From an energy standpoint, Malaysia is as diverse as its art, music, and literature. Malaysia is divided into 13 states and three Federal Territories, separated by the South China Sea with 11 states and two federal territories (Kuala Lumpur and Putrajaya) in Peninsular Malaysia and two states and one federal territory (Labuan) in East Malaysia. The demand for energy consumption in Malaysia is projected to increase by 5% per year over the next five years, and is likely to double in the next 20 years. To meet this need, Malaysia’s largest utility, Tenaga Nasional Berhad (TNB), has undertaken an ambitious Smart Grid demonstration project working with 5,000 customers in 3 different cities. The goal of this project is to reduce the nation’s dependence on natural gas and coal, and to withdraw from national electricity subsidies in the next 4 years. The national goal of the Malaysia’s Smart Grid program is to reduce carbon emissions to 40% of the 2005 level, and increase the renewable energy levels to 2,080 MW 4,000 MW by 2020 and 2030, respectively. In addition, the Smart Grid will help Malaysia’s utilities reduce grid operational costs and improve energy efficiency.

1. Malaysia:
Zpryme Smart Grid Insights | March 2012
The Smart Grid
Has Landed
Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.

2. Malaysia: Smart Grid
“the Malaysian government's move to
purchase power assets might be the
start of an overhauling of the country's
whole power generation industry in the
long run.”
Source: Malaysia tycoon near power assets deal with govt firm-sources, Reuters, March 5, 2012.
1 Zpryme Smart Grid Insights | March 2012
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3. Malaysia: Smart Grid
Malaysia: The Smart Grid Has Landed the communication and wireless infrastructure
segment is projected to grow the fastest from 2011
From an energy standpoint, Malaysia is as diverse as its art, to 2016, growing at an annual rate of 28.5%.
music, and literature. Malaysia is divided into 13 states and
three Federal Territories, separated by the South China Sea  The smart meters segment is projected to be the
with 11 states and two federal territories (Kuala Lumpur largest, reaching $29.8 million by 2016.
and Putrajaya) in Peninsular Malaysia and two states and Malaysia Electric Generation Forecast
2011 to 2016 (in billion killowatthours)
one federal territory (Labuan) in East Malaysia. The 160 (figure 1, source: EIA & Zpryme)
demand for energy consumption in Malaysia is projected 135
142
140
to increase by 5% per year over the next five years, and is 122
129
likely to double in the next 20 years. To meet this need, 120 113 116
Malaysia’s largest utility, Tenaga Nasional Berhad (TNB),
100
has undertaken an ambitious Smart Grid demonstration
project working with 5,000 customers in 3 different cities. 80
The goal of this project is to reduce the nation’s 60
dependence on natural gas and coal, and to withdraw
from national electricity subsidies in the next 4 years. The 40
national goal of the Malaysia’s Smart Grid program is to 20
reduce carbon emissions to 40% of the 2005 level, and
0
increase the renewable energy levels to 2,080 MW 4,000 2011 2012 2013 2014 2015 2016
MW by 2020 and 2030, respectively. In addition, the Smart
Grid will help Malaysia’s utilities reduce grid operational
Malaysia Smart Grid Technology Market Value Forecast
costs and improve energy efficiency. 2011 to 2016 (in U.S. millions)
$120.0 (figure 2, source: Zpryme) $109.0
Malaysia Smart Grid Market Value $100.0 $91.7
$80.0
The total Malaysia Smart Grid technology market is
projected to grow from $35.2 million in 2011 to $109.0 $60.0
$59.0
$49.6
million in 2016.
