KUCHING: Sarawak’s acquisition of the Bakun Dam in August 2017 for RM2.5 billion marked a turning point in securing control over electricity tariffs and strengthening the state’s renewable energy strategy.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the takeover ensured the state would determine its own energy pricing and long-term supply planning.
“If we had not taken over Bakun, electricity tariffs would have been determined by Kuala Lumpur,” he said when addressing delegates at the Gabungan Parti Sarawak (GPS) Convention at the Borneo Convention Centre Kuching (BCCK) here today.
He said the acquisition followed negotiations with former prime minister, Datuk Seri Najib Razak, with payments made in six instalments before the hydropower facility came fully under Sarawak’s ownership.
According to Abang Johari, control of the asset enabled Sarawak to formulate its own energy policies and diversify its electricity generation mix beyond hydropower to include solar energy and biomass such as biochar.
He noted that renewable energy sources now contribute about 60 per cent of Sarawak’s power generation, while the remaining 40 per cent comes from low-carbon gas turbines, ensuring stable supply despite seasonal changes in water levels.
“When water levels are low, we still have solar energy. When rainfall increases, hydropower continues to generate electricity consistently because we have diversified sources,” he said.
Abang Johari added that forest replanting initiatives form part of the state’s broader climate strategy, with fast-growing trees serving as biomass resources and carbon sinks that could support international carbon trading as an additional revenue stream.
He stressed that stable energy planning remains critical to sustaining economic growth, noting that reliable and affordable electricity is essential for long-term development.
