KUCHING: Exporting electricity to the southern Philippines offers multiple economic benefits for Sarawak, strengthening its position as a regional energy hub, said Nivakan Sritharan.
The lecturer from the Faculty of Business, Design, and Arts at Swinburne University of Technology Sarawak Campus said that the initiative will drive local economic growth by expanding the Sarawak Electricity Board’s ‘Beyond Sarawak’ initiative and increasing its influence.
“The revenue from electricity exports will allow Sarawak to reinvest in energy infrastructure, creating jobs, particularly in the utility sector.
“This aligns with the state’s vision for 2030, where a robust energy sector supports various industries and drives economic progress,” he told Sarawak Tribune.
Additionally, he noted that exporting surplus electricity at a profit could help lower local electricity prices by offsetting production costs.
The additional revenue stream may enable Sarawak to stabilise or subsidise domestic energy rates, benefiting consumers and businesses.
“As the state adopts alternative energy sources, such as hydrogen and other renewables, it strengthens energy resilience.
“This diversification aligns with Sarawak’s Post-COVID-19 Development Strategy 2030, ensuring a stable and self-sufficient energy supply.
“By positioning itself as a regional energy leader, Sarawak enhances economic sustainability while securing long-term benefits for industries and households,” he said.
Nivakan further highlighted that exporting electricity to the southern Philippines aligns with ASEAN’s broader energy grid strategy, positioning Sarawak as a key player in regional energy integration.
By expanding its cross-border supply beyond West Kalimantan, Sarawak strengthens its role in ASEAN’s vision for an interconnected and sustainable energy network.
“This initiative not only reinforces Malaysia’s commitment to regional cooperation but also boosts Sarawak’s status as a strategic energy hub.
“Recent collaborations with Indonesia through the Trans Borneo Grid, linking to Nusantara and other Kalimantan provinces, further solidify Sarawak’s role in shaping ASEAN’s energy future,” he said.
Economically, he sees this as an opportunity to access new markets, attract long-term buyers, and strengthen Sarawak’s position in regional energy negotiations. Increased energy exports will spur infrastructure investments and enhance Sarawak’s bargaining power.
“The supply agreement with the Philippines provides an entry point for Sarawak’s energy sector to build a strong brand presence across ASEAN.
“Geopolitically, Sarawak’s growing role in regional energy supply enhances Malaysia’s diplomatic and economic ties, positioning the country as a leader in sustainable energy solutions.
“By fostering regional interdependence, this initiative strengthens Malaysia’s influence within ASEAN, ensuring long-term stability and strategic partnerships,” he said.
However, Nivakan cautioned that cross-border electricity exports pose financial and infrastructure challenges requiring strategic planning and risk mitigation.
“One key financial challenge is determining export pricing. While Indonesia has set international electricity rates, it is unclear whether Sarawak will follow suit or develop its own pricing model.
“Electricity charges are regulated by operational costs, meaning prices may fluctuate.
“A dedicated government committee should monitor market volatility to ensure competitive pricing while safeguarding domestic interests,” he said.
On the infrastructure side, significant investment is needed to build and maintain transmission networks and cross-border interconnections.
Additionally, harmonising grid regulations and market rules across different countries requires coordination between Sarawak, Malaysia’s federal government, and ASEAN stakeholders.
Ensuring strong commitment from ASEAN member states to the ASEAN Power Grid (APG) is also critical for long-term success.
“To mitigate risks, Sarawak should prioritise infrastructure investment while maintaining fiscal discipline.
“The government is expected to allocate substantial funds to the energy sector in the coming years to support this initiative.
“At the same time, Sarawak must balance investments with risk management strategies to ensure the sustainability of its electricity export venture,” he said.
