Third major power plant in Sabah proposed
Star Biz, Friday, 9 July, 2004
By Danny Yap
The Energy, Water and Communications Ministry will submit a proposal to the Cabinet for a third major power plant in Sabah costing over RMlbil.
Minister Datuk Seri Dr Lim Keng Yaik said the proposal would be submitted by the end of the month.
"The coal power plant will produce 300MW of electricity to be distributed to the east coast of Sabah." he told reporters after witnessing the signing of a share sale agreement between Octagon Consolidated Bhd and Green Energy and Technology Sdn Bhd (GET) in Kuala Lumpur yesterday.
Under the agreement, Octagon will buy a 55% stake from Syed Omar Syed Abdullah, who is the majority stakeholder in GET for RM5mi1. It will also mark Octagon's entry into the renewable energy industry.
GET, through its 70%-owned subsidiary and main asset, Melaka Waste to Energy Sdn Bhd, has been given the mandate by the Malacca government to provide total and permanent disposal of 800 tonnes a day of municipal solid waste which can be used to generate energy.
Lim said, currently, Sabah 's energy demand was about 470MW, above the state's power generating capacity.
The Powertron plant produces 120MW, which will be upgraded to 190MW, while the Spangor Bay plant is expected to produce 100MW when completed.
"The proposed third power plant will help fulfill the state's power requirements," Lim said. "The third power plant should be completed by 2008 and hooked to the Sabah state grid, due to be ready by July 2005.
Presently, about half of Sabah 's electricity is generated by independent power suppliers. Over the years, Tenaga Nasional Bhd had been subsidizing Sabah Electricity Sdn Bhd (wt ich is in charge of power supply in Sabah ) at RM302mil a year because of the inefficiency in power supply.
"We're paying 45 sen per KWH for electricity to these suppliers and selling to consumers at 25 sen per KWH. This is unsustainable," Lim said.
He said companies such as Octagon, which had ventured into renewable energy, would provide an alternative source of energy supply via the disposal of municipal waste, and at the same time help clean the environment.
Octagon managing director and chief executive officer Mazlan Ali said the company was a leader in customized industrial paints and inks for the consumer electronics market.
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