KUCHING: The construction of undersea power cables to deliver renewable energy (RE) from Sarawak to Singapore will start by 2026 at the latest, says Sarawak Premier Tan Sri Abang Johari Tun Openg.
He said the state government, as well as the federal and Singaporean governments, planned to commence the project next year, as all parties waited for the current shortage of submarine cables to be solved by the year end.
He said the Indonesian authorities have given a positive response to the project, as the laying of the undersea power cables would also have to go through Indonesian waters.
“Both the Singapore and Sarawak governments, with endorsement from the Malaysian government, decided that the undersea cable construction has to start at least by next year,” added Abang Johari after launching the Sarawak Mega Fair 2025 at Suntec Singapore Convention and Exhibition Centre last Thursday.
Singapore’s Energy Market Authority has granted conditional approval to Sembcorp Utilities, which would be working with consortium partner Sarawak Energy Bhd to import one gigawatt (GW) of hydropower produced in Sarawak.
According to Abang Johari, a special cross-border energy corridor to allow the export of electricity to the republic from Sarawak is being drafted between Malaysia, Singapore and Indonesia, with technical discussions underway.
“There is already an agreement in principle for Sarawak to supply green energy to Singapore through this dedicated corridor,” he added.
He said hydropower generates more than 60% of Sarawak’s power capacity.
Sarawak Energy owns the Bakun hydroelectric dam (2,400MW), Murum dam (944MW) and Batang Ai dam (108MW).
Under construction now is the Baleh dam (1,285MW).
Abang Johari said the state offers investment incentives to attract foreign investors, including those from Singapore, particularly in the clean energy and sustainable industrial sectors.
“We are offering incentives equivalent to those provided by the Malaysian Investment Development Authority, and in addition, we have state-level incentives, such as land size, land premiums and competitive energy tariff rates.
“At present, Sarawak has the lowest industrial energy tariff in Malaysia,” the Sarawak Premier said, adding that the state’s political and administrative stability strengthens investor confidence.
Speaking earlier at the Sarawak Mega Fair, Abang Johari said investors leveraging Sarawak’s green energy in their production processes would gain market advantages or a green premium as global demand for low-carbon products continues to rise.
Furthermore, he said the global focus on environmentally friendly products made using RE makes Sarawak’s green energy a key added value for both foreign and local investors.
“Investors who come to Sarawak and produce goods using green energy will receive a green premium.
“This means their products will be easier to sell because their production process has low carbon emission.
“The world is now seeking green products that do not harm the environment,” he said.
On another note, Abang Johari said the state-owned AirBorneo would enhance air connectivity between Sarawak and Singapore, which would boost tourism and trade in the state.
