Sabah energy infrastructure and grid development

Sabah is undertaking significant energy infrastructure developments to increase gas supply and stabilize its electricity grid. Projections indicate that gas supply could nearly double by 2030, reaching 1,350 MMscfd, driven by seven offshore development projects involving international and Malaysian firms. These efforts, coordinated through SMJ Energy and PETRONAS, aim to meet rising industrial demand and support new power plants.

To enhance grid reliability, the state is implementing projects such as a 100MW Battery Energy Storage System (BESS) and the Southern Link Project. The government also plans to develop gas-based power plants in Sandakan and Tawau to replace expensive diesel and Medium Fuel Oil usage.

These initiatives align with the Sabah Energy Roadmap and Action Plan (SE-RAMP 2040), which targets a 50 percent renewable energy capacity mix by 2035. Recent data shows improvements in electricity supply performance, with the generation reserve margin expected to reach 26 percent by the end of 2026 and significant reductions in the System Average Interruption Duration Index (SAIDI).