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Empowering a nation. Reimagining TNB.


Malaysia’s utility powerhouse:

Tenaga Nasional Berhad

Embarking on its new strategic vision ‘Transforming TNB,’ Tenaga Nasional Berhad has high ambitions to become one of the world’s top utility players by 2025 WRITTEN BY

LAURA MULLAN PRODUCED BY

ALEX PAGE


With a total capacity of 50MW, Large Scale Solar (LSS) farm located in Kuala Langat, Selangor is the first and the largest in Malaysia w w w. t n b . c o m . m y


W

With over 9.3mn customers in Peninsular Malaysia, Sabah and Labuan, Tenaga Nasional Berhad (TNB) is

now a household name, standing proudly as the largest electricity utility in Malaysia. In providing electricity to the region’s businesses, homes and industries, the utility firm has truly helped to develop and empower the nation, all whilst championing an unwavering commitment to sustainability. But now, what is the next step for the utility giant? With its meticulous 2025 vision – ‘Reimagining TNB’ – the company’s CEO and President, Datuk Seri Ir. Azman Mohd, explains how the utility company wants to build on its rich legacy and become a top 10 global utility player by 2025. In doing so, TNB hopes to empower people for a better life and a better future. “TNB is a born and bred Malaysian company, which has a rich and deep-rooted history in building the nation, even before the country received its independence,” reflects Azman. “With 67 years of experience, TNB is Malaysia’s leading utility player throughout the value chain of Generation, Transmission, Distribution and Retail. “Guided by the ‘Reimagining TNB’ strategy, TNB is now venturing into new businesses and opportunities beyond our conventional business and territory,” he continues. “Over the past

TNB workers stringing the lines of the monopole tower, Pulau Besar, Melaka, Malaysia


TNBs latest plant in Perak, Manjung is the most efficient coal-fired power plant in South East Asia

Click to watch: ‘Tenaga Nasional – Better. Brighter’

TNB is a born and bred Malaysian company — Datuk Seri Ir. Azman Mohd, CEO

w w w. t n b . c o m . m y


leader in renewable energy. “So far,

TNB believes that its value lies not only in providing access to electricity to homes and businesses throughout the country but also in adopting sustainable practices and activities in our operations to improve societal and environmental outcomes

we have secured 741 MW of renewable energy capacity globally,” comments Azman. In keeping with this strategy, TNB has undertaken a series of acquisitions and investments in the renewable sector. In March, for instance, the firm snapped up an 80% stake in Bluemerang Capital and Temporis Capital-managed GVO wind.

— Roslan Ab Rahman, CCO

“This acquisition complements TNB’s solar renewable assets in the UK by ensuring a stable portfolio

few years, TNB has expanded its international

revenue generation all year round,”

footprint, having established its name in countries

explains Azman. “Wind energy

such as Pakistan, Saudi Arabia, India, Turkey and

assets, in general, generate more

the United Kingdom, making TNB one of the larg-

revenue in the winter period whilst

est electricity companies in Asia.”

solar assets generate the most rev-

Rising to the top of the ranks is no easy task

enue in the summer months.”

but TNB believes it has a meticulous plan for success. Based on four key pillars, TNB’s new strate-

NEXT-GENERATION GRID

gic vision aims to: find future generation sources,

Additionally, the Malaysian firm

create the grid of the future, win the customer

has set itself the task of creating

and futureproof regulations.

the grid of the future by promoting greater digitization and automation.

A GREENER FUTURE

As such, it is set to introduce smart

As part of its so-called future generation sources

meters and advanced metering in-

strategy, the electricity utility is shifting its focus

frastructure facilities for its custom-

towards renewables, aspiring to be the ASEAN

ers and implement data analytics,


TNB is a customer-centric company, supplying household, industrial and business customers with a wide range of energy solutions and services beyond just the sale of kWh

S TAT

1949

Year founded

analysis and automation of its operations. “As the backbone of the electricity system, the grid represents the single most impactful component of the energy industry and a country’s

35,000+

Approximate number of employees

energy needs,” notes Azman. “Therefore, we do not expect grid operations to stay the same as we progress into the future. We are looking to invest in technological advancements that will allow for greater digitisation and automation of w w w. t n b . c o m . m y


FACT

the grid. This will lead to improved performance and reliability, which will ultimately benefit our customer.”

CUSTOMER-CENTRIC The third critical pillar of TNB’s strategic vision – winning the customer – underscores its plan to create new and enhanced services and products. After all, when stripped down to its core, the focus of any successful business is simple – to meet the demands of the customer.

