SABAH Electricity Sdn Bhd (SESB) chairman Wilfred Madius Tangau said the company must have the capacity to generate at least 70% of the state’s baseload power requirement to solve power supply disruptions.

He said SESB only generates and owns 20% of state’s the baseload power requirement, while the rest is generated by independent power producers (IPPs) before being sold to SESB.

He said the baseload power requirement in Sabah is 1,080MW, but its current maximum power demand is 1,200MW, showing a reserve margin of less than 12%.

“This situation could lead to instability in energy supply, especially in the face of technical challenges,” he said in a statement today.

Baseload refers to the minimum level of electricity required that can reliably meet demand over a period of 24 hours.

Madius said since 80% of Sabah’s power supply was generated by IPPs, SESB’s hands were tied when disruptions occurred.

He said SESB was operating at a loss because power is purchased from IPPs at RM0.43 per unit but sold to consumers at RM0.34 per unit in accordance with the tariff set by the federal government.

As such, he said, SESB hoped the government would place confidence and trust in the firm so it could generate its own electricity without depending on IPPs.

Madius said for now, stakeholders only view SESB as the “middleman” managing Sabah’s electricity supply.

“SESB owns assets in the transmission and distribution network of energy supply but not in electricity generation. We actually have many skilled workers who are not only capable of doing research but also capable of operating their own electricity generation in Sabah,” he said.

Madius, who is also Tuaran MP, proposed that Petronas and Sabah government distribute natural gas, giving priority to electricity generation, to enable effective generation to provide uninterrupted power supply to Sabah residents. – Bernama, September 17, 2023.