Aligned with the United Nations Sustainable Development Goals (SDGs) and its own Post-COVID Development Strategy (PCDS) 2030, Sarawak has made sustainability, inclusivity, and innovation central to its development agenda.
Over the past decade, Sarawak has significantly expanded its renewable energy capacity—led by hydropower—which now makes up over 60% of its energy mix, exceeding its original targets. This shift has helped reduce grid emissions by 66% and set a strong foundation for future growth. Looking ahead, the state aims to reach 15 GW of generation capacity by 2035, with plans to diversify further into solar and other renewables.
Driving this transformation is a commitment to digital innovation. Guided by its Digitalisation Blueprint, Sarawak Energy is modernising its infrastructure with smart grids, automation, and real-time data systems that improve efficiency, reliability, and environmental performance. These technologies not only support a cleaner energy mix but also strengthen Sarawak’s position in the emerging green and digital economy.
Globally, renewable energy innovation is accelerating in response to climate goals, energy security needs, and the rise of the digital economy. For Sarawak, this moment presents an opportunity to lead—not just in clean energy generation, but in showing how technology, sustainability, and economic resilience can be built together.
Innovations Driving Renewable Energy Forward in Sarawak
While Sarawak’s green ambitions are guided by high-level policies and strategic frameworks, the true measure of its commitment lies in the technologies being deployed across the state. From harnessing the force of its rivers to pioneering hydrogen fuel production and integrating smart grids, Sarawak’s renewable energy mix reflects both its natural advantages and its investment in innovation.
Hydropower Technology
Hydropower remains the cornerstone of Sarawak’s renewable energy strategy. Major hydropower facilities—such as the Bakun Dam (2,520 MW), Murum Dam (944 MW), and Batang Ai (108 MW)—collectively generate the bulk of the state’s electricity. The under-construction Baleh Dam, with a capacity of 1,300 MW, will further reinforce this backbone upon its expected commissioning in 2027.
Advanced water dispatch systems are used to optimise reservoir levels based on inflow and weather forecasts. This technology helps maintain dam safety, supports downstream flood control, and improves generation efficiency.
Sarawak is also turning to cascading dam systems, a lower-impact approach involving multiple small dams along river stretches (e.g., in Sungai Tutoh, Sungai Gaat, and Belaga). These installations preserve riverine ecosystems and minimise land inundation, while also supporting community development initiatives such as freshwater aquaculture.
Sustainability and compliance with international standards, including those from ICOLD and the Hydropower Sustainability Standard (HSS), guide the design and operation of these plants. At present, Sarawak has an estimated hydropower potential of about 20,000 MW across roughly 50 sites, with around 3,452 MW already harnessed.
Solar Energy Technologies
Sarawak is aggressively scaling up solar energy deployment. A flagship project is the Batang Ai Floating Solar Farm, Malaysia’s largest, with a capacity of 50 MW across 190 hectares. This hybrid facility offsets an estimated 52 kilotonnes of carbon emissions annually, and a proposed second phase could increase its output by another 160 MW.
Feasibility studies are ongoing for similar installations at Murum and Bakun reservoirs, with capacities of up to 1 GW and 500–600 MW, respectively.
Solar energy is also central to rural electrification through the Sarawak Alternative Rural Electrification Scheme (SARES). This programme has delivered 24-hour electricity to over 15,000 families in 546 remote villages via standalone photovoltaic systems and battery storage, placing the state ahead of its 2025 full electrification target.
Looking ahead, Sarawak is investing in 2 GW of solar capacity, with accompanying battery storage systems to strengthen grid reliability and meet rising demand in both residential and industrial sectors.
Biomass and Biogas Innovation
Sarawak’s biomass strategy centres around the cultivation and processing of Napier grass—a fast-growing, tropical hybrid plant that offers high energy yield. The RAW Energy facility in Bintulu is the world’s first large-scale manufacturer of Hybrid Tropical Grass (HTG) biomass pellets, which are already being exported to Britain. These pellets offer a carbon-negative alternative to fossil fuels with land-use efficiency ten times higher than wood-based biomass.
