TNB is right to announce the tariff hike as it was already approved by EC (Energy Commission), and now it depends on where the money will be coming from i.e. government or indirectly Rakyat money), specific sector (like data center, E&E), very large users, high domestic users, etc. TNB need to upgrade the grid and to cater for more RE penetration, plus battery and peaker plants to cope with the intermittency.

Should impose higher tariff on data center, because already 7GW had been approved (or about 30% to 40%) of current Peninsular consumption, and they can afford to pay.

According to https://www.gso.org.my/ which provide real time power demand in Peninsular which stood at around 19GW, thus additional 4.2GW is very significant. Tenaga and IPP may be supported with such huge demand in the short to medium term.

https://www.thestar.com.my/business/business-news/2024/09/03/tnb-projects-strong-electricity-demand-growth-driven-by-data-centres

According to CIMB Securities, TNB shared in its briefing that it had completed connection of seven DC projects to the electricity grid in the first half of the year so far and this totals a circa. 1,070MW.

An additional 3.2GW of 21 DC projects are in the supply application stage, it said. TNB Green Lane Pathway may realize the connection within 12 months, as opposed to the usual 36 to 48 months. With such massive influx of power demand, the immediate plan may be to extend the retiring or retired power plant. Can possibly check out alternative prospects of those IPPs.