annual report - Tenaga Nasional Berhad

Divisional GoalsThe Planning Division whichwas operationalised in Januaryof 2008, comprises threedepartments namely StrategicPlanning Department, SystemPlanning and DevelopmentD e p a r t m e n t a n d E n e r g yProcurement Department. TheStrategic Planning Departmentwas previously under theGroup Finance Division, whileboth the System Planning andDevelopment, and EnergyProcurement Departments wereformerly operating under theTransmission Division.The Division’s key roles andfunctions include formulatingand reviewing TNB’s long termstrategic plan that will positionthe organisation towards attainingits desired future state, planningof the long-term power systemdevelopment to ensure safe,reliable and economic powersupply to meet the electricitydemand and supply needs of thenation. In addition, the Divisionis also responsible for managingall activities related to energyprocurement, operationalisationand settlement of energy andcapacity procured from powerproducers and cross bordertrading.Formulation andImplementation ofCorporate StrategiesThe Planning Division is activelyinvolved in the coordination andcommunication of the TNB 20-year Strategic Plan to facilitatean effective implementation ofstrategies and initiatives throughoutthe Group. This includes thecoordination of all Divisions’5-year Business Plans mid-termreview to ensure alignment withTNB long term strategic direction.Communication, coordinationand implementation activities ofthe 20-year Strategic Plan areimplemented in conjunction withother relevant divisions.T h e S t r a t e g i c P l a n n i n gD e p a r t m e n t a c t s a s t h esecretariat for the biannualmanagement retreat known asthe Management Breakout, whichis a forum for the top leadershipof TNB to deliberate and resolvestrategic issues. The Divisionalso conducted the StrategicPlanners Forum in 2008 with theobjective of creating a platformfor a strategic discourse onstrategies and implementationthus contributing towards thealignment of corporate anddivision strategies and objectives.In addition, the forum alsoserved as a useful platform forthe dissemination of strategiesand policy information.Management of StrategicIssues• Implementation of CleanDevelopment Mechanism(CDM) ProjectsTNB is fully supportive ofthe Government’s effortsi n p l a c i n g t h e C l e a nDevelopment Mechanism(CDM) as an importantcomplementary mechanism tofacilitate the implementationof sustainable energy projects(with emphasis on RenewableEnergy (RE) and EnergyEfficiency (EE) projects),thus resulting in overallimprovement and protectionof the environment.The Clean DevelopmentM e c h a n i s m ( C D M ) i s a narrangement under the KyotoProtocol allowing developedcountries with a Green HouseGas (GHG) reduction commitment(known as Annex 1 countries)to invest in projects that reduceCO 2 emissions in developingcountries (such as Malaysia) asan alternative to more expensiveemission reductions in their owncountries.The Division plays the role ofthe secretariat for CDM projectsin TNB. Currently two generationprojects are being pursued forthe deployment of CDM – i.e.the Ulu Terengganu and UluJelai hydroelectric projects. Inaddition, several potential CDMprojects were also identifiedin a study conducted withTNB Research. These includedrehabilitation of small hydros,Small Renewable Energy PowerProgramme (SREP), Bio-massRenewable Energy (RE) and therecycling of SF 6 gases in TNB’ssubstations.• Gas Pricing and TariffAdjustmentThe Division was activelyinvolved in the recent tariffadjustment due to thereview of the gas price forthe power sector. The tariffadjustment in July 2008is strictly to recover theadditional fuel cost incurredmainly due to the gas priceincrease. However, the tariffadjustment does not takeinto consideration the recenthigh increase in coal price.• CogenerationI n s u p p o r t o f t h eGovernment’s initiativestowards efficient utilisation ofenergy resources, the Divisionhas recently commissioned aCross-Divisional Task Groupto review the Cogenerationpolicy with the view towardsencouraging efficientutlisation of energy in thebusiness sector. The TaskGroup has proposed severalimmediate term measuresrelated to the scheme ofrates and conditions tofacilitate development ofCogeneration.[ Tenaga Nasional Berhad ] [ Annual Report 2008 ]83