Marconi MadaiVice President, Health, Safety, Security & Environment

Clean Energy, Future Energy

Better Air Quality Conference, 2018

About Sarawak Energy

Power to Grow

About Sarawak Energy

SustainabilityAligning with UN Sustainable Development Goals

United Nations Sustainable Development Goals

“Managing our business to minimise any negative impact of our operations and maximise the positive impact of

what we do for our community.”

Five Main Goals for Sarawak Energy

Holistic View of Energy Development

• Balanced energy development• drives socio economic transformation• requires energy security, sustainability and affordability

• Sarawak Energy is focused on• A balanced generation mix for energy reliability and

security• Affordability, we offer amongst the lowest tariff in the

region, through hydropower development• Sustainability - 75% renewable hydro energy, guided by the

international best practices such as IHA SustainabilityAssessment Protocol

Power to Grow

Hydropower for Industry:A Sustainable Competitive Advantage

Source:IRENA Renewables 2017 –Global Status Report, IEA – Southeast Asia Energy Outlook 2015, Lazard’s LCOE Analysis Version 10 (2016) & Sarawak Energy’s Analysis Team;

All values using average except Diesel(USD78/bbl), Small Solar (Residential) and Nuclear using low end estimates

Levelised Cost of Energy by Technology (USD Cent/kWh)

4

5

6

6

7

8.5

9.7

11

13.8

15.2

16.6

0 2 4 6 8 10 12 14 16 18

Large Hydro

Gas CCGT

Coal

Geothermal

Wind (On Shore)

Small Hydro

Nuclear

Large Solar

Small Solar (Residential)

Wind (Off Shore)

Diesel

Large Hydro

Generation Mix in Malaysia and Sarawak

Sarawak

Installed Capacity = 26940MWRE + Hydro = 3054MW (11.4%)

Installed Capacity = 4,652 MWRE + Hydro = 3,463MW (74.2%)

Note: Excludes Co-generation and Self GenerationSource: Suruhanjaya Tenaga(Energy Commission)

Renewable Energy (RE) includes Biomass, Solar, Biogas and Mini Hydro Generation

33.6%45.6%

Peninsular and Sabah

COAL Gas Hydro RE Diesel

33.6%9.4%

2%

9.4%

coal gas Hydro Diesel Renewables

74.2%45.6%

12.8%10.3%

2.5% 0.2%

108 MW Installed Capacity

Commissioned in 1984 944 MW Installed Capacity

Commissioned in 2014

Batang Ai MurumBakun

2,400MW Installed CapacityJoint-largest in

Commissioned in 2011

Advancing Hydropower

Baleh

1285MW Installed CapacityExpected date of

commissioning : 2025

Our HEPs are developed according to International Commission on Large Dams (ICOLD)standards and guidelines which ensure they are built and operated safely, efficiently,economically and are environmentally and socially equitable. Power to Grow

Among the Lowest Tariffs within ASEAN-for Residential, Commercial and Small Medium Enterprises

6.2

7.3 7.4 7.5 7.5

8.8

12.513.1

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Sarawak¹ Vietnam³ PLN² Sabah¹ EGAT Thailand⁴

WestMalaysia¹

Meralco Philippines⁶

Singapore⁵

US$

Ce

nt/

kWh

Source:¹Malaysia Energy Statistics Handbook 2017²Power in Indonesia, PWC, November 2017³Vietnam Electricity Annual Report 2017 ⁴EGAT Annual Report 2017⁵Singapore Energy Statistics 2017⁶Meralco Annual Report 2017

Power to Grow

0.78120.7252

0.5759

0.4424

0.33150.3167

0.2415 0.209

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

2010 2011 2012 2013 2014 2015 2016 2017

CARBON EMISSION INTENSITY (TONNE OF CO2/MWH)

