AORC-CIGRE TECHNICAL MEETING

16th to 21st August 2015

The Magellan Sutera Resort, Kota Kinabalu, Sabah, MALAYSIA

ASEAN POWER GRID :

An Outlook of Interconnection
Projects Involving Peninsular
Malaysia
By:
Abdul Rahim Omar & Mohd Nasir Ahmad
Transmission Division, Tenaga Nasional Berhad
17 August 2015

Presentation outline

Overview

Brief updates on the interconnection projects

Sarawak - Peninsular Malaysia (SARPEN) HVDC interconnection

Sumatera- Peninsular Malaysia (SUMPEN) HVDC interconnection
Singapore Peninsular Malaysia Interconnection
Thailand - Peninsular Malaysia interconnections

Policy development and studies performed to accommodate future cross

border energy exchange / power trading

Possible factors that could drive Peninsular Malaysia for more active energy
exchange or trading in the future

Regional and internal level

Closing remarks

AORC-CIGRE TECHNICAL MEETING

16th to 21st August 2015

The Magellan Sutera Resort, Kota Kinabalu, Sabah, MALAYSIA

Overview:
Possible factors that could drive
Peninsular Malaysia for more active
energy exchange or trading in the future

MALAYSIAS ENERGY POLICY:

Evolving in accordance to the current & future socio economic
and energy situation. Self-sufficiency is still the order of the day
National Energy Policy
(1979)

8th Malaysia Plan (2001-2005)

National Depletion
Policy (1980)

9th Malaysia Plan (2006-2010)

National Fuel Policy

(1981)

National Fuel Policy

(2001)

RE as the fifth fuel

Target: 5% RE in energy mix

Grid-connected RE (target): 300 MW in Pen. Malaysia & 50

MW in Sabah
Targeted power generation mix:
56% natural gas, 36% coal, 6% hydro, 0.2% oil,
1.8% Renewable Energy
Carbon intensity reduction target: 40% lower than 2005
levels by 2020

10th Malaysia Plan (2011-2015)

New RE Policy and Action Plan
Target: 985 MW of RE by 2015 (~5.5% of energy mix)

National Green
Technology Policy (2009)
11th Malaysia Plan (2016-2020)
Source: Ministry of Energy,
Green Technology and Water

RE Act and SEDA Act

(2011)

Development in progress
RE development & EE will be part of focus area

Malaysias commitments on environment:

Voluntary reduction of up to 40% in terms of carbon emissions
intensity by the year 2020
1.0
0.9

Malaysia has signed the Kyoto

Protocol in March 1999 and ratified
the Protocol in Sept 2002

0.8
0.7

tCO2/MWh

0.6
0.5
0.4
0.3
0.2
0.1
0.0
Gas CC

Gas GT

Coal

Nuclear

Fuel & Plant Type

Diesel

In the Copenhagen 2009 summit,

Malaysia has indicated that it is
adopting an indicator of a voluntary
reduction of up to 40% in terms of
carbon emissions intensity by the year
2020 compared to 2005 levels, subject
to assistance by the Annex 1 countries

Malaysia could be subjected to a more

stringent environmental regulations
Locally : Clean Air Act
Internationally : Carbon emission
limit

Important to address the challenges in delivering

sustainable power supply to the nation amid challenging
and evolving ESI outlook..

Energy Sustainability /
Security

Economic Sustainability

Environment sustainability

Impact of global economic crisis

Climate change issue linked to

burning of fossil fuel

Availability of fuel - gas & coal

Limitation of alternative fuels
nuclear, hydro & RE
Difficulty in securing Rights-of
Way (ROW) for transmission
line
Limited sites for future power
plants

Volatility (fluctuation) of fuel

prices
Regional Competitiveness /
Multiplier Effect

Stringent emission standard and

global concerns on carbon
emission
NIMBY syndrome

Electrification for very remote

areas

Renewable Energy

Interconnections with the neighbouring power systems is

an effective option to address energy security and
sustainability

Diversifying energy sources is part of

the energy security measures which
can be contributed through cross
border interconnections
These power purchase and /or energy
exchange are achievable with the
realization of ASEAN Power Grid
(APG)

Note :
Power Purchase one direction of power flow
Energy exchange two directions of power flow due to difference in load profile of two systems

