28-04-2025
Emphasis on solar, clean energy
Published on: Monday, April 28, 2025
Published on: Mon, Apr 28, 2025
By: Sherell Jeffrey Text Size: Sabah is building Southeast Asia's largest battery system in Lahad Datu. This massive 400 megawatt-hour battery is expected to be ready in two months. Kota Kinabalu: Sabah is charging ahead in switching to solar and other clean energy sources to provide affordable, sustainable power while addressing challenges like grid stability and funding. With 350 megawatts of solar capacity expected to be connected to the grid by 2026 and plans to expand to 800 megawatts by 2030, Sabah hopes to make clean energy accessible and affordable. 'Right now, solar in the recent bid, we got a very competitive price range between 20 to 24 cents per unit,' said Energy Commission of Sabah (ECoS) Strategic Planning Director Terrence John Kouju. 'That is quite effective and way below what we expected. We will continue to use solar as a main source of renewables going forward in the next five years,' he said at the inaugural Sabah Renewable Energy Conference 2025's Panel Session 2 titled Overcoming Hurdles and Transforming Tomorrow: Sabah's Renewable Energy Transition Strategies. 'Sabah currently has 150 megawatts of solar connected to its power grid, with another 200 megawatts recently approved. These efforts are part of Sabah's bigger plan to reach 80 per cent renewable energy by 2050,' he said. He noted that despite solar's cost advantages, there is a technical challenge, and Sabah's power grid can only handle up to 22 per cent solar power without becoming unstable. To solve this problem, Sabah is building Southeast Asia's largest battery system in Lahad Datu. This massive 400 megawatt-hour battery is expected to be ready in two months. The Feed-in Tariff (FIT) programme introduced in 2014 was a game-changer for solar energy in Sabah. 'When FIT came in 2014 in Sabah, the whole scene changed, the whole landscape. It made it easier for us to install solar panels into the grid. Why? Because it is fully subsidized,' said Terrence. However, when ECoS took over in 2022, the FIT programme ended. 'We can no longer rely on Federal Peninsular side of the collection from the consumers. So, when we look at Sabah's collection only, the total collection here is only 24 million. But the commitments to FIT total up to 16 million a year,' he said. 'Previously, the Large Scale Solar is between 59 and 54 cents per unit. In contrast, the new exercise, even 15 megawatts, the highest award, still produces below 34 cents and at least below 30 cents,' he said. This makes solar much more cost-effective compared to other renewable sources, especially when compared to the current average electricity price in Sabah. 'The electricity tariff is now, Sabah Electricity is having electricity tariff on average 34.5 cents per unit. 'For other resources such as biomass, biogas, geothermal, all these generation costs from this type of renewables cost more than 30 cents,' he said. Despite solar's decreasing costs, financial challenges remain in Sabah's renewable energy transition. The end of the Feed-in Tariff system created funding gaps that must be addressed as Sabah works toward energy independence from the federal government by 2030. 'Going forward, once the subsidy from Federal Government ceases to support Sabah, because eventually by 2030, that is the target where Federal wants Sabah to be self-sustainable in terms of electricity supply, Sabah has to come up with a solution,' he said. * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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