THE Sabah government is doubling down on efforts to ensure a stable and sufficient electricity supply across the state through a dual strategy focused on long-term sustainable generation and short- to mid-term pragmatic measures.
Caretaker Finance Minister Datuk Seri Masidi Manjun said the state recognises that reliable energy is not only essential for domestic consumption but also critical to attracting new investments.
“The government is encouraging renewable energy generation from sources such as solar, hydropower and rivers as part of a long-term plan to stabilise Sabah’s energy supply,” he told Sabah Media recently.
While the transition to renewables forms a key pillar of future energy resilience, Masidi acknowledged that Sabah still lacks adequate reserve capacity to meet immediate demand.
As an interim measure, he explained that the state government is granting permission for new industrial zones to build their own power generation facilities or Independent Power Producers (IPPs).
“This approach allows industrial zones to generate their own electricity without relying entirely on Sabah Electricity. The electricity saved can then be redirected for domestic use,” he said.
Masidi added that this arrangement helps reassure both foreign and local investors — particularly in the manufacturing and heavy industry sectors — that their operations will not be disrupted by energy shortages.
“One of the main concerns among investors when considering Sabah is the reliability of the electricity supply.
“By allowing large investors and industrial zone management to establish their own IPPs, we can ensure energy continuity at their project sites,” he explained.
The measure is part of a broader strategy to strengthen Sabah’s energy ecosystem in line with the state’s expanding industrial agenda.
Masidi also clarified that while the state remains committed to improving electricity services, ultimate control still lies with the federal government through Tenaga Nasional Berhad (TNB), which owns a majority stake in Sabah Electricity Sdn Bhd (SESB).
“People often blame the state government when the power goes out, but the fact is SESB is owned by TNB, a federal government-linked company,” he said.
“That does not mean the state is shirking responsibility — we continue to assist where we can, because it is a shared responsibility.”
In a significant step towards reclaiming energy sovereignty, the Sabah State Legislative Assembly last year passed three key bills enabling the state to assume regulatory control over its electricity and renewable energy sectors from the federal government.
The three bills were the Sabah Energy Commission (Amendment) Bill 2024, the Electricity Supply Bill 2024, and the Renewable Energy Bill 2024.
Caretaker Chief Minister Datuk Seri Hajiji Noor, during the debate wrap-up on the Energy Commission Bill, announced the state’s intention to fully take over SESB within seven years.
Currently, 83 per cent of SESB shares are owned by TNB, with the remainder held by the Sabah government.
The move is in line with the Sabah Energy Roadmap and Masterplan 2040 (SE-RAMP 2040), which sets out the vision of transforming Sabah into an energy-resilient, low-carbon state by 2040. - October 12, 2025
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