Marvin Agustin
KOTA KINABALU: Speculations are rife here that Sabah is re-looking
the option of using coal as a power source despite Prime Minister Najib
Tun Razak’s decision in 2011 to call off the construction of a proposed
coal-fired power plant in state following a widespread public outcry
over its effects on the environment and health.
Sabah Chief Minister had also toed the line and announced that his
government had scrapped plans to use coal as a power source. Skeptics
at the time had opined that the decision was “ploy” because of the 13th
general elections.
And now that the GE13 is over, those with business interests,
observers said will likely try to push for the coal option to be
considered as the state’s final solution for its power woes. In fact FMT
recently learnt that various parties within Musa’s administration are
“re-looking” at coal as a power generation option to solve the shortage
of energy supply in Sabah.
The move apparently was triggered by Sabah Electrical Sdn Bhd
Managing director, Abdul Razak Salim’s admission last year that they
were struggling to meet the power demands in Sabah following the damage
of Independent Power Plants (IPPs) generators that led to Sabah Grid
Network System losing 95MW of its power.
The question of whether the new Barisan Nasional governments at state
and federal levels will still stick to their promises not to use coal
and instead rely on renewable energy sources in Sabah is in doubt.
The 13th Malaysia general election saw the appointment of Kota Marudu
MP, Maximus Ongkili as the Minister of Energy, Green Technology and
Water. He replaced Sarawak’s Peter Chin Fah Kui. As it stands Ongkili is
the only man standing in the way of re-tabling the coal option for oil
and gas-rich Sabah.
The coal industry as a whole has been struggling amid continued soft
demand that has driven down prices as many utilities companies worldwide
turn to cheaper natural gas for their power-producing needs.
Coal prices dips
According to IHS McCloskey, and Petersfield, England-based data
provider, as at the end of April 2013, coal prices had dropped US$2.55
(RM7.73) to US$85.85 (RM265.46) a tonne. With coal prices ‘dropping’,
the option is looking to be more and more feasible.
Kalimantan, which borders Sabah and Sarawak, is the biggest exporter
of low grade coal. It it has seen demand from China fall as their stock
pile rises. Kalimantan is now seeking new markets.
Sabah seems to be the fastest solution as the demand for cheap energy
is high in the power-starved state. In March 2009, Prime Minister Najib
Tun Razak agreed to the sale of excess power from Sarawak to Kalimantan
but not to Sabah.
The excess of about 2,000MW from Sarawak could solve Sabah’s energy
problem especially in east coast of the state which is only able to
generate 950MW. While there have been plans to lay 700km long submarine
cables all the way to Peninsular Malaysia, observers have noted there is
no plans to link the grid in Sabah via a high capacity transmission
cables.
Instead a 512km long gas pipeline costing RM4.6 billion is being
built to connect Sabah and Sarawak. Following the cancellation of the
coal fired power plant in 2011, the government had begun to look at
other source of power options.
Why coal?
A geothermal power plant costing RM419 million has been approved in
Apas Kiri, Tawau. When completed in 2014 it will generate about 36mw
electricity.
A gas power plant commissioned in Kimanis worth RM1.5 billion will
have the capacity to generate 300mw in 2015 while the recently completed
64MW Kubota gas power plant in Tawau, is expected to increase the
energy supply to 96MW by 2014 to meet the demand of 80MW in the east
coast.
Another power plant pending completion is the 300MW LGN station in Lahad Datu. This is expected to be ready by 2015.
Environmentalists continue to ask why Sabah, with its vast renewable
and green energy options, continues to look at coal as as a solution.
The state is after all the main producer of palm oil in the country and
has a massive amount of biomass such as empty fruit bunches, palm
fronds, trunks, palm kernel shells and mesocarp fiber that could be used
to generate power.
The state also houses the country’s first 14MW biomass power plant in
Kunak, Sabah. The plant is to be connected to the grid and has a
renewable energy purchase agreement (REPA) with Sabah Energy Supply
Board supply up to 10MW of green electricity for 21 years.
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