KUALA LUMPUR: Tenaga Nasional Bhd (TNB) plans to invest RM22 billion from 2022 to 2024 under the Incentive-Based Regulation (IBR) framework, to continue to develop the grid of the future into a key enabler of the energy transition.
Energy and Natural Resources Deputy Minister Datuk Ali Biju said the planned investment was subject to government approval.
"This will be done by connecting the entire value chain from generation to delivery and distribution to the customers' premises," Ali said when officiating the International Conference on Learning and Development (ICLAD2021) in Bangsar, here.
"Consumers actually have already been enjoying the grid of the future in recent years through TNB's capital investment, as well as under IBR," he added.
TNB chief regulatory and stakeholder management officer Datuk Wira Roslan Ab Rahman said the group remained committed to investing towards energy transition in line with the efforts to provide economic support to the government.
"We are undertaking investments to address climate change issues whilst doing what is necessary to help stimulate and reshape the country's economic recovery," he added.
Meanwhile, Ali said TNB was incorporating sustainability in its network through modernisation of the national grid.
The national utility company had made great strides in preparation for the energy transition with the Reimagining TNB initiative introduced in 2016, he added.
"This strategic initiative addresses TNB's significant step towards embracing sustainability and its commitment to continuously prioritise investment in modernising the national grid into the "grid of the future", he said.
This enables a smart grid that remains reliable, resilient, smart with digital technology and flexible in meeting the country's needs for the energy transition.
"In meeting this requirement, fair returns to TNB to sustain the capital expenditure required is important."
He added that in support of the country's goal to shift from using fuel to 31 per cent of renewable energy by 2025, the national grid must be ready to receive RE to support dynamic two-way energy flow, while maintaining voltage stability.