Power Grid Project to Strengthen Sabah’s Electricity Supply System

24 January 2026

KOTA KINABALU: The Sabah–Sarawak Interconnection Power Grid project will strengthen Sabah’s electricity supply system, making it more stable, reliable and sustainable, said Chief Minister Datuk Seri Panglima Hajiji Noor.

He said the project would also enable a phased reduction in reliance on fossil fuel-based generation, improve Sabah’s electricity reserve margin and further boost investor confidence in the feasibility and reliability of the state’s power supply.

“Sabah appreciates Sarawak’s willingness to be a strategic energy partner, not only through cooperation in cross-border electricity supply, but also as a Borneo development partner that shares the same future aspirations,” he said.

Hajiji added that efforts to enhance electricity development in Sabah require close cooperation among all stakeholders.

“The commitment of the State Government is clear, to ensure Sabah’s electricity supply is strengthened,” he said at the energisation ceremony of the Sabah–Sarawak Power Grid Interconnection Project at the Sabah International Convention Centre (SICC) here today.

The ceremony was also attended by Sarawak Premier Tan Sri Abang Johari Abang Openg. Hajiji said such joint initiatives represent a pivotal step towards realising the shared vision of the Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area (BIMP-EAGA).

“By advancing cross-border infrastructure through the ASEAN Power Grid, we are directly enhancing the economic prospects of all participating nations. A resilient and sustainable power infrastructure will, in turn, strengthen both domestic and international investor confidence, driving further growth in our industrial, manufacturing and downstream sectors,” he said.

As Malaysia’s primary gateway to BIMP-EAGA, Hajiji said Sabah plays a strategic role in integrating Borneo’s power systems.

This integration would unlock the potential for cross-border energy trade and establish the foundation for an efficient, integrated and sustainable regional energy market.

He said the Sabah–Sarawak Grid Interconnection marks a vital milestone in this journey, paving the way for future connections with Kalimantan, Brunei Darussalam and, eventually, the southern Philippines.

The Chief Minister noted that electricity demand in Sabah continues to rise in tandem with population growth, industrial expansion and rural development, making the need to meet this demand a critical strategic priority.

“To address this, the State Government, through the Sabah Energy Council, the Energy Commission of Sabah and other relevant agencies, has implemented a comprehensive, phased strategy covering short-, medium- and long-term measures,” he said.

“This approach ensures an adequate generation reserve margin while enhancing the overall resilience and stability of Sabah’s power system.”

Hajiji said key initiatives currently being implemented and planned include the approval and development of new power generation projects based on a diversified energy mix.

“This includes the use of gas-based power plants as a transitional energy source, alongside the expansion of renewable energy such as hydropower, solar and wind, as well as advanced energy storage technologies including battery energy storage systems and pumped-storage hydropower,” he said.

These measures, he added, are designed not only to increase capacity but also to mitigate supply risks by reducing over-reliance on any single energy source.

Hajiji reaffirmed the State Government’s commitment to ensuring that Sabah’s energy sector evolves in harmony with environmental sustainability.

“Guided by the Sabah Energy Roadmap and Master Plan 2040, we are prioritising renewable energy to reduce carbon intensity. These efforts align with our climate change commitments at both state and national levels, ensuring a greener and more sustainable energy future for generations to come,” he said.

He said the Sabah Government remains steadfast in its mission to provide a stable and sustainable electricity supply to support Sabah’s development aspirations and safeguard the well-being of its people.

Also present during the event were members of the State Cabinet, including Finance Minister Datuk Masidi Manjun, Datuk Mustapha Sakmud Minister in the Prime Minister's department, Datuk Ir. Ts. Mohd Yaakob Jaafar, Chief Executive Officer of Sabah Electricity and Datuk Haji Sharbini Suhaili, Chief Executive Officer of the Sarawak Energy Group.