Malaysia:                                                                          Zpryme Smart Grid Insights | March 2012...
Malaysia: Smart Grid“the Malaysian governments move topurchase power assets might be thestart of an overhauling of the cou...
Malaysia: Smart GridMalaysia: The Smart Grid Has Landed                                                the communication a...
Malaysia: Smart Grid        Malaysia Smart Grid Market Value Forecasts by Technology                                      ...
Malaysia: Smart GridMalaysia Smart Grid Plans                                                                        the a...
Malaysia: Smart GridThe projects are aligned with the three Phases. In Phase I,implementation of distribution automation, ...
Malaysia: Smart Grid       IBM has maintained offices in Malaysia since 1961        and has worked to develop key allianc...
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[Smart Grid Market Research] Malaysia: The Smart Grid Has Landed, March 2012

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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.

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[Smart Grid Market Research] Malaysia: The Smart Grid Has Landed, March 2012

  1. Malaysia: Zpryme Smart Grid Insights | March 2012The Smart GridHas LandedCopyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
  2. Malaysia: Smart Grid“the Malaysian governments move topurchase power assets might be thestart of an overhauling of the countryswhole power generation industry in thelong run.”Source: Malaysia tycoon near power assets deal with govt firm-sources, Reuters, March 5, 2012. 1 Zpryme Smart Grid Insights | March 2012 Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
  3. Malaysia: Smart GridMalaysia: The Smart Grid Has Landed the communication and wireless infrastructure segment is projected to grow the fastest from 2011From 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 andthree Federal Territories, separated by the South China Sea  The smart meters segment is projected to be thewith 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 140to increase by 5% per year over the next five years, and is 122 129likely to double in the next 20 years. To meet this need, 120 113 116Malaysia’s largest utility, Tenaga Nasional Berhad (TNB), 100has undertaken an ambitious Smart Grid demonstrationproject working with 5,000 customers in 3 different cities. 80The goal of this project is to reduce the nation’s 60dependence on natural gas and coal, and to withdrawfrom national electricity subsidies in the next 4 years. The 40national goal of the Malaysia’s Smart Grid program is to 20reduce carbon emissions to 40% of the 2005 level, and 0increase the renewable energy levels to 2,080 MW 4,000 2011 2012 2013 2014 2015 2016MW by 2020 and 2030, respectively. In addition, the SmartGrid will help Malaysia’s utilities reduce grid operational Malaysia Smart Grid Technology Market Value Forecastcosts and improve energy efficiency. 2011 to 2016 (in U.S. millions) $120.0 (figure 2, source: Zpryme) $109.0Malaysia Smart Grid Market Value $100.0 $91.7 $80.0The total Malaysia Smart Grid technology market isprojected to grow from $35.2 million in 2011 to $109.0 $60.0 $59.0 $49.6million 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 20162 Zpryme Smart Grid Insights | March 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
  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 CAGRSoftware & 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 2016Software & 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 Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
  5. Malaysia: Smart GridMalaysia Smart Grid Plans the annual growth rate for energy consumption could produce save trillions of dollars for consumers. 10There are three utilities in Malaysia: Tenaga NasionalBerhad (TNB), Sarawak Energy Berhad (SEB), and Sabah TNB’s Smart Grid PlanElectricity Sendirian Berhad (SESB).1 By far, TNB is thelargest 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 SmartTNB 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 plansBecause of its size and influence, TNB has embarked upon to implement a Smart Grid test at three demonstrationa Smart Grid development plan for Malaysia. The driving projects in the north (Bayan Lepas—industrial area), in theforces for Smart Grid development are several. There is a central region (Bukit Bintang—commercial area), and ingrowing demand for electricity that is estimated to the south (Medina—green field).12 A Smart Grid Steeringincrease at 3.5% per year for the next 10 years.4 This is Committee was formed to provide direction.13 Theprojected to double demand over the next 20 years.5 The demonstration project at the three sites will involve 5,000country is facing a depletion of domestic natural gas, customers at those locations.14which is being replaced by coal.6 There areenvironmental 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 needto increase operational efficiency by reducing  Phase I (2010 – 2011) to improve operationaltransmission and distribution losses.8 Recent outage efficiency via automation [completed June 2011];incidents (January 2005, April 2008) have increasedpressure to obtain a more reliable system to deliver  Phase II (2011 – 2013) to empower customers andpower.9 In addition, increasing energy efficiency is a main improve energy and network efficiency; andgoal for TNB, as studies show that even a slight decrease in  Phase III (2011 – 2015) to reduce carbon dioxide via1 Rakob, M.Y. Planning for Smart Grid in TNB System. 2010 IEEE Conference on Power renewable energy.15and 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-malaysiageospatial.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 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
  6. Malaysia: Smart GridThe projects are aligned with the three Phases. In Phase I,implementation of distribution automation, deployment of  A project involving a 730 kilometer high-voltagethe distribution management system modules (fault transmission line and a 670 kilometer undersea cablelocation, isolation and restoration; state estimator; auto for the 240 megawatt Bakun hydroelectric dam hascontingency analysis; auto feeder reconfiguration), and been considered which would connect all three ofdevelopment of integrated customer information system Malaysia’s utility companies. Many of SEB andhave been completed.16 In this phase all equipment will SESB’s generation plants are still not interconnectedbe 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 hasimprovement of billing, and an improved new connection cross-country connections. There are twoprocess is underway.17 This will effectively install 5000 smart connections to Thailand and one electricitymeters in key test locations. Also in Phase II, to improve connection to Singapore. Obviously, these otherenergy efficiency, hardware and software for VAR control, countries rely upon reliable supplies of electricity.demand side management information, and a bettertransmission and distribution asset utilization system are Key Smart Grid Players in Malaysiaplanned.18 In Phase III, to reduce carbon dioxide, solarphotovoltaic panels, energy storage batteries, electric car Because TNB decided to use only a demonstration projectcharging stations, and solar/LED street lighting are approach toward full-scale Smart Grid installation, only ascheduled. 19 limited number of companies are involved at this time. In Malaysia, Renesas Electronics Corporation has severalNoteworthy 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 governments 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 countrys whole power generation industry in the Tech all plan to play a part in development of a Smart long run.20 Grid for Malaysia. 2116 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 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
  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 Disclaimer These materials and the information contained herein are provided by Zpryme Research & Consulting, LLC and are intended to provide general information on a particular subject or subjects and is not an exhaustive treatment of such subject(s). Accordingly, the information in these materials is not intended to constitute accounting, tax, legal, investment, consulting or other professional advice or services. The information is not intended to be relied upon as the sole basis for any decision which may affect you or your business. Before making any decision or taking any action that might affect your personal finances or business, you should consult a qualified professional adviser. These materials and the information contained herein is provided as is, and Zpryme Research & Consulting, LLC makes no express or implied representations or warranties regarding these materials and the information herein. Without limiting the foregoing, Zpryme Research & Consulting, LLC does not warrant that the materials or information contained herein will be error-free or will meet any particular criteria of performance or quality. Zpryme Research & Consulting, LLC expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a particular purpose, noninfringement, compatibility, security, and accuracy. Prediction of future events is inherently subject to both known and unknown risks, uncertainties and other factors that may cause actual results to vary materially. Your use of these and the information contained herein is at your own risk and you assume full responsibility and risk of loss resulting from the use thereof. Zpryme Research & Consulting, LLC will not be liable for any special, indirect, incidental, consequential, or punitive damages or any other damages whatsoever, whether in an action of contract, statute, tort (including, without limitation, negligence), or otherwise, relating to the use of these materials and the information contained herein.6 Zpryme Smart Grid Insights | March 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved.
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