to extreme weather patterns and increased global temperatures. These include event-driven acute risks and longer-term chronic shifts in climate patterns. The recent physical climate risk assessment is based on a climate scenario modelling (IPCC RCP 8.5/4°C) for the three (3) different types of power generators (coal, gas & hydro) and substations selected given their locations within Peninsular Malaysia. The scenario modelling analysed climate-related failure and damage risks at the grid point of the asset sites chosen to identify the spatial distribution of the seven (7) physical climate risks. The summary outcome of the study is as follows: Type No Transition Risk Short/Medium/ Long Term* Potential Impact Management Approach Resilience 5 Flexible and reliable Grid Opportunities for regulated assets due to the requirement for a flexible and reliable grid withthe increase of renewable energy injection to the grid system Short term Capital Investment Enhance grid system efficiency through SMART grid initiatives to facilitate bi-directional power flow from prosumers Pilot project for Virtual Power Plant (VPP) technology for peer-to-peer generation among energy prosumers and demand response control for system stability in the future 6 ASEAN Power Grid Interconnection Opportunities for grid interconnection projects with ASEAN countries towards a low-carbon economy in the region Medium term Revenue MoU with ASEAN countries, e.g., Indonesia, Thailand and Singapore, to undertake collaborations on interconnection projects Feasibility studies for other cross-border electricity interconnection opportunities * Short-Term: until 2025 | Medium-Term: 2025 to 2035 | Long-Term: 2035-2050. Refer to MM2 (Energy Transition and Innovation) on pages 68-71. Refer to MM2 (Energy Transition and Innovation) on pages 68-71. TENAGA NASIONAL BERHAD Integrated Annual Report 2023 112 OUR RESPONSE TO CLIMATE CHANGE Physical Risk Short/Medium/ Long Term* Adaptation Plan Flood Short term An integrated catchment management policy, procedures, and