(Seated, from right) Abang Johari and Dr Rundi witness Sharbini holding up the inked documents after the virtual signing ceremony. Seated, at far left, is Lau.
KUCHING (Aug 7): Syarikat Sesco Bhd, a subsidiary of Sarawak Energy Bhd (SEB), has entered into a power exchange agreement and also an interconnection agreement with Sabah Electricity Sdn Bhd (SESB).
The collaboration, which was inked yesterday, marked a historic milestone in the journey towards materialising the Borneo Grid and the wider Asean Power Grid.
The agreements would pave the way for an initial export of 30MW for a term of 15 years via a 31km 275kV double-circuit transmission line, which would run from Lawas in Sarawak to Mengalong in Sabah, said SEB and SESB in a joint statement.
The interconnection should commence by end of 2023, once the grid expansion under the SEB’s Northern Agenda had connected Miri to the northern towns of Limbang and Lawas in Sarawak.
Sarawak Chief Minister Datuk Patinggi Abang Johari Tun Openg and Sabah Chief Minister Datuk Seri Panglima Hajiji Noor witnessed the virtual signing ceremony between both energy companies yesterday.
Also present were Sarawak’s Minister of Utilities Datuk Dr Stephen Rundi; Tenaga Nasional Bhd (TNB) chairman Datuk Seri Mahdzir Khalid and TNB chief executive officer Datuk Baharin Din; SEB chairman Datuk Amar Abdul Hamed Sepawi; Sesco chief executive officer Lau Kim Swee; and SESB company secretary Zunaidah Osman.
SEB Group chief executive officer Datu Sharbini Suhaili and SESB chief executive officer Datuk Abdul Nasser Abdul Wahid inked the official documents on behalf of their respective organisations.
In his congratulatory remarks, Hajiji said the Sabah government welcomed the good initiative and collaboration, which should support the development agenda under Sabah Maju Jaya (SMJ), and the growth of the industrial sector in Sabah as a whole.
“We do believe that the collaboration would also assist in creating employment opportunities, both in heavy and light industrial sectors in Sabah, and boost our socio-economy particularly in the rural areas,” he said before prior to witnessing the virtual signing ceremony from Sabah State Administrative Centre in Kota Kinabalu.
Hajiji also hoped that the agreements would establish good cooperation between the governments of Sabah and Sarawak in all their future undertakings.
Meanwhile, Abang Johari congratulated the two power utilities groups for working together on the interconnection project, which would foster shared-learning and encourage greater collaboration in the region.
“This collaboration brings us a step closer to a sustainable energy future for our people and beyond as we can share our renewable energy resources with our neighbours, further contributing to the reduction of carbon emissions in the region, as well as ensure energy supply security and bilaterally optimised operation costs, while attracting investments for economic transformation in the Borneo region,” he said.
Abang Johari added that building upon the proven success of its renewable energy development strategy, the SEB was spearheading the ‘Green Energy Agenda’ to promote a low-carbon economy and transportation through the development of cleaner energy alternatives such as hydrogen and solar.
Adding on, Mahdzir said: “As approved by the Electricity Supply and Tariff Planning and Implementation Committee (JPPPET), the 275kV Sabah-Sarawak interconnection line is the first project connecting electricity supply between the two states aimed at strengthening the stability of electricity supply.
“The signing of the agreement is paramount, in line with SESB Sustainability Plan and the aspiration of BIMP-EAGA (Brunei-Indonesia-Malaysia-Philippines East Asian Growth Area) and the Heads of Asean Power Utilities/Authorities (HAPUA).”
In his remarks, Abdul Hamed expressed SEB’s thanks to the governments of Sarawak and Sabah for the key roles that they had played in supporting and enabling the cooperation between the two power utilities.
“Today’s (yesterday’s) event is the culmination of our collaboration with SESB since our initial ‘Heads of Agreement’ was signed in 2013, our joint feasibility study in 2016, and our term sheet signing last year.
“This interconnection project is expected to diversify the generation mix for Sabah and Sarawak, while enhancing system reliability and security by sharing generation resources for both Sarawak Energy Bhd and Sabah Electricity.
“The project is also expected to facilitate economic collaboration between the two states, accelerating renewable energy transformation and supporting economic growth in Borneo.”