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Tenaga Nasional Berhad 98 Annual Report 2009OPERATIONS REVIEWPlanning (Cont’d.)Other major initiatives conducted by the PlanningDivision were:• Assisting SESB in Planning activitiesTNB has been assisting SESB to carry out itsPlanning activities by providing training onload forecasting, generation and transmissionplanning to SESB personnel. This includedtraining on relevant planning softwarepackages as well as job assignment as partof an overall capacity building exercise.• Ops-TRIM X contributionsThe global economic slowdown resulted inthe Management of TNB directing the variousdivisions to formulate measures to reducethe Capital Expenditure (CAPEX) through aninitiative called Ops Trim-X in November2008. Planning Division responded to thisdirective and carried out a TransmissionProjects Capital Expenditure (CAPEX)Reduction Review which was approved byTNB Top Management in February 2009.With the slowdown in electricity demand,projects identified earlier could now bereviewed, deferred and even cancelled. Thepreliminary review of Transmission projectsresulted in an initial CAPEX reduction ofabout RM245 million for FY2009.A further reassessment of the deferred/cancelled projects as well as other proposedprojects in the last two years resulted in atotal reduction in Transmission CAPEX ofRM434 million over the period 2010-2014which consisted of:• Reduction in Scope (RM38 million)• Deferment of Projects beyond 2014(RM330 million)• Outright cancellation of Projects(RM66 million)• Study on the Development of NuclearPower PlantWith the ever depleting fossil fuel resources,price volatility and increasing environmentalpressures, TNB has identified nuclear poweras a feasible generation option for PeninsularMalaysia. The first nuclear plant is onlyenvisaged to come into the system by 2025.Among the preparatory measures beingadopted by TNB is the collaboration withKEPCO of Korea on a Pre-Feasibility Study forNuclear which would cover the variousaspects of nuclear power generation and allthe pre-requisites such as public acceptance,site selection, regulatory requirements,technology selection, safety and healthconsiderations, etc. Planning Division isdirectly responsible for carrying out the systemstudies and techno-economic assessment ofnuclear as a generation option.• Review of Prai GT ProjectA review of the Generation developmentwas undertaken in the light of lower growthprojections stemming from the recentfinancial crisis. Based on system requirements,it was decided that the Prai GT projectwhich was planned for commissioning in2012 will be deferred until such a time whenthe system requires the project to be revived.Savings from this deferment is estimated tobe about RM300 million.Management of Suppliers• Management of Energy and FuelSuppliersClose cooperation between TNB, TNB FuelServices Sdn. Bhd. and IPPs has greatlyimproved fuel security for the system intimes of fluctuating fuel market prices,infrastructural constraints in fuel supplyingfacilities as well as inclement weatherhindering fuel delivery, through effectivecommunication and cooperation.• New Agreement with Petronas CUFIn late 2008, TNB and Petronas Gas Berhadrenewed its earlier Power PurchaseAgreement (PPA) for the sale and purchaseof energy from the CUF co-generationfacilities in Kerteh, Terengganu and Gebeng,Pahang for a total capacity of 85 MW. Thisfurther enhanced the close cooperationbetween TNB and Petronas while at thesame time promoting the efficient usage ofthe co-generation technology.• Extracting Value from PPAs & SLAsThe Planning Division has entered intoanother five Service Level Agreements (SLAs)with Generation Division for all TNB hydropower stations and for the new combinedcycle block of Tuanku Ja’afar Power Station.With the implementation of these hydroSLAs and all the thermal SLAs underGeneration Division, all power generators inthe Generation Division are now operatingunder the same regime.