$41.8
$40.0 $35.2
 The market is projected to grow at an annual rate of
25.4% during this time period. $20.0
$0.0
 Among the five major Smart Grid technology areas, 2011 2012 2013 2014 2015 2016
2 Zpryme Smart Grid Insights | March 2012
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4. Malaysia: Smart Grid
Malaysia Smart Grid Market Value Forecasts by Technology
(figure 3, source: Zpryme – U.S. millions)
Smart Grid Segment 2011 2012 2013 2014 2015 2016 CAGR
Software & Hardware $6.7 $7.9 $9.3 $11.0 $15.0 $17.7 21.6%
Smart Meters $8.7 $10.3 $12.3 $14.7 $25.0 $29.8 28.0%
Sensors $5.3 $6.4 $7.8 $9.4 $13.5 $16.3 25.3%
Comm. & Wireless Infrastructure $5.4 $6.7 $8.3 $10.2 $15.2 $18.8 28.5%
Smart T&D Equipment $4.6 $5.5 $6.6 $7.8 $12.2 $14.5 25.7%
Other $4.6 $5.0 $5.4 $5.9 $10.8 $11.8 20.8%
Total Smart Grid Market Value $35.2 $41.8 $49.6 $59.0 $91.7 $109.0 25.4%
Percent of Total Market 2011 2012 2013 2014 2015 2016
Software & Hardware 18.9% 18.8% 18.7% 18.6% 16.4% 16.3%
Smart Meters 24.6% 24.7% 24.8% 24.9% 27.3% 27.3%
Sensors 15.1% 15.3% 15.6% 15.9% 14.7% 15.0%
Comm. & Wireless Infrastructure 15.3% 16.0% 16.6% 17.4% 16.6% 17.3%
Smart T&D Equipment 13.2% 13.2% 13.2% 13.2% 13.3% 13.3%
Other 13.0% 11.9% 11.0% 10.0% 11.8% 10.8%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
3 Zpryme Smart Grid Insights | March 2012
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5. Malaysia: Smart Grid
Malaysia Smart Grid Plans the annual growth rate for energy consumption could
produce save trillions of dollars for consumers. 10
There are three utilities in Malaysia: Tenaga Nasional
Berhad (TNB), Sarawak Energy Berhad (SEB), and Sabah TNB’s Smart Grid Plan
Electricity Sendirian Berhad (SESB).1 By far, TNB is the
largest with 7.6 million customers, while SEB has 500 By focusing on 5,000 customers (.06% of the population),
thousand, and SESB has 414 thousand customers. 2 Clearly, TNB expects to obtain insights into how to implement Smart
TNB is the most influential electric utility in Malaysia.3 Grid throughout the entire country. The TNB Smart Grid
development was begun in November 2009,11 with plans
Because of its size and influence, TNB has embarked upon to implement a Smart Grid test at three demonstration
a Smart Grid development plan for Malaysia. The driving projects in the north (Bayan Lepas—industrial area), in the
forces for Smart Grid development are several. There is a central region (Bukit Bintang—commercial area), and in
growing demand for electricity that is estimated to the south (Medina—green field).12 A Smart Grid Steering
increase at 3.5% per year for the next 10 years.4 This is Committee was formed to provide direction.13 The
projected to double demand over the next 20 years.5 The demonstration project at the three sites will involve 5,000
country is facing a depletion of domestic natural gas, customers at those locations.14
which is being replaced by coal.6 There are
environmental issues of pollution and carbon dioxide There are three phases that exist in the Smart Grid plan:
emissions. 7 And there is a growing recognition of a need
to increase operational efficiency by reducing  Phase I (2010 – 2011) to improve operational
transmission and distribution losses.8 Recent outage efficiency via automation [completed June 2011];
incidents (January 2005, April 2008) have increased
pressure to obtain a more reliable system to deliver  Phase II (2011 – 2013) to empower customers and
power.9 In addition, increasing energy efficiency is a main improve energy and network efficiency; and
goal for TNB, as studies show that even a slight decrease in
 Phase III (2011 – 2015) to reduce carbon dioxide via
1 Rakob, M.Y. Planning for Smart Grid in TNB System. 2010 IEEE Conference on Power renewable energy.15
and Energy. PECon 2010. 2010.
2 Ibid.
3 Ibid.
4 Smart Grid Development in Malaysia. Between the Poles.
10 greenpurchasingasia.com/content/lobby-smart-grid-roadmap-malaysia
geospatial.blogs.com/geospatial/2011/10/s,art-groid-development-in-malaysia.html, 2011. 11 Rakob, M.Y. Planning for Smart Grid in TNB System. 2010 IEEE Conference on Power and Energy.
5 Viola, C. Malaysia: TNB’s Smart Grid Demonstration Project. Smart Grid Opinions. October 18,
PECon 2010. 2010.
2011. 12Ibid.
