KOTA KINABALU: Datuk Seri Madius Tangau, the chairman of Sabah Electricity Sdn Bhd (SESB), has emphasized the need for the company to meet the state’s base load demand before shifting towards renewable energy. Tangau stated that SESB must have the capacity to generate at least 70% of Sabah’s base load power requirements before pursuing renewable energy sources. Currently, the base load power demand in Sabah is at 1,080MW, and the maximum power demand is around 1,200MW, leaving the state with a reserve margin of less than 12%. This situation poses a risk to stable power supply and results in frequent power disruptions in Sabah.
To address the power disruption problem, Tangau stressed the importance of SESB owning a minimum of 70% of the base load power generation, which amounts to approximately 700MW. He also highlighted the need for SESB to generate its own electricity to maintain control over the power supply. Currently, SESB only generates and owns 20% of the base load power, while the remaining is purchased from independent power producers (IPP).
Tangau explained that base load refers to the minimum power level required to consistently meet the 24-hour power demand. In Sabah, 80% of the power supply is generated by IPPs, limiting SESB’s authority in power generation matters. Tangau gave an example of how SESB is unable to address issues such as scheduled maintenance or inadequate electricity supply by IPPs, which often leads to load shedding.
SESB hopes that the government will have confidence in their ability to generate their own electricity without relying on IPPs. Tangau emphasized the importance of re-examining SESB’s financial sustainability and the stability of the electrical power supply. While SESB owns the transmission and distribution assets, it lacks generation assets. Tangau mentioned that SESB possesses skilled manpower to conduct studies and run power generation projects in Sabah, but they are not given the opportunity to operate power plants.
Tangau cited the Ulu Padas Hydroelectric Dam and the proposed coal power plant in Lahad Datu as examples where SESB conducted studies but was denied the opportunity to implement these projects. He noted that this situation differs from Sarawak, where Sarawak Energy Bhd (SEB) owns all power generation plants in the state. Tangau recently held dialogue sessions with state and federal representatives in Sabah to gain support in empowering SESB to make decisions regarding power generation projects in the future.
SESB currently operates at a loss as power is purchased from IPPs at RM0.43 per unit but sold to consumers at RM0.34 per unit, following the tariff set by the federal government. Tangau expressed concerns regarding SESB’s financial sustainability, especially when the electricity tariff in the peninsula is RM0.39 per unit. He also urged Petronas and the Sabah government to prioritize electricity generation when distributing natural gas resources, as industries depend on an adequate electricity supply.
Credit: The Star : News Feed
