KUALA LUMPUR (Nov 4): Sarawak aims to position itself as a regional clean energy hub by leveraging its hydropower resources to supply electricity, develop hydrogen and strengthen energy interconnections across Southeast Asia.
The state hopes to attract investment and tap into a regional market of nearly 700 million people, said Sarawak Deputy Minister of Energy and Environmental Sustainability Datuk Dr Hazland Abang Hipni.
“Sarawak has something rare in this region. We hold the resources like rivers, gas, land and sunlight. We hold the policy levers. And through Sarawak Energy, SEDC Energy and Petros (Petroleum Sarawak Bhd), we hold the delivery vehicles. When Sarawak commits, Sarawak can deliver. That is what sovereignty means in the energy business. Not isolation but reliability,” he said in his keynote address at the Clean Energy Transition Asia 2026 summit, held at the Malaysia International Trade and Exhibition Centre on Wednesday.
Referring to the Sarawak Energy Transition Policy (SET-P), launched last year by Premier Tan Sri Abang Johari Tun Openg, Hazland said the state's energy transition is expected to attract between RM580 billion and RM700 billion in investment, contribute RM550 billion to cumulative gross domestic product and create more than 80,000 jobs.
“SET-P brings every one of our energy strategies under one framework. It rests on seven pillars which are renewable energy, natural gas, energy efficiency, low-carbon mobility, clean hydrogen, carbon capture, utilisation and storage (CCUS) and alternative energy,” he added.
The policy provides a framework for the state's transition towards a low-carbon, secure and inclusive energy future, complementing the Sarawak Sustainability Blueprint 2030 and the Sarawak Hydrogen Economy Roadmap.
More than 75% of the revenue generated is expected to benefit low- and middle-income groups, ensuring that the energy transition is equitable and inclusive, said Hazland.
Hydropower remains Sarawak's most significant energy resource, supported by a network of more than 300 rivers, four of which have been developed for hydroelectric power generation.
“Today Sarawak has about 5.9GW of installed generation. Around 3.6GW of that is hydropower, from Batang Ai, Bakun and Murum. More than 60% of our capacity is already renewable. Our target is 10GW by 2030, and 15GW by 2035,” he said.
To achieve these targets, Sarawak is pursuing several projects to expand its generation capacity, with hydropower, solar and natural gas playing complementary roles.
The 1,285MW Baleh Hydroelectric Project in Kapit is under construction and targeted for completion by 2030.
State-owned utility Sarawak Energy has also identified 12 river basins for potential cascading hydropower development and is conducting feasibility studies on five of them.
Beyond Sarawak, the utility is partnering with two Indonesian companies to develop a hydroelectric dam in North Kalimantan, Indonesia.
The project, with a planned capacity of 1.2GW, is about half the size of the Bakun dam and is expected to be completed within the next five to six years.
According to Sarawak Energy's website, the Mentarang Induk Hydropower Project (MIHEP) was formalised in March 2023 and is being developed by PT Kayan Hydropower Nusantara, a joint venture between Sarawak Energy and Indonesian companies PT Adaro Energy Indonesia and PT Kayan Patria Pratama (KPP) Group through their respective subsidiaries.
The US$2.6 billion (RM10.6 billion) project marks Sarawak Energy's first international hydropower venture after four decades of developing hydropower projects in the state.
It is intended to provide affordable, reliable and sustainable renewable energy to support Indonesia's Green Industrial Park in North Kalimantan. Construction of MIHEP began in 2024, with first power targeted by the end of 2029.
On solar energy, the SET-P targets 1,500MW of capacity by 2030. In December 2024, a 50MW floating solar farm at Batang Ai became Malaysia's first hydro-solar hybrid facility.
Dam reservoirs offer further opportunities for solar development because of their existing grid connections, said Hazland.
Meanwhile, natural gas remains one of the SET-P's seven pillars, serving as a complementary energy source to maintain a stable electricity supply and support industrial demand as renewable energy capacity expands.
“Hydropower is not just clean. It is despatchable. A reservoir is a battery that never wears out. While the rest of Asean wrestles with the intermittency of wind and sun, Sarawak can store energy as water and release it on demand,” he said.
“That is the physical basis of our claim. It is why Sarawak can be the battery of Asean, and not merely another generator.”