Sabah Implements Energy Storage Project and Calls for Strategic Petroleum Reserve
The Lahad Datu Battery Energy Storage System (BESS) has stabilized Sabah's electricity grid since its launch on August 29, 2025, reducing diesel consumption by 9.8 million liters and saving RM24.07 million. Concurrently, calls have been made for a Strategic Petroleum Reserve to enhance energy security and support local economic development in response to global supply disruptions.
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The Lahad Datu Battery Energy Storage System (BESS) has been operational since August 29, 2025, effectively stabilizing Sabah's electricity grid while achieving significant reductions in diesel consumption. The project has saved 9.8 million liters of diesel, translating to RM24.07 million in savings, with expectations of increased savings as diesel prices rise.
The BESS operates at a capacity of 100MW/400MWh using cheaper energy sources during off-peak hours, enhancing grid resilience and supporting the transition from diesel to renewable energy. Simultaneously, the establishment of a Strategic Petroleum Reserve has been proposed to secure local fuel supply and counteract market fluctuations.
This reserve aims to bolster Sabah's energy security and reduce economic leakage through local refining capabilities. The assembly also discussed the need for a Northern Borneo Regional Digital Highway to enhance competitiveness in AI and digital economy sectors, emphasizing the urgency of adopting advanced infrastructure to avoid being sidelined in the digital landscape.
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