Sabah’s power supply is about to face its biggest challenge yet, as the state moves to complete a series of long-awaited energy projects aimed at stabilizing the grid and ending years of service disruptions.

State officials say they’re racing to meet a July deadline to hit a 20% electricity reserve margin, a target they’ve struggled to reach for years. 

If achieved, it would mark a turning point for domestic consumers, businesses, and investors who have long complained about Sabah’s unreliable power supply.

Right now, Sabah is operating with just a 14% reserve margin, barely enough to cover surging demand as industries expand across the state.

Deputy Chief Minister III Datuk Shahelmey Yahya, speaking Wednesday at the relaunch of the Tenom Pangi Hydropower Station, said the government remains confident the goal is in sight.

“The electricity reserve margin in Sabah, which currently stands at 12.4%, is expected to be increased to 20% by July this year.” 

“Various interim and fast-track mitigation measures to boost generation capacity have already been approved by the Sabah Energy Council,” he said. 

Sabah Electricity Chairman Datuk Seri Wilfred Madius Tangau said those projects include a new 100-megawatt Battery Energy Storage System in Lahad Datu, a 100-megawatt gas-fired plant in Kimanis, increased gas supply, and plans to import electricity from Sarawak.

The 66-megawatt Tenom Pangi Hydropower Station, which was fully restored last month after a RM60 million rebuild, is also part of this plan. 

The plant had been offline since a landslide in October 2022 wiped out all three of its turbines.

Two turbines were brought back in September 2024, but full generating capacity was only achieved in April.

“With 66 megawatts now being supplied to the Sabah Electricity grid, we expect the electricity situation, especially on the west coast, to become more stable,” he said. 

Looking ahead, Tangau confirmed the state has in-principle approval to move forward with a 500-megawatt run-of-river hydropower project, covering an 18-kilometre stretch. 

He called for public support for the initiative. 

“We hope all stakeholders, especially local communities in Beaufort and nearby areas, will understand and support this project. 

“This design does not cause flooding. It simply diverts part of the river through turbines before returning it downstream,” he said. – May 15, 2025