• Tenaga Nasional Berhad is the largest electricity utility in Malaysia. • Tenaga Nasional Berhad has a customer base of 9.3mn customers in peninsular Malaysia, Sabah, and Labuan. • Moving up 17 spots from 39th place in 2016, TNB is now acknowledged as one of the fastest growing brands in the sector, being ranked 22nd by Brand Finance Utilities 2018 with a brand value of USD$1.64b.

Putting its customer at the heart of its strategic plan, Azman describes how TNB intends to promote a value-centric understanding of its customers. “This means looking at customers as more than just a meter and understanding their values and needs beyond their kWh consumption,” he explains. “We have already identified several specific projects ranging from energy management to smart city utility services with various government agencies and corporate entities.” This customer centric-focus is also echoed by Datuk Fazlur Rahman Zainuddin, TNB’s Chief Financial Officer, who highlights that an unwavering commitment to customer satisfaction is at the foundation of the 67-year old company’s legacy. “Our simple business philosophy at TNB is


A stunning view of TNB’s men at work that it’s all about serving the needs of people,” he says. “Businesses must be clear of whom they serve and understand these people well. The moment businesses lose sight of this is when the firm loses its value proposition and thus profits or worse, loses its license to operate.” “Many words can be used to describe Tenaga Nasional Berhad, however, I prefer the simple description of ‘empowering people’,” he stresses. “If we were to go back in history and recall the development of Malaysia from a rural economy to what it is today, it is clear that by bringing electricity to homes, TNB has made a significant difference to the lives of people who, before then, didn’t have access to 24-hour electricity. “With electricity, lives of people, families and societies have been able to change for the better

The journey to the top entails a shift towards a more performance-oriented and adaptive culture

and as TNB, we are so privileged to be able to serve people this way.”

UPHOLDING HIGH REGULATORY STANDARDS Keeping pace with the ever-evolving regulatory environment, as the fourth and final pillar of TNB’s strategic plan, involves assisting the government in the execution of regulations and policies in the energy sector. In recent years, the government has imple-

— Datuk Wira Roslan Ab Rahman, CCO

mented Malaysian Electricity Supply Industry (MESI) reform initiatives which notably introduced Incentive Based Regulation (IBR) and w w w. t n b . c o m . m y


TNB contributes towards unlocking the value of young Malaysians

Imbalance Cost Pass-Through (ICPT) mechanisms. Meanwhile, in 2015, the government

“Regulations make up a vital enabler of our business,” notes Azman. “We must, therefore, continue to work closely with

also launched a subsidy rationalisation

the relevant stakeholders to maintain a

programme and later it established a ring-

conducive operating environment and

fenced single based buyer, amongst other

ensure we have the regulatory support

reforms. Such regulations ensure that TNB

we need to achieve both our and the

operates efficiently and charges custom-

regulator’s aspirations.

ers competitively priced electricity tariffs.

“Additionally, it is imperative that we

This also promotes transparency, robust

remain perceptive and responsive to regu-

finances, and sustainable investments.

latory developments in both domestic and

As such, TNB is keen to collaborate with

foreign markets where we operate, so we

stakeholders to keep pace with today’s

can work harmoniously with the electricity

evolving regulatory environment.

industry laws that govern our sector.”


Many words can be used to describe Tenaga Nasional Berhad, however, we prefer the simple description of ‘empowering people’ — Datuk Fazlur Rahman Zainuddin, CFO

A STRATEGY FOR SUCCESS

Megat Jalaluddin Megat Hassan, predicts

Optimistic about its 10-year strategic

that the firm will increase its earnings

plan, TNB says it is on track to meet these

before interest and tax by 30% in the next

concrete goals. In doing so, the Malay-

three to five years.

sian firm hopes to realise its potential and

“It is hoped that TNB can achieve or

become one of the top 10 utility compa-

even surpass the target and aspiration

nies in the world.

outlined in the strategy towards becoming

Moving up 17 spots from 39th place in

one of the top 10 utility companies in the

2016, TNB is now acknowledged as one

world,” he notes. “This includes becoming

of the fastest growing brands in the sec-

the ASEAN leader in renewables, build-

tor, being ranked 22nd by Brand Finance

ing profitable businesses in South Asia,

Global Top 50 Utilities 2018 with a brand

Southeast Asia and the Middle East, the

value of $1.64bn.

establishment of a robust smart grid that

On top of this, Chief Strategy Officer,

allows for bi-directional energy flow, and w w w. t n b . c o m . m y


It is hoped that TNB can achieve or even surpass the target and aspiration outlined in the strategy towards becoming one of the top 10 utility companies in the world — Megat Jalaluddin Hassan, CSO

Kampung Kuantan Firefly Conservation Project Conservation of fireflies, fireflies research, developing physical infrastructure and generating publicity to attract more tourists to Kampung Kuantan, Selangor, Malaysia


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an increasingly digitally automated grid.”