In parallel, Sarawak is exploring algae-based biogas production. At the Sejingkat Power Plant, the CHITOSE Carbon Capture Central (C4) initiative captures flue gas to cultivate microalgae, which are then processed into dry biomass and biofuels. This project, a collaboration between Sarawak Energy, Sarawak Biodiversity Centre, and CHITOSE Group (Japan), reflects a promising model of industrial symbiosis and emissions reduction.
These biomass innovations diversify Sarawak’s renewable portfolio and lay the groundwork for cleaner fuel transitions in former coal-based power plants.
Green Hydrogen Ecosystem
Sarawak is positioning itself as ASEAN’s green hydrogen hub, supported by a combination of hydropower-fed electrolysis, international partnerships, and export-driven infrastructure. Several key projects are at the heart of this ambition:
- The Rembus Hydrogen Plant (Samarahan), scheduled for completion by Q2 2026, will produce five tonnes of hydrogen daily to power Kuching’s hydrogen-fuelled ART transit system and buses.
- The H2biscus Project in Bintulu, backed by Samsung Engineering, Posco, and Lotte Chemical, aims to produce 7,000 tonnes of green hydrogen annually, along with 630,000 tonnes of green ammonia and 460,000 tonnes of methanol.
- The H2ornbill Project, a joint venture with Sumitomo and Eneos, will produce 90,000 tonnes annually for export to Japan, including 2,000 tonnes for local use.
Hydrogen plants in Sarawak leverage advanced European modular electrolysis systems. These are paired with carbon capture technologies and powered by renewable electricity, ensuring a low-carbon production cycle. A new 10 MW plant by Chloroplant Co. Ltd., under a $17 million contract, is also expected to begin operations in early 2026.
Sarawak targets production of up to 240,000 tonnes of hydrogen annually by 2028, aiming to exceed current global leaders and support clean energy transitions across Asia. Infrastructure development—including refuelling stations, government fleet deployment, and hydrogen mobility corridors—is already underway.
To support this sector, educational and research institutions like Curtin University (Miri) and the Centre for New and Sustainable Energy Research and Enterprise (Conserv) are training a local workforce in hydrogen technologies and sustainable energy systems.
Battery Storage and Smart Grid Systems
To manage variability in renewable generation and improve grid stability, Sarawak Energy launched Malaysia’s first utility-scale Battery Energy Storage System (BESS) in December 2024 at Sejingkat Power Plant. The 60 MW / 82 MWh system, comprising 22 containerised battery units, represents a RM128 million investment and plays a critical role in grid stabilisation.
BESS ensures:
- Spinning reserve and backup for grid emergencies
- Voltage and frequency regulation
- Peak shaving and efficient power dispatch
It also supports the phasing out of coal at Sejingkat and paves the way for hybrid systems combining biomass and battery storage in other rural and remote areas. Plans are in place to replicate BESS at Batang Ai Dam and deploy mobile battery storage units for rural electrification.
In tandem, Sarawak is deploying smart grid technologies that enable real-time energy management, grid flexibility, and improved integration of renewables. These advances support Sarawak’s Post-COVID-19 Development Strategy (PCDS) 2030, which aims for sustainable economic growth and high-income status.
Challenges of Propelling Renewable Energy Innovation in Sarawak — Things To Know
As Sarawak accelerates its shift toward renewable energy leadership, the state faces a dual landscape—one marked by structural and policy hurdles, and the other rich with transformative opportunities. Acknowledging and navigating these realities is crucial to realising Sarawak’s clean energy ambitions and securing its position as a regional model of sustainable development.
Rural Electrification and Accessibility
Despite major strides in energy access, reaching full rural electrification remains a logistical and infrastructural challenge.
Many remote communities are located in isolated terrain where road access is limited and wayleave issues delay grid expansion. While initiatives such as solar hybrid systems and standalone microgrids under the Sarawak Alternative Rural Electrification Scheme (SARES) have made a significant impact, the deployment and maintenance of these systems remain resource-intensive.
