Sabah targets 50-50 energy mix between renewables and fossil fuels
- Jun 29
- 3 min read
Published on: Sunday, June 28, 2026
By: Sherell Jeffrey
SABAH is targeting a 50-50 split between renewable energy and fossil fuels while reshaping how its natural gas is used, said Energy Commission of Sabah (ECoS) Chief Executive Officer Datuk Abdul Nasser Abdul Wahid.
“The focus we are looking at now is energy self-reliance. We need to be relying on our local resource rather than depending on others,” he said at the 13th Sabah Oil, Gas and Energy Conference and Exhibition’s Executive Plenary Session held at the Sabah International Convention Centre.
Sabah’s current peak demand of 1,200 megawatts, projected to nearly triple to 3,000 megawatts within a decade, works in the State’s favour, he said, making the renewable target more achievable than it might appear.
“Any moderate-size renewable, for example a solar plant of 100 megawatts, can turn the needle. Achieving 50 per cent is not impossible, but the most challenging part will be sustaining it for the years to come and making sure it is affordable,” he said.
Wind energy at utility scale is available along the northern coast, geothermal potential lies on the southeastern side, and solar and hydropower round out the mix, assets he said is unique to Sabah.
The long-criticised reliance on costly diesel generation is already being wound down, he said, with new gas power plants and renewables brought in as replacements. Gas, however, will not be phased out. It is being reconfigured.
“People always relate Sabah to expensive diesel power plants. There is an interim in nature because we still have to rely on them for a couple of years, but we have the plan already in motion,” he said.
He said under the new gas policy, new plants will operate as peaking rather than base-load facilities, consuming roughly one-third of what previous plants used.
“The freed-up supply is being redirected toward industrial development, petrochemical use and potential exports,” he said.
“The new policy has shifted from being almost fully dependent on gas for power into balancing it with industrial requirements.”
On micro-LNG, he said there is an existing small-scale plant in Kota Kinabalu processing two million standard cubic feet per day, with room to expand subject to pricing and logistics.
“There should also be some allocation for domestic use to fuel Sabah rather than depending on more expensive means like diesel,” he said, pointing out that domestic utilisation must not be overlooked.
For more capital-intensive projects such as hydropower and geothermal, he said the government must lead the de-risking process. He said ECoS completed a Sabah Hydro Development Masterplan at the end of 2024 to identify viable sites and reduce investor uncertainty.
“Feasibility studies has to be thorough and conducted by credible consultants from the outset. If you mess up on that, it will be very detrimental at the end of the day and the project might not be viable,” he said.
Local participation is non-negotiable under ECoS contracts, he added, with requirements covering both employment and equity.
He said State government-linked companies must take part in energy contracts, and gas contractors seeking an ECoS licence must meet minimum Sabahan employee thresholds.
“We are not putting this in place to burden people, but in a way that is possible to do so. At the end of the day, we want to make sure all energy projects bring benefits to Sabah and her people,” he said.
He said ECoS also runs training programmes under the Technical and Vocational Education and Training framework to develop skilled local workforce across the gas and electricity sectors.
On tariffs, Abdul Nasser said affordability is a regulatory floor, not an aspiration.
“Rest assured that we have a target tariff which is affordable for Sabah and we make sure whatever projects will translate into that target tariff,” he said.
The conference is organised by Midas Events Management and supported by the State Government and Sabah Convention Bureau. Daily Express is the media partner.
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