Slide 10

BakunPower Intake

MurumPower Intake

Carbon Intensitydecreased by

74%

Decarbonising our OperationsCarbon Intensity Reduced by 74%

Power to Grow

Hydropower Sustainability Assessment Protocol in SEB Project Model

Conceptual Community Development Plan• Preliminary

assessment that aims to draw the concept of the Community Development Plan

Preliminary environmental/social assessments• Baseline surveys

• Key gaps, issues, and risks

Full ESIA + Community Development Plan• Communications and

consultations

• Detail assessments

• Final ESIA & Community Development Plan

Pre-feasibility Study commences

DG1Feasibility Studycommences

DG2Completion of Feasibility study

Post-DG2

108 MW Installed Capacity

Commissioned in 1984

944 MW Installed CapacityCommissioned in 2014

Batang Ai Murum Bakun

2,400MW Installed CapacityCommissioned in 2011

Advancing Renewable HydropowerSustainable, Clean and Affordable Energy for Sarawak and Beyond

Baleh

1285MW Installed CapacityExpected date of

commissioning : 2025

90%

Greater Access to Clean EnergyTowards Full Electrification by 2020

Bringing clean and renewable energy to off grid communities through Sarawak Alternative Renewable Electrification Scheme via solar, mini/micro hydro

Power to Grow

State Domestic Coverage: 95% in 2017Rural Coverage: 91% in 2017

Sarawak Alternative Rural Electrification Scheme, SARES

• Solar System• Hybrid solar system utilising ion-lithium

batteries

• Micro-hydro system

Power to Grow

37

Sarawak Energy is a member of UN Global Compact Network Malaysia (2017)

Sarawak Energy is a Gold Member of the Global Reporting Initiatives since 2016

Partnerships with International Sustainability Associations &Best Practices

Sarawak Energy is a Platinum Member of International Hydropower Association (IHA) we are an elected board member

2017 IHA BoD

Power to Grow

37

Other Members of International Hydropower Association

Power to Grow

Power to Grow

New Opportunities: Green EnergyGreening the Transport System with Electric Vehicles

First electric corporate fleet

in Sarawak

18

New Opportunities: Future Green EnergyHydrogen Pilot Research Project

South East Asia’s first hydrogen production plant and refuelling station in

Kuching

Power to Grow

Towards Better Air Quality

Power

Decarbonisation

Sustainability

Affordability

Decarbonisation

No. Fuel

Peninsular Sabah Sarawak Malaysia

Capacity (MW)

%Capacity

(MW)%

Capacity (MW)

%Capacity

(MW)%

1 Coal 9,056 38.8 0 0 480 10.3 9,546 32.5

2 Gas 11,324 48.4 968 74.7 595 12.8 12,886 43.9

3 Hydro 2,529 10.8 82 6.3 3,452 74.2 6,062 20.7

4 Diesel / MFO 0 0 187 14.4 114 2.5 301 1.0

5 Biomass 102 0.4 40 3.1

11 0.2

142 0.5

6 Solar 265 1.1 10 0.8 275 0.9

7 Biogas 55 0.2 3 0.2 58 0.2

8 Mini Hydro 44 0.2 6.5 0.5 51 0.2

Total* 23,385 100 1,296 100 4,652 100 29,333 100

RE + Hydro 2,995 12.8 141 10.9 3,463 74.4 6,599 22.5

Installed Capacity in Malaysia

Note: * Excludes co-generation and self Generation(Source: Suruhanjaya Tenaga)

Malaysian National Renewable Energy Policy & Action Plan

Policy StatementEnhancing the utilisation of indigenous renewable energy resources to contribute towards national electricity supply and sustainable socio-economic development

Renewable EnergyRenewable Energy (ER) is defined as energy that is generated from renewable resources including all size of hydro and on grid and off grid RE excluding traditional use of biomass

Source : KeTTHA

5,449MW

2020

7,115MW

2025

500 kV

Balingian

Tg Kidurong 1

Interconnection West Kalimantan

Interconnection Sabah

Baleh

1,335MW

2010

Generation Mix and Installed Capacity

Tg Kidurong 28%

45%36%

9%

2% 1%

73%

13%

10%

2% 1% 0.3%

63%15%

20%

1%1%

67%

17%

16%

1%

4,701MW

2017Generation Type