KUALA LUMPUR: Tenaga Nasional Bhd (TNB) will spend RM8.48bil over four years to boost its electricity transmission network, as it steps up investments in new technology such as “self-healing systems” to reduce blackouts and keep up with the fast-growing demand for power in new growth areas.
The national utility company said about RM1bil of the capital expenditure has been set aside for transmission development projects in Nusajaya, Johor.
“This amount has to be spent to ensure reliability and quality of supply,” Datuk Rozimi Remeli, TNB vice-president (transmission), said at a closed-door briefing.
Malaysia is competing with other emerging countries to attract new investment, especially in high-technology industries. One of Malaysia’s biggest advantages is the country’s well-developed infrastructure.
“No investor will invest here if they experience blackouts every other day. We are investing in new technology such as self-healing systems, high-technology tools and state-of-the-art control systems,” he said.
Of the RM8.48bil, Rozimi said 93% would be for development projects, while only 6% has been allocated for asset maintenance and 1% for bulk purchases.
TNB will spend RM1.72bil in the current year ending Aug 31, 2014 to improve its transmission infrastructure and pay for the maintenance of its high-voltage power lines.
“We have submitted the planned investments to the Energy Commission,” he said, adding that 20 major projects across Peninsular Malaysia will account for RM3.97bil, or 46%, of the total amount allocated until 2017.
TNB has three core business divisions, namely, generation, transmission and distribution.
The transmission division manages and operates the 132 kilovolts (kV), 275kV and 500kV transmission network of TNB known as the national grid. Rozimi pointed out that its biggest infrastructure will be the 500kV linking Kedah with the Klang Valley.
He likened the utility giant’s transmission line as a highway which will transmit the bulk supply. TNB, he said, needed the “highway” to transfer high-voltage power, and thus the need for continued investments.
In addition, Rozimi said the continuous demand growth for electricity in the country would entail TNB investing in transmission lines to ensure demand was fulfilled.
The average growth of electricity demand from 2014 to 2018 will be 3.31%. In 2012, the electricity demand stood at 16,562MW and was expected to reach 18,880MW in 2017.
“The line length is expected to grow 5.6% to 22,281 circuit kilometres (cct-km) in 2017 from 21,092 cct-km, while the number of substations is expected to increase to 464 in 2017 from 404 in 2013,” Rozimi said.
Rozimi said the country’s national grid was interconnected to Thailand’s transmission system and to Singapore’s transmission system at Senoko. He added that TNB was currently working on linking the Klang Valley and Johor, and once linked, Malaysia would be Asean power grid-ready before 2020.
“Transmission lines are expensive, as it can cost up to RM7mil per km, while a transmission substation will cost at least RM70mil each,” he said.
TNB is also investing in high-capacity and low-loss conductors, which can potentially reduce 20% in transmission losses. However, the cost is 1.5 times higher compared with conventional conductors.
The higher cost is leveraged by savings on transmission line losses, estimated at RM2,258 per hour, equivalent to RM593mil over the 30-year service life of conductors.
TNB has also invested in a state-of-the-art control system at the National Load Dispatch Centre (NLDC). The NLDC, completed in 2009, is equipped with sophisticated technology whereby a small group of personnel can operate and monitor the whole country’s energy supply.
The geographical location of the country, which is lightning-prone, has also prompted TNB to invest more in protecting its system.
“We have to put in some money to protect our system, lightning or no lightning. We are building a self-healing system whereby the grid is automated using advanced sensors, and computing, communication and protection systems,” Rozimi said, adding that the system would enhance the security of supply and mitigate the possibility of large-scale supply disruptions.
– THE STAR
