CM: SEB speed in generating power cannot cope with increase in demand
KUCHING: Sarawak Energy Bhd’s (SEB) speed in generating a higher amount of electricity cannot cope with the demand from potential investors in heavy and energy-intensive industries.
Chief Minister Datuk Patinggi Abang Johari Tun Openg said there were still many potential investors who had expressed their interest to set up manufacturing industries in Samalaju Industrial Park, Bintulu.
“However, due to the current power supply limitations, these investors have been advised to wait for the availability of additional power supply, which will come on stream from the Balingian coal-fired power plant (600MW) in 2019 and the Baleh dam (1,285MW) in 2025,” he said at the Regional Corridor Development Authority’s (Recoda) 10th anniversary celebration here.
Recoda oversees the development of the Sarawak Corridor of Renewable Energy (Score), which leverages on the competitive and abundant renewable hydro energy to attract heavy and energy-intensive industries.
Johari said there was a plan to develop another hydro dam in Trusan in northern Sarawak. The proposed dam is reported to have a generation capacity of 275MW.
SEB currently owns two major hydro dams – Bakun (2,400MW) and Murum (944MW). Plans are under way to install an additional 300MW turbine at the Bakun dam.
“To date, SEB has sold 2,000MW of electric- ity to investors in Samalaju Industrial Park, which is 55% of the power sold in Sarawak,” he added.
Press Metal Aluminium Holdings Bhd, according to SEB chief financial officer Alexander Chin, takes up 1,230MW or more than 60% of energy sold to industries in Samalaju.
Press Metal, which is South-East Asia’s largest aluminium smelter, currently operates at a full capacity of 760,000 tonnes per annum.
OM Materials (Sarawak) Sdn Bhd is supplied with 300MW to power its ferrosilicon and manganese alloy smelting plant, while other bulk power consumers are Pertama Ferroalloys Sdn Bhd (170MW), polycrystalline silicon maker OCI Co Ltd (140MW) and Sakura Ferroalloys Sdn Bhd (80MW).
Sarawak is now exporting about 200MW to Pontianak, West Kalimantan.
Realised private investments in Score totalled RM22.5bil in nine projects which are currently in operations.
Projects under construction include a RM1.9bil integrated phosphate plant.
Score has to-date recorded some RM79.7bil in investment from both the public and private sectors.
According to Johari, the industries in Samalaju generate a spillover of some RM500mil per month to the local economy.
The chief minister said the availability of renewable energy, especially hydro, had positioned Sarawak as a regional powerhouse and provided the state a competitive edge to attract heavy and energy-intensive industries.