Wednesday September 19, 2012
Competition for remaining power supply fierce
KUCHING: Power generated by Sarawak Energy Bhd (SEB) has been snapped up like “hot cakes” by investors the world over, leaving only some 600MW from the up and coming coal-fired plant in Balingian for sale.
Even then, its chief executive officer Torstein Dale Sjotveit said competition for the remaining power among potential customers was “fierce”. The Balingian plant is due to commence construction next year, with production to start in late 2015.
Sjotveit said SEB had signed firm agreements with Tokuyama, Asia Minerals, Press Metal, OM Holdings and Indonesia’s PLN for a combined total of 1,800MW and on top of that, it had also signed term sheet agreements with three other customers for an additional 600MW.
“This means that the entire firm output of both Bakun and the Murum Dams has been sold to solid industries at attractive prices and with reasonable inflation causes,” he said at the official opening of SEB’s new office at the Isthmus here.
The Murum project is now 75% completed with production to start early 2014.
Sjotveit pointed out that within the space of a few short years, SEB and the state government had achieved things that were previously thought to be impossible, including gaining access to the energy from the Bakun Dam.
“Today we have not only secured all the energy, but we have also sold it to companies bringing, billions of ringgit of investment and thousands of new jobs to Sarawak,” he said.
“It was (also) not so long ago, that SEB had only a small number of potential SCORE (Sarawak Corridor of Renewable Energy) customers, negotiating aggressively for very low tariffs.
“Today, thanks to the hard work of the state government, the State Planning Unit and SEB, demand for Sarawak’s energy exceeds surplus.
“The most recent SCORE tariffs are around 50% higher than those discussed three years ago.”
On its upcoming projects, Sjotveit said SEB was about to start construction of a RM3bil investment programme to build the 500kV transmission system and reinforce the infrastructure from Bintulu to Kuching.
The project will be completed in stages from late 2014 to late 2015.
“We also have developed a long list of future generation projects both in hydro, where we have firm plans for both Baram and Baleh hydro projects, as well as in the northern region and with coal projects in Mukah and Merit Pila. We are also looking at new gas projects in Bintulu, Samalaju and Miri.”