KOTA KINABALU: The Lahad Datu Battery Energy Storage System (BESS) has been effective in stabilising Sabah’s electricity grid while reducing operating cost based on data verified by the Grid System Operator (GSO), says Datuk Seri Dr Joachim Gunsalam.
The Deputy Chief Minister said that since it started operations on August 29, 2025, the facility has reduced diesel consumption by 9.8 million litres.
“This translated into diesel fuel savings of RM24.07mil based on average diesel prices between September 2025 and March 2026.
“With diesel costs doubling to RM5 per litre from April 2026 due to the global energy crisis, the value of these savings is expected to rise further,” he said while winding up debates on the Yang di-Pertua Negeri’s opening speech at the State Assembly here.
He said the BESS was designed to operate at 100MW/400MWh and provides ancillary services to the Sabah Grid.
The facility is charged optimally during off-peak hours using cheaper sources such as natural gas, hydroelectric power, and imports from Sarawak.
“Charging costs have averaged between 7.2 sen/kWh and 16 sen/kWh, underscoring its efficiency,” Dr Gunsalam, who is also the state Works Minister.
Apart from saving costs, he said the facility enhances grid resilience with grid-forming and black start capabilities, ensuring stability in weak grid conditions.
“The project has functioned as intended, delivering both economic and technical benefits,” Dr Joachim said when addressing issues raised by assemblymen about the effectiveness of the system.
He added that the BESS strengthens Sabah Electricity’s energy generation while also helping in the energy transition plan to phase out diesel plants on the East Coast within five years, replacing them with natural gas and renewable energy facilities.
