ECoS CEO Datuk Ir. Abdul Nasser speaks to the media during his visit to the PPU Ulu Sibuga injection point in Sandakan, where interim power solutions have been implemented.
KOTA KINABALU: The Sabah government is extending diesel power plant operations and renting additional diesel generator sets (gensets) to keep up with rising electricity demand as the state struggles with supply shortages.
The Sabah Energy Commission (ECoS) is resorting to what it calls interim solutions while waiting for longer-term projects, such as gas-fired power plants and renewable energy developments, to be completed.
Its CEO Datuk Abdul Nasser Abdul Wahid said the state cannot afford to wait for permanent solutions and must use what is available now, even if it means higher costs and greater reliance on government subsidies.
“(Extending operations) is one of the fastest interim solutions we can implement because the power plant is already operational," he said after inspecting the Libaran power plant and the power processing unit in Ulu Sibuga in Sandakan on Tuesday (Feb 18).
"It allows us to address demand quickly while we work on long-term solutions
"The government provides subsidies to ensure that consumers do not bear the full burden. However, we have to use these fuel sources wisely and only when necessary."
The Libaran plant, which has been in operation since 1998 under independent power producer Eden Inc through Stratavest Sdn Bhd, will continue using medium fuel oil under a contract extension from this month until February 2027.
On the state's west coast, where natural gas is available, rental gas turbines are being used as a more cost-effective alternative, Nasser said.
“However, on the east coast, we don’t have access to natural gas, so we are using medium fuel oil and diesel, even though they are more expensive," he added.
These interim measures helped improve Sabah’s electricity reserve margin from about 10% last year to 15% now and ECoS aims to raise it to at least 25% by mid-year through a combination of short-term fixes and long-term infrastructure projects, he said.
He noted that among the permanent solutions the state is working on is the 100MW battery energy storage system (BESS) in Lahad Datu, set to be operational by June.
The largest of its kind in South-East Asia, the facility will house 188 battery units with a 400MWh capacity, boosting grid stability and reducing reliance on costly diesel power.
Nasser said BESS offers a more sustainable alternative by enhancing Sabah’s grid capacity and reducing dependence on diesel.
“This project aligns with Sabah’s move towards cleaner energy solutions,” he said.