Friday May 9, 2008
Sarawak plans power supply to peninsula
By JACK WONG
KUCHING: Sarawak Energy Bhd (SEB) will sell 8,000MW of electricity annually to Tenaga Nasional Bhd (TNB) by 2030 for use in Peninsular Malaysia.
SEB chairman Datuk Abdul Hamed Sepawi said 3,000MW would be supplied to TNB annually between 2017 and 2020, and this would be increased by 5,000MW annually from 2021 until 2030.
According to TNB chairman Tan Sri Leo Moggie, the parties have agreed to the instalments of 1,000MW in 12 to 18 months intervals during the 2017-2020 period.
SEB signed a heads of agreement with TNB on the supply of electricity to the peninsula, witnessed by Sarawak Chief Minister Tan Sri Abdul Taib Mahmud, on Wednesday.
Moggie said the companies had also agreed to jointly undertake feasibility studies to determine the interconnection framework for the long-term power transmission from Sarawak to the peninsula.
The first part of the studies is expected to be completed by December next year.
“A joint committee will be constituted to oversee and facilitate the implementation of the agreement,” he added.
Tan Sri Leo Moggie (second from left) exchanging documents with Datuk Abdul Hamed Sepawi. With them are TNB president and CEO Datuk Che Khalid Mohamad Nor (far left), Tan Sri Abdul Taib Mahmud (centre), SEB managing director Tan Sri Abdul Aziz Hussain (far right) and the companies’ senior management staff. Moggie said the execution of the definitive agreement with regard to the supply of electricity by SEB to TNB (such as power-purchase and interconnection agreements) was expected to be concluded not later than seven years prior to the respective targeted date for the power supply or such other dates the two parties would mutually agree.
Hamed said the first definitive agreement in the form of a power-purchase agreement, which would detail the pricing, supply duration and minimum off-take, should be signed in 2010.
Moggie said SEB, TNB and Sabah Electricity Sdn Bhd (SESB) had agreed to explore the export of electricity to SESB through the development of SEB’s hydropower plants in Lawas and Trusan in northern Sarawak in 2012.
“This is part of our immediate efforts to enhance the stability and reliability of electricity supply in Sabah,” he said, adding that in view of the critical power supply situation in Sabah, he would like to see SEB and SESB enter into separate heads of agreement soon.
Hamed said the collaboration with TNB was SEB’s first big step to be a major power producer in the region.
As SEB’s focus was to generate power from hydro and coal resources, he said the company had the advantage to offer electricity at moderate costs.
Studies have revealed that there were more than 50 sites where Sarawak could build hydroelectric dams with a total generating capacity of over 20,000MW.
Hamed said the Sarawak coal reserves (over one billion tonnes) could potentially sustain power generation for an economic lifespan of over 50 years.
He said SEB also planned to export electricity to west Kalimantan, Indonesia and Brunei, besides expanding its generation capacities to meet the energy requirements of heavy industries to be set up in the proposed Sarawak Corridor of Renewable Energy.
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