landscape is three-fold: significantly increasing our renewable energy capacity, improving our carbon management, and