Malaysia

Sabah approves 723MW in new power projects to meet rising energy demand

Gas and renewable energy projects receive conditional clearance as state targets improved reliability and reserve margins

Updated 1 year ago · Published on 22 Jul 2025 2:36PM

Sabah approves 723MW in new power projects to meet rising energy demand
State’s electricity generation reserve margin has risen from 10 per cent in January 2023 - July 22, 2025

THE Sabah Energy Council (MTS) has given in-principal approval for 723 megawatts (MW) of new power generation projects to address the state’s medium-term electricity needs, Chief Minister Datuk Seri Hajiji Noor announced today.

The approved capacity includes 360MW from gas-fired plants in Kimanis and Tawau, and 363MW from renewable energy sources such as hydroelectric and wind. These projects have received conditional technical and commercial clearance.

“All decisions must be made with balance and prudence, taking into account the state’s economic growth, industrial demands and the public’s capacity to bear energy costs,” Hajiji said following the MTS meeting in Kota Kinabalu.

He affirmed that MTS continues to serve as Sabah’s highest-level platform for aligning energy development with policy priorities. Several fast-track energy projects approved last year are already operational and contributing to improved supply reliability.

Sabah’s electricity generation reserve margin has risen from 10 per cent in January 2023—prior to the Sabah Energy Commission (ECoS) taking regulatory control—to 17 per cent currently. The state aims to reach a 30 per cent reserve margin by the end of this year.

According to Hajiji, these expedited efforts have also led to marked improvements in power supply reliability.

The state’s System Average Interruption Duration Index (SAIDI), which measures the average outage time per consumer, has decreased from 363 minutes in the first half of 2023 to 215 minutes over the same period this year, and further improved to 162 minutes in the latest reporting cycle.

He also urged stronger participation from state-linked companies (GLCs) to take on a more prominent role in shaping Sabah’s evolving energy sector. - July 22, 2025

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