JSB Secures RM2.8 Billion PPA for Sabah’s 162MW Project Oriole

Jentayu Sustainables Berhad (JSB), via its 70%-owned subsidiary Oriole Hydro Padas Sdn. Bhd. (OHP), has officially signed a Power Purchase Agreement (PPA) with Sabah Electricity Sdn. Bhd. for its flagship 162MW run-of-river hydropower project, “Project Oriole,” located in Hulu Sungai Padas, Sipitang, Sabah.

The RM2.8 billion private investment—one of the largest renewable energy ventures in Sabah to date—has received full land and resource approval from the State Government and is set to significantly contribute to the Sabah Renewable Energy Roadmap (RAMP 2040). Project Oriole is projected to supply around 16% of Sabah’s peak load demand upon commissioning.

The 40-year concession under a Build-Own-Operate-Transfer (BOOT) model will commence from the Scheduled Commercial Operation Date (SCOD) of 1 June 2029. Once operational, the project is expected to generate RM300 million in recurring annual revenue for the group.

Tariff Structure & Green Attributes

Under the agreement:

• Sabah Electricity will purchase up to 868,894 MWh annually (AFEQ) at RM0.315/kWh.
• Any generation between AFEQ and the Maximum Annual Allowable Quantity (MAAQ) of 950,222 MWh will be purchased at the same rate on a willing-buyer, willing-seller basis.
• Output beyond MAAQ may be sold at RM0.08/kWh, also on a willing-buyer, willing-seller arrangement.

JSB also plans to monetise Renewable Energy Certificates (RECs), potentially earning up to RM10.1 million. Any surplus REC income will be equally shared with Sabah Electricity.

Boost to Employment & Technical Training

The project is expected to create approximately 2,000 jobs during its construction phase and an additional 150 high-skilled roles for plant operations. JSB is actively working with local higher learning institutions to establish training programmes aimed at equipping Sabahans with technical skills for the clean energy sector.

Sustainable Design & Long-Term Price Stability

Project Oriole will deploy a run-of-river cascading hydropower scheme, which minimizes environmental disruption while ensuring consistent power output. With its fixed tariff structure over four decades, the project is seen as a long-term stabilizer for energy prices in Sabah, reducing reliance on energy subsidies and fossil fuel volatility.

EPCC Contract Awarded to China-Malaysia-Indonesia Consortium

OHP has awarded the Engineering, Procurement, Construction, and Commissioning (EPCC) contract to a consortium led by XD Power Transmission Sdn. Bhd., a subsidiary of China’s Xi’an Electric Engineering Co. Ltd., in partnership with PT Anhe Konstruksi Indonesia and Jawat Johan Sdn. Bhd. The selection followed an international open tender launched in May 2023, with four firms submitting bids.

The RM2.8 billion project will be delivered under a FIDIC Silver Book turnkey model, with a guaranteed 42-month completion timeline post-Notice to Proceed. It includes:

• Padas 1: 55MW hydropower plant
• Padas 2: 107MW hydropower plant
• Development of interconnection and communication facilities for energy evacuation.

Chairman Commits to Long-Term Vision

JSB Executive Chairman Datuk Haji Beroz Nikmal Mirdin described the PPA signing as a pivotal milestone, highlighting the project’s strategic role in advancing Sabah’s clean energy ambitions and Malaysia’s decarbonisation agenda.

“As a proud Sabahan, I am honoured to lead this initiative—fully financed through domestic private investment without public funds,” said Datuk Beroz. He also announced ongoing efforts to establish a local turbine manufacturing facility in partnership with a global manufacturer to strengthen Sabah’s position in the regional clean energy value chain.

To ensure continuity, he has agreed to a moratorium period during which he will remain a substantial shareholder and continue in an executive role to oversee Project Oriole’s execution and JSB’s broader energy vision.

With the PPA secured and EPCC partner appointed, Project Oriole is positioned as a landmark in Sabah’s transition toward a resilient, low-carbon, and innovation-driven economy.