CULTURAL CHANGE

For many years, TNB has been actively planting and replenishing trees through their ‘Tree for a Tree’ programme

Undertaking a mammoth 10-year plan, Tenaga Nasional Berhad is preparing for a new chapter in its journey and it’s one which is fully supported by its team of over 35,000 people. TNB’s Chief Corporate Officer, Datuk Wira Roslan Ab Rahman, highlights that apt communication and an innovative culture was critical to prepare the firm for such mammoth changes. “To make the staff key drivers of our transformation journey and equip them to be brand ambassadors for TNB, we translated the aspiration and educated staff on the new direction of TNB and their role in bringing the aspiration to life. For this, we conducted numerous engagement sessions with the different levels of staff and continuously monitoring our progress. “The journey to the top entails a shift towards a more performance-oriented and adaptive culture. We are currently working towards ensuring that this culture is imbibed by the staff and ultimately adopted.”

CUTTING-EDGE CONFERENCES Beyond its four walls, TNB is also engaging with its peers to revolutionise the sector and create a brighter future for the region. As a result, the Malaysian firm is set to host the Conference of the Electric Power Supply Industry (CEPSI),

Lestari Community Project Installation of solar panels at community care centres to generate electricity under Feed-in Tariff (FiT) scheme


Better Brighter Shelter Programme is our newly introduced community programme to upgrade transit homes or dormitories at Government-owned hospitals in Malaysia

w w w. t n b . c o m . m y


Electricity is and remains but one way of empowerment. With developments in technology, such as renewable energy, energy storage, connectivity, data analytics, and the Internet of Things, we see even more ways of empowering people further — Datuk Seri Ir. Azman Mohd, CEO PINTAR School Adoption Programme TNB adopts under-performing schools and provides the students and teachers with support to enhance academic and non-academic outcomes


one of the largest and most prestigious

compromised its ethics and corporate

events in the electricity supply industry in

responsibility.

the Asia Pacific. Roslan says: “We look upon CEPSI as

ETHICAL, SUSTAINABLE GROWTH

one of the vehicles that embodies our aspi-

With a desire to create a world that is

ration by bringing the topic of ‘Reimagining

‘Better. Brighter’, Azman describes how

Utility of the Future’ to the forefront. We’re

TNB continuously strives to go beyond

inviting the world’s best utility players and

what’s expected of it, giving back to

experts to share, network and highlight our

stakeholders and playing a meaningful

goals and get the conversation going as

role in the communities it serves.

we look for like-minded partners.” Yet, whilst outlining this ambitious ‘Reimagining TNB’ strategy, the utility firm hasn’t

As part of these efforts, the electric utility firm has implemented a Green Policy which plans to minimise the com-

w w w. t n b . c o m . m y


pany’s environmental impact by adopt-

through education. Beyond the class-

ing sustainable practices, developing its

room, TNB has also nurtured technical

green energy business and reducing its

training through the support of voca-

carbon footprint through energy-effi-

tional education programmes through its

cient operations.

subsidiary, Integrated Learning Solution

Empowering local communities, TNB has also contributed to the education

(ILSAS). “As Malaysia’s leading utility com-

and development of Malaysian youths by

pany, TNB believes that its value lies not

advocating initiatives such as the PINTAR

only in providing access to electricity to

programme, a not-for-profit that aims to

homes and businesses throughout the

enhance the motivation and success of

country but also in adopting sustainable

students from underperforming schools

practices and activities in our operations

Universiti Tenaga Nasional (UNITEN) UNITEN not only prepares its graduates to be knowledgeable and competent professionals, but also develops them as well-rounded individuals with a broad intellectual outlook


to improve societal and environmental outcomes,” notes Roslan. The energy sector is experiencing great change with new trends emerging

“We believe that these trends will substantially reshape our future, yet present exciting opportunities,” says Roslan. Moving forward, TNB will continue to

like the shift in economic power to Asia,

serve society by empowering them in differ-

technology disruptions, the end of cheap

ent ways. As CEO, Azman notes, “electricity

capital and evolving regulatory develop-

is and remains but one way of empower-

ments. By capitalising on these trends,

ment. With developments in technology,

TNB aims to unlock new growth areas,

such as renewable energy, energy storage,

win a new generation of customers,

connectivity, data analytics, and the internet

realise its global ambitions and unleash

of things, we see even more ways of em-

greater productivity.

powering people further.”

w w w. t n b . c o m . m y


Tenaga Nasional Berhad No 129 Jalan Bangsar 59200 Kuala Lumpur T +603 2296 5566 www.tnb.com.my

Profile for Energy Digital

Tenaga Nasional Berhad - Brochure 2018  

Tenaga Nasional Berhad - Brochure 2018  

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