October 13, 2009
KUALA LUMPUR, Oct 13 (Bernama) -- Though the proposed Bakun Dam in Sarawak has generated protests and controversies, some analysts believe the project is vital for the growth of the power industry.
Once completed, it will be the largest dam in the region outside China.
"With the assumption of Bakun supplying 1,700 megawatts at 11 sen per unit, it would generate an annual revenue of close to RM1.6 billion," MIDF head of research Zulkifli Hamzah told Bernama.
Recently, the project attracted attention among the media and environmentalists due to the impact on indigenous communities who have to be evicted from their homes to pave way for the building of the 2,400-megawatt Bakun Dam and other hydro-electric dams in Sarawak.
While the environmental risks have been debated, the project is likely to proceed as planned with the benefits expected to outweigh risks, Zulkifli said.
"Power generated by hydroelectric means has been proven to be cost-efficient and stable," he said.
He added that unlike coal, hydroelectricity is a sustainable and renewable form of energy source.
Energy, Green Technology and Water Minister Datuk Peter Chin Fah Kui has said that the government was committed towards ensuring the successful roll-out of the project which is expected to be fully commissioned by 2012.
OSK head of research Chris Eng said the Bakun Dam is expected to be able to start generating electricity by 2011 with supply for Sarawak.
"By 2015, it will be able to export electricity to Peninsular Malaysia," he told Bernama.
According to Zulkifli, the question of excess capacity is not a major concern as Malaysia will be able to export the power supply to neighbouring countries.
"On a larger scale, there is the proposed Asean Power Grid, of which the Bakun Dam is one of the 14 interconnections projects and one of the major sources of power generation," he said.
In 2003, heads of the Asean power utilities authorities conducted an Asean interconnection master plan study which resulted in a proposal for electricity interconnections to be established between 2007 and 2020.
The study's main goal was for the Asean electricity power interconnection master plan to meet the need for supply, distribution and transmission, security, and opportunities for electricity trading between Asean countries.
The Bakun Dam will require the laying of undersea cables to transmit electricity to locations outside its site in Sarawak and be part of the interconnecting power hub.
"On the issue of the laying of undersea cables across Indonesian waters, it is likely that both governments will undertake a memorandum of understanding to address any concern," Zulkifli said.
He said it was in the interest of both countries to ensure the success of the project.
The Bakun Dam, a concrete face rockfill dam 205 metres in height and 740 metres in length, is expected to have the capacity to flood an area the size of Singapore.
The project was revived after being suspended in 1997 with the outbreak of the Asian financial crisis.
Cost factors have also been a stumbling block due to the delay in starting the project and the rising prices of building materials.
Zulkifli said that based on estimates, the cost of Bakun dam alone, excluding the undersea cables, stood at RM6 billion.
"Like any other mega-project, cost overrun is something that is unavoidable but it is likely to be kept at a minimum," he said.
Eng said cost of the undersea cables to connect Bakun to Peninsular Malaysia is estimated to be about RM9 billion.
According to him, the operational cost for running the Bakun Dam will be lower compared to a coal-, gas- or fossil fuel-based plant but construction cost of the dam will be higher.
-- BERNAMA
