KUCHING: The federal government’s decision to lift the ban on cross-border trade in renewable energy in May this year is pivotal for encouraging cross-border electricity trade for the region.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said interconnections are one of the primary ways for the region to achieve regional net zero and energy transition targets.
“While this did not affect Sarawak’s power interconnection with Indonesia which commenced in 2016, we see this as an important and positive decision,” he said.
He said Sarawak’s first interconnection with West Kalimantan, Indonesia in 2016 was the first step towards realising the Borneo Power Grid and its success encouraged the state to pursue similar bilateral interconnection projects.
“Building upon this strong relationship established with our Indonesian neighbours, Sarawak Energy is progressing the Mentarang Induk Hydroelectric Project or MIHEP in North Kalimantan via a joint venture company with our Indonesian partners.
“In 2021, we signed power exchange and interconnection agreements with Sabah – this will involve initial exports of 30MW to 50MW over a 15-year period,” he said, adding that Sarawak is also working on a power exchange agreement with Brunei for electricity export.
Apart from that, he said Sarawak is venturing beyond the Borneo Power Grid as part of the regional Asean Power Grid; Sarawak Energy, together with their partners Sembcorp International and Singapore Power Group have completed comprehensive technical studies and are well advanced in the commercial negotiations for an interconnection with Singapore, with direct undersea power cables linking Sarawak and Singapore.
Abang Johari said Sarawak can play a central role in progressing regional energy transition by sharing its hydropower-based resources with regional neighbours via interconnections.
“Collectively, these projects are vital building blocks for the Asean Power Grid and in pursuing them, I believe Sarawak can become the battery of Asean – helping to link power grids across the region,” he added.
He was speaking at the Sustainability and Renewable Energy Forum (SAREF 3.0) powered by Sarawak Energy held at Borneo Convention Centre Kuching here today.
With rising energy demand in Southeast Asia, Abang Johari said interconnections and intraregional partnerships will be extremely important moving forward, with some reports indicating energy demand in the region has increased on average by around three per cent per year over the past two decades.
“We need to work closely to accommodate this growing demand while meeting sustainability requirements while cooperation, communication and understanding are essential if we are to see collective success for Southeast Asia.
“As policymakers, we must do our part, providing the necessary political frameworks and programmes to facilitate public-private partnerships and encourage collective action,” he said.
Thus, he said, Sarawak, which offers sustainability and renewable energy opportunities, is interested in working with like-minded countries, organisations or entities that are similarly committed to a sustainable energy future for our region and the world.
“In the face of global warming and a growing climate crisis, it is essential for us to align ourselves and make a shared commitment to balancing people, planet and profit to ensure continued and sustainable prosperity for all. No one can or should be left behind,” he stressed.
Also present were Deputy Premier Datuk Seri Dr Sim Kui Hian, Minister of Utility and Telecommunication Datuk Julaihi Narawi, Sarawak Energy Berhad (SEB) chairman Datuk Amar Abdul Hamed Sepawi, SEB group chief executive officer Datuk Sharbini Suhaili and other distinguished guests.