Compounding this is the reality that much of Southeast Asia’s energy infrastructure, including parts of Borneo, still relies on outdated grid systems. Standardisation of grid codes and ongoing modernisation are essential to fully integrate intermittent renewable sources.
Policy and Regulatory Support
Sarawak’s renewable energy sector—particularly its emerging green hydrogen industry—requires more agile and clearly defined policy frameworks. While the state government has shown strong strategic direction, the pace of regulatory development needs to match the momentum of technological investments and partnerships.
Without streamlined approval processes, fiscal incentives, and export-ready regulations, the ability to attract high-quality investment and scale advanced energy solutions may be constrained.
Environmental and Social Considerations
Large-scale energy infrastructure, particularly hydropower, must balance engineering imperatives with environmental stewardship and community well-being. Projects like Bakun and Murum have drawn criticism for ecological degradation, deforestation, and the displacement of indigenous communities.
Sustainable development hinges on stronger environmental impact assessments (EIA), inclusive compensation mechanisms, and meaningful community engagement. Failure to address these concerns risks undermining public trust and the long-term legitimacy of Sarawak’s renewable energy agenda.
Grid Stability and Cost of Integration
The intermittent nature of solar and other renewable energy sources poses technical challenges to grid reliability.
Though Sarawak has pioneered Malaysia’s first utility-scale battery energy storage system (BESS) and is advancing smart grid systems, grid stability remains an evolving issue—particularly as solar, hydrogen, and hybrid systems grow in scale.
Additionally, the upfront capital costs of developing solar farms, BESS units, and electrolysis plants can be prohibitive without financial models that de-risk investment.
Technological and Workforce Readiness
Maintaining momentum in sectors such as AI-driven grid management, green hydrogen production, and bioenergy innovation depends on building a skilled local workforce.
Currently, gaps remain in advanced technical training, research capacity, and talent pipelines. Universities and technical institutes are beginning to adapt their curricula, but education and upskilling efforts must accelerate to keep pace with technological deployment and demand.
The Road Ahead: Tech-Powered Sustainability
Sarawak’s renewable energy journey is entering a critical acceleration phase, where bold infrastructure investments converge with advanced digital technologies. The state’s path forward is not only focused on increasing clean energy capacity but also on building a highly intelligent, interconnected energy ecosystem capable of supporting industrial expansion, regional energy trade, and sustainable living.
Sarawak’s strategic push to raise its generation capacity to 10GW by 2030 and 15GW by 2035 reflects a strong alignment with both economic demand and climate goals. Several large-scale renewable energy projects are scheduled or underway to support this transformation:
- Baleh Hydroelectric Project: Slated to begin construction in 2025, the 1,285MW Baleh Dam is one of the largest infrastructure undertakings in Sarawak’s energy portfolio. It will provide a substantial boost to capacity, addressing the anticipated rise in electricity demand—projected to reach 8,000MW by 2030—from expanding industrial zones, smart cities, and rural development.
- Floating Solar Expansion: Sarawak’s foray into hybrid hydro-solar solutions began with its 50MW floating solar plant on the Batang Ai reservoir, spanning 190 hectares. A second phase is expected to scale this by an additional 160MW, while feasibility studies for large-scale floating solar on the Murum (up to 1GW) and Bakun (500–600MW) reservoirs are advancing under a joint initiative with Abu Dhabi Future Energy Company and Gentari, targeting finalisation by 2025.
- Hydrogen-Ready Gas Infrastructure: To support a diversified energy mix and prepare for hydrogen integration, Sarawak is developing a 500MW Combined Cycle Gas Turbine (CCGT) plant, scheduled for completion by 2027. Engineered for a methane-hydrogen fuel blend, this plant will lower emissions while enhancing grid stability and flexibility.
- Rembus Green Hydrogen Plant: On track for commissioning by Q2 2026, this flagship project will produce green hydrogen for public transportation and local industries. It exemplifies Sarawak’s ambition to lead in zero-emission fuels and catalyse a regional hydrogen economy.
