From an energy standpoint, Malaysia is as diverse as its art, music, and literature. Malaysia is divided into 13 states and three Federal Territories, separated by the South China Sea with 11 states and two federal territories (Kuala Lumpur and Putrajaya) in Peninsular Malaysia and two states and one federal territory (Labuan) in East Malaysia. The demand for energy consumption in Malaysia is projected to increase by 5% per year over the next five years, and is likely to double in the next 20 years. To meet this need, Malaysia’s largest utility, Tenaga Nasional Berhad (TNB), has undertaken an ambitious Smart Grid demonstration project working with 5,000 customers in 3 different cities. The goal of this project is to reduce the nation’s dependence on natural gas and coal, and to withdraw from national electricity subsidies in the next 4 years. The national goal of the Malaysia’s Smart Grid program is to reduce carbon emissions to 40% of the 2005 level, and increase the renewable energy levels to 2,080 MW 4,000 MW by 2020 and 2030, respectively. In addition, the Smart Grid will help Malaysia’s utilities reduce grid operational costs and improve energy efficiency.

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