Sabah–Sarawak Power Grid Interconnection Marks Major Milestone for Energy Security

24 January 2026

KOTA KINABALU: The energisation of the Sabah–Sarawak Power Grid Interconnection Project marks a major milestone in strengthening Sabah’s electricity supply system, said Sabah Electricity Chief Executive Officer Datuk Ir. Ts. Mohd Yaakob Jaafar.

He said the project represents a significant transition from the planning and construction phase to full operational implementation, with direct and positive impacts on the stability, reliability and resilience of Sabah’s power supply system.

Mohd Yaakob said this in his speech at the energisation ceremony of the Sabah–Sarawak Power Grid Interconnection Project at the Sabah International Convention Centre (SICC) here today.

From an operational and technical perspective, he said the interconnection is a major engineering achievement that will enhance grid stability, increase reserve margins, optimise load management and operational efficiency, and reduce the risk of supply disruptions, particularly during peak demand periods.

He noted that the project also reflects Sabah Electricity’s strong commitment to energy transition and environmental sustainability. Implementation began in 2017 following approval from the Electricity Supply and Tariff Planning and Implementation Committee (JPPPET), with an estimated project cost of RM33 million.

According to Mohd Yaakob, the successful execution of the project will significantly strengthen the reliability and resilience of the Sabah Grid system, ensuring a secure, stable and sustainable electricity supply for the State of Sabah and the Federal Territory of Labuan.

The Sabah–Sarawak Power Grid Interconnection is the result of long-term strategic planning aimed at enhancing electricity supply security through close cooperation between Sabah and Sarawak. The initiative aligns with Sarawak’s large-scale hydropower development and Sabah’s need to diversify its energy sources and improve grid resilience.

The project involves the construction of a 275kV transmission link connecting the Sarawak grid at Lawas to the Sabah grid via Sipitang, including the Mengalong Main Intake Substation (PMU Mengalong), which serves as the primary energy entry point into Sabah.

Mohd Yaakob said the successful synchronisation of the two grid systems represents a significant step forward in Borneo’s energy integration, opening the way for greater utilisation of renewable energy and laying the foundation for a future regional power grid.

The interconnection, he added, will allow Sabah Electricity to optimise generation costs through access to Sarawak’s hydropower resources, while supporting efforts to diversify the generation mix towards a more efficient, reliable and sustainable electricity supply.

He said the project is also a strategic milestone in strengthening energy cooperation between the two states, enabling more efficient sharing of generation resources, improving overall grid stability and enhancing system resilience during periods of peak demand or supply disruptions.

Beyond immediate operational benefits, Mohd Yaakob said the interconnection positions Sabah and Sarawak to support future economic growth, industrial development and regional energy integration in line with national aspirations and the broader Borneo power grid connectivity vision.

He highlighted that PMU Mengalong, together with the 275kV Lawas–Mengalong transmission line, symbolises Sabah’s transition towards a cleaner, more resilient and interconnected energy future. Located in Sipitang, the facility is designed to serve as Sabah’s main renewable energy gateway, linking the state’s grid with Sarawak’s hydropower system and, in future, integrating renewable generation within Sabah itself.

Looking ahead, he said PMU Mengalong will play a critical role in integrating Sabah’s planned large-scale hydropower developments, including the Ulu Padas Hydroelectric Project, supported by transmission reinforcements under the Southern Grid development.

Mohd Yaakob noted that the 162-megawatt Oriole Hydropower Project along the Padas River is progressing towards completion and commercial operation in 2029, while the 187.5-megawatt Upper Padas Hydroelectric Project is expected to commence construction following final approvals, with completion targeted by the end of 2030.

Together, these projects are expected to significantly strengthen Sabah’s renewable energy portfolio, enhance energy security and grid stability, and position Sabah as a key contributor to clean energy development in Borneo.

He also expressed appreciation to the Federal Government, the Governments of Sabah and Sarawak, relevant ministries and agencies, Sarawak Energy as a strategic partner, as well as Sabah Electricity’s engineering, technical and operations teams, contractors and stakeholders for their commitment and professionalism in ensuring the successful delivery of the project.