Renewable Energy Powerhouse for Borneo and Beyond Nick Wright Vice President– Business Development Sarawak Energy Berhad Hong Kong – 12 September 2019 Slide 2 What is Sarawak Energy? • A fully integrated power utility and energy development company, wholly owned by the state of Sarawak • ~5,000 employees • Sole supplier to 3 million people through 640,000 domestic, commercial and industrial customers Generation Mix and Installed Capacity 0.68% 0.7% • Predominantly renewable hydropower 15.5% • Balance of thermal to maintain diversity and security of supply 16.3% • Alternative energy entering the mix 0.8% 0.9% 66.7% 20.3% 2026 2.4% 1.0% 14.8% 0.7% 63.3% 7,100MW 2010 10.2% 1,346MW 12.6% 2020 3.1% 0.5% 8.0% 73.2% Generation Type 8.5% 5,450MW Hydro Alternative Energy Gas Diesel Coal 35.7% 44.2% 2018 4,718MW Large Scale Solar Hydropower Advantages • A reliable, affordable sustainable and cost effective energy source • Low greenhouse emissions • Free, renewable fuel • Service life : > 100 years Grid Carbon Emission Intensity 2010-2017 0.8 0.72 0.70 Carbon Intensity* decreased by 0.6 0.54 71% 0.43 MWh / 0.4 Bakun 2 0.34 0.32 Power Intake tCO 0.24 0.21 0.2 Murum Power Intake 0 2010 2011 2012 2013 2014 2015 2016 2017 Year *This main grid CO2 emission intensity data has been assured by a third party Hydropower for Industry: A Sustainable Competitive Advantage Levelised Cost of Energy by technology (USD Cent/kWh) Small solar (Residential)*1 18 Diesel (@ USD 55/bbl crude) 14 Wind 10 Nuclear 9 Small hydro 8.5 Large solar (Community)*2 8 Gas CCGT (@ USD 10/mmbtu) 8 Geothermal 6.5 Coal Supercritical (@ USD 80/ton) 6 LargeLarge hydro Hydro 4 0 5 10 15 20 Source : Lazard’s LCOE Analysis Version 9 (2015) Notes : (1) & (2) Net output for small solar (residential) and large solar (community) assumed at 0.005 MW and 1.5 MW respectively. Their LCOE are based on respective low-end estimates from analysis report Among the Lowest Tariffs within ASEAN -for Residential, Commercial and Small Medium Enterprises 14.0 13.1 12.5 12.0 10.0 8.8 8.0 7.3 7.4 7.5 7.5 6.2 6.0 US$ Cent/kWh US$ 4.0 2.0 0.0 Sarawak¹ Vietnam³ PLN² Sabah¹ EGAT West Meralco Singapore⁵ Thailand⁴ Malaysia¹ Philippines⁶ Source: ¹Malaysia Energy Statistics Handbook 2017 ²Power in Indonesia, PWC, November 2017 ³Vietnam Electricity Annual Report 2017 ⁴EGAT Annual Report 2017 ⁵Singapore Energy Statistics 2017 ⁶Meralco Annual Report 2017 Sarawak Hydropower Potential Lawas HEP 47 MW Kota2 HEP Limbang1 HEP 10.5 MW Major Town 45 MW HEP: In operation Limbang2 HEP HEP: In Construction 130 MW Miri Trusan2 HEP HEP: Potential 240 MW Baram1 HEP 1,200 MW Bintulu Baram3 HEP Mukah 300 MW Belaga HEP Murum HEP 300 MW 944 MW Kapit Potential 10 Balui HEP HEPs, 1% Kuching 280 MW Non HEP Linau HEP 98% 180 MW Batang Ai HEP Pelagus HEP Bakun HEP 108 MW 465 MW Baleh HEP 2,400 MW Under Construction = 1,295.5MW 1,285 MW Explored Potential Hydro = 2,852MW Batang Ai Hydro Title • Text 108MW Installed Capacity, Commissioned in 1984 Slide 10 Bakun Hydro Title • Text 2,400MW Installed Capacity, Commissioned in 2011 11 Slide 11 Murum Hydro Title • Text 944 MW Installed Capacity, Commissioned in 2014 12 Slide 12 Baleh HEP Title • Text Installed Capacity 1,285 MW Project Execution Period 8 – 9 years Commissioned by 2026 Slide 13 Sarawak Corridor of Renewable Energy (SCORE) Energy Intensive Investors in Sarawak Samalaju Industrial Park Samalaju Port Power Substation Press Metal Sakura Ferroalloy SIG Iwatani Water Treatment Plant Sewage Treatment OCIM Plant Pertama Ferroalloys OM Materials Samalaju Resort Hotel Number of Power Contracts Signed 15 Source: Recoda Major SCORE Customers Major SCORE Customers (Continued) Press Metal OM Materials (Sarawak) • Aluminium smelter • Ferroalloys smelter Total power demand – • Power demand – 430MW • over 1328MW 17 Major SCORE Customers (Continued) Source: OM Materials Pertama Ferroalloys Tokuyama Malaysia • Ferroalloys smelter • Polycrystalline silicone • Power demand - 170MW manufacturing • Power demand - 275MW 18 Major SCORE Customers (Continued) Sakura Ferroalloys PMB Silicon • Silico-Manganese and • Metalic Silicon • High Carbon Ferro-Manganese • Power demand – 104MW producer • Power demand - 80MW Major SCORE Customers (Continued) Iwatani-SGI MPA • Power demand – 1MW • Integrated Phosphate Complex • Power demand – 80MW 20 Samalaju Port – developed in parallel In 4 Handymax + 1 Handysize Operation berth since 2017 18 million tonne per annum (9 Handymax berths + 3 Handysize berths + 1 Planned Liquid berth) capacity 46 million tonne per annum GreenCo of the Region The Borneo Grid as the First Step to realize the ASEAN Grid Power to Grow 22 Sarawak - West Kalimantan Interconnection – commissioned 2016 • Text Malaysia Mambong Sarikin Bengkayang 120~ km 275kV Interconnector West Kalimantan Slide 23 His Excellency Governor Irianto & North Kalimantan Provincial Government Slide 24 [27 April 2016] Letter of Intent (LOI) is signed between SEB and the Government of KalTara to formalize collaboration in the regional energy sector. Mentarang Induk HEP Potential: 1,375 MW of installed capacity, 925 MW of firm power or 8,103 GWh of firm energy. Our sites Mentarang Induk 116o 20’ 53”E 3o 28’ 58”N KaBaMa Induk 116o 07’ 46,80”E 2o 31’ 12,60”N Alignment with Indonesian Government Trigger to Unlock the Mineral Wealth of Indonesia • The hydropower in North Kalimantan has the potential to unlock the abundant mineral wealth of Indonesia • International cooperation is vital • The first project is merely a catalyst to a much bigger agenda. • Can we ride on the Belt and Road? Power THANK YOU Contact: Nick Wright Vice President Business Development M: +6013 811 7956 T: +6082 388 388 ext 8802 F: +6082 444 433 E: [email protected] Sarawak Energy Berhad Level 9, North Wing, No 1, The Isthmus 93050 Kuching, Sarawak, Malaysia. www.sarawakenergy.com.my.