F
or more than six decades, Lawas, a remote district in northern Sarawak, was cut off from the state’s main power grid, relying on diesel-based power generation for its electricity supply.
Since 2019, however, the area’s energy landscape has undergone a gradual transformation, shifting from fossil fuels to hydropower.
At the heart of this transition is the Kota 2 mini hydroelectric plant, located near the town of Lawas, a 10.5 megawatt (MW) run-of-river facility that has become a cornerstone of Lawas’ shift towards cleaner, more sustainable energy.
Commissioned in 2019 under Sarawak Energy Bhd’s (SEB) renewable energy strategy, the plant draws its power from Sungai Kota, harnessing the river’s natural flow without the need for a large dam or reservoir.
Designed to serve an isolated grid, Kota 2 was developed to address long-standing challenges faced by Lawas, which had relied on diesel-powered electricity generation with higher operating costs and limited supply flexibility.
During a recent SEB Media Familiarisation Trip, journalists toured both the Kota 2 facility and the district’s diesel power station, offering a striking comparison between conventional and renewable energy approaches.
MAKING THE MOST OF WATER, MINIMISING IMPACT
SEB vice-president for Hydro Jonny Wong Kwei Ji said the district’s renewable energy journey utilises a cascading hydropower system to optimise water flow while keeping the environmental impact to a minimum.
Cascading hydropower is a system of multiple, sequential hydropower plants built along a single river basin, where water discharged from an upstream plant is reused for power generation by downstream stations. This approach maximises energy extraction, improves overall efficiency, and reduces environmental impact by utilising natural river flow rather than large dams.
Officially operational in 2019 under SEB renewable energy strategy, the plant generates power from the Kota River by harnessing the river's natural flow without the need for the construction of large dams or reservoirs.
In the case of Lawas, two mini hydroelectric plants – Kota 1 (located in the downstream portion of Sungai Kota and commissioned in 2000) and Kota 2 (located in the upstream of the same river) operate on the cascading system, with the water used at Kota 2 reused again at Kota 1. (But only Kota 2 is linked to the Sarawak power grid.)
Describing it as a practical example of how cascading hydropower works, Wong said this system causes minimal disruption to the environment compared to the conventional larger dams, and also offers long-term operational benefits over fuel-based power generation.
He said the development of cascading hydropower systems also supports the Sarawak government’s commitment to maintaining 60 percent renewable energy in its overall energy mix.
“Cascading power sources are part of our renewable energy agenda, and towards 2035, we will be developing more of these systems,” he said when met at the Kota 2 plant.
CUTTING DIESEL USE, EMISSIONS
For Lawas, the impact of Kota 2 is already being felt.
SEB Gas Department general manager Cheling Sapong said Kota 2 was built to reduce the district’s dependence on diesel, adding the shift to hydropower has also brought significant environmental benefits, particularly in reducing carbon emissions.
(Left) During the recent SEB Media Tour program, media practitioners were taken to inspect the Kota 2 facilities and diesel power station in the district. (Right) The writer also had the opportunity to take a picture in front of Sungai Kota, Lawas.
“Diesel-powered (electricity) generation emits between 1.2 and 1.5 tonnes of carbon dioxide per one MW. With Kota 2 supplying clean energy, carbon emissions are reduced by an estimated seven tonnes per day,” he added.
Since it is built as a cascading, run-of-river facility, Kota 2 avoids the need for a large dam, helping to preserve the river ecosystem and surrounding environment, he said.
“The environmental impact is very minimal. That’s why this project aligns well with health, safety and governance standards,” he said.
Although hydropower plants require higher upfront investment, he said their long-term operational costs are significantly lower.
“Water, unlike fuel, comes at no cost. Over time, this will help reduce the cost of electricity generation and ensure a more sustainable supply,” he added.
Since Dec 4, 2025, Lawas has been fully integrated into the main power grid, Cheling said, adding that diesel-powered electricity generation, for now, will be retained as a backup to ensure supply stability when needed.
ENERGY GATEWAY
Beyond local generation, Lawas is also emerging as a strategic energy gateway between Sarawak and Sabah.
During their visit to the Lawas Town 275/33kV Substation, the journalists were briefed on the state grid interconnection that enables cross-border power transfer between the two states.
Designed to supply power to remote grids, Kota 2 was developed by SEB to address the challenges that Lawas has faced for a long time.
The substation concerned was commissioned and energised on Nov 21 last year following the completion of the 301-kilometre Bunut–Mendamit–Lawas 275kV transmission line, a major infrastructure project involving more than 800 transmission towers.
SEB vice-president (Transmission) Raphael Chung said the energisation of the Lawas Town Substation, together with the Lawas–Mengalong (in Sabah) 275kV transmission line, positions Lawas as the main interconnection point between the Sarawak and Sabah grids.
The Lawas distribution network was connected to the Sarawak main grid on Dec 4, 2025, followed by the cross-border interconnection to Sabah, which was energised on Dec 13 last year.
Chung said the integration of the Lawas Substation into the Sarawak grid system will also support the gradual decommissioning of diesel-based power generation in Lawas, and this transition is expected to deliver a more reliable, cost-effective and sustainable electricity supply for the area.
“By replacing diesel generation, the project will result in significant annual cost savings and a substantial reduction in carbon emissions,” he said.
POWERING REGIONAL AMBITIONS
The significance of the interconnection extends beyond Sarawak and Sabah.
On Jan 24, Sarawak Premier Tan Sri Abang Johari Tun Openg and Sabah Chief Minister Datuk Seri Hajiji Noor jointly officiated the energisation of the Sarawak-Sabah Power Grid Interconnection Project, involving the Lawas–Mengalong 275kV transmission line linking the two states, which they described as a step forward in strengthening regional energy security.
On Jan 24, Sarawak Premier Tan Sri Abang Johari Tun Openg and Sabah Chief Minister Datuk Seri Hajiji Noor jointly officiated the activation of the Sabah-Sarawak Power Grid Connection Project.
Hajiji said the project represents a transformational step towards building a more stable and reliable electricity supply system.
Abang Johari, meanwhile, said the project reflects Sarawak’s efforts to develop secure energy systems and expressed confidence that it could serve as a catalyst for broader initiatives such as the Borneo Grid and ASEAN Power Grid.
He said while ASEAN has yet to establish a multilateral framework for power interconnection, the Sarawak-Sabah link demonstrates how bilateral cooperation can pave the way for wider regional integration.
“You don’t have to reinvent the wheel… look at Europe or the Nordic countries as a model for power interconnection,” he said.
From river-powered turbines at the Kota 2 hydroelectric station to high-voltage transmission lines stretching across its border, Lawas is no longer merely a remote outpost at the edge of the grid, but is fast emerging as a symbol of Sarawak’s renewable energy ambitions and regional connectivity.
