Introduce smart electricity grid in 12th Malaysia plan

Parti Sosialis Malaysia urges Putrajaya to introduce a smart electricity grid in the 12th Malaysia Plan (RMK-12) to boost renewable energy generation, improve grid reliability and reduce electricity prices.

Examples of smart grid projects include smart meters using advanced metering infrastructure, dynamic line rating and virtual power plants.

Smart grid infrastructure matches electricity production with electricity demand with millisecond precision minimising renewable energy curtailment. During times when the grid has excess electricity, renewable energy is dumped while fossil fuel energy is retained. This increases the use of fossil fuel and the cost of electricity tariffs.

Technologies such as dynamic line rating identify the bottlenecks in the electricity transmission system. Thus, Malaysia would need to upgrade 2km instead of 200km of the transmission network to eliminate the bottlenecks. This will improve reliability of the electricity grid with minimal capital expenditure.

Smart grids allow Malaysia to reduce electricity reserve margin from 51% (FY2021) to about 10%. Malaysia could close at least 10,000MW of fossil fuel power plants, reducing fixed standby fees known as capacity payments to Independent Power Producers.

Reduction in capacity payment and capital expenditure will reduce electricity tariffs. This will boost the purchasing power of Malaysians and reduce manufacturing costs in Malaysia. Putrajaya should make the smart electricity grid a priority in the Twelfth Malaysia Plan.

National Coordinator
Bureau of Environment & Climate Crisis
Parti Sosialis Malaysia (PSM)

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