Over 60,000 in Sabah, Labuan to Benefit from RM260 Million Power Upgrade

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Over 60,000 residents in Sabah and Labuan are set to benefit from a more reliable and efficient electricity supply following the completion of seven major energy projects worth RM260.7 million.

Deputy Prime Minister Datuk Seri Fadillah Yusof, who also serves as the Energy Transition and Water Transformation Minister, said the projects include substation upgrades, new grid line connections, and enhanced safety monitoring systems, all aimed at strengthening the regional power infrastructure.

“These initiatives will improve supply across areas such as Tanjung Aru, Ranau, Batu Sapi, and Labuan,” he said during the official handover ceremony held at the Kota Kinabalu Main Intake Substation (PMU KKBU).

The PMU KKBU, launched under the 10th Malaysia Plan, now serves around 11,452 consumers in Tanjung Aru and Kota Kinabalu. It features 132kV and 33kV gas-insulated switchgear (GIS) and new 132/33/11kV transformers, replacing outdated systems with no available replacement parts. The project also introduced a 33kV cable link to Kota Kinabalu International Airport, significantly enhancing supply reliability to this critical facility.

Among other completed projects is the 132kV Labuan–Sipitang Interconnection, which was completed in September 2023. It awaits Sarawak Energy’s portion—expected to finish by September 2025—which will allow Sabah to import 30MW of electricity from Sarawak, with grid capacity up to 500MW. The connection forms part of the broader ASEAN Power Grid linking Malaysia and the Philippines.

In Ranau, a new RM31.3 million 33/11kV Main Distribution Substation (PPU) completed in March 2023 has linked the district to the Sabah grid. The upgrade benefits 15,620 consumers and reduces reliance on an aging 18MW diesel plant, lowering fuel subsidies.

Other projects include:

  • A RM30 million upgrade to Batu Sapi PPU addressing outdated infrastructure;
  • A RM42 million Protection Online Monitoring System, including the installation of a 15km submarine fibre optic cable connecting Menumbok, Tanjung Aru, and Labuan;
  • The RM50 million PMU at Universiti Malaysia Sabah (UMS), operational since August 2023, which raised load capacity and improved distribution in Sulaman and Alamesra;
  • And a RM6.3 million upgrade to the 11kV system in Labuan, completed in November 2023, enhancing the protection system at PPU Rancha-Rancha to support future development.

Fadillah emphasised the importance of these projects in supporting regional development and advancing the national energy transition agenda.

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