Dams to drive energy-intensive industries

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KUCHING: Analysts are encouraged by the recent green-light on the development of two major hydroelectric dams; Baram and Baleh, as the roll-out will likely act as a positive lever to boost Sarawak Corridor of Renewable Energy’s (SCORE) energy capacity to meet increasing power requirements of energy-intensive industries.

“At the moment, power from the existing 2,400 megawatts Bakun and 944 megawatts Murum dams have been pre-sold. While the exact timeline remains unclear, we expect both projects to be rolled-out within the next one to two years.

“This should have a spillover effect for local Sarawakian contractors,” analysts at AmResearch Sdn Bhd (AmResearch) said in a note.

Notably, Sarawak Cable Bhd (Sarawak Cable) could be a key beneficiary of more power transmission lines that Sarawak Energy Bhd (SEB) would likely need to construct to meet future power load capacity.

It also highlighted contractors such as Hock Seng Lee Bhd and KKB Engineering Bhd possibly benefitting from a portion of civil-related works for the dams.

“Likewise, Bintulu Port Holdings Bhd could benefit from increased throughput capacity once the new Samalaju port is ready,” the research firm said.

To note, the two upcoming hydroelectric dams, which is expected to have capacities of 1,200 and 1,295 megawatts respectively, would likely bump up Sarawak’s hydro capacity to nearly 6,000 megawatts.

“The target is for Sarawak to have potential hydropower resources totalling 20,000 megawatts, with another 8,000 megawatts coming from coal,” AmResearch explained.

“We understand that the Baram dam would be a roller compacted concrete type with its crest elevation set at 185 megawatts.

“On the other hand, Baleh would be a 204-metre high concrete faced rockfill dam with a gated chute channel spillway, an intake structure, five power tunnels as well as a power station housing five generator units,” it added.