Sabah Energy Corporation is planning to start construction of the first commercial large-scale and the largest onshore wind power project in Malaysia, located in northern Kudat, this year. The 100 MW project aims to diversify the state’s electricity generation mix and reduce its heavy dependence on fossil fuels, especially diesel and gas.

Development of the first onshore wind power project in Malaysia also aligns with Sabah Energy Roadmap and Master Plan 2040 which targets increasing renewable share across the power sector. Feasibility studies completed last year have identified strong wind potential in Kudat. This has prompted the state to pursue commercial wind generation capacity of up to 100 MW. This finding also goes around the main setback holding back wind power generation in Malaysia.

The Sabah large-scale wind project is in preparatory phases before start of construction. The onshore installation is also set to become a milestone for Malaysia’s national renewable energy development. This is as the Southeast Asian country continues to integrate clean energy supply into power intensive developments like the STT GDC Johor data centre campus. Sabah large-scale wind project is also being developed alongside other wind projects like the Vietnam-Malaysia  offshore project and other potential projects in Kudat and Kota Marudu.

First onshore wind project in Malaysia: Sabah large-scale wind project

Sabah large-scale wind project will be developed in the Kudat district. Kudat is a northern coastal region with favorable wind characteristics suitable for utility-scale turbines based on regional resource assessments.

SEC completed preliminary feasibility assessments in 2025. The studies examined wind speed profiles, site conditions, and viability of modern turbine technologies capable of harnessing relatively low-to-moderate winds characteristic of Malaysia. Work on initial phases, including detailed engineering, environmental and social impact studies, and grid connection planning, is expected to begin this year.

If fully realized, the first onshore wind power project in Malaysia is also set to significantly enhance Sabah’s clean energy credentials and bolster overall grid resilience.

Project factsheet

Project Name: Sabah Large-Scale Wind Energy Project

Owner: Sabah Energy Corporation Sdn Bhd

Location: Kudat District in Sabah, Malaysia

Capacity: 100 MW

Status: Feasibility complete; commencement planned 2026–2027

Importance: First large-scale commercial wind project in Malaysia

Project developer, partners, and stakeholders

• Sabah Energy Corporation Sdn Bhd (SEC) – State Renewable Energy Developer
• Sabah State Government – Energy & Utilities Stakeholder
• Energy Commission of Sabah (ECoS) – Permitting & Regulation
• Sabah Ministry of Infrastructure Development & Utilities
• Sabah Electricity Sdn Bhd (SESB) – Power Grid Partner
• Kudat District Office – Local Government Liaison
• Sabah Environmental Protection & Research Group

Project financing and policy backing

While exact investment figures have not yet been publicly disclosed, financing is expected through state-level energy budgets and potential federal renewable incentives. Private sector participation under Malaysia’s expanding renewable energy frameworks in also expected.

Policy movers for the project include Sabah’s commitment under SE-RAMP 2040 to achieve higher renewable penetration by 2030-2050. The commitment is also central to national sustainability goals and Malaysia’s broader energy transition efforts. Reductions in long-term energy costs and enhanced energy security are also seen as additional economic rationales for wind deployment in Sabah.

Outlook on the first onshore wind project in Malaysia

Completion of the first onshore wind installation In Malaysia, the 100 MW Sabah large-scale wind project, would mark a historic milestone for Malaysia. The project would also chart a renewable path beyond solar and hydro, which have dominated previous clean energy deployment.

As SEC moves from feasibility to execution, securing experienced turbine suppliers, engineering partners, and financing arrangements will also be critical. International and regional clean energy investors are also likely to track its progress and be more engaged. This is from emerging global interest in tropical and low-wind-speed wind resource projects.