Sabah is pioneering Ocean Thermal Energy Conversion (OTEC) in ASEAN, with the OTEC Enactment 2024 setting the stage for development. The Sarawak government has also expressed interest in OTEC, which converts the sea's thermal energy into electricity by using the temperature difference between warm surface seawater and cold deep seawater to generate clean energy.
Research indicates Sabah has the potential to generate up to 20,000 MW of electricity from OTEC, with 15,000 MW on the west coast and 5,000 MW on the east coast. Full implementation is expected within five years. Three Malaysian companies are authorized to conduct feasibility studies off Tawau-Semporna deep sea waters. UTM and UMS are also conducting a preliminary feasibility study for a potential OTEC plant project in Sabah.
Global OTEC estimates a global potential of 8,000 GW from OTEC, which could significantly contribute to decarbonization and biodiversity conservation. The development of OTEC technology aligns with the Sabah Energy Roadmap and Master Plan 2040 (SE-RAMP 2040), launched in September 2023, to increase renewable energy and identify new energy sources. The recent enactment of the Ocean Thermal Energy Conversion (OTEC) law by the Sabah Legislative Assembly marks a pivotal step towards sustainable development.