# Hydropower in Malaysia

> Hydropower supplies the bulk of Malaysia's renewable energy, but the story splits in two: mid-sized dams in the Peninsula and the mega-dams that drive Sarawak such as Bakun, Murum and Baleh, together with the environmental and resettlement debates that surround them.

- Category: energy
- Language: en
- Status: published
- Updated: 2026-08-14
- Canonical: https://negaraku.md/en/energy/hydropower-malaysia

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Water flowing down from Borneo's rainforest ranges now spins turbines that power aluminium smelters — and that is the core of Malaysia's renewable energy strategy. But the road to get there is marked by mega-dams, lakes spanning hundreds of square kilometres, and thousands of indigenous families forced to relocate.

Hydropower is Malaysia's largest source of renewable energy, but it is not a single story. It is two separate systems that developed according to their own geographies: mid-sized plants in the Peninsula, and the mega-dams that drive Sarawak.

## Why did Sarawak become the heart of Malaysia's hydropower?

Sarawak has large, fast-flowing rivers, heavy rainfall year-round, and steep valleys suited to high dams. The state government has harnessed this geography through the Sarawak Corridor of Renewable Energy (SCORE), which uses cheap hydropower to attract energy-intensive industries such as aluminium and silicon smelting to the Samalaju Industrial Park.

According to Sarawak Energy, the eight main power stations on the Sarawak Grid have a capacity of 4,640 MW, and the state's total available capacity is around 5,898 MW. Its backbone is large hydro — 3,558 MW existing — with Bakun alone contributing the majority.

In the Peninsula, by contrast, TNB operates smaller and older hydro plants, built primarily for grid stability, flood control and peak demand rather than for mega-scale industry.

## What is the difference between the Peninsula and Sarawak hydro systems?

The table below compares the main hydroelectric plants in the two regions:

| Plant | River / Location | Capacity (MW) | Commissioned | Region / Operator |
|------|-----------------|---------------|------------|----------------------|
| Bakun | Batang Balui (upper Rajang), Kapit | 2,520 | 2011 | Sarawak / Sarawak Energy |
| Baleh | Baleh River, Kapit | 1,285 | Under construction (see section below) | Sarawak / Sarawak Energy |
| Murum | Murum River, Belaga (Kapit) | 944 | 2014 | Sarawak / Sarawak Energy |
| Batang Ai | Ai River, Sri Aman | 94 | 1985 | Sarawak / Sarawak Energy |
| Kenyir (Sultan Mahmud) | Terengganu River | 400 | — | Peninsula / TNB |
| Sungai Perak cascade (Temengor, Bersia, Kenering, Chenderoh, Piah) | Perak River, Perak | 649.1 (combined) | — | Peninsula / TNB |

The difference in scale is stark. Bakun alone is nearly four times the entire Sungai Perak cascade combined. The Peninsula system is spread across many mid-sized plants supporting a more densely populated grid, while Sarawak concentrates large capacity in a few giant dams in the interior.

## Bakun: how big is this project?

Bakun is the benchmark-setting project. Located on the Batang Balui, upstream of the Rajang River, in Kapit Division, it is a Concrete Face Rockfill Dam (CFRD) reaching a maximum height of 205 metres above the foundation. Its reservoir covers about 695 square kilometres — the largest reservoir in Malaysia.

Its installed capacity is 2,520 MW, with firm energy of about 1,771 MW depending on grid demand. Commissioned in 2011, it reached full operation on 12 July 2014. On 16 August 2017, Sarawak Energy completed the acquisition of the plant from the federal government at a value of RM2.5 billion; it is now owned and operated by Sarawak Energy through its subsidiary (SEB Power Sdn Bhd, which holds Sarawak Hidro Sdn Bhd).

Murum, Sarawak's second-largest hydro plant at 944 MW, followed in 2014 in Belaga District. Together with Baleh under construction, Sarawak Energy is targeting a surge in large-hydro capacity beyond 4,800 MW.

## When will Baleh be completed?

Baleh is Sarawak Energy's largest hydro project to date at 1,285 MW, a Concrete Face Rockfill Dam (CFRD). Its completion status must be interpreted with care because sources give different figures: according to RECODA (a report dated November 2022), construction had reached 33 percent and the report targeted completion by 2027. That RECODA figure is now outdated and has been superseded: Sarawak Energy, as the project developer, lists a completion target by the end of this decade — that is, the fourth quarter (Q4) of 2030 — as its latest official position. The 33% progress figure is as of 2022 and should be treated as an old snapshot that has since changed. Once complete, Baleh will join the ranks of Batang Ai, Murum and Bakun, and make Sarawak among the largest hydro producers in the region.

In the Peninsula, the focus is more on extending the life of existing assets. In 2025, TNB obtained Energy Commission approval for an extension of the interim Power Purchase Agreement for the Kenyir plant from 14 September 2025 to 31 August 2030, maintaining a capacity of 400 MW at a capacity factor of 37.5% while the Hydro Life Extension Programme (HLEP) is carried out.

