Sarawak blazes ahead with transformative energy transition policy, SET-P

Borneo Post

11 hours ago

Abang Johari (centre) performs a launching gimmick for the Sarawak Energy Transition Policy (SET-P) in Kuching yesterday. – Bernama Photo
KUCHING (Aug 8): The Sarawak Energy Transition Policy (SET-P) is a transformative policy that will guide the state's shift towards a low-carbon, secure, and inclusive energy future, Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said.
He said it represented a comprehensive and coordinated policy document to transform Sarawak's energy sector, bringing together all existing strategies under a unified framework while addressing the energy trilemma — ensuring energy security, promoting environmental sustainability, and maintaining economic affordability.
'The potential of SET-P is transformative. By 2050, this policy is projected to contribute RM550 billion in cumulative GDP, create over 80,000 new jobs, and attract between RM580 billion to RM700 billion in investments,' he said at the launch of the new policy here yesterday.
'The key drivers of this growth include renewable energy, natural gas, CCUS (Carbon Capture, Utilisation and Storage), and clean hydrogen.
'Importantly, more than 75 per cent of the income generated is expected to benefit low- and middle-income groups – ensuring that our energy transition is not only transformative, but also just and inclusive.'
Abang Johari explained that SET-P is anchored on seven strategic pillars: renewable energy, natural gas, energy efficiency, low-carbon mobility, clean hydrogen, CCUS, and alternative energy
In turn, these pillars are supported by five key enablers: strong governance and regulation, innovative financing and investment, robust infrastructure, technology and innovation, and skilled and adaptive workforce development.
To fully unlock the potential of the SET-P, Abang Johari said Sarawak must first strengthen the short-term investment landscape such as commercially viable projects with market-rate returns, public-good initiatives with no direct financial returns and emerging solutions with below-market returns.
He said these encompass nascent but strategically vital technologies like clean hydrogen, carbon capture, utilization and storage (CCUS), energy efficiency, and low-carbon transport.
'Despite their long-term potential, these initiatives currently struggle to attract private financing due to higher risk profiles and uncertain returns, particularly in emerging markets such as Sarawak.'
Some of the critical infrastructure required to enable Sarawak's natural gas hubs, such as transportation terminals, access roads, and supporting logistics might also fall into the sub-commercial or below-market return category, he said.
'While these assets are essential to unlocking long-term value, they may not offer sufficient returns to attract private capital on their own. As such, strategic government intervention will be necessary to move them forward.'
In this respect, he said the Sarawak Government is considering establishing a blended finance facility to support such catalytic infrastructure and transition-aligned investments.
'By leveraging risk mitigation instruments and deploying public capital as a crowd-in mechanism, we aim to enhance the bankability of these projects and unlock broader private sector and development banks participation.
'But let me be clear – realizing this vision will require deep collaboration. We call upon development partners, private investors, and financial institutions to join us in shaping a resilient, inclusive, and investable energy transition for Sarawak,' the premier said.
Abang Johari emphasised that SET-P was built on the principle of inclusivity.
'Its success depends on strong and sustained collaboration across all segments of society – government, industry, academia, civil society, and local communities – as well as with partners from around the world.
'We actively welcome partnerships that bring innovation, financing, technical expertise, and capacity-building to support and accelerate this journey.' Abang Johari ccus renewable energy SET-P