AORC-CIGRE TECHNICAL MEETING

16th to 21st August 2015

The Magellan Sutera Resort, Kota Kinabalu, Sabah, MALAYSIA

Brief updates on the

interconnection projects:
(1) Sumatera- Peninsular Malaysia
(SUMPEN) HVDC interconnection

Economic exchange of energy

Sumatera P.Malaysia 600MW HVDC Interconnection

Project
National border

139km 5km
50km
OHL
Submarine cable OHL

Teluk Gong
Substation

Perawang
HVAC
Substation
Perawang
Garuda Sakti
Converter
Station
Converter
Station

Melaka
Strait

Rupat
Strait

53km
Submarine cable

150km
170km

50km
30km

HVDC Overhead
Transmission Line

HVDC Overhead
Transmission Line

Selat Rupat

National Border

Telok
Gong
Telok Gong
Converter
Station
Converter
Station

Selat Melaka
Pulau
Rupat

Sumatera

Melaka

5km

53km

HVDC Submarine Cable

HVDC Submarine Cable

Sumatera - Peninsular Malaysia is regarded as a

priority project in APG
Shared Benefits
Lower reserve margins
Spinning reserves
Efficient power generations
Deferred capital investment

0900 1500 hrs (WIB)

1800 2200 hrs (WIB)

Stages and Status

Seabed Survey Works

Survey works commenced on 27 June 2013.
Geophysical survey completed in October 2013.
Geotechnical survey completed on 20th May 2014.
Final report completion date is 31st May 2014.

Appointment of Owners Engineer (OE) for 4 phases of the project

Contract awarded to Fichtner, Germany (OE) on 7th Mar 2014
Phase 1 - Engineering Study, System Study & Basic Functional Spec
Phase 2 - Preparation of tender document for EPC contract
Phase 3 - Tender evaluation & award Target October 2017
Phase 4 - Construction & Commissioning

Progress to date
Phase 1 Completed
Phase 2 - Tender for EPC to be floated by September 2016 (tentative)
Phase 3 - Appointment of EPC targeted to be by October 2017 (tentative)
Phase 4 - Target commissioning by end 2020 (tentative)

AORC-CIGRE TECHNICAL MEETING

16th to 21st August 2015

The Magellan Sutera Resort, Kota Kinabalu, Sabah, MALAYSIA

Brief updates on the

interconnection projects:
(2) Sarawak - Peninsular Malaysia
(SARPEN) HVDC interconnection

Harnessing the huge hydro power potentials in

Sarawak

Based on latest plan, the import from Sarawak has

been targeted by 2025

Total remaining hydro potential in Peninsula is

less than 2000 MW, mainly high cost peaking
hydro
All large hydro potential in Peninsula are utilized

Sarawaks hydro-electric power potential > 20,000 MW

New hydro development in Sarawak;
Bakun (2400 MW, 2012)
Murum (900 MW)
Baram (1000 MW)
Baleh (1400 MW)
Limbang (150 MW)
Batang Ai extension (50 MW)
Martiawah, Belepeh, Linau, Tutoh, Ulu Ai & Lawas
(1000 MW)

It would now be a System to System Interconnection

rather than the previous plan of having a dedicated hydro
power plant (i.e. Bakun) for Peninsular Malaysia

BENTONG (S)
Converter Station
TG LEMAN
(Transition point)

Voltage
Transmission Capacity
Route Length

KG PUEH
(Transition point)

CENTRAL SARAWAK
Converter Station

DC 500kV
1600 - 2000 MW
Total Length of 1380 km

Central Sarawak Kg Pueh

404 km

HVDC Submarine Cables

676 km

Tg Leman Bentong (S)

300 km

Progress so far

Results of preliminary system studies by the technical

working team involving TNB & Sarawak Energy Berhad (SEB)
are being finalized

Commercial matters (including implementation & operational risks,

business model etc) to be addressed next

At a higher level, it was clarified that a clear direction and

commitment on the import of power from Sarawak into
Peninsular Malaysia is required

The industry expects both the Federal Government and Sarawak

State Government to come to an agreement or understanding for
the relevant players to proceed

Issues & Concerns

Submarine Cable Design
Possible options for the cable
insulations:
Mass Impregnated (MI) paper tape
Mass Impregnated PaperPolypropylene-Laminated (MI-PPL)
tape

MI cables
Cross-sectional area (CSA) from 2000
mm2 to 2500mm2
Maximum capacity is around 830 MW
Has been used since 1954

