Sarawak Premier Tan Sri Abang Johari Tun Openg
KUCHING: Sarawak may expect inflow of US$20bil in investments into potential large-scale solar power projects by multinational companies from China and United Arab Emirates (UAE).
Shanghai Electric and China Three Gorges International Ltd are mulling to invest US$10bil and UAE’s state-owned clean energy provider, Abu Dhabi Future Energy Company, widely known as Masdar, may invest US$10bil to produce solar power from hydroelectric dams in Sarawak, according to Sarawak Premier Tan Sri Abang Johari Tun Openg.
Top executives of these companies expressed their strong interest to make such investments in proposed solar power projects in Sarawak to Abang Johari during their meetings here late last month.
“The combination of the two is expected to produce an estimated three gigawatts (3GW or 3,000MW)) of solar power,” Abang Johari said at the Natural Resources and Environment Board’s 30th anniversary celebration dinner here.
He said Sarawak is capable of producing at least 3,000MW of electricity from floating solar panels’ installation on existing hydroelectric dams, including Bakun and Murum.
The 2,400MW Bakun dam and 944MW Murum dam in the upper Rejang basin in Kapit Divisions have the potential to produce 500MW and 600MW respectively via floating solar farms on their reservoirs.
Another major dam, the 1,285MW Baleh dam project currently under construction is targetted for completion in fourth quarter of 2028, according to developer Sarawak Energy Bhd (SEB).
Abang Johari recently toured the SEB’s floating solar farm project on Batang Ai hydro dam reservoir in Sri Aman Division. The 50MW floating solar farm, Malaysia’s largest and the first major hybrid generation facility combining hydro and solar, is expected to be commissioned in October this year.
The solar farm project is a joint venture between SEB, China Power International Holdings (a wholly-owned subsidiary of State Power Investment Corp) and solar energy firm, Trina Solar.
SEB, according to its group chief executive officer (CEO) Datuk Sharbini Suhaili, is conducting studies on the feasibility of a Phase 2 floating solar facility at Batang Ai with a capacity of up to 160MW. The 108MW Batang Ai dam, the first hydro power plant in Sarawak, was commissioned in 1985.
The 50MW Batang Ai floating solar farm project occupies merely about 3% or 86 ha out of the 8,500 ha of the dam’s reservoir.
Sharbini said SEB is evaluating proposals from potential independent power producers keen to invest in solar energy projects in Sarawak.
Abang Johari said UAE’s Masdar is interested to invest in solar energy development.
Masdar and SEB inked a memorandum of understanding to collaborate on developing clean energy in Sarawak during the 28th Conference of Parties to the United Nations Framework Convention on Climate Change in Dubai in December 2023.
Masdar, with its presence in more than 40 countries, is one of the world’s largest renewable energy companies and a green hydrogen leader that has placed the UAE in the forefront of energy transition,
In a follow-up meeting with SEB’s top officials and Sarawak Premier in Kuching recently, Masdar CEO Mohamed Jameel Al Ramahi said Masdar was committed to working with the Sarawak government and its local partners to invest and develop large-scale renewable energy projects.
According to him, Masdar aims to develop gigawatts of renewable energy capacity in Malaysia and across other Asian countries.
On the other hand, Shanghai Electric Malaysia director Zhang Xiaohui said his company and China Three Gorges’ experience and success in working with companies in Sarawak had given them the confidence to increase their investments.
“We from Shanghai Electric and China Three Gorges want to participate in green energy development and we plan to invest US$10bil in Sarawak.”
Zhang said the two companies would extend their support to Sarawak Premier’s aim to turn Sarawak into a green energy hub.
Three Gorges was the main contractor for the Murum dam, which commenced construction in 2008 and became fully operational in 2015.
