state.
By investing in BESS, we can ensure a stable power supply for everyone as a short-term solution and reduce harmful emissions, making our environment healthier for all. Equally crucial, BESS aligns with our commitment to reducing carbon emissions, dovetailing with the NET Zero 2050 initiative.
But that is a whole other topic by itself. To understand our existing situation better, consider this: the demand for electricity in Sabah keeps growing, but our power plants, which run on gas, diesel, and a bit of renewable energy, struggle to keep up.
What’s even worrying is that, while our counterpart in Peninsula Malaysia relies on natural gas from offshore Sabah to power up, we are left grappling with a shortage of this vital resource.
This discrepancy means we're falling behind, not just in terms of electricity but also in economic growth. It’s a gap that, if left unaddressed, could lead to serious political implications for our treasured state.
The medium- and long-term solution is an immediate decision that SESB must install its own natural gas fuelled CCGT plant of 700 MW to reduce the portion of electricity supplied by expensive independent power producers (IPPs), to replace old and costly old power plants and to connect more of Sabah to the power grid.
Sabah’s electricity base load generating plants have again and again been given to independent power producers whose only responsibility is to assure the electricity generation allocated to it under the Power Purchase Agreement (PPA) is fulfilled with good profit for its shareholders.
This is without any regard to the overall electric supply system’s technical and financial well-being that is essential for sustained social and economic development of Sabah and its population.
Under the PPA, Sabah Electricity Sdn Bhd has been paying IPPs more than what it has received from the sale of electricity. This is without any logical explanation.
For that purpose, SESB formally requests Petronas to provide gas at a rate of RM15/mmBTU. This project, undertaken as part of China's Belt and Road Initiative, will be exclusively owned by SESB.
It would be good if our Prime Minister would include the plan on the agenda of discussions with Chinese President Xi Jinping in his series of visits to the country in conjunction with the 50th anniversary of the establishment of China-Malaysia diplomatic ties next year.
I urge our leaders, especially our Prime Minister to consider this initiative as a national emergency if we want to seriously end poverty in Sabah which hinges on our capacity to attract serious and quality to come and invest.
Towards that end the assurance of a stable and sustainable electricity supply is key. Sabah deserves a robust, sustainable energy plan that ensures our prosperity for generations to come.
We don’t just need Band-Aid solutions, we need a fundamental shift in how we approach our energy needs. So, I pose this question to our Prime Minister: Is Sabah worth saving for the future political stability of Malaysia?
- The views expressed here are the views of the writer Datuk Seri Panglima Wilfred Madius Tangau and do not necessarily reflect those of the Daily Express.
- If you have something to share, write to us at: [email protected]
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