TNB plans RM18.8bil expansion over three years
Improvement to the company’s grid in the pipeline
KUALA LUMPUR: Power producer and distributor Tenaga Nasional Bhd (TNB) plans to spend about RM18.8bil over the next three years to expand its transmission and distribution grid capacity in Malaysia.
This will also include a capital investment of RM2.7bil into the “Grid of the Future” technologies that are expected to improve the grid’s reliability and efficiency, said TNB chief financial officer Datuk Fazlur Rahman Zainuddin ( pic).
“Under the second regulatory period from January 2018 to December 2020, we are expecting to spend about RM18.8bil for our capital expenditure domestically.
“On average, this is about RM6bil to RM7bil per annum. In addition to that, we will also continue to spend about RM2.5bil per annum to improve for power generate capacity,” he told reporters after TNB’s 28th AGM here yesterday.
As part of TNB’s initiatives for greater digitalisation of its services, the company has planned a scheduled deployment of 340,000 smart meters in Melaka under its “Grid of the Future” move. Subsequently, TNB will deploy an additional 1.2 million smart meters in the Klang Valley.
TNB chairman Tan Sri Leo Moggie pointed out that the power producer was taking advantage of digital and technological innovations for its generation and grid operations, as well as introduce products and services beyond the meter.
He said that inefficient ageing plants have been decommissioned and replaced with more efficient and economical plants. The current gold standard in coal-fired power plants, namely ultra-supercritical technology, was being used for newer plants.
“We see potential in energy-related services beyond the meter involving advanced technologies. We will continuously offer new products and services to meet our customer needs,” said Moggie.
On TNB’s proposed takeover of an information technology outfit Setia Haruman Technology Sdn Bhd, Moggie said it would provide TNB with strategic capability to enhance digital-based services to its customers.
Asked about possible electricity tariff revision, he pointed out that the current tariff would remain until the end of June 2018.
Commenting on TNB’s direction with the new government, Moggie said that the company would react as per the policies of the government-of-the-day.
“Being a government-linked company, we will be in line with the government as far as policies are concerned. We have always evaluated our investments on a very professional basis based on what is good for the shareholders and the country,” he said.