By Yvonne Tan
THE RM3.5bil Murum dam, owned by utility firm Sarawak Energy Bhd is the other major hydropower project in the state. Located in the upper reaches of the Rajang River in central Sarawak, the dam project will add up to 944 MW by the end of 2013, fuelling concerns that together with the 2,400 MW Bakun dam, there will be a power glut in the state.
Total installed capacity from these two dams will be 3,344MW but firm power that is available for use at any time will be about 2,420MW, according to reports. Sarawak’s current capacity stands at 1,300MW.
Some industry players play down this potential surplus, saying that demand from industries in the Sarawak Corridor of Renewable Energy (Score) will resolve the matter.
Launched in 2008, Score – also known as the state’s second wave of development – is projected to bring in investments of about RM300bil until 2030. To date, some RM24bil have been poured into this initiative.
Sarawak Energy itself has projected that industries in Score would consume about 500MW in 2012 and close to 2,000MW by 2014. And by 2015, according to industry sources, the state expects a commitment of 2,590MW, which is more than the 2,420MW of firm power from Bakun and Murum once they are ready.
However, as it stands now, no agreements have been signed.
Currently, discussions are ongoing for power to be used by the smelter project carried out by Cahya Mata Sarawak Bhd and Australia-based Rio Tinto Alcan, which will require between 900MW and 1,200MW for an initial annual capacity of up to 720,000 tonnes when it is ready.
Tan Sri Syed Mokhtar Al-Bukhary’s GIIG Holdings Sdn Bhd and China’s Aluminium Corp’s joint venture Smelter Asia, with an initial annual capacity of 330,000 tonnes requiring 600MW, is also another deal at the negotiation stage.
In June, Sarawak Chief Minister Tan Sri Abdul Taib Mahmud mentioned a third aluminium smelter plant without elaborating. The implementation of the third smelter plant would depend on the progress of the first and second projects, he had reportedly said.
Meanwhile, amid the concerns of a power oversupply that these two dams may bring about, plans are reportedly afoot for the construction of a further five small dams. Among these is a 245MW dam to be built in Limbang, reports have indicated.
The Murum Dam is currently 27% completed, with the job awarded to China’s Three Gorges Project Corp and sub-contracted to Sinohydro Corp Ltd.
