The east coast of Sabah faces significant challenges in electricity reliability, access, and decarbonisation. Cost of power grid infrastructure has left Sabah with about 400 unelectrified villages in an area which as the most acreage of Oil palm cultivation. Despite 124 oil palm mills generating millions of tonnes of waste annually, most biomass and biogas is either flared, used on-site for soil amendment, or exported, leaving untapped potential, estimated at 750MW for clean energy generation.

The Sabah Green Grid aims to address this gap by developing grid infrastructure to connect clusters of mills, enabling waste-to-energy generation, supporting the state’s SE-RAMP 2040 (Sabah Energy Road Map & Master Plan) targets for renewable energy, and aligning with Malaysia’s 2050 net zero ambitions. The initiative also addresses barriers such as high interconnection costs, low trust between mills and utilities, and lack of established financing pathways, offering a PPP and blended finance model to mobilise investment. By integrating local communities, Indigenous peoples, regulators, and mill operators into planning and decision-making, SGG promotes sustainable energy development that is socially equitable, economically viable, and environmentally responsible.

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