Kuala lumpur: The proposal for the development of a large-capacity base load power plant on Sabah's East Coast had been considered previously by the state and Federal governments, said Deputy Minister of Energy Transition and Water Transformation, Akmal Nasrullah Mohd Nasir. However, he said the matter faced challenges due to high operating costs stemming from the lack of affordable fuel sources.
According to BERNAMA News Agency, input from the Sabah Energy Commission (ECoS) suggests that consideration will be given once upstream exploration projects for the supply of natural gas fuel sources by the natural gas supplier company are successfully implemented. This was stated by Akmal during a Special Chamber Session in the Dewan Rakyat, responding to a question from Vivian Wong Shir Yee (PH-Sandakan) concerning the ministry's efforts in addressing the energy and water infrastructure gap in Sabah, which threatens national security.
Wong highlighted that the absence of a large-capacity power plant on Sabah's East Coast exposed national security assets during a massive power outage last month. In response, Akmal Nasrullah outlined that the Sabah government is focusing on five main approaches. These include Large Scale Solar (LSS) projects, a Battery Energy Storage System (BESS) on Sabah's East Coast, a floating Liquefied Natural Gas (LNG) power plant project in Tawau, a 141-megawatt (MW) hydro project in Lahad Datu, and the development of a geothermal-based power generation project with a potential capacity of 100 MW in Tawau.
The Sabah State Planning Unit (UPEN) has submitted an application for an allocation for the construction and development of the Southern Link Transmission Line (TPSL) under the 13th Malaysia Plan (RMK13) to the Ministry of Economy. Akmal noted that the Federal government has agreed that the application for development allocation for Sabah's RMK13 electricity supply projects be provided as a loan, to be submitted according to the Rolling Plan (RP) through the Ministry of Energy Transition and Water Transformation (PETRA).
Furthermore, the Federal government will continue to channel energy subsidies to Sabah until 2030, with an indicative total of RM3.54 billion, covering fuel, large-scale solar, tariffs, and renewable energy. The basic electricity tariff in Sabah is 34.52 sen per kilowatt-hour (kWh), contrasting the overall cost of electricity supply to consumers, which stands at 52 sen/kWh for 2024 (51.29 sen/kWh in 2023). This gap necessitates subsidy support from the Federal government for Sabah Electricity to operate effectively.
To ensure a stable water supply in Sabah, the Federal government has approved RM2.9 billion as a loan for 16 water supply projects under the 12th Malaysia Plan (RMK12). These projects include the construction of new water treatment plants (WTP), upgrading existing systems, water resource studies, and feasibility studies for water supply projects, as well as maintenance of the water supply system. An allocation of RM300 million, announced by the Prime Minister, is part of this funding to resolve water supply issues in Sabah.
Additionally, Phase 1 of the National Non-Revenue Water (NRW) Reduction Programme Approach 1 has been implemented with an allocation totaling RM87.1 million, aimed at enhancing water supply efficiency in the region.