SANDAKAN – Sabah Electricity Sdn Bhd, SESB, must be able to generate at least 70% of Sabah’s baseload power before the state can start discussing renewable energy, said the state utility’s chairman.
Speaking to Scoop recently, Datuk Seri Wilfred Madius Tangau said the baseload power demand in Sabah is currently at 1,080MW while power generated is about 1,200MW – but this cannot ensure a stable power supply as the surplus supply is insufficient to cover technical issues, leading to frequent power disruptions.
“We must first solve the power disruption problem. To do this, SESB must own at least 70% of the baseload power generation (about 700MW) and must generate its own electricity because we need to have control.
“Currently, SESB is only generating and owning 20% of this while the rest is purchased from independent power producers (IPPs).
“We (SESB) are not allowed to operate (power plants), but SESB was the one conducting studies for projects such as the Padas Dam, Liwagu Dam, and a coal power plant in Lahad Datu; but at the end of the day, the projects were either cancelled or given to others to operate,” he told Scoop.
As such, he said SESB hoped for the government to place confidence and trust in the utility company so that it would be able to generate its own electricity without depending on IPPs.
“Don’t think that SESB is only capable of purchasing power from IPPs to be sold to the consumers; SESB also has the assets and skilled resources to conduct studies and run its own projects for power generation in Sabah.
‘Why not hand it to SESB?’
The Upko man added that projects for the implementation and operation of power plants have not been given to SESB for decades, which he called a “long-standing problem”.
“Why not hand it to SESB? Trust SESB. SESB has over 300 capable engineers, we have the assets,” he said.
Tangau explained that the baseload is the minimum level of demand on the grid, which must be dependable enough to consistently meet the 24-hour demand.
Generally, renewables cannot contribute to the baseload as they are inconsistent.
Hence, he said, only when the baseload generation is sufficient and stable that Sabah can start venturing into renewable energy.
Recently, Tangau, who was former federal science minister, has held dialogue sessions with state and federal representatives in Sabah in the hope of uniting them in empowering SESB to make decisions for future power generation projects.
“Their responses have been very positive so far. All of them support SESB. Moving forward, when SESB proposes a project, we hope to get support from all the parties as well as the government,” he said.
The Tuaran MP said since IPPs generate 80% of Sabah’s power supply, SESB’s hands are also tied in many matters relating to power generation in the state.
“For example, when a certain IPP suddenly wants to do scheduled maintenance (calling for load shedding), and when an IPP does not supply the amount of electricity as agreed, there is not much we can do. This explains the frequent power disruptions (in Sabah),” he explained.
Tangau added that SESB is currently operating at a loss, because power purchased from IPPs is priced at RM0.43 per unit, but sold to consumers at RM0.34 per unit in accordance with the tariff set by the federal government.
“SESB is currently facing a real problem – financial sustainability,” he added.
Meanwhile, Tangau said he also hoped Petronas and the Sabah government would prioritise electricity generation when it comes to natural gas distribution.
“If all the gas resources are given to the industrial sector, and none to power generation, then how are the industries going to operate without an electricity supply? So please prioritise electricity generation first,” he said. – September 16, 2023