Sarawak Energy Diversifies By Adding Biomass To Its Generation Mix

The First Renewable Energy PPA

Kuching, March 12, 2014 – Sarawak Energy, the State’s energy provider is pleased to announce that the very first REPPA ("Renewable Energy Power Purchase Agreement") was signed on 4 March 2014 between Sarawak Energy and Olive Energy Sdn Bhd.  The signing of the REPPA is a key indicator of Sarawak Energy’s commitment to provide clean renewable energy by diversifying its energy mix, which currently comprises of fossil fuels (coal, natural gas, diesel) and hydropower.  The agreement will see Sarawak Energy purchasing energy from an alternative source and that is biomass energy. By diversifying the generation mix, it reduces Sarawak Energy’s dependence on depleting energy sources like fossil fuels.
Biomass energy is also known as the energy that contained in the plants and organic matter. Generally, biomass includes agricultural residues, livestock manure and wastes from wood, processed food, lumber mill etc.

The REPPA is the first of its kind in Sarawak. It is for the development of a 10megawatts (MW) biomass power plant, situated at about 12 kilometers from Mukah Town, right in the heartland of the Sarawak Corridor of Renewable Energy (SCORE).  The source of the renewable energy is palm oil biomass from the Rinwood Pelita Plantation, which includes empty fruit bunch, palm kernel shell, mesocarp fiber and biogas from palm oil mill effluent.  

Datuk Torstein Dale Sjotveit, CEO of Sarawak Energy said, “It gives me great honour to sign this Renewable Energy PPA, a culmination of months of hard work from both parties.  The agreement paves the way for Sarawak Energy to tap into the abundant and sustainable biomass energy resources available in Sarawak, further strengthening the SCORE agenda in promoting renewable energy."

"With the abundance of eco-agricultural industries residues, biomass is widely considered as another viable energy resource for Sarawak. Sarawak Energy envisages grasping the significant potential of biomass power generation to contribute to the renewable energy shares in the state. Energy generated from the new biomass power plant will be integrated with other sources of energy in the State Grid system in providing clean and sustainable energy for the masses", added Dr Chen Shiun, General Manager, Research & Development, Sarawak Energy.  

Sarawak Energy CEO Datuk Torstein Dale Sjotveit and Olive Energy Director Mr Wong Tiong Sing signing the documents, flanked by Sarawak Energy GM, Legal, Mdm Stephanie Gae Chin and Olive Energy Director, Mr James Lau Boon Ping.

Sarawak Energy CEO Datuk Torstein Dale Sjotveit exchanging documents with Olive Energy Director Mr Wong Tiong Sing