East Malaysia
The purpose for the dam was to meet growing demand for electricity. However, most of this demand is said to lie in Peninsular Malaysia and not East Malaysia, where the dam is located. Even in Peninsular Malaysia, however, there is an oversupply of electricity, with Tenaga Nasional Berhad being locked into unfavourable purchasing agreements with Independent Power Producers. The original idea was to have 30% of the generated capacity consumed in East Malaysia and the rest sent to Peninsular Malaysia. This plan envisioned 730 km of overhead HVDC transmission lines in East Malaysia, 670 km of undersea HVDC cable and 300 km of HVDC transmission line in Peninsular Malaysia.