Kota Kinabalu: Sabah possesses abundant energy resources, but the State’s biggest challenge is integrating them into a sustainable and resilient energy system, according to Sabah Energy Corporation (SEC) Deputy Chief Executive Officer and Chief Operating Officer Ahmad Jaafar.
He said Sabah is rich in natural gas reserves, hydropower resources, solar potential and biomass from the palm oil industry, but greater coordination is needed to unlock their full value.
“The real challenge is not resources capability, but integration. How do we turn these strengths into sustainable growth for every Sabahan?” he said in his keynote address at the Sogce 2026.
He noted that electricity demand in Sabah continues to rise every year, reflecting the State’s economic growth but also increasing pressure on the energy system.
According to Ahmad, Sabah’s current energy mix remains heavily dependent on fossil fuels, with about 80 per cent of power generation coming from fossil fuel sources and only around 20 per cent from renewable energy.
Of the fossil fuel segment, some 86 per cent of electricity generation is supplied by gas-fired power plants.
“Only 86 per cent of generation is coming from gas. It is not very healthy for our grid. If something happens to the gas supply, our grid will be affected by power interruption,” he said.
He added that Sabah’s electricity grid remains fragmented, with many rural and island communities still relying on diesel generation, describing the situation as both an energy and economic challenge that could limit future growth.
Ahmad said SEC plays a crucial role in ensuring natural gas, which he described as a practical transition fuel, is utilised effectively through infrastructure development, coordination and support for downstream industries.
“At SEC, we are more than a provider. We are a planner, a gas aggregator, a project enabler and an investment catalyst, bridging policy, capital and implementation,” he said.
To support Sabah’s energy transition, Ahmad outlined six key pillars that will guide the State’s future energy development.
The first is infrastructure, including expansion of gas pipelines, stronger grid integration and investments in smart-grid technologies to improve energy security.
The second pillar focuses on natural gas as a transition fuel that can reduce emissions while ensuring stable electricity supply and supporting industrial development.
The third pillar is renewable energy, with efforts to accelerate hydropower, solar and biomass projects as Sabah works towards achieving a target of 50 per cent renewable energy in its generation mix by 2035.
The fourth pillar centres on innovation, including exploration of energy storage technologies, multi-generation grids and hydrogen development to ensure Sabah remains future-ready.
The fifth pillar is inclusivity, which includes expanding rural electrification programmes, deploying hybrid microgrids and ensuring affordable energy access for all communities.
The final pillar emphasises governance and partnerships, with Ahmad stressing the importance of collaboration between government agencies, industry players and investors.
“Our commitment to sustainability is fundamental and clear. We are lowering carbon intensity, improving efficiency and protecting the environment,” he said.
Ahmad also highlighted Sabah’s geographical advantages, saying the West Coast has the potential to become a hub for the gas industry, while the Interior offers significant hydropower opportunities and urban centres are well-suited for solar deployment.
He said SEC is helping integrate these strengths into a future-ready energy system guided by the Sabah Energy Roadmap.
Looking ahead, Ahmad said Sabah has the potential to move beyond being merely an energy consumer.
“If we execute our objectives successfully, Sabah will move far beyond simply consuming energy. We will become a supplier of power, expertise and leadership,” he said.
He added that such a transformation could create jobs, reduce emissions and strengthen Sabah’s position in Malaysia’s energy landscape alongside Sarawak, which he described as being at the forefront of the nation’s energy transition.
Ahmad stressed that partnerships would be critical to Sabah’s energy transition, citing SEC’s ongoing collaboration with Petronas in strengthening energy security and supporting industrial growth.
He stated that the corporation is also collaborating closely with the State Government through the Ministry of Industrial Development and Entrepreneurship, as well as other relevant ministries, agencies, investors, technical partners, and local communities, to accelerate the development of renewable energy and emerging energy solutions.
“These partnerships show a simple but important truth. When expertise, resources and shared purpose come together, we can achieve outcomes far greater than any organisation could achieve on its own,” he said.
Concluding his address, Ahmad said Sabah’s next chapter is about transforming itself into a hub of energy innovation through strategic use of gas resources, accelerated renewable energy development and technological innovation.
“Sabah does not have to remain only an energy consumer. We can produce it, we can ship it, we can export it and build a strong future through energy,” he said.
