network monitoring and control include Distribution Automation and voltage and reactive power management. For more information on energy sources, refer to the narrative in MM3 (Climate Change and Emissions) on pages 72-76. Energy Vector Energy Sources SUSTAINABILITY DISCLOSURES ON MATERIAL MATTERS Distribution Automation (DA) The DA Project facilitates automated network control and expedites rapid supply restoration. The project’s objective is to progressively install DA systems in 41% of Peninsular Malaysia’s total substations by the end of 2024, 64% by the end of 2027, and 84% by the end of 2030. In 2023 alone, the DA Project successfully installed and commissioned 4,002 substations that serve approximately 2.6 million customers. This brings our total DA installations since 2014 to approximately 28,340 distribution substations, covering 34% of Peninsular Malaysia’s total distribution stations.Notably, we have observed an average 20% reduction in restoration time for unplanned outages, with outages typically restored within 15 minutes on average. TENAGA NASIONAL BERHAD Integrated Annual Report 2023 70 Under the ongoing initiative to enhance voltage and reactive power management of the distribution network, we successfully installed and commissioned a total of 120MVAr under the Volt-VAR Optimisation Project in 2023, resulting in a loss reduction of 480,000kWh. Enhancing the Interconnected ASEAN Power Grid Cross-border interconnections play a vital role in advancing ASEAN’s ET and achieving decarbonisation goals. The establishment of the ASEAN Power Grid is poised to bolster regional grid stability and security while enabling resource-sharing and facilitating RE expansion across Member States. In 2023, Electricity Generating Authority of Thailand (EGAT) and TNB established an in-house Joint Working Committee (JWC) to undertake a feasibility study on enhancing the interconnection capacity between Peninsular Malaysia and Thailand. This study, completed in August 2023, explored potential technologies and designs,