Malaysia smart meter roll-out due to start early next year
June 17, 2015
Tenaga Nasional Berhad (TNB), the largest electricity utility in Malaysia with a customer base of 8.5 million, is conducting a pilot study on smart meters in the country and is expected to start a nationwide roll-out early next year.
While the roll-out is not likely to be finished before 2023, the market for smart meters in Malaysia is projected to grow at a CAGR of around 12 per cent from 2016 to 2020, according to a report from TechSci Research.
With an electricity access rate of 96.83 per cent as of 2013, installation of smart meters in Malaysia is expected to increase the capabilities of power transmission and distribution utilities.
According to the report, major factors projected to drive adoption of smart meters in the country include higher operational efficiencies, the need to reduce aggregate technical and commercial losses, improvements in outage management and reduction in consumption on inactive meters. Additionally, favourable legislations such as electricity for all and growing demand for secure power transmission and distribution equipment would further boost the adoption of smart meters in the country.
"Malaysia is one of the fastest growing economies in south east Asia and a leading gas producer in the region," said Karan Chechi, research director with TechSci Research. “Growing focus on renewable sources for electricity generation in the country is projected to increase the need for smart meter deployment. With increasing numbers of electricity subscribers, growing industrialisation and urbanisation in the country, the deployment of smart meters in Malaysia has become one of the top government priorities, and the project is expected to be completed by 2023.”
Thereport analysed the potential of smart meters market in Malaysia and provides statistics and information on market size, information on market structure, industry behaviour and trends. It also identifies and analyses the emerging trends along with essential drivers and key challenges faced by the smart meter market in Malaysia.
Smart meters help in efficiently managing load and enable utilities to identify real-time energy consumption patterns of users and thereby formulate demand and supply dynamics. Smart meters also facilitate smooth supply of surplus domestic power generated from renewable energy sources such as wind energy and roof top solar panels back to the grid, thereby enhancing efficiency of the overall grid system. Deployment of smart meters in Malaysia would enable remote recording of meter readings using wireless and other communications technologies.