On 1 July 2025, Malaysia introduced a landmark electricity tariff reform, with time-of-use (ToU) pricing made available to domestic consumers for the very first time. Approved under the Energy Commission’s Incentive-Based Regulation, the ToU tariffs aim to reduce peak-time stress on the grid while rewarding households for smarter, more efficient energy use.
But ToU pricing is only as effective as the grid’s capacity to detect and monitor electricity use in real time. For this reason, Tenaga Nasional Berhad (TNB) has instilled Advanced Metering Infrastructure (AMI) at the heart of its digital grid strategy, driving the meters, self-healing transformers and predictive analytics platforms.
AI tools adoption such as the Advanced Distribution Management System (ADMS), has also enabled predictive analytics, real-time network visibility, and enhanced control over bi-directional energy flows, all of which are essential in managing the increasing complexity of Malaysia’s energy ecosystem.
Smarter grids are the backbone of a clean energy future
Clean energy investments reached a record-breaking USD2.1 trillion in 2024 , outpacing fossil fuels for the first time. This is great news for the planet, but it also means grids must now modernise decisively. The rise of renewables, electric vehicles, and distributed energy resources have made power flows more dynamic, less predictable, and far more data dependent.
Without veins and arteries, the organs of a system are rendered useless – which is why the modernisation of power grids is pivotal for scaling up renewable energy production. Advancing AMI technologies can empower utilities to manage intermittency, accurately predict demand, and maintain stability across an increasingly decentralised network.
What’s more, it will provide the opportunity to rethink the experience of consumers, empowering them to be active contributors in the new energy landscape. Imagine homes being transformed into “local power stations”, where citizens and communities control distributed energy assets like solar panels, EV chargers, and residential batteries.
Building intelligence into Malaysia’s grid
Power and utility companies across Southeast Asia have already begun their journey to deploy AMI and install smart meters in every home.
Power and utility companies across Southeast Asia have already begun their journey to deploy AMI and install smart meters in every home. Here in Malaysia, TNB’s AMI rollout has completed over three million smart meter installations to date, with a target to reach 9 million across Peninsular Malaysia by end-2026 .
Melaka offers a glimpse into the nation’s energy future, where the state has fitted about 300,000 smart meters and deployed ring-fenced feeders with sensor-laden transformers. Smart meters feed half-hourly energy readings to a Power-Alert dashboard, empowering homeowners to monitor daily consumption and optimise their energy usage
Beyond smart meters, TNB is also deploying sensor-equipped, “self-healing” transformers that can isolate faults automatically, drastically reducing outage times and operational costs. Each new transformer is paired with a “digital twin” which is a virtual replica that allows engineers to detect wear-and-tear and predict failures months in advance.
From real-time visibility to predictive power
In the future, AMI could even support the use of edge AI or artificial intelligence deployed at the edges of power networks, working on data generated locally from sensors and devices. This could enable faster real-time insights and automated control, helping to manage the growing number of distributed energy assets while keeping the grid stable.
Nonetheless, making this vision a reality requires significant and ongoing investment in modern technology and grid infrastructure. To this end, PETRA’s National Energy Transition Roadmap (NETR Flagship 4) sets a 60% intelligent-substation target by 2027, making grid digitalisation a pre-condition for large-scale renewables integration.
Meanwhile, the Energy Commission is drafting Grid-Code amendments that will require all new high-voltage transformers to be equipped with online health monitoring systems, turning a technical upgrade into a regulatory baseline.
As energy and AI become increasingly interconnected, TNB is harnessing this synergy to drive smarter, more resilient operations across the nation’s power network. With strong governance guiding the use of AI, the utility aims to ensure the technology boosts productivity, supports sustainable growth and strengthens the nation’s economic competitiveness, while improving the quality of life for Malaysians.
Even with the growing integration of AI in grid operations, ethics remain a fundamental pillar with the utility adopting a human-centric approach to governance, ensuring that while AI provides valuable predictions and insights, final decisions are grounded in human judgement.
No energy transition without transmission
With climate change and new energy sources reshaping our world, smart, responsive energy systems are no longer a luxury; they are indispensable. Grid transformation forms the foundation of a clean energy future, one that enables utilities, consumers, and communities to prosper in a landscape that demands both sustainability and resilience.
By embracing this moment as transformation with purpose and people at its core, Malaysia can unlock greater value from its grid investments. Balancing demand growth with decarbonisation will not only safeguard energy security, but it will also help define Malaysia’s leadership in ASEAN’s energy transition.
As digital infrastructure takes root, the path to net zero comes into sharper focus — powered by innovation, guided by intelligence and built with the needs of future generations in mind.