The important issues driving long term electric power strategy in Malaysia are

• Growing electric power demand, estimated at 3.5%/yr for the next 10 years
• Depletion of domestic natural gas supply, which is being replaced by coal
• Environmental issues – pollution and CO₂ emissions
• Increase operational efficiency, in particular reducing transmission and distribution system losses

The largest electric power utility in Malaysia in Tenaga Nasional Berhad (TNB).  In response to these issues TNB has prepared a 25 year technology roadmap (TRM) with the objective of modernizing the electric power industry in the country.  The TRM has four main objectives,:

• Reliability and efficiency
• Intelligent power-delivery systems (smart grid)
• Value-added electric power products and services
• Reduced environmental impact

I have blogged previously about Malaysia’s renewable energy objectives and the recent introduction of a feed-in tariff program. Under the impetus of supporting distributed generation and to increase efficiency TNB is developing a smart grid development plan.  The TNB smart grid program was initiated in 2009 with four areas of focus

• Operational efficiency (T&D) and Energy efficiency – DMS, on-line condition monitoring, distribution automation, GIS, customer information management (CIS and CMS)
• Empowering customers – smart meters and AMI, enabling consumer energy management
• Reducing CO2 emissions – renewable energy, energy efficiency, co-generation, distributed energy resources, and dynamic voltage/VAR control
• Support electric vehicles – develop charging infrastructure for PHEVs

TNB’s smart grid development plan has three phases between 2011 and 2015. 

The focus of the first phase is reliability and involves distribution automation, deployment of DMS, customer information system and integration with other enterprise systems.  TNB decided to begin with three smart grid demonstration programs in Bayan Lepas (industrial centre), Bukit Bintang (commercial centre), and Medini (rural).

Phase 2 targets customer empowerment and energy efficiency through smart meters and AMI, bidirectional communications, improved billing,  remote connection management, dynamic voltage/VAR Control, demand management, consumer power management,and reduced T&D losses.

Phase 3 focusses on reducing CO₂ emissions, through renewable energy, energy storage, electric vehicles, and energy efficient street lighting.