The 50-megawatt facility has solar panels stretching over 190 hectares and is estimated to offset 52 kilotonnes of emissions annually. Photo caption: Courtesy of Sarawak Energy.
State-owned Sarawak Energy is on track to commissioning a 50-megawatt floating solar farm by end-October and is exploring the feasibility of a second phase, with a potential capacity of up to 160 megawatts.
The 50-megawatt facility is set to be the largest floating solar farm in Malaysia and the first major hybrid generation facility combining hydro and solar. It is now 35% completed. The facility, with solar panels stretching over 190 hectares, is estimated to offset 52 kilotonnes of emissions annually, significantly contributing to decarbonizing Sarawak’s power system.
The solar farm “is a key initiative in our journey to expand our renewable energy share,” said Sarawak Energy Group Chief Executive Officer Datuk Haji Sharbini Suhaili in a news release.
He said Sarawak Energy Sarawak, the largest renewable energy provider in Malaysia, is also considering deploying floating solar technology at reservoirs in Bakun and Murum, where the company operates hydropower plants.
“With all the effort and planning in place, we are well-positioned to support Sarawak’s goal of achieving 10-gigawatt generation capacity by 2030.”
Sharbini said the state firm is committed to accelerating renewable energy development in line with the Sarawak Government’s Post COVID-19 Development Strategy goals. “After transitioning our generation capacity mix from primarily fossil fuels less than 20 years ago to predominantly renewable hydropower today, we are now exploring other renewable energy resources and green energy solutions.”
Sarawak’s push for renewable energy is in line with Malaysia’s National Energy Transition Roadmap, which outlines the country’s plan to achieve net zero by 2050. The government targets to reduce carbon dioxide emissions by more than 10 million tons annually under the first phase of the energy transition roadmap.
The 50-megawatt project, a joint venture between Sarawak Energy, China Power International Holdings, and solar energy firm Trina Solar, officially began construction in June 2023. The facility is located at the reservoir of the Batang Ai hydropower facility.
Extensive environmental studies, including environmental impact assessments), have shown that floating solar panels will have minimal impact on the reservoir’s water quality and biodiversity, emphasizing Sarawak Energy’s commitment to sustainability. Throughout the construction process, Sarawak Energy has committed to transparent communication with the local community and stakeholders, complying with stringent safety measures, environmental standards and sustainable practices to minimize ecological impact.
The floating solar farm project will create employment, business, and learning opportunities for the local community. This includes skill transfers, boat rentals, and site management, diversifying income sources in the area. Once the plant becomes operational, additional opportunities for local involvement in maintenance activities will further enhance community benefits.
“In developing this project, Sarawak Energy has taken an approach that prioritizes sustainability, aligning with our commitment to maximizing the positive impacts of our projects on the environment while minimizing the negative ones,” said Sharbini.
Sarawak Energy, as the primary implementing agency of the Ministry of Utility and Telecommunication, plans to leverage hydropower, solar, gas turbine, and biomass energy to meet the 10-gigawatt generation capacity target. These projects will add to the current generation capacity of 5,745 megawatts.
Sharbini said that Sarawak Energy plans to invest up to 5 billion ringgit ($1.1 billion) per annum over the next 10 years in generation, transmission, and distribution projects, to provide a modern and reliable power system for Sarawakians.
Funding for these projects has been secured through a mixture of internally generated funds and a successful 3.5-billion ringgit issuance under Sarawak Energy’s 15-billion ringgit sukuk program. Sarawak Energy has received an AAA credit rating from RAM Rating Services Berhad.
“Through our prudent financial measures, investments and strong support from the Sarawak Government, covering a variety of aspects from political frameworks to funding, Sarawak Energy has been able to achieve its mission of near full domestic electrification, enhanced reliability of supply and help to power Sarawak’s accelerated socioeconomic growth,” said Sharbini.
As of 2018, Malaysia’s energy sector contributed approximately 28% of gross domestic product and employed 25% of the workforce. The sector produced 78.5% of total emissions. By 2050, Malaysia expects low-carbon sources to account for more than 90% of energy, and fossil fuels less than 10%.
As of 2020, Malaysia sources 43% of its energy supply from natural gas, 27% from crude oil and petroleum, 26% from coal, and 4% from renewables.