SABAH is preparing for what could be its first major power system stress-test in years, as multiple fast-tracked projects edge closer to completion with the aim of achieving a 20% reserve margin by July 2025.
Sabah Electricity Chairman Datuk Seri Wilfred Madius Tangau said the combination of new gas capacity, battery storage, and the return of the Tenom Pangi Hydropower Station is expected to significantly boost Sabah’s energy reserves.
He said this would improve reliability for domestic consumers, businesses, and investors who have long faced disruptions caused by supply shortages and frequent outages.
The state currently operates with a 14% reserve margin.
Among the projects moving toward completion are a 100-megawatt Battery Energy Storage System in Lahad Datu, a new 100-megawatt gas-fired power plant in Kimanis, increased gas supply to Kimanis, and planned electricity imports from Sarawak.
The return of the 66-megawatt Tenom Pangi Hydropower Station, fully restored after a RM60 million repair effort, was also highlighted as part of this upcoming major milestone.
Tangau also confirmed that Sabah Electricity has received in-principal approval from the Sabah Energy Commission to develop a new run-of-river hydropower project with a capacity of nearly 500 megawatts, spanning an 18-kilometre stretch.
“We hope all stakeholders, especially local communities in Beaufort and nearby areas, will understand and support this project. This design does not cause flooding. It simply diverts part of the river through turbines before returning it downstream,” he said.
Meanwhile, Deputy Chief Minister III Datuk Shahelmey Yahya said the government remained focused on energy security.
“The electricity reserve margin in Sabah, which currently stands at 12.4%, is expected to be increased to 20% by July this year. Various interim and fast-track mitigation measures to boost generation capacity have already been approved by the Sabah Energy Council,” said Shahelmey.
Sabah has long struggled with an energy supply crisis marked by frequent power interruptions, capacity shortfalls, and unreliable service—disruptions that have affected homes, strained local businesses, and raised concerns among investors looking for stable industrial infrastructure. — May 15, 2025
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