Sarawak to initiate formal talks with Indonesia on undersea cable


KUCHING: Sarawak will start formal talks soon with Indonesian authorities on the proposed laying of undersea cables to transmit electricity from Sarawak to Singapore as the interconnection project will run through Indonesian waters, according to Sarawak Premier Tan Sri Abang Johari Tun Openg (pic).

He said discussions would be held in the Asean spirit and with full respect for Indonesia’s sovereignty and interests.

Sarawak plans to export up to 1,000 megawatt (MW) of renewable energy to Singapore via 700km of submarine cables, out of which about 70% will be laid under the Indonesian water.

Abang Johari said state-owned Sarawak Energy Bhd (SEB) and its partners – Sembcorp Industries and Singapore Power Group – have completed comprehensive technical studies and are well advanced in the commercial negotiations for a potential interconnection with Singapore.

Prime Minister Datuk Seri Anwar Ibrahim has given his blessings on the export of electricity from Sarawak to Singapore, and the matter was discussed during the recent bilateral meeting between Malaysian delegation led by Anwar with his Singaporean counterpart Lee Hsien Loong. Abang Johari was part of the Malaysian delegation.

“Sarawak is proud to play our role by spearheading a shared grid in Borneo, and to work with Indonesia and Singapore to progress the Asean power grid,” Abang Johari said when addressing the opening of the World Hydropower Congress in Bali, Indonesia, last week.

On the development of the Asean power grid, he said Sarawak’s first power exchange with its partner Perusahan Listrik Negara in West Kalimantan in 2016 had demonstrated the shared benefits of interconnection, paving the way for other bilateral interconnection projects to advance the Borneo Grid. SEB has been exporting electricity to neighbouring West Kalimantan for seven years.

In 2021, SEB signed a power exchange agreement with Sabah Electricity to commence power export by mid-2024.

The premier said Sarawak is also working on a power exchange agreement with Brunei for electricity export.

On Sarawak’s hydropower potential, Abang Johari said studies indicated the state had at least 8,000MW of hydro power at high potential sites, of which 3,452MW have been harnessed through three major dams. These are the 2,400MW Bakun dam, 944MW Muram dam and 108MW Batang Ai dam.

He said under construction now is the fourth hydro dam with an installed capacity of 1,285MW in Baleh, Kapit Division to meet the strong demand for power from domestic and export customers. The Bakun and Murum dams are also located in upstream of Kapit Division

SEB, he said, is also developing a pilot 50MW floating solar farm at Batang Ai dam reservoir, and the project is expected to be commissioned next year.

Abang Johari said hydropower development has meant that Sarawak is almost fully electricified, from only 79% in 2009 and the carbon emission intensity of the state power grid has decreased by 73% from 2010 to 2021.

“We have moved from 100% fossil fuel since the 1980s to predominantly renewable hydropower in our generation mix today,” he added.

Touching on the 1,375MW Mentarang Induk hydroelectric project in North Kalimantan, Indonesia, of which SEB is a joint-venture partner, Abang Johari said the project is making good progress.

“Early works on the project is well underway and the project is on track to generate first power by the end of this decade,” he added. Abang Johari attended the project’s earthbreaking ceremony by Indonesian President Joko Widodo on March 1 this year.

The US$2.6bil project is undertaken by joint-venture firm PT Kaya Hydropower Nusantara, a joint venture between SEB, PT Adaro Energy Indonesia and PT Kaya Patria Pratama Group. The concrete face rockfill dam to be built has a height of 235m and length of 815m.

“This multi-billion-dollar project is a joint effort to provide affordable and sustainable renewable energy to support Indonesia’s Green Industrial Park in North Kalimantan,” he said.

   

Next In Business News

Decarbonising cement: Are we ready?
After a homeowner passes
A stinky nuisance: When septic tanks burst
Ringgit to trade in tight range of 4.46-4.48 versus US dollar next week
Building a firm facade
Portfolio positioning under Trump era
EQ expands to Thailand
RHB, CGC in LCTF portfolio guarantee deal
Market struggles to find direction
Sapura Energy ‘in a good place now’

Others Also Read