By Lian Cheng & Yvonne Tuah
KUCHING, Aug 26: Fully aware that Sarawak’s primary income source—its natural resources is depleting, the far-sighted Premier of Sarawak, Datuk Patinggi Abang Johari Tun Openg, recognised the need for a new income stream to ensure the State’s future prosperity. As a business-oriented and enterprising leader, he envisioned leveraging Sarawak’s geographical advantages, particularly its abundant rivers, to develop green, renewable energy, specifically through hydroelectric power. His goal extends beyond meeting Sarawak’s energy needs—to position the State as a regional energy hub.
This vision aligns with global efforts to reduce carbon footprints and promote environmental conservation, making it both a wise and forward-thinking approach that drives Sarawak’s future growth. Sarawak, particularly the southern part of the State, has long benefitted from consistent power supply from the Batang Ai Hydroelectric Power (HEP) dam, commissioned in 1985. Building on this foundation, Abang Johari’s ambition is to develop large-scale hydroelectric projects harnessing the abundant water resources flowing through Sarawak’s rivers.
The Bakun Dam
The acquisition of the Bakun Hydroelectric Plant (Bakun HEP) one of Malaysia’s largest energy projects—marked a pivotal milestone in Sarawak’s pursuit of energy sovereignty and renewable power. Located on the Balui River in central Sarawak, the Bakun HEP was completed in 2011 and houses eight turbines, each with a capacity of 300 megawatts (MW), generating a total of 2,400 MW.
On August 16, 2017, the Sarawak government took a bold step of acquiring the Bakun HEP from Putrajaya, paying RM2.5 billion to the Federal government and assuming the remaining RM6 billion in debt. The plant had been operating under Sarawak Hidro Sdn Bhd—then owned by the Ministry of Finance since full operations began on July 12, 2014.
The decision to bring Bakun HEP under Sarawak’s control was a game-changing move spearheaded by Abang Johari. Through strategic negotiations and high-level agreements, Sarawak successfully secured the dam’s full ownership from the Federal government and private stakeholders, with the acquisition officially finalised in 2022. The Bakun HEP has been instrumental in accelerating Sarawak’s transition to renewable energy. It supplies clean electricity to industries in Samalaju through the Sarawak Corridor of Renewable Energy (SCORE), fuelling the State’s industrialisation and economic expansion.
The facility also operates under a comprehensive Environmental Management Plan (EMP) that emphasises water quality, aquatic ecosystem preservation, and biodiversity conservation to minimise ecological impact. This landmark acquisition laid a strong foundation for Sarawak to harness its abundant natural resources sustainably. It is a key pillar of the State’s vision to become a green, digital economy by 2030, powered by clean energy and driven by innovation.
The Murum and Baleh Dams
Commissioned in 2014, the RM4.1 billion Murum Hydroelectric Plant (Murum HEP) significantly advanced Abang Johari’s vision of expanding Sarawak’s clean energy capacity. With an installed capacity of 944 MW, Murum HEP stands as Sarawak’s second-largest hydroelectric facility after the Bakun HEP. Located in the Belaga district of the Kapit Division, it is also Sarawak Energy’s second large-scale sustainable energy project—following the Batang Ai HEP commissioned in 1985 developed by the Sarawak government.
Fully owned by Sarawak, the project also boasts a global engineering feat: the world’s tallest stepped chute spillway, standing at 141 metres high. Its construction mobilised a workforce of approximately 2,500 people. The dam’s reservoir was impounded in September 2013, enabling an average annual energy output of 5,925 gigawatt hours (GWh). Much of this electricity is channelled to power-hungry industries in Samalaju Industrial Park, northeast of Bintulu, and Mukah, contributing directly to the Sarawak Corridor of Renewable Energy (SCORE) and the Post Covid-19 Development Strategy 2030 (PCDS 2030). Both frameworks aim to propel Sarawak toward high-income status through the strategic development of renewable energy. Hydropower, as one of the most cost-effective and environmentally sustainable sources of energy, remains central to Sarawak’s growth strategy.
Further reinforcing this agenda is the Baleh Hydroelectric Plant (Baleh HEP), a landmark project currently under development. With a planned generation capacity of 1,285 MW, the concrete-faced rockfill dam (CFRD) is located on the Baleh River, approximately 105 kilometres upstream from its confluence with the Rajang River in the Kapit Division. Once completed in 2026 and operational by 2028, the Baleh HEP is set to become Sarawak’s largest hydroelectric facility to date. Designed to deliver reliable, renewable power, the dam will support the expanding needs of Sarawak’s energy-intensive industries and position the State to meet future demand, further solidifying its clean energy leadership.
Sarawak’s 20,000 MW Hydropower Potential
Beyond the Baleh HEP dam, Sarawak holds immense potential to further expand its energy capacity. With 12 river basins identified for the development of cascading dams, the State could unlock an additional 3,000 MW of power generation. This was disclosed by Minister of Utility and Communication Dato Sri Julaihi Narawi during his ministerial winding up speech on May 13, 2024 at Sarawak Legislative Assembly.
These 12 river basins are Sungai Gaat, Sungai Belaga, Sungai Tutoh, Sungai Danum, Sungai Balui, Sungai Trusan, Sungai Lawas, Sungai Limbang, Sungai Tinjar, Sungai Baram, Sungai Tekalit and Sungai Bangkit.
In 2022, when delivery a keynote address at Singapore Energy Summit in conjunction with Singapore International Energy Week, Abang Johari highlighted Sarawak’s immense hydropower potential, estimated at 20,000 MW. His efforts garnered global recognition, with foreign investors expressing keen interest in learning more about Sarawak’s renewable energy initiatives and investment opportunities. Foreign direct investment into green energy in 2023 alone had come up to RM21.4 billion, as revealed by Minister of International Trade and Investment Datuk Amar Awang Tengah Ali Hasan.
Sarawak has since 2016 supplying power to West Kalimantan. On August 6, 2021, Sarawak via Syarikat Sesco Berhad inked the Power Exchange and Interconnection Agreement with Sabah Electricity Sdn Bhd to export 30MW of electricity for a term of 15 years to Sabah. Currently, Sarawak is negotiating to supply power to Brunei Darussalam and exploring ways to monetise its hydropower dams to increase the value of Sarawak’s assets given the role of renewable energy in the future electricity market.
Harnessing the Power of the Sun
Building on Sarawak’s foundation in hydroelectric power, Abang Johari has broadened the State’s renewable energy portfolio through the development of hybrid floating solar farms. At the forefront of this effort is the floating solar project at Batang Ai, poised to become Malaysia’s largest and first major hybrid hydro-solar generation facility. Spanning 190 hectares which is less than three per cent of the total lake surface, the solar installation is designed to generate 50MW of clean energy, with the potential to plant up to 1,500MW of solar capacity.
Once operational, it will raise the total generation capacity from 108MW to 158MW. The project is driven by a joint venture between Sarawak Energy, China Power International Holdings, and solar energy giant Trina Solar, with construction officially launched on June 20, 2023. Sarawak Energy is also exploring a second phase of the Batang Ai floating solar farm, with the potential to add another 160MW of capacity. Upon full commissioning, the facility is expected to offset approximately 52 kilo tonnes of carbon emissions annually.
The site builds upon the legacy of the Batang Ai Hydroelectric Project, Sarawak’s first hydropower plant commissioned in 1985. The reservoir, which spans roughly 8,500 hectares, has the theoretical potential to generate up to 2,000MW (2GW) of solar power if 60 per cent of its surface is utilised. Inspired by the success at Batang Ai, similar hybrid solar initiatives are in the pipeline at the Bakun and Murum dams, which together could contribute up to 1,100MW to Sarawak’s renewable energy mix.
Sarawak’s pioneering work in floating solar technology has attracted strong international interest. Notably, a memorandum of understanding was signed with UAE-based clean energy provider Masdar (Abu Dhabi Future Energy Company PJSC), involving a major investment of USD10 billion to advance Sarawak’s renewable energy agenda. Apart from UAE, China under Shanghai Electric and China Three Gorges International Limited is showing the same interest and the same commitment of USD10 billion.
The combined investment, Abang Johari said, is expected to enable the production of at least three GW of solar power. Sarawak is also considering an agrivoltaics project in Bario, Baram which involves an elevated solar panel where the land under the solar panel will be used for agriculture.
Beyond hydro and solar, Abang Johari has championed the development of hydrogen as a clean energy frontier. Under his leadership, Sarawak introduced the hydrogen energy industry and formed strategic alliances with global players such as SK Energy, Sumitomo Corporation, and Eneos. These partnerships with Japan and South Korea are accelerating Sarawak’s entry into the global hydrogen economy. By 2030, powered by floating solar projects, hydropower, hydrogen, and other renewable sources, Sarawak aims to achieve a total electricity generation capacity of 10 gigawatts (GW), ensuring sufficient supply for domestic consumption and future regional energy exports.
Environmental Sustainability and Economic Development
From its roots as an underdeveloped, agriculture-based economy, Sarawak under the visionary leadership of Abang Johari has transformed into a modern and forward-looking region, anchored by a green economy powered by renewable energy. With a clear focus on reducing its carbon footprint while boosting economic growth, Sarawak has positioned itself as a key player in the global renewable energy landscape.
Abang Johari’s strategic push into the sector not only advances the region’s sustainability goals but also attracts substantial investments across both energy and industrial sectors. Significantly, the development of hydroelectric power in Sarawak has had minimal impact on land use. To date, less than one per cent of the State’s total land area has been utilised for reservoir creation. At the same time, the people of Sarawak have benefited greatly from the Sarawak government’s dam initiative by enjoying the lowest average unsubsidised tariffs in Malaysia and the region.
Even if Sarawak proceeds with developing all nine remaining hydro sites identified in a 1960s study, estimating a hydropower potential of 20,000MW, only about two per cent of the total land area would be affected. Hydropower remains a cornerstone of Sarawak’s renewable strategy, not just for its reliable energy output but also for its environmental benefits. Between 2010 and 2021, Sarawak reduced the carbon emission intensity of its power sector by 73 per cent an achievement that underscores hydropower’s role in decarbonising energy systems.
Leader of Green Initiatives
Under the Post-Covid Development Strategy (PCDS) 2030, Sarawak aims to maintain at least a 60 per cent renewable energy mix—including hydro, solar, and other green sources—while reducing carbon dioxide emissions by 600,000 tonnes annually. The State also targets deriving over 15 per cent of its income from foreign markets, including power exports.
Sarawak’s commitment to renewable energy has triggered a positive ripple effect within the State: accelerating infrastructure development, generating employment, fostering technological innovation, and capturing global investor interest in its vast, untapped resources. The vision of establishing Sarawak as the ‘Powerhouse of Southeast Asia’ goes far beyond electricity generation—it is a mission to build a sustainable, future-ready green economy that can lead the region’s clean energy transition. – DayakDaily
