ARL Power Sdn Bhd owns and operates a 50 MW medium fuel oil power plant in Stesen Janakuasa Elektrik Melawa, Kota Kinabalu, Sabah. The Power Plant’s total generating capacity and energy production are sold to Sabah Electricity Sdn Bhd (SESB) based on a 21 years Power Purchase Agreement (PPA), which allows for the exclusive sale of generating capacity, on a fixed payment and a variable payment for electrical energy for a period of 21 years commencing from 31st October 1995. The PPA has presently been extended commencing from 15 July 2017 until 31 December 2018.
ARL Power Sdn Bhd was first incorporated in Malaysia under the name ARL Tenaga Sdn Bhd on 17th November 1993 and is part of ARL Global Group of Companies. On 14th June 1994, the Malaysian Government awarded ARL Tenaga Sdn Bhd the Electricity Generating License to build, own and operate a power generation plant to supply energy to Sabah Electricity Sdn Bhd (SESB) which at that time known as Sabah Electricity Board.
For the operations and maintenance of the Power Plant, ARL Power Sdn Bhd provides more than 40 employment opportunities to locals and Bumiputera. In line with the ARL Group of Companies’ vision and mission, 95% manpower to operate the Power Plant are Sabahan Bumiputera from lower to upper levels. Up to 2017, the technical and administration manpower for the Power Plant are 41 workers hired under its sister company, ARL Janakuasa Letrik Sdn Bhd which has been appointed to undertake the Operations and Maintenance of the Power Plant.
A consortium comprising of Hyundai Heavy Industries Co., Ltd. and Hyundai Engineering Corporation of Korea undertook the engineering design, procurement and construction of the Power Plant. The project was completed at a total cost of approximately RM175 million. It comprises of 4 units 12.5MW gross medium speed diesel engines. The engines, of NSD Switzerland design, are able to run either on medium fuel oil, distillate fuel or a blend of diesel and palm olein.
This project also includes facilities to process and store fuel oil and all other auxiliaries necessary for the operation and control of the Power Plant. A high level of automation has been applied throughout, covering all starting, stopping, monitoring and controlling processes, performed via the Distributed Control System (DCS) installed in the Control Room. Interconnection facilities are located in the neighbouring SESB power plant's switchyard.