NEWS & UPDATES
Sarawak Energy and SESB Sign Power Exchange Agreement and Interconnection Agreement
- First Interconnection between 2 Malaysian Power Utilities
- Paves the way for Borneo Grid
6 AUGUST 2021
Sabah Electricity Sdn Bhd (SESB) and Syarikat SESCO Berhad (SESCO), a subsidiary of Sarawak Energy today signed a Power Exchange Agreement and an Interconnection Agreement, marking a historic milestone in the journey towards materialising the Borneo Grid and the wider ASEAN Power Grid.
The agreements will pave the way for an initial export of 30MW for a term of 15 years via a 31km 275kV double circuit transmission line which will run from Lawas in Sarawak to Mengalong in Sabah. The interconnection is expected to commence by end 2023, once the grid expansion under the Sarawak Energy’s Northern Agenda has connected Miri to the northern towns of Limbang and Lawas in Sarawak.
Sabah Chief Minister Datuk Seri Panglima Haji Hajiji bin Haji Noor and Sarawak Chief Minister Datuk Patinggi (Dr.) Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg witnessed the virtual signing ceremony between both energy companies.
Joining them were Sarawak State Secretary, Datuk Amar Jaul Samion; Sarawak Minister for Utilities, Dato Sri Dr. Stephen Rundi Utom; Sarawak Assistant Minister for Utilities (Rural Electricity), Datuk Liwan Lagang; and Sarawak Energy Chairman, Datuk Amar Abdul Hamed Sepawi.
Also present were Sabah Deputy State Secretary (Development), Datuk Ir. Richard Jomiji Kinsil; Sabah Attorney General Yang Arif Datuk Nor Asiah Mohd Yusof; Tenaga Nasional Berhad (TNB) Chairman, Dato’ Seri Mahdzir Khalid; and TNB Chief Executive Officer, Datuk Baharin Din.
The Power Exchange Agreement and Interconnection Agreement were signed on behalf of SESB by its Chief Executive Officer Datuk Ir. Abdul Nasser Abdul Wahid while Datu Haji Sharbini Suhaili, Group Chief Executive Officer for Sarawak Energy signed on behalf of SESCO. The signings were witnessed by Hjh. Zunaidah Osman, SESB Company Secretary and Lau Kim Swee, Chief Executive Officer for SESCO.
In his congratulatory remarks during the event, Sabah’s Chief Minister said the state government welcomes the good initiative and collaboration which will support the development agenda under Sabah Maju Jaya (SMJ), and the growth of the industrial sector in Sabah as a whole.
“We do believe the collaboration will also assist in creating employment opportunities both in heavy and light industrial sectors in Sabah and boost the social-economy particularly in the rural areas,” he said before witnessing the signing ceremony from Pusat Pentadbiran Negeri Sabah in Kota Kinabalu.
He added that it is hoped that the inked agreement will establish good cooperation between the governments of Sabah and Sarawak in all future undertakings.
Sarawak Chief Minister also congratulated the two power utilities for working together on the interconnection project, which will foster shared learning and encourage greater collaboration in the region.
“This collaboration brings us a step closer to a sustainable energy future for our people and beyond as we can share our renewable energy resources with our neighbours, further contributing to the reduction of carbon emissions in the region, as well as ensure energy supply security and bilaterally optimised operation costs while attracting investments for economic transformation in the Borneo region,” he said.
He added that building upon the proven success of its renewable energy development strategy, Sarawak Energy is spearheading the Green Energy Agenda to promote a low carbon economy and transportation through the development of cleaner energy alternatives such as hydrogen and solar.
Meanwhile, in his welcome remarks, Mahdzir said, “As approved by the Electricity Supply and Tariff Planning and Implementation Committee (JPPPET), the 275kV Sabah Sarawak interconnection line is the first project connecting electricity supply between the two states aimed at strengthening the stability of electricity supply.”
He added that the signing of the agreement was paramount in line with SESB Sustainability Plan and the aspiration of BIMP-EAGA and the Heads of ASEAN Power Utilities/Authorities (HAPUA).
In his speech, Abdul Hamed said that Sarawak Energy thanked the Governments of Sarawak and Sabah for the key roles they played in supporting and enabling the cooperation between the two power utilities.
He remarked, “Today's event is the culmination of our collaboration with SESB since our initial Heads of Agreement was signed in 2013, our joint feasibility study in 2016 and our term sheet signing last year. This interconnection project is expected to diversify the generation mix for Sabah and Sarawak while enhancing system reliability and security by sharing generation resources for both Sarawak Energy and Sabah Electricity. The project is also expected to facilitate economic collaboration between the two states, accelerating renewable energy transformation and supporting economic growth in Borneo.”
Sarawak Energy is Malaysia’s largest renewable energy provider, harnessing its abundant natural resources to light up Sarawak and provide power for its growth. These resources have enabled the power utility to offer reliable and competitively priced electricity to its domestic, commercial, industrial and export customers.
Sarawak Energy’s electricity supply is predominantly renewable following Sarawak’s pivot to renewable energy resources under the Sarawak Corridor of Renewable Energy or SCORE strategic initiative. Sarawak has recorded a reduction in carbon intensity for power generation by 76.5% from 2009 to 2020, contributing to global climate action efforts.
The signing of the agreements comes after Sarawak’s first successful interconnection in 2016 when it began exporting energy to West Kalimantan in Indonesia through a 120km 275kV double circuit transmission line stretching from Mambong in Sarawak to Bengkayang, West Kalimantan.
Sarawak Energy Group Chief Executive Officer, Datu Haji Sharbini Suhaili (right) holding up the Power Exchange Agreement and Interconnection Agreement at the virtual signing ceremony today.
Sabah Electricity Sdn Bhd Chief Executive Officer Datuk Ir. Abdul Nasser Abdul Wahid (left) holding up the Power Exchange Agreement and Interconnection Agreement at the virtual signing ceremony today.
(From left) Sarawak Energy Group Chief Executive Officer, Datu Haji Sharbini Suhaili; Sarawak Minister for Utilities, Dato Sri Dr Stephen Rundi Utom; Sarawak Chief Minister Datuk Patinggi (Dr.) Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg; Sarawak State Secretary, Datuk Amar Jaul Samion; and Sarawak Energy Chairman, Datuk Amar Abdul Hamed Sepawi.
(From left) Sabah State Attorney General, Datuk Nor Asiah Binti Mohd Yusof; Sabah Chief Minister Datuk Seri Panglima Haji Hajiji bin Haji Noor; and Sabah Electricity Sdn Bhd Chief Executive Officer Datuk Ir. Abdul Nasser Abdul Wahid.
Sarawak Chief Minister Datuk Patinggi (Dr.) Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg delivering his congratulatory remarks at the virtual signing ceremony today.
Sabah Chief Minister Datuk Seri Panglima Haji Hajiji bin Haji Noor delivering his congratulatory remarks at the virtual signing ceremony today.