Q0038
The largest opportunities are where new demand and renewable generation are growing faster than the existing network: Johor’s data-centre corridor, the Klang Valley and Cyberjaya, renewable-rich connection zones, constrained distribution networks with rising rooftop solar, and cross-border interconnection points. The opportunity is not limited to new lines—substations, transformers, digital controls, storage, protection, grid-enhancing technologies and better planning data will all be required.
Malaysia’s energy transition depends on whether the grid can connect new generation and demand quickly while maintaining reliability and affordable tariffs. Grid investment also represents a major commercial opportunity across engineering, equipment, software, construction, financing and operations.
The opportunity can be grouped into eight areas.
#### 1. New transmission capacity for major demand centres
Johor requires substantial transmission and substation investment to serve its fast-growing data-centre and industrial pipeline. TNB has identified a 500 kV backbone in Johor as a priority for digital-economy demand and long-term reliability.
The Klang Valley, Cyberjaya and other established industrial centres will also need continuing substation reinforcement, replacement of ageing assets and new high-voltage supply capacity.
#### 2. Renewable-energy connection zones
Transmission and distribution should be strengthened around locations likely to host future LSS, CRESS, BESS and other renewable projects. Coordinating grid investment with renewable procurement would reduce the risk of awarding projects where connection infrastructure cannot be delivered on time.
Priority upgrades may include:
#### 3. Distribution hosting capacity for rooftop and embedded generation
Greater rooftop solar penetration creates local voltage rise, reverse power flow and visibility challenges. Distribution opportunities include:
TNB already provides a medium-voltage Distributed Generation Hosting Capacity Map and is developing near-real-time monitoring, planning and dynamic hosting capabilities through its Smart Energy Management Infrastructure. TNB: Distributed Energy Resources Integration
#### 4. Grid-scale and strategically located storage
Storage can provide peak shifting, reserves, frequency response, voltage support and congestion management. Its value will be greatest where location and operating rules are linked to an identified system need.
Malaysia’s MyBeST programme has selected four 100 MW/400 MWh grid-connected projects for commissioning in 2027. These projects can provide practical evidence for future storage procurement and network planning. Energy Commission: MyBeST
#### 5. Digitalisation, monitoring and automated operation
A more decentralised grid requires greater visibility and control. Opportunities include:
TNB reported 5.56 million cumulative smart meters by the end of 2025 and 38,007 substations upgraded with distribution automation. Its stated target is 61% distribution-automation penetration by 2027 and 84% by 2030. TNB Sustainability Statement 2025
#### 6. Replacement and climate resilience
Existing assets must be adapted for higher temperatures, flooding, storms, coastal exposure and changing demand patterns. Opportunities include:
#### 7. Cross-border and regional interconnection
Additional capacity with Singapore, Thailand, Indonesia and other ASEAN systems could improve security, enable renewable-energy trade and reduce the need to balance every variation domestically. TNB is studying a potential second Malaysia–Singapore interconnector of up to 2 GW by 2030 and continues to participate in ASEAN Power Grid initiatives. TNB Integrated Annual Report 2025
#### 8. Better connection processes and shared infrastructure
Some capacity can be unlocked faster through non-construction measures:
Under Regulatory Period 4, effective from July 2025 through December 2027, Malaysia’s regulated tariff framework provides for transmission, distribution and system-operation expenditure. TNB has reported an RP4 capital programme of RM42.8 billion, including contingent expenditure directed substantially toward energy-transition projects. Energy Commission: IBR RP4 TNB Integrated Annual Report 2024
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