The Malaysian Grid Code Preface

being developed in stages, as the need arises, as another main trunk line
from north to south along the west coast of Peninsular Malaysia.

P1.2.3 The Grid System is also interconnected with power systems of Thailand in
the North and Singapore in the South and both were first established in the
1980’s. The interconnection with Thailand has been upgraded since 1998
from a 100MW AC Interconnection to 300MW HVDC Interconnection
that allows rapid control of power and energy transactions between two
power systems. Although the energy transaction through the 250MW AC
Interconnection with Singapore has always been set to zero, the
interconnection has proven to be of benefit to both power systems in times
of emergencies.

P1.2.4 Year 1992/93 could be considered the beginning of electricity industry

liberalization in Peninsular Malaysia with the emergence of the first
Independent Power Producer (IPP). In view of the industry liberalization
and in anticipation of growing number of Grid System Users of different
owners and objectives, in 1994 the first Malaysian Grid Code was
introduced and TNB Transmission Division was assigned as the GSO who
was then entrusted the duties to coordinate and facilitate the development
and operation of the Grid System as required by the provisions of the Grid
Code.

P1.2.5 This Grid Code is a major revision of the 1994 Grid Code.

P1.3 Electricity Industry Structure

P1.3.1 TNB is a licensee who owns and operates generating plants, transmission
systems and distribution systems. Each of the core businesses of TNB is
distinctively separated into three divisions of generation, transmission, and
distribution In the generation wholesale market, apart from TNB there are
also generating plants owned and operated by Independent Power
Producers (IPP) and connected to the Grid System. In the distribution
sector there are also other distribution licensees besides TNB that buy bulk
power from TNB and distribute to customers in a franchise areas. Some of
these licensees also operate Distributed Generation.

P1.3.2 The Grid System is maintained and operated by TNB Transmission

Division, which also includes the GSO who operates the Grid System and
coordinates all parties connected to the Grid System. TNB is the Grid
Owner who owns and plans the Grid System. TNB is also the Single