6 Smart Grid Development in Malaysia. Between the Poles. 13Ibid.
geospatial.blogs.com/geospatial/2011/10/s,art-groid-development-in-malaysia.html, 2011 14 Lobby for Smart Grid Roadmap in Malaysia. Green Purchasing Asia.
7 Ibid.
www.greenpurchasingasia.com/content/, September, 2011.
8 Ibid. 15 Rakob, M.Y. Planning for Smart Grid in TNB System. 2010 IEEE Conference on Power and Energy.
9 Ibid. PECon 2010. 2010.
4 Zpryme Smart Grid Insights | March 2012
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6. Malaysia: Smart Grid
The projects are aligned with the three Phases. In Phase I,
implementation of distribution automation, deployment of  A project involving a 730 kilometer high-voltage
the distribution management system modules (fault transmission line and a 670 kilometer undersea cable
location, isolation and restoration; state estimator; auto for the 240 megawatt Bakun hydroelectric dam has
contingency analysis; auto feeder reconfiguration), and been considered which would connect all three of
development of integrated customer information system Malaysia’s utility companies. Many of SEB and
have been completed.16 In this phase all equipment will SESB’s generation plants are still not interconnected
be retrofitted with sensors and improved communication to a grid.
devices. In Phase II, to increase customer participation,
deployment of an advanced metering system,  Of note is that the national grid in Malaysia has
improvement of billing, and an improved new connection cross-country connections. There are two
process is underway.17 This will effectively install 5000 smart connections to Thailand and one electricity
meters in key test locations. Also in Phase II, to improve connection to Singapore. Obviously, these other
energy efficiency, hardware and software for VAR control, countries rely upon reliable supplies of electricity.
demand side management information, and a better
transmission and distribution asset utilization system are Key Smart Grid Players in Malaysia
planned.18 In Phase III, to reduce carbon dioxide, solar
photovoltaic panels, energy storage batteries, electric car Because TNB decided to use only a demonstration project
charging stations, and solar/LED street lighting are approach toward full-scale Smart Grid installation, only a
scheduled. 19 limited number of companies are involved at this time. In
Malaysia, Renesas Electronics Corporation has several
Noteworthy Items sales offices and manufacturing facilities located there.
Renesas has also created several programs that have
 Most recently, Malaysian tycoon Ananda Krishnan is strengthened the community involvement with Malaysia,
nearing a deal to sell his $3 billion worth of power such as community outreach programs to plant groves of
assets to a government company. Analysts said the Mangrove trees, and hosting robotic competitions in
Malaysian government's move to purchase power Malaysia. IBM, ABB, Siemens, FMC-Tech in association with
assets might be the start of an overhauling of the General Electric, Paradox Engineering, and inCONTROL
country's whole power generation industry in the Tech all plan to play a part in development of a Smart
long run.20 Grid for Malaysia. 21
16 Rakob, M.Y. Planning for Smart Grid in TNB System. 2010 IEEE Conference on Power and Energy.
PECon 2010. 2010.
17Ibid.
18Ibid. 21General Electric Invests in Smart Grid Startups Including Irish Company. Ryan Academy.
19Ibid. ryanacademy.wordpress.com/2011/18, 2010.
20 Malaysia tycoon near power assets deal with govt firm-sources, Reuters, March 5, 2012.
5 Zpryme Smart Grid Insights | March 2012
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7. Malaysia: Smart Grid
 IBM has maintained offices in Malaysia since 1961
and has worked to develop key alliances with the
Malaysian government to help develop the Smart
Grid there. IBM states that they will continue to work
with Malaysia to provide cutting edge technology
that will enable the country to meet its strategic
goals.
 ABB established operations in Malaysia in 1973 and
brings the technological advancements of the
United States and Europe to the lower cost
manufacturing facilities in Malaysia.
 FMC-Tech has two main projects in Malaysia- Shell
Gumusut and Murphy Kikeh Spar, both off shore
drilling operations. Because of the relationship
developed in working to provide oil for Malaysia,
FMC-Tech is poised to play a large role in the
development of the Smart Grid in Malaysia. Last, its
alliances with General Electric, Paradox Engineering, Zpryme Credits
and inControl Tech can aide it in re-focusing its Editor Managing Editor Research Lead
participation in Malaysia’s electrical system. Megan Dean Sean Sayers Stefan Trifonov
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