SESB eyes 30 per cent reserve margin for better electricity supply

KOTA KINABALU: Sabah Electricity Sdn Bhd (SESB) is targeting to achieve a 30 per cent reserve margin this year to give a more stable electricity supply to Sabah and the Federal Territory of Labuan.

SESB chairman Datuk Seri Dr Wilfred Madius Tangau said to achieve this, SESB has devised comprehensive plans and initiatives as part of the company’s transformational strategy aligned with the Sabah Energy Roadmap 2040.

“These include projects such as Large Solar Scales (LSS) and biogas initiatives, aimed at bolstering our capacity and resilience in meeting the region’s energy demands. Continuing our efforts to enhance the resilience of our power infrastructure, SESB has implemented various initiatives.

“One notable project is the installation of the Battery Energy Storage System (BESS) in Lahad Datu, a topic I previously discussed in one of my articles. This system, once completed, is poised to store a capacity of 100 MW, anticipated to be operational by the end of this year,” he told Bernama.

He said SESB is also actively pursuing the installation of 100-megawatt (MW) dieselpowered generator sets on a rental basis as an interim measure to meet the energy requirements of Sabah and Labuan.

According to him, the calculation for the target does not encompass the electric generating sets expected to return to operation after repairs, with capacity estimated at 136 MW.

Reserve margin is the available and usable electric capability that remains unused during peak load conditions in the electricity supply system.

For SESB, its electricity generation capacity for today (Feb 28) stood at 1,110 MW while peak demand for power reached 1,064 MW, giving a reserve margin of around 46 MW or 4.3 per cent.

Madius said the significance of a bigger reserve margin lies in ensuring reliability during periods of high demand or unforeseen circumstances such as weather conditions leading to reduced renewable generation and unplanned outages of transmission and distribution lines or power plants.

“This will allow for scheduled maintenance of infrastructure without risking supply disruptions,” he said.

“The government will continue (the efforts) to reduce the fiscal deficit by introducing gradual measures that, on the one hand, could increase the government’s revenue and, on the other hand, mitigate the impact on the rakyat and businesses,” he said.

Concerning the high-value goods tax (HVGT), also known as luxury tax previously, Johan Mahmood said the government is still working through the details and will make an announcement in due course.

Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim, when tabling the Budget 2024 in October last year, said that the government will draft new legislation to implement HVGT at a rate of five to 10 per cent on certain high-value items such as jewellery and watches, based on the threshold value of the goods.

According to the Finance Ministry, the tax is expected to be implemented from May 1, 2024.