annual report - Tenaga Nasional Berhad

Ensuring Supply ReliabilityLike any other electric utility company inthe world, TNB has the task of ensuringa secure and uninterrupted powersupply to its customers. Our steadfastfocus on operational excellence in ourcore electricity generation, transmissionand distribution activities enables usto fulfil our obligation of “Keeping theLights On”.Over the course of the year, ourGeneration Division embarked onseveral initiatives to ensure adequategeneration capacity and to enhancethe availability and reliability of existinggeneration power plants. Theseincluded the repowering of Phase 2of the 750 MW combined-cycle gasturbine plant at the Tuanku Ja’afarPower Station in Port Dickson and thedevelopment of two hydro projectsin Peninsular Malaysia. The variousmeasures undertaken by the GenerationDivision resulted in TNB registering anEquivalent Unplanned Outage Factor(EUOF) of 3.3% thus beating the4% world class industrial benchmarkEUOF for the third consecutive year.This has resulted in several of TNB’spower plants being placed togetherwith their peers in the top quartile ofthe North American Electricity ReliabilityCorporation database.T N B ’s Tr a n s m i s s i o n D i v i s i o n i sresponsible for making improvementsto transmission network reliabilitywhich ensures high system reliability,security of supply as well as highsystem availability and improvements torestoration time. Transmission networkreliability is measured in terms ofSystem Minutes – which measures thesupply interruption to consumers dueto transmission network failure. OurTransmission Division achieved a SystemMinutes time of 6.6 minutes for FY2008– yet another single digit figure for thethird time in a row; plus it sustained itszero Major Disturbance record.The SAIDI is defined as the averageinterruption (in minutes) for eachcustomer per year and it is an importantmeasure of the performance of ourdistribution network. In FY2008, theDistribution Division recorded a SAIDIof 78 minutes compared to 83 minutespreviously.In March 2005, the Division establisheda dedicated team called the SpecialEngagement against Losses (SEAL)team to reduce non-technical lossesby eliminating losses of under-billingand preventing pilferage of electricity.The SEAL team originally concentratedtheir efforts on LPCs and later extendedthis to Ordinary Power Customers(OPCs). The team has identified asubstantial amount of back-billing andcollection activities are underway forthe outstanding amounts.Additionally, we have taken steps toenhance our monitoring and detectioncapabilities by implementing the RemoteMeter Reading (RMR) project and byupgrading our existing monitoring anddetection systems. The RMR projectprovides TNB and our customers abetter understanding of load profiles orusage patterns in order for customers tomanage their energy consumption moreefficiently. Initially implemented amongall high voltage and medium voltageLPCs, RMR implementation has nowbeen extended to low voltage LPCs.As part of our endeavours to ensureadequate system capacity and supplyreliability, we continue to makesignificant investments in electricitysupply systems. At the same time weare ensuring that additional generationcapacity is integrated into the system ina timely and efficient manner.Over the course of 2008, there wereseveral ongoing major generationprojects. The Tuanku Ja’afar PowerStation Rehabilitation Phase 2 (PD2)Project is on course for a combined cyclecommercial operation by end of 2008.Once fully commissioned, it will add anadditional installed capacity of 750 MWto the existing 750 MW PD1 plant.A major rehabilitation project in theCameron Highlands and Batang PadangHydroelectric Schemes is the PlantLife Extension and Automation Projectwhich is scheduled for completionin early 2009. The Ringlet Reservoirhas been substantially restored to itsoriginal holding capacity by desilting.The rehabilitation project is expected toextend the operating life of the CameronHighlands Hydroelectric Scheme byanother 30 years after having been inoperation for the last 45 years.With fossil fuel costs on the rise, thereis a need to continuously identifyand harness all possible hydro powerpotential in Peninsular Malaysiaand Sarawak. Currently two majorhydroelectric projects are in the stagesof procurement – the Hulu TerengganuHydroelectric Project (with plannedcapacity of 250 MW) and the Ulu JelaiHydroelectric Project (with plannedcapacity of 372 MW), are targetedfor completion by 2013 and 2014respectively.The 300 MW coal-fired IPP Project inSabah, which was awarded to a TNBsubsidiary in the last financial year, hashad to be relocated to a new site.Approval from the State Government isbeing sought to start the project.The year also saw us implementingsystem improvements to strengthen ournetwork and improve supply security. Atotal of thirty-eight transmission projectswere fully completed and commissionedduring the year in review. The 500 kVtransmission lines that connect theJimah IPP Coal Fired Power Stationto the Lenggeng Substation and theOlak Lempit Substation were completedin January 2008. The Lenggeng500/275 kV substation was commissionedin the same month. In the Eastern region,the Kandis 275/132 kV substation thatwas energised in December 2007 nowfunctions as the alternative supply pointfrom the National Grid to the state ofKelantan. It is also the prime substationfor the development of the EasternEconomic Corridor.[ Tenaga Nasional Berhad ] [ Annual Report 2008 ]39