Labuan: The new 120-megawatt Rancha power plant is set to significantly improve Labuan's power supply reliability, addressing longstanding electricity disruptions while enhancing the island's appeal as an investment destination, Deputy Prime Minister Datuk Seri Fadillah Yusof announced.
According to BERNAMA News Agency, the project reflects the Federal Government's commitment to ensuring energy security, system reliability, and long-term sustainability for regions like Labuan. Fadillah emphasized that the initiative is not just a power plant development but a demonstration of the government's dedication to providing a stable electricity supply that supports economic growth and public wellbeing. He expressed gratitude to PG Energia Sdn Bhd, SEC Power Sdn Bhd, and Sustainable Power Sdn Bhd for their investment and technical expertise.
Rancha Power Sdn Bhd, a joint venture of PG Energia, SEC Power, and Sustainable Power, is leading the project. Construction is slated to begin in February, with commercial operations targeted for January 1, 2028. Fadillah noted that a reliable power supply is crucial for Labuan, an international financial centre and offshore business hub, as energy stability directly impacts investor confidence and economic competitiveness.
The project aligns with Prime Minister Datuk Seri Anwar Ibrahim's December 2023 announcement to address Labuan's power supply disruptions through a new power station. The Prime Minister highlighted Petronas' role in the fast-track construction, emphasizing transparency and governance.
Upon completion, the new plant will bolster SESB's operational capacity in Labuan. Fadillah stated that the Rancha power plant is part of the National Energy Transition Roadmap, focusing on supply security, environmental sustainability, and consumer affordability, while targeting net-zero carbon emissions by 2050.
Malaysia's approach to energy transition involves integrating renewable energy while maintaining conventional energy sources like natural gas. Fadillah stressed that the Rancha Power Plant is essential for system reliability and future renewable energy integration.
The project, based on technical analysis and system planning, considers Labuan's ageing power assets and anticipated electricity demand growth. Strengthening Labuan's energy infrastructure aligns with Malaysia's regional energy goals, including the ASEAN Power Grid initiative.
Fadillah assured that energy projects would be implemented with strong governance and compliance with safety, regulatory, and environmental standards. He expressed confidence that the project would boost Labuan's energy system and contribute to its sustainable economic development.