- Cross-Border Power Export Initiatives: Sarawak is pursuing interconnection projects to export 30–50MW of electricity to Brunei by 2030 and similar capacity to Sabah by late 2025. Further negotiations are ongoing for exports to the Southern Philippines and Singapore, supported by the broader ASEAN Power Grid initiative, positioning Sarawak as a key player in regional energy cooperation.
- Policy Integration through the Sarawak Sustainability Blueprint 2030: To be launched at the end of May 2025, this comprehensive plan will consolidate the state’s renewable energy ambitions. It outlines 10 strategic thrusts and 111 action plans, with initiatives spanning the Sarawak Energy Transition Policy, Hydrogen Economy Roadmap, and sectoral decarbonisation strategies, aiming for a 70% renewable energy mix by 2030.
Integrating Smart Technology: AI, Big Data, and IoT for Sustainable Power
The transformation of Sarawak’s energy landscape is not only infrastructural—it is digital. Through targeted deployment of Artificial Intelligence (AI), Big Data, and the Industrial Internet of Things (IIoT), Sarawak is building a next-generation energy system that is resilient, adaptive, and customer-centric.
- Big Data for Predictive and Proactive Operations
Big data analytics plays a pivotal role in translating real-time consumption and generation data into strategic insights. Sarawak Energy’s collaboration with Itron has introduced an Industrial IoT (IIoT) network across the grid, including a pilot deployment of 6,000
- Advanced Metering Infrastructure (AMI) endpoints.
These smart systems enable predictive maintenance, demand forecasting, and fault detection—minimising downtime and enhancing operational efficiency. - AI-Enabled Grid Management and Forecasting
AI algorithms are central to smart grid functionality. They analyse vast datasets from power stations and distributed renewable sources to optimise load balancing, manage peak demand, and predict system behaviour.
AI-driven control systems ensure better integration of variable renewables like solar and hydro, while reducing carbon intensity. These tools are also used to enhance flexibility and reliability in energy dispatch and forecast supply-demand fluctuations.
- IoT and Real-Time Energy Intelligence
Sarawak’s rollout of over 180,000 AMI endpoints enables continuous data transmission from user endpoints to control centres. This facilitates remote monitoring, asset diagnostics, and grid automation.
IoT devices support energy efficiency at the consumer level by providing granular data on usage, allowing utilities and users to identify waste and optimise consumption patterns.
- Towards a Digital Power Plant Ecosystem
A centralised digital control hub is being established to link all power stations across Sarawak. This unified platform will leverage big data and AI analytics to manage system-wide performance, enhance fault response, and support rapid decision-making. Sarawak’s trajectory into the next decade is defined by the convergence of clean energy production and smart digital infrastructure. This dual focus positions the state not only to meet domestic power demands sustainably but also to emerge as a green energy exporter and digital energy leader in Southeast Asia.
Conclusion: Toward a Digitally Empowered, Green Energy Future
Sarawak’s renewable energy innovation has evolved from a vision of the future to a present-day commitment being executed with precision, scale, and foresight.
At the heart of this transformation lies a dual ambition: to secure affordable, low-carbon energy for all Sarawakians and to position the state as a regional hub in the emerging green economy. Strategic investments in infrastructure, supported by forward-thinking policies like the Sarawak Energy Transition Policy, Hydrogen Economy Roadmap, and the upcoming Sustainability Blueprint 2030, are setting the course for a cleaner, more resilient energy future.
Equally transformative is Sarawak’s embrace of digital technologies. The integration of AI, IoT, and big data into power systems is redefining how energy is produced, distributed, and consumed – ensuring greater efficiency, transparency, and responsiveness. This smart infrastructure backbone is improving service delivery while enabling a more flexible and decentralised energy model, essential for balancing supply in a renewable-intensive grid.
As the Sarawak moves towards its renewable energy targets, the momentum built so far reflects a deep cultural shift in how energy is valued, managed, and leveraged for inclusive development.
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