## How many people had to relocate?

This is the hardest part of the story. The mega-dams flooded valleys that Orang Ulu communities had inhabited for generations.

- **Bakun:** According to the River Resource Hub (International Rivers), about 10,000 indigenous people were relocated to the Asap (Sungai Asap) resettlement in 1998. They comprised five Orang Ulu groups — Kenyah, Kayan, Lahanan, Ukit and Penan. Complaints about small land sizes and uncertain compensation persisted for years.
- **Murum:** According to River Resource Hub (International Rivers) records, about 1,500 indigenous people, mostly Penan, began to be relocated in July 2013. In September 2012, more than 200 people blockaded construction for over a month after obtaining a leaked resettlement plan, protesting the compensation terms.

Sarawak Energy states that it made careful efforts to engage with and support the affected Penan and Kenyah communities before resettlement, including a Resettlement Action Plan, social and environmental impact assessments, and literacy and livelihood programmes. Independent critics, however, argue that this support was inadequate to replace the loss of customary land and traditional farming systems.

## Did all the mega-dams go ahead?

No — and this is proof that public acceptance has its limits. The Baram dam, planned on the Baram River, was expected to flood about 412 square kilometres of customary land and displace around 20,000 people from 30 villages.

After sustained indigenous protests, led by the Kenyah, Kayan and Penan communities, the Sarawak government announced a moratorium in 2015. According to Mongabay, the cancellation of the project was reported at the end of 2015 and the gazette proclaiming the land acquisition was officially revoked in March 2016 — returning the land to the residents. This event is often cited as a key victory for the grassroots movement in Borneo.

## What's next

The future of Malaysia's hydropower revolves around two different directions. In the Peninsula, the main agenda is extending the life of existing plants — such as Kenyir through the HLEP — and smaller new projects to support the country's renewable energy targets. In Sarawak, Baleh will determine whether the mega-dam model can be completed on schedule while avoiding the controversies that plagued Bakun and Murum.

For readers who want to dig deeper into this topic, useful next steps include understanding the role of hydro in national renewable energy targets, comparing the cost of hydro with solar and other energy sources, and tracking how customary land rights and environmental impact assessments continue to shape project decisions. Watch for official announcements from Sarawak Energy, RECODA and the Energy Commission for the latest project figures and status.

## Sources

- Power Generation — https://www.sarawakenergy.com/what-we-do/power-generation (Sarawak Energy)
- Bakun Hydroelectric Plant — https://www.sarawakenergy.com/bakun-hydroelectric-plant (Sarawak Energy)
- About the Murum HEP — https://www.sarawakenergy.com/media-info/media-releases/2024/about-the-murum-hep (Sarawak Energy)
- Construction on Baleh Hydroelectric Project reaches 33 pct completion — https://recoda.gov.my/construction-on-baleh-hydroelectric-project-reaches-33-pct-completion/ (RECODA)
- TNB Secures 5-Year Extension For Kenyir Hydropower Plant Operations — https://www.businesstoday.com.my/2026/05/25/tnb-secures-5-year-extension-for-kenyir-hydropower-plant-operations/ (Business Today)
- The Sungai Perak Hydropower Cascade — https://www.tnb.com.my/sustainability/esg-stories-tnb-sungai-perak-hydropower-cascade (Tenaga Nasional Berhad)
- Bakun Dam — https://riverresourcehub.org/resources/bakun-dam/ (River Resource Hub (International Rivers))
- Murum Dam — https://riverresourcehub.org/resources/murum-dam/ (River Resource Hub (International Rivers))
- Controversial dam officially canceled in Borneo after indigenous protests — https://news.mongabay.com/2016/03/controversial-dam-officially-canceled-in-borneo-after-indigenous-protests/ (Mongabay)
- Sarawak Energy Completes Acquisition Of Bakun HEP From Federal Government — https://www.sarawakenergy.com/media-info/media-releases/2017/sarawak-energy-completes-acquisition-of-bakun-hep-from-federal-government (Sarawak Energy)
- Baleh HEP — https://www.sarawakenergy.com/baleh-hep (Sarawak Energy)
- Baleh HEP To Generate Additional Hydropower Capacity By 2030 For Sarawak — https://www.sarawaktribune.com/baleh-hep-to-generate-additional-hydropower-capacity-by-2030-for-sarawak/ (Sarawak Tribune)
- Malaysia: the 'progress' brought by the Bakun dam in Sarawak — https://www.wrm.org.uy/bulletin-articles/malaysia-the-progress-brought-by-the-bakun-dam-in-sarawak (World Rainforest Movement)
- The Resettlement of Indigenous People affected by the Bakun Dam — https://riverresourcehub.org/wp-content/uploads/files/attached-files/resettlement_of_indigenous_people_at_bakun.pdf (River Resource Hub (International Rivers))
- Sarawak natives win fight to regain land taken for Baram dam — https://www.malaymail.com/news/malaysia/2016/03/22/sarawak-natives-win-fight-to-regain-land-taken-for-baram-dam/1084617 (Malay Mail)

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