Sabah firm to develop hydro-power
KOTA KINABALU: Sabah is expected to benefit from Warisan Harta Sabah’s proposed long term programme, which has been sanctioned by the State Cabinet n 2013, to implement clean and sustainable small hydro-power schemes below 30MW capacity aimed at providing reliable electricity supply and bring about socio economic benefits.
“This is indeed a commendable approach by the State Government, which aims to attain a ‘developed state’ status by year 2020. By enabling Warisan Harta Sabah to spearhead the development of renewable energy based on small hydro, it is entrusted with protecting Sabah’s natural water resources, indigenous people and surrounding environment.
“Following its participation in several sizable abandoned power generation projects in Sabah – Warisan Harta Sabah realized that the State’s pressing concern is energy security and continuous sustainable supply of energy at affordable prices.
“The present shortfall in generation capacity for Sabah had resulted in frequent blackouts, but with the State’s huge hydro potential to be harnessed from its natural water resources, Warisan Harta Sabah endeavours to assist State Government to overcome this,” Warisan Harta Sabah chief executive officer Datuk Haji Abu Bakar Haji Abas said in a statement issued here yesterday.
With Malaysia as a signatory of the Kyoto Protocol which led to the establishment of the Sustainable Energy Development Authority of Malaysia (SEDA Malaysia) in 2011, Abu Bakar said Warisan Harta Sabah aimed to implement its small hydro-power generation projects (below 30MW) as stipulated in the Concession Agreement, which is pending, with the State Government under the Feed-in Tariff mechanism administered by SEDA.
Besides this, he said Warisan Harta Sabah would tap other fiscal and non-fiscal incentives offered by the government to facilitate the development of renewable energy resources in Sabah.
Warisan Harta Sabah, being the wholly-owned investment arm of the State Government, was established in 1995 to be the catalyst for Sabah’s economic growth in strategic sectors including power generation.
“In line with its founding objectives, Warisan Harta Sabah in conjunction with the State Economic Planning Unit of Sabah, will embark on the development of small hydro-power potentials (all under 30MW capacity), mainly using run-of-river schemes that have been identified under its proposed master plan. Guided by the master plan, detailed feasibility studies will be carried out on 17 identified sites with an estimated combined installation capacity of 432 MW.”
Abu Bakar said the benefits of developing the proposed small hydro schemes included reliable, clean and cost-effective electricity supply, the creation of job opportunities to benefit local communities, economic spin-off effects and better infrastructure.
“The socio economic spin-off will promote and encourage tourism, education, support agriculture and fisheries activities.”
In developing small hydro-power generation schemes, he said that Warisan Harta Sabah would adopt the compliance standards of the International Hydro-power Association’s (IHA) sustainability protocol and principles that has become established as best practices.
“Engagement and consultations with local stakeholders will be given emphasis to discuss and address concerns, assess expectations in terms of infrastructure, environmental impact and the social impact on local heritage and indigenous communities,” he pointed out.
Based on a preliminary study, he said the total capital expenditure expected to be incurred under Warisan Harta Sabah long term master plan was estimated at RM2.9 billion.
“Funding will be raised through a combination of shareholders’ contribution and external source of funds that are available, subject to favourable terms.”
“Following the State Government’s decision, Warisan Harta Sabah has taken a strategic approach to build up and fast-track its competencies in this area by acquiring a majority stake in a local company which has direct access to internationally recognized engineering, design and consultancy partners in Europe.”
“With the foreign based engineering, design and consultancy partners, having an established track record in their respective competencies would help to develop this renewable energy sector in Sabah according to international standards besides imparting their expertise and knowledge to local talents,” he said when speaking at a special briefing to ‘stakeholders’ comprising various state and federal government agencies.
Abu Bakar expressed his excitement on the possibilities that the development of the hydro-power schemes can bring benefits for the people of Sabah if properly implemented.
“Warisan Harta Sabah will ensure that all projects are for the best interests of Sabah and will be guided by professionals capable of delivering our vision,” according to Abu Bakar
“This will protect the long-term interests of the State and the benefits accruing will be a legacy over many decades to come and that the results will demonstrate the wisdom of the State Government.”
“Warisan Harta Sabah is looking forward to engaging with the various stakeholders to obtain the necessary support for its endeavours,” he said.
Source : Borneo Post
