Is there an alternative to a coal-fired power plant for the east coast of Sabah?

In 2025, by Sabah Electricity Sdn. Bhd (SESB) estimates, Sabah’s demand for power is expected to reach 2,330MW compared to 642MW today. The present capacity is 755MW, with reserve margin at less than 20%. This margin goes to below 10% if the risks of existing aging diesel-fired power plants are taken into account. With rapid development, including those generated by the Sabah Development Corridor, the state will require at least 820MW in 2010. Sabah’s power demand is expected to grow at an estimated 7% to 8% annually within the next 3 years.

These figures are revealing. Even today, Sabah is already facing a critical power supply situation.

The siting of a new power plant in the Eqast Coast and the Grid configuration, which comprise four components are integral in addressing the shortage of supply.

There are those who question the necessity of a new power plant in the east coast to meet power needs in eastern Sabah with the presence of the East-West Grid. The West-Coast Grid extends south from Kota Kinabalu to Sipitang. The Northern Grid from Kota Kinabalu to Kudat. The Eastern Grid between Tawau and Sandakan. The grid configuration is adequate for Sabah for some years to come. The East-West Grid is intended to support east-west mutual power transfer between western and eastern Sabah of up to a certain percentage.

Power planners, including consultants engaged by SESB, agree that with increasing demand, the absence of a power plant in east Sabah will render electricity supply in the state extremely unreliable. Sabah will be wholly dependent on power plants located in the west coast. A power plant in the east coast is crucial to provide system reliability and generation capacity under an “islanded” operation when the east-west link is interrupted, thus providing acceptable security of supply for the whole state. It also provides flexibility of the transmission system. The development of a new power plant in the east coast will also enable SESB to retire its aging, unreliable, noisy and highly polluting diesel sets currently in operation in Sandakan, Lahad Datu, Tawau and Semporna.

The power blackout of 21st April had inconvenienced consumers in Sabah. That blackout would be considered quite minor compared to what consumers will face if there is a mishap along the East-West Grid.

Every possible fuel option was considered before deciding on coal as the choice for the power plant in Silam. A gas-fired plant would have been preferred. It is certainly more environmentally acceptable. It is also much faster to develop – a very significant point in the present supply situation. Unfortunately, natural gas is only available in the west coast, discounting altogether the possibility of a gas-fired power plant in the east coast.

An additional gas-fired power plant will be built – but it will be in the west coast. Discussions with all relevant agencies, including the Sabah State Government and Petronas, are on-going on the date of completion of the plant. I am referring to the proposed combined cycle gas power plant at Kimanis, as mentioned in media reports during the Prime Minister’s recent visit to Sabah on 1st May 2008.

The development of hydropower in upper Padas and Liwagu is under consideration. Discussion has also started with Sarawak Energy Berhad for the import of power from Sarawak, particularly with the existence of hydro sites in Lawas and Limbang. All these are linked to the western part of Sabah and will take time before power from these sources can be used. They will not address the shortage of power generation in the eastern part of Sabah.

Biomass is only suitable for producing small volumes of power within the range of 2MW to 10MW. Similarly, the use of diesel is only suitable for producing small amounts of power suited for stand-alone stations. These, however, are also costly and polluting.

At present, the technology for renewable energy is of little help. To produce 300MW of power, over 50,000 solar panels and about 90 sq km of land would be required. To plant up over 300 wind turbines would require land bigger than the size of Singapore. Even if such an area of land is made available, Sabah simply does not have the wind resources to generate enough power through wind.

If there are people willing to develop a solar or wind powered system, which can produce 300MW of electricity and to sell power at a price acceptable to the consumers, they are most welcomed, to do so. SESB cannot do it.

The open forum held in Kota Kinabalu, involving participants from different interests, including NGOs, gave opportunities for divergent views to be aired. That is fine with SESB. Concerns for the environment is admirable and is to be welcomed and should be encouraged. In TNB, sensitivity to the environment is central in our planning. We insist on the Environmental Management System (EMS) ISO 14001 at all TNB power plants.

Against this background, coal was chosen as the only viable option for eastern Sabah. In Malaysia, clean coal technology is a mandatory requirement for the development of a coal-fired power plant. This technology is proven. It is used in many countries. The 2100MW coal-fired power plant in Manjung, Perak, was designed to meet the World Bank emission standards. It utilizes air pollution control devices such as the Electrostatic Precipitator and Flue Gas Desulphurisation plants to ensure emissions fully meet stringent environmental standards. The Tanjung Bin plant in Johor has a capacity of 2100MW. The Jimah plant in Negeri Sembilan which is under construction has a capacity of 1400MW. There are also coal-fired power plants in Sarawak. One is in Sejingkat, a few miles down river from Kuching, while another is being built in Mukah.

It is also appropriate to point out that the mercury content in coal varies depending on the source. Australian coal contains 0.01 to 0.11 ppm (parts per million). Indonesian coal - 0.01 to 0.05 ppm, US Eastern bituminous coal - 0.01 to 20 ppm. (These are technical information available from the Commonwealth Scientific and Research Organization of Australia and the Environmental Protection Agency of the United States of America). Australian and Indonesian coal report low levels of mercury while US coal has much higher levels of mercury. For the Sabah plant, the coal will be sourced from Indonesia.

For those who are interested in the Environmental Impact Assessment report prepared for the Silam power plant, it is available at SESB. Our coal specification is one of the most stringent and stipulates and addresses all issues relating to pollutants and emissions .

It may be of interest to mention that coal ash waste from power plants in Semenanjung is used by the cement industry for making special cement.

The Sabah State Government has said no to the Silam, Lahad Datu site. Even though Silam is the preferred site, SESB and TNB respect that decision. Thus, Silam or Lahad Datu is no longer an issue. But, with Silam being cancelled, it is now more urgent to agree on a new site so that work can start quickly. Work on the east coast power plant was to have started last year.

The urgency for a new power plant in the east coast is real. This point needs to be repeated and emphasized. A coal-fired power plant using clean coal technology remains the most realistic option available at the present time. We live with the choices we make. Take the route advocated by those who claim concerns for the environment and who have incessantly rejected the development of a coal plant; the risk will be an eminent power crisis in the east coast waiting to happen, particularly post 2011. Or choose a realistic and viable option that is readily available. It is for consumers in Sabah to make the call.

LEO MOGGIE