MI-PPL cable
CSA is maintained at 2000 mm2
Maximum capacity is around 1000
MW
Relatively new technology

Securing the Right of Way (ROW)

Right of Way (ROW) for overhead lines
in Sarawak & Peninsular Malaysia
The HVDC overhead lines will traverse
approximately 404km in Sarawak and
300km in Peninsular Malaysia
The route in Peninsular Malaysia
could impact sensitive areas :

Forest Reserve & National Parks

Aboriginal lands
FELDA settlements
Corporate lands

Lengthy process to secure timely

approval for the ROWs
In addition, high compensation land
costs is expected

Issues & Concerncontd

Power cables crossing international waters
About 70 percent of the
submarine cables will be crossing
Indonesian Water

Need to comply to United

Nations Convention on the Law
of the Sea, 1982 (UNCLOS)
No restriction to lay submarine
cables in the high sea and on the
continental shelves but each
country has jurisdictions over its
territorial waters
A Government-to-Government
agreement need to be
formulated to ensure
uninterrupted implementation
and future operation of the
highway

Risk of submarine cables dictated

by the ownership of the cables

South China Sea

Natuna
Island
Indonesian
waters
Peninsular
Malaysia

Submarine cable

Sarawak

Issues & Concerncontd

Submarine Cables Crossings (telecommunications, gas
pipelines, military training areas)
The proposed cables will be
crossing the existing
installations:
16 numbers of communication
cables, of which 11 numbers
are in operation
Gas pipeline from West Natuna
to Singapore
Crossing the military missile
firing exercise area (Malaysian
Water)

Lengthy process to secure

approval / concurrence from all
parties before any works can
commence

AORC-CIGRE TECHNICAL MEETING

16th to 21st August 2015

The Magellan Sutera Resort, Kota Kinabalu, Sabah, MALAYSIA

Brief updates on the

interconnection projects:
(3) Singapore Peninsular
Malaysia Interconnection

Enhancing system security of both systems

Both TNB and Singapore Power had just completed a

preliminary study focusing on the possible upgrade of the
existing 230kV HVAC link
The motivation for the review
The existing interconnection
has been in operation since
1985, and it is timely to review
the replacement of the aged
equipment
The growth of both systems,
thus making the existing
interconnection relatively
small. Hence the need to
review the performance and
adequacy of capacity of
interconnection
Readiness for possible
import/export of power as part
of ASEAN Power Grid

Salient info about the existing interconnection

Interconnection Agreement (IA) signed on 29 August 1983

Key objectives of present Interconnection

Interconnection is not for commercial transaction.

Agreement is effective until either party terminates it

To enable mutual energy transfer in times of need (i.e. emergency)

To allow sharing of spinning reserves (Economical mode of system
operation)

The IA covers operations during

Normal conditions
Emergency condition and slippage condition

Slippage condition is a condition when energy is required by one party for a

specific duration.
Emergency condition is a condition when energy is required by one party
following a forced outage of plant or equipment in one power system.

Potential Issues on Policies Governing Inter-border /

Country Power Import/Export

The existing Interconnection Agreement (IA) only allows provision

of mutual support between Singapore and Malaysia, not for
Trading

Policies applicable in each country need to be complied

Singapore is operated as full market environment

Electricity Importer (EI) has to incorporate a company in Singapore and

apply for electricity Import Licence.
EI is required to participate in the Singapore Wholesale Electricity Market
(SWEM)

TNB is currently regulated under Incentive Based Regulation (IBR) to

promote efficiency.

Justification for upgrading is required for the project to be considered as

regulated asset under IBR

AORC-CIGRE TECHNICAL MEETING

16th to 21st August 2015

The Magellan Sutera Resort, Kota Kinabalu, Sabah, MALAYSIA

Brief updates on the

interconnection projects:
(4) Thailand - Peninsular
Malaysia interconnections

23

Interconnections between Peninsular Malaysia and

Thailand
Currently, there are two existing
interconnections
#1 : 132kV AC Bkt Ketri Sadao
(80MW)
#2 : 300kV HVDC Gurun
Khlong Ngae (300MW)
1

The third link was identified in

2009 to be needed in 2012.
#3 : 132kV AC Rantau Panjang
Sungai Golok
Capacity : 100MW
However, this project has put
on hold since then
24

