Sarawak aims to export renewable energy through regional grid. (Photo: iStock)
The Malaysian National Energy Company (TNB) is conducting a feasibility study to connect the electricity grids of Sarawak and West Malaysia as part of the ASEAN Power Grid (APG). This initiative has the potential to enhance renewable energy supply in the region. However, investment in Southeast Asian regional grids remains relatively low, attributed partly to issues of grid control and costs.
Sarawak to build a grid for exporting green energy
During the Singapore International Energy Week (SIEW), Sarawak Chief Minister Abang Johari announced that Sarawak is actively collaborating with the federal government to advance the ASEAN Power Grid. He indicated that this study represents a new phase for Sarawak’s role in the energy sector, though further details were not provided.
Sharbini Suhaili, CEO of Sarawak Energy, also present at the energy week, emphasized Sarawak’s commitment to developing the Borneo grid, aiming to connect neighboring Sabah, Indonesia's Kalimantan, and Brunei. He noted that the complexities of cross-border grids necessitate political consensus among governments, highlighting the need for government support for private enterprises to promote the ASEAN Power Grid.
Their statements underscore Sarawak’s ambitions to leverage its renewable energy export advantages through the construction of a regional grid, thereby playing a vital role in the energy transition of ASEAN countries. Currently, the feasibility study for an undersea cable project between Sarawak and Singapore, expected to export 1GW of power, has been completed.
Regional grids crucial to energy transformation
Many discussions at the energy week focused on grid infrastructure. Jennifer Tay, PwC's Asia-Pacific Infrastructure Leader, noted that while funding for renewable energy development is not lacking, additional costs for grid construction could deter overall investment interest. Developers also face the risk of curtailment, where renewable supply is reduced to maintain supply-demand balance and prevent grid overload.
Tay also pointed out that government control over the grid affects private sector participation. She suggested that involvement from multilateral funds or philanthropic money could mitigate the political complexities of grid construction, avoiding sensitivities related to market structure changes and direct investments.
Kelvin Wong, Global Head of Energy, Renewable Energy, and Infrastructure at DBS Bank remarked that many investors realize the need for more grid-related solutions as part of the next phase of transformational growth. He cited DBS’s successful implementation of 10,000 smart meters in Indonesia last year, which helped better understand energy usage trends and improve grid efficiency.
