SABAH Electricity Sdn Bhd (SESB) has inked a deal with Sarawak’s Syarikat Sesco Berhad to buy 30Mw of electricity over 15 years.

The electricity will be exported via a 31km 275kV double circuit transmission line, which will run from Lawas in Sarawak to Mengalong in Sabah.

The interconnection is expected to commence by end 2023, when the grid expansion under Sarawak Energy Bhd’s “northern agenda” has connected Miri to the northern towns of Limbang and Lawas in Sarawak.

SEB is Sarawak’s energy development company and Sesco is one of its subsidiaries.

The power exchange and interconnection agreements – the signings held virtually – is a step closer to the realisation of the greater Borneo grid, Sarawak Chief Minister Abang Johari Openg, who witnessed the signing, said.

In 2016, Sarawak started exporting electricity to West Kalimantan in Indonesia through a 120km 275kV double circuit transmission line stretching from Mambong in Sarawak to Bengkayang in West Kalimantan.

Abang Johari added that this partnership between Sarawak and Sabah will help encourage greater collaboration in the region and foster “shared learning, driving us closer to a sustainable energy future for all”.

The power to be exported to Sabah will come from the hydroelectric dams at Batang Ai, Murum, Bakun and yet to be completed Baleh.

The Baleh dam, when is completed in 2026, will add an additional 1,285Mw of electricity to the state’s power grid.

Abang Johari’s Sabah counterpart, Hajiji Noor said the Sabah government welcomes the collaboration as it supports the state’s development agenda under Sabah Maju Jaya (SMJ).

“We do believe the collaboration will also assist in creating employment opportunities both in heavy and light industrial sectors in Sabah and boost the social-economy particularly in the rural areas,” he said.

The initial “heads of agreement” for the power export was signed in 2013, with the joint feasibility study in 2016 and the term sheet signed last year.

SEB is Malaysia’s largest renewable energy provider, harnessing its abundant natural resources to light up Sarawak and provide power for its growth.

The hydropower has enabled the company to offer reliable and competitively priced electricity to its domestic, commercial, industrial and export customers.

Sarawak’s pivot to renewable energy has also led to a reduction in carbon emission in the state, according to the company.

SEB said Sarawak recorded a reduction in carbon intensity for power generation by 76.5% from 2009 to 2020. – August 6, 2021.