MALAYSIA’S SMART GRID

Malaysia: The Smart Grid Has Landed
March 2012 (ZPryme Smart Grid Insights)

"…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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"The total Malaysia Smart Grid technology market is projected to grow from $35.2 million in 2011 to $109.0 million in 2016…The market is projected to grow at an annual rate of 25.4% during this time period…Among the five major Smart Grid technology areas, the communication and wireless infrastructure segment is projected to grow the fastest from 2011 to 2016, growing at an annual rate of 28.5%...The smart meters segment is projected to be the largest, reaching $29.8 million by 2016.

"…The driving forces for Smart Grid development are several. There is a growing demand for electricity that is estimated to increase at 3.5% per year for the next 10 years…This is projected to double demand over the next 20 years…The country is facing a depletion of domestic natural gas, which is being replaced by coal…There are environmental issues of pollution and carbon dioxide emissions…And there is a growing recognition of a need to increase operational efficiency by reducing transmission and distribution losses…[I]ncreasing energy efficiency is a main goal…as studies show that even a slight decrease in the annual growth rate for energy consumption could produce save trillions of dollars for consumers…"