TNB

  • Malaysian government to pay TNB RM5.8 billion to maintain current rates; home EV charging unchanged

    Malaysian government to pay TNB RM5.8 billion to maintain current rates; home EV charging unchanged

    The ministry of finance of Malaysia has announced that it will be paying national utlities company Tenaga Nasional Berhad (TNB) RM5.8 billion for it to maintain the current electricity tariffs for the second half of 2022 in order to not further burden Malaysian users, despite the steep increase in the costs of electricity generation.

    “The government will pay the RM5.8 billion sum to TNB to ensure that TNB is not adversely affected by the sharp increase in fuel prices for electricity generation in line with the incentive-based regulation. Therefore, the government will bear the RM5.8 billion subsidy to benefit all members of Keluarga Malaysia,” the ministry of finance said in its statement.

    A payment of up to RM6 billion has been guaranteed to TNB by the Malaysian government to ensure that the company’s electricity generating operations will not be disrupted, alongside ensuring the sustainability of the country’s energy industry, according to the ministry of finance.

    Malaysian government to pay TNB RM5.8 billion to maintain current rates; home EV charging unchanged

    The ministry of finance stated that the coal was priced at US$80 (RM359) per metric tonne at the beginning of 2021, and this had increased to (RM1,796) per metric tonne by the middle of this year.

    This latest development follows last month’s report that the Malaysian government would continue offering domestic users a rebate of two sen per kWh until the end of this year.

    For motorists, in the context of electric vehicles, the maintaining of electricity rates for domestic users means that users of EVs who recharge their vehicles at home will continue to replenish their EVs without a change in rates for the time being.

    Meanwhile, natural resources minister Datuk Seri Takiyuddin Hassan said last month in the Dewan Rakyat that the surcharge for non-domestic users will remain at 3.70 sen/kWh, which is lower than the actual of rate of Imbalance Cost Pass-Through (ICPT) of 11.81 sen/kWh.

     
     
  • Running an EV in Malaysia is between 11.4% to 28.3% cheaper than petrol vehicles using RON 95 – TNB

    Running an EV in Malaysia is between 11.4% to 28.3% cheaper than petrol vehicles using RON 95 – TNB

    The recent paultan.org Electric Vehicle Expo (EVx) 2022 highlighted the inroads being made by electrification in Malaysia, and though things are still very much at a nascent stage for the new format, there’s no denying that it’s gaining traction at a very good rate.

    Dissemination of the tech is happening at a fast pace, with proponents usually pointing to the many benefits to battery EVs, using the zero emissions or ‘saving the planet’ angle, drawing on the lack of exhaust fumes and noise. Performance aspects are also cited with regularity, as is usability in terms of mileage and movement. While running costs are also touted, the mentions aren’t always specifically detailed.

    Tenaga Nasional (TNB) has chosen to offer a take on that aspect. The National utility company, which is at the heart of the electrification movement (quite literally, given that it is the provider of the most important element that binds everything together), has revealed the findings of a study it conducted comparing the costs of EV charging vs petrol use in conventional internal combustion engine (ICE) vehicles.

    Running an EV in Malaysia is between 11.4% to 28.3% cheaper than petrol vehicles using RON 95 – TNB

    The data was presented in a couple of infographics shown on an electronic display at its booth in EVx. In these, TNB compares the running costs of ICE vehicles vs full electrics, purely from a fuel perspective, without adding in elements such as servicing and maintenance.

    The study puts an average distance travelled per year by a vehicle at 28,188 km (or 2,349 km a month), with the comparison sampling six car segments (B-segment hatchback and SUV, C-segment hatchback, compact executive sedan and SUV, and executive sedan sedan).

    Both RON 95 and RON 97 petrol grades were used to help establish ICE running costs, although the latter’s price, which is quoted at RM3 per litre, suggests that the study was undertaken a while back, before it hit record-breaking levels.

    Running an EV in Malaysia is between 11.4% to 28.3% cheaper than petrol vehicles using RON 95 – TNB

    Meanwhile, the focus on charging is made from a domestic angle, with the cost of home charging quoting a rate of 0.571 sen per kWh, which is the highest tier in a residential electric bill, for kWh used beyond 901 kWh. It is assumed that with an EV present, electricity use for a household is likely to go right into the tier five rate every month, unless you don’t happen to own a fridge and television or run an air-conditioner at all.

    Even then, you won’t be in the lowest tier (under 200 kWh of use) with an EV, unless you charge the car only once a month and your travel distance is just a couple of hundred kilometres every month. Although the calculations are centred around home charging, the infographic also gives a rate of 0.79 sen per kWh for public chargers and a conservative RM1 per kWh for Level 3 rapid charging.

    Other factors, including cost-related elements, are also included. As there is some energy loss during the charging process, TNB has put EV charging efficiency at 88%, 12% being counted as that loss. Also listed is the cost to own a home charger, which is put at RM900 a year.