AORC-CIGRE TECHNICAL MEETING

16th to 21st August 2015

The Magellan Sutera Resort, Kota Kinabalu, Sabah, MALAYSIA

Policy development and studies

performed to accommodate
future cross border energy
exchange / power trading
1) Studies aiming at harmonizing the different technical
standards currently used in ASEAN member countries
2) Development of relevant policies in Malaysia to enable
trans-country energy exchange

Regionally, HAPUA had initiated a Harmonization Study focusing

on achieving minimum common technical standards

26

Following the Harmonization Study, two study groups have been formed, i.e.
(i) ASEAN Transmission System Operator (ATSO)
(ii) ASEAN Generation & Transmission Planning (AGTP)

To facilitate the co-ordination, consultation

& joint impact assessment studies of grid
planners of interconnected Control Areas to
ensure the reliable, secure and sustainable
cross-border exchanges of power, energy,
reactive power, etc. whenever there is a
facility of a new Significant Grid User
planned or a facility of an existing
Significant Grid User to be upgraded that
will have impact on part or the whole of the
APG

To facilitate periodic workshops & meetings

for grid planners to get acquainted with
each other & to share experiences in
implementing specific provisions stipulated
in the Guidelines and in subsequent
minimum common technical standards on
planning related issues

To take charge of the development &

subsequent periodic review & modification
of minimum common technical standards
for the APG

To coordinate the operation of APG & to

publish annual work programme, annual
report and annual generation and
transmission adequacy outlooks to provide
transparent and clear information to give
confidence to investors in ASEAN on the
security and reliability of APG as well as to
give confidence to generation and
transmission facilities investors on their
investments
To takes charge of the proposed trial
operation of the recommended Guidelines
on a few existing Interconnectors in ASEAN

27

Internally, Malaysias policy framework and principle guidelines

for cross border trading was approved in Oct 2012
Utility needs to ensure the price of power to be purchased should be
competitive compared to domestic alternative supply options ; except for
emergency cases

3. The ability to meet

specified system
requirement to ensure
reliability

6. The CO2 emissions

intensity reduction target

2. The ability to meet the

forecasted energy
demand

5. The level of
comfortable reserve
margin

1. The ability to meet the

forecasted peak demand

4. Transaction should be
at market price

Source : KeTTHA presentation, Oct 2012

These 6 principle guidelines MUST be first met

before any cross border can be considered
28

and TNBs 500kV backbone would be ready for APG

by early 2020
TNB is spending more than
GURUN (E)

RM2.0 billion to complete the

500kV missing link

JUNJUNG

Part of strategic initiatives by the

NEW PRAI

HULU TERENGGANU

Regulator to ensure successful

competitive bidding for new

AYER TAWAR
JANAMANJUNG

ULU JELAI

generation capacity
BKT TAREK
BENTONG

KAPAR

The 500kV backbone could

easily accommodate multi-lateral

LENGGENG
OLAK LEMPIT

JIMAH

YONG PENG (E)

power trading using TNBs

network

BKT BATU

500kV line
500kV line but energized at 275kV

TG BIN

PASIR GUDANG

AORC-CIGRE TECHNICAL MEETING

16th to 21st August 2015

The Magellan Sutera Resort, Kota Kinabalu, Sabah, MALAYSIA

Closing remarks

30

Summary of existing and future interconnections with

P. Malaysia mode of power transfer
Mode of power transfer from Thailand
Two way power purchase (now)
Trans-country power purchase
(potential in the future)

Mode of power transfer from Sarawak

Power purchase

Mode of power transfer from Sumatera

Energy exchange (initially)
Power purchase (possible in the future)

Mode of power transfer from

Singapore
Energy exchange (now)
Transcountry power purchase
(potential in the future)

Closing remarks

Internally, further initiatives are required to clarify and strengthen

the policy and guidelines governing future cross border trading in
Malaysia

Regionally, the supporting initiatives to harmonize the different

existing planning/operations standards, technical guidelines and
regulatory framework among ASEAN member countries must be
pursued to ensure successful realization of the ASEAN Power Grid

Finally, TNB has always regarded ASEAN Power Grid as a means to

diversify the energy sources and more importantly, to enhance the
energy security
32

AORC-CIGRE TECHNICAL MEETING

16th to 21st August 2015

The Magellan Sutera Resort, Kota Kinabalu, Sabah, MALAYSIA

THANK YOU

Abdul Rahim Omar (rahimo@tnb.com.my)

Mohd Nasir Ahmad (nasira@tnb.com.my)