By Antonia Chiam
“The acquisition of Bakun HEP represents part of our overall strategic plan to develop and consolidate the State’s abundant energy resources, which places the State in full control of the energy for the benefit of our people and our economy in the long run.” Abang Johari (March 8, 2017)
THE Bakun Hydroelectric Dam, one of Malaysia’s largest energy projects, stands as a powerful symbol of Sarawak’s growing energy capabilities. Its significance has increased exponentially in recent years under the leadership of Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg, whose aspiration of empowering Sarawak economically and politically has driven a historic move to bring the Bakun Hydroelectric Dam back under Sarawak’s full ownership.
This initiative marks a critical milestone in Sarawak’s journey toward gaining greater autonomy, economic independence, and sustainable development, bringing the State closer to becoming the energy powerhouse of the Association of Southeast Asian Nations (ASEAN). The Bakun Dam, located on the Balui River in the central region of Sarawak, is a 207-meter-high, 300-meter-wide concrete-faced rock dam. Completed and commissioned in 2011, it can generate up to 2,520 megawatts (MW) of electricity. It assumed full operations on July 12, 2014, under the management of Sarawak Hidro Sdn Bhd (SHSB), which in turn was then owned by Malaysia’s Ministry of Finance. Since then, it has been steadily feeding Sarawak’s grid demands with its 1,771MW of energy.
The Acquisition
In 2017, Sarawak Energy Berhad (Sarawak Energy) acquired full ownership and operational control of the Bakun HEP through its subsidiary, Bakun Hydro Power Generation Sdn Bhd. The acquisition on August 17, 2017, was finalised with the signing and close-out of the Share Sale Agreement (SSA) at SHSB office in Selangor, marking a significant milestone in Sarawak Energy’s strategy to consolidate electricity generation in the State.
Following the completion of the SSA, SEB Power Sdn Bhd—a wholly owned subsidiary of Sarawak Energy—acquired 100 per cent of shares in SHSB from the Ministry of Finance and Pesuruhjaya Tanah Persekutuan. The deal, valued at RM2.5 billion, gives Sarawak Energy full ownership and operational control of Bakun HEP, alongside servicing an additional RM5.6 billion in outstanding loans.
For years, the Bakun Dam had been under the control of the federal government’s—even though it is nestled firmly within Sarawak’s territory. This arrangement limited Sarawak’s ability to fully capitalise on the dam’s potential for energy production and its role in the State’s long-term economic plans. Following Sarawak’s consistent push for greater autonomy, particularly in managing its natural resources, it became clear that regaining full ownership of the Bakun Dam was crucial for securing the State’s energy future.
Powering Sarawak
The return of the Bakun Dam to Sarawak’s full ownership holds immense importance for the State’s energy strategy and overall economic development. The dam provides a significant portion of Sarawak’s power supply, and with full control, Sarawak can better harness this energy for its own needs and to fuel future growth. Abang Johari’s government has long recognised that affordable, reliable energy is a critical driver for industrialisation. With Sarawak now owning the dam outright, the State can leverage its hydroelectric power generation capacity to power local industries, attract new investments, and reduce its reliance on external energy sources.
This is particularly important for the development of energy-intensive industries such as manufacturing, petrochemicals, and digital technology businesses that require a stable energy supply especially those under Sarawak Corridor of Renewal Energy (SCORE) initiative in Samalaju Industrial Park. Together with Sejingkat Power Plant, they are integral to Sarawak Energy’s renewable energy portfolio, playing a transformative role in the region’s progress and sustainable development while upholding social and environmental stewardship. They also exemplify Sarawak Energy’s commitment to delivering affordable, reliable, and sustainable energy, ensuring a balanced approach that benefits communities, industries and the environment alike.
Moreover, with this acquisition, Sarawak’s State-owned utility company, Sarawak Energy, is now in a stronger position to ensure that energy generated from the Bakun Dam is distributed efficiently across the State, especially to remote areas that have historically been underserved. The acquisition is not merely a matter of economic or energy strategy; it is also about empowering the people of Sarawak. With greater control over its natural resources, Sarawak has the capacity to direct energy revenues into socioeconomic development projects, such as improving healthcare, education, and infrastructure across the State, particularly in rural areas.
“We took over Bakun from the Federal government, meaning we have control of our energy. And we can decide whatever we want to do with our energy, including setting tariffs,” said Abang Johari. Following the asset acquisition, Sarawakians are enjoying the lowest average unsubsidised tariffs in Malaysia and the region. Another key advantage of the Bakun Dam being under Sarawak’s full control is the alignment with the State’s green energy and sustainability goals. Sarawak has set ambitious targets to become a regional leader in clean energy, aiming to capitalise on its abundant natural resources, including hydroelectric power, to produce sustainable and renewable energy.
The Bakun Dam, as a hydroelectric power plant, produces clean energy with zero emissions, contributing significantly to Sarawak’s goal of reducing its carbon footprint and achieving long-term environmental sustainability. Under Sarawak’s stewardship, the dam will play a central role in the State’s commitment to the Paris Climate Agreement and its sustainability targets. Following the acquisition and total control, the Bakun HEP dam, together with Murum HEP dam, have been identified for the deployment of floating solar systems to generate 500MW and 600MW solar power respectively.
Abang Johari’s initiative to regain control of the Bakun Dam is also a reflection of Sarawak’s desire for greater energy security and political autonomy. By bringing this critical infrastructure back into State hands, Sarawak is no longer reliant on the Federal government or external companies for its energy needs. This newfound shift in power over its energy production allows Sarawak to tailor its energy policies to its priorities, ensuring that the needs of its people and industries are met efficiently and sustainably.
Towards Greater Autonomy
Energy security has become even more critical in light of global challenges such as climate change, the accelerating transition towards renewable energy, fluctuating fuel prices, and the growing demand for clean, sustainable energy sources. For Sarawak, owning the Bakun Dam gives the State the ability to manage its energy supply, mitigate risks, and ensure that it has the power to drive its economy forward without external interruptions or dependencies.
Furthermore, Abang Johari’s commitment to decentralised decision-making and local governance is evident in this initiative. By bringing the Bakun Dam under Sarawak’s control, the State government is making strides toward greater political and economic independence, which has been a core aspiration for Sarawak’s leaders for decades. Bringing the Bakun Dam back under Sarawak’s full ownership is one of Abang Johari’s most significant achievements in strengthening the State’s energy security and economic autonomy.
It is also the beginning of a series of Abang Johari’s initiatives aimed at taking full advantage of Sarawak’s natural resources, laying the groundwork for sustainable development and energy independence. Most importantly, it aligns with the State’s larger vision of becoming a green, digital economy by 2030, powered by clean energy and driven by technological innovation.
The content featured here is an excerpt from the book “Rise of Sarawak: Abang Johari’s Era of Transformation”, published by Sage Salute Sdn Bhd.
