In a move to make Borneo a regional energy hub, Sarawak is implementing a plan to extend its already extensive hydro-electric power grid across the island, linking the state’s energy grid to Sabah and, ultimately, to the neighbouring territories of Brunei and Kalimantan.

The Borneo Integrated Power Grid (BIPG), renowned as the most ambitious renewable energy project in the country, links the vast hydro resources in Sarawak with the energy demand hubs in the peninsula. At the heart of the project are the two legendary hydroelectric projects – the Bakun project with an installed capacity of 2,400 MW and the Murum project with an installed capacity of 944 MW. The total output is over three gigawatts of clean and reliable energy that meets approximately 55 percent of the total energy required in Malaya.

Unlocking energy reserves

The major key to unlocking the enormous energy reserves in the project is the Sabah-Sarawak Interconnector, a 500 kV/800 km high voltage direct current line that came into commercial operation in 2022. By interconnecting the enormous energy reserves in Borneo with the energy demands in the peninsular region, the project not only provides diversity to the energy basket in the country but also minimizes the dependency on other forms of energy that are not as environmentally friendly as hydro energy, thus reducing CO2 emissions by as much as 6-8 million tonnes.

The expansion of the power grid aims to tap the economic potential of the industrial parks, tourism corridors, and mining projects in Sabah, which are currently held back by the lack of affordable electricity. It seeks to reduce electricity tariffs for commercial customers in Sabah by as much as 30 percent by harnessing Sarawak’s cheap hydroelectric power.

The eXpansion of the power grid project satisfies the 2050 net-zero emissions target set by the Malaysian government because hydro-electric power, which accounts for more than 80% of the energy mix in Sarawak, is a clean energy source that can be used as an alternative to diesel-powered micro-grids, which are still in use in rural Borneo.

Clean energy exporter

The international aspect of the programme positions Borneo, in particular Sarawak, as a future clean energy exporter to the ASEAN region, particularly in view of Indonesia’s acceleration of its own renewable energy programme and Brunei’s plans to diversify its economy away from hydrocarbons.

Cross‑Border Collaboration

Through co-authoring a Trans Borneo Transmission Master Plan, these neighbouring territories can jointly plan corridors for high-voltage direct current cables that can transport hydroelectricity from Sarawak’s Bakun and Murum dams to coastal communities.

Public-private sector partnerships (PPPs) are mobilized through the Borneo Energy Infrastructure Fund, a multilateral investment vehicle that combines sovereign wealth, commercial bank loans, and green bond issuances, thus de-risking large-scale development.

In order to ensure that the human capital on both sides of the border is able to sustain a seamless grid, capacity-building activities in the areas of grid integration knowledge, renewable forecasting, and cyber security are being undertaken by Sarawak Energy, the Department of Energy in Brunei, as well as Indonesia's PLN.

Sarawak is well-placed to promote itself as an ‘energy hub’ utilizing the vast supply of available renewable energy from hydropower in the Rajang River Basin, floating solar farms on its numerous man-made lakes, and tidal energy from its extensive coastline.

The core of this idea lies in the ‘Sarawak Power Export Initiative,’ which is a multi-year project to expand its electrical grid beyond the South China Sea and supply green energy to Singapore through high-capacity subsea cable corridors.

Power trade across the sea

Despite global supply-chain constraints, there are still challenges to be addressed, including the need for multilateral regulatory licenses, maritime right-of-way agreements, and robust funding. Environmental assessments also play a crucial role in ensuring that the seabed laying process does not disturb marine environments.

Sarawak's sea-cable project is an example of a forward-thinking, cross-border energy collaboration that has the potential to transform power trade in Southeast Asia and establish a replicable model for other resource-rich regions looking to make money off of their green assets, with a target date for commercial operation of 2032.

Regional energy hub

Sarawak’s vision of being a regional energy hub has finally materialized with the inauguration of the 500km, 660kV High Voltage Direct Current (HVDC) transmission line that will directly link Sarawak’s hydro-electric resources to Singapore’s power grid.

Sarawak is now operating over 10GW of installed capacity—primarily from the enormous Bakun, Murum, and Baram hydro-electric projects—while Singapore, a highly urbanized island state with a small land area, imports about 30% of its power. It is being forced to find cleaner sources of energy to substitute for its current fossil fuel-based imports in order to achieve its 2030 net-zero emissions target.

All in all, the outlook for the future appears bright and rosy. With the HVDC project now up and running, a contractual framework firmly in place, and both administrations committed to a green agenda in terms of energy policy, Sarawak has every chance of establishing a steady share of the Singapore energy market in the coming years.

Further investment in reservoir management and stakeholder communication will be crucial in translating this cross-border initiative from a strategic concept to a solid foundation of the region’s low-carbon economy.