    Running an EV in Malaysia is between 11.4% to 28.3% cheaper than petrol vehicles using RON 95 – TNB

    The price above would fall very much in line with the cost of an externally sourced 11/22 kW charger over a five-year timeframe, with payment spread equally over the period. Presently, some chargers are hovering around the RM2k zone, and installation costs can be anywhere from RM2-2.5k, which is the total if you look at the RM900 yearly cost split over a period of five years.

    Of course, going the external third-party route means you’ll have to fork out the total sum upfront, with the savings gained over the long term. Right now, most of the EVs on sale offer a Wallbox/charger bundled along with the car, and that cost would be included into the monthly repayment for the vehicle.

    The cost breakdown as calculated by TNB works out to this: the average annual fuel cost (over the yearly 28.8k distance travelled) for an ICE vehicle using RON 95 petrol works out to RM5,335 (or RM445 a month), while that for an ICE vehicle running RON 97 is put at RM7,808 (or RM650 a month). Bear in mind that for the latter, the calculations were made with the fuel at RM3 per litre, so it will be much higher at the present rate of RM4.65 per litre.

    Running an EV in Malaysia is between 11.4% to 28.3% cheaper than petrol vehicles using RON 95 – TNB

    Conversely, it would cost an average of RM4,725 (or RM394 a month) in terms of electricity – as well as the RM900 yearly price of the charger – to operate a battery electric vehicle over the same distance.

    Remove the annual cost of the charger and this drops to RM3,825 a year (or RM318.75 a month), but it is worth remembering that there is no free lunch here, since the cost for a home charger has already been factored in (to the monthly loan repayment). You’re still paying for it one way or another.

    The utility company also breaks down the price comparison per vehicle segment, and though not stated, is projecting its cost findings based on the rated/claimed mileage listed for models in both ICE and EV segments. Although it doesn’t provide any details on which ICE models were chosen for the sampling, it does list some specific BEV models being offered in the particular segments.

    Running an EV in Malaysia is between 11.4% to 28.3% cheaper than petrol vehicles using RON 95 – TNB

    The short of it is that according to TNB, running an EV is infinely cheaper, as it would cost users anywhere from 11.4% to 28.3% less each year to drive a BEV compared to an ICE vehicle using RON 95 fuel. The savings are amplified when ICE vehicles using RON 97 are benchmarked – savings of between 39.5% to 51% are quoted, and this is at the old RM3 per litre rate, so the percentages will be higher if the calculations are made with the current price.

    The study isn’t definitive or the be-all and end-all of the topic, but it does provide a good indicator of how EVs shape up in terms of “fuel” consumption costs, in relation to ICE. Of course, the thing to note is that right now, the entry cost for a full electric vehicle remains on the high side, but all this will become pertinent down the road when sub-RM100k offerings become commonplace.

    What’s your take on the TNB price comparison study? Share your thoughts on the matter with us in the comments section.

     
     
  • TNB and Perodua should work together to introduce affordable EV charging rates in Malaysia – Ismail Sabri

    TNB and Perodua should work together to introduce affordable EV charging rates in Malaysia – Ismail Sabri

    At the launch of the 2022 Perodua Alza earlier today, prime minister Datuk Seri Ismail Sabri Yaakob proposed to national utility company Tenaga Nasional (TNB) and Perodua that they should cooperate to introduce affordable electric vehicle (EV) charging rates for the people.

    He said TNB is currently working to increase its energy production by using renewable energy sources and also provide adequate EV charging stations. “At the same time, Perodua can explore new opportunities, including producing high quality electric vehicles that Malaysian families can afford,” he said.

    “In fact, telecommunication companies like Telekom Malaysia can also work with these two parties to provide data package that will enable users to book EV charging sessions online,” he said. He added that national telecommunications companies such as Telekom Malaysia could work with both parties involved to provide data packages that will enable users to make reservations online for EV charging.

    TNB and Perodua should work together to introduce affordable EV charging rates in Malaysia – Ismail Sabri

    Ismail Sabri said such cooperation should be forged as soon as possible to overcome the effects of climate change impacting the world, and also to ensure sustainable development of the country, as Bernama reports. He added that such a move would also help achieve the country’s target of being a carbon-neutral nation by as early as 2050.

    He said the government is also ready to discuss with the private sector to ensure that the policies or initiatives introduced are in line with the country’s direction.

    One way that TNB could offer affordable EV charging rates would be to introduce a special tariff rate for that purpose, something it has done. albeit for a different topic. Earlier this year, the utility company proposed that a special tariff rate be implemented for cryptominers, the move aimed at stopping electricity theft.

    TNB and Perodua should work together to introduce affordable EV charging rates in Malaysia – Ismail Sabri

    However, the country’s energy commission vetoed the plan, saying it had not considered the proposal because it wanted to ensure that any initiative would not affect electricity supply costs in Malaysia. The commission said that any proposal involving special tariffs or the reduction of electricity tariffs would lead to increased electricity supply costs, where all consumers would then have to bear. Given this, it’ll be interesting to see how TNB can reduce the costs of EV charging, especially for domestic users.

    Separately, Perodua president and CEO Datuk Zainal Abidin Ahmad said the automaker was still studying the matter of EVs. “It is in the planning stage. We will make and announcement when there is concrete cooperation with other national companies,” he said at the Alza press conference this morning.

     
     
  • DHL Malaysia and TNB partner up to use Nissan e-NV200 delivery vans, 60 kW fast chargers by 1H 2022

    DHL Malaysia and TNB partner up to use Nissan e-NV200 delivery vans, 60 kW fast chargers by 1H 2022

    Tenaga Nasional Berhad (TNB) and DHL Express Malaysia (DHL) have entered into a memorandum of understanding for the introduction of electric vehicles into the logistics firm’s fleet, The Edge Markets has reported.

    The first run of tailpipe emissions-free vehicles will be three units of the Nissan e-NV200, which DHL expects to receive within nine months, The Star reported. In this pilot phase, TNB is setting up charging infrastructure for the EV delivery fleet at DHL’s service centre on Jalan Chan Sow Lin, Kuala Lumpur.

    This will be joined by two more direct fast-chargers in two more locations in the Klang Valley – one being at the Dayabumi substation in the city centre – along the vehicles’ delivery routes. The energy firm will install state-of-the-art 60 kW fast chargers, which will give the delivery EVs 6 km of range for every minute of charging, said TNB chief retail officer Datuk Megat Jalaluddin Megat Hassan to The Star.

    DHL Malaysia and TNB partner up to use Nissan e-NV200 delivery vans, 60 kW fast chargers by 1H 2022

    The e-NV200 delivery vans are expected to offer a usable range of about 200 km from seven hours of continuous charging overnight, and DHL delivery personnel average a daily distance of 180 km in urban deliveries, DHL Express Malaysia and Brunei managing director Julian Neo told the news daily.

    “As TNB plans to instal more EV charging stations to accommodate the increased number of commercial EVs along their delivery routes for DHL, we are indirectly creating demand for EVs in the near future. With that in mind, TNB is open to more partnerships in the fleet industry and aims to develop a mutually beneficial business model to instal, maintain and sustain the EV charging infrastructure along the routes most frequently used by delivery fleets,” Megat Jalaluddin said.

    Meanwhile, DHL managing director Neo said that the logistics company’s use of electric vans marks the beginning of its efforts towards making its last-mile delivery and line-hauls greener.

    The partnership aligns with DHL’s goal of achieving zero-emissions logistics by 2050, and is also part of the wider Deutsche Post DHL Group’s efforts in decarbonising; it plans to invest a total of seven billion euros (RM35 billion) over the next 10 years towards climate-neutral logistics.

     
     
  • TNB, DHL sign MoU to develop greener supply chain – DHL to use EVs for deliveries, TNB to install chargers

    TNB, DHL sign MoU to develop greener supply chain – DHL to use EVs for deliveries, TNB to install chargers

    Tenaga Nasional Berhad (TNB) and DHL Express Malaysia (DHL) have entered into a Memorandum of Understanding (MoU) that will see them explore developments of a greener supply chain.

    The agreement includes focusing on making DHL deliveries more environmentally friendly, and this will be achieved by introducing electric vehicles into its fleet. According to a press statement, the first batch of fully electric vans is expected to be rolled out within the first half of 2022. DHL has pledged for zero emissions logistics by 2050.

    TNB, on the other hand, will install EV charging stations at DHL’s service centre in Kuala Lumpur, plus several more along selected delivery routes. The MoU will also see the two firms invest in energy-efficient equipment, building energy management systems, and rooftop solar panels. DHL is currently assessing TNB’s existing electricity supply chain and identifying opportunities for enhancement.

    TNB, DHL sign MoU to develop greener supply chain – DHL to use EVs for deliveries, TNB to install chargers

    TNB president and CEO, Datuk Ir. Baharin Din said: “This collaboration leverages on TNB’s collective expertise in energy management, energy audit, and sustainable energy solutions towards a more sustainable future for the nation. As DHL grows its fleet of electric vehicles in the coming years, TNB aims to gradually build more EV charging stations at DHL’s facilities and their delivery routes.”

    The MoU is part of Deutsche Post DHL Group’s widescale efforts to decarbonise the company, a move that will see it invest a total of seven billion euros (RM35 billion) over the next 10 years.

    Meanwhile, TNB said it is planning to increase its generation of renewable energy capacity to 8,300 megawatts by 2025, up from the current rate of 3,402 megawatts. The company plans to expand the adoption of renewable energy technologies such as solar, wind, biomass and biogas. As at March 31, 2021, TNB supplies electricity to approximately 10.1 million customers.

     
     
 
 
 

Latest Fuel Prices

PETROL
RON 95 RM2.05 (0.00)
RON 97 RM3.47 (0.00)
RON 100 RM5.00
VPR RM6.00
DIESEL
EURO 5 B10 RM2.15 (0.00)
EURO 5 B7 RM2.35 (0.00)
Last Updated Mar 28, 2024