KOTA KINABALU: Datuk Seri Wilfred Madius Tangau has confirmed that the contract for the multi-million Battery Energy Storage Systems (BESS) project was awarded to a peninsula-based firm following a thorough selection process.
The Sabah Electricity Sdn Bhd (SESB) chairman added that Tenaga Nasional Berhad (TNB) is responsible for final decisions on projects exceeding RM100mil.
“The final call for projects over RM100mil is made by TNB, so it's out of SESB's hands,” he said while attending the SESB Vendor Day 2024 on Wednesday (Oct 16).
The tender attracted 21 companies to its briefing, with six submitting bids, including one from Sabah. Tangau said the meticulous eight-month tender process began in January last year and concluded with the issuance in November.
“This was a strict exercise. We even engaged a consultant to deeply understand battery and storage energy systems. The decision was made by TNB's board and is final,” he added.
Tangau was responding to Parti Warisan vice president Datuk Junz Wong, who questioned the project's awarding process and the implications for consumer electricity bills in a recent video.
Wong called for the release of evaluation reports on the tender, arguing consumer costs and public interest.
On September 11, SESB CEO Mohd Yaakob Jaafar announced the development of the 100MW BESS project in Lahad Datu, anticipated to be Southeast Asia’s largest upon completion by June 30, 2025.
It aims to boost the Sabah Grid's reserve margin capacity during peak periods and support solar energy expansion.
Seal Incorporated Bhd’s associate MSR Green Energy Sdn Bhd (MSRGE) reportedly accepted a RM645mil SESB contract for BESS construction, as per a Bernama report on September 13.
Regarding concerns about higher project costs leading to increased power bills, Tangau said evaluations suggest tariffs will likely remain stable.
"The tariff should be similar across tenders. If higher costs arise, exceeding our unit price of 34 sen, passing this on to consumers is a decision for the government and the Energy Commission of Sabah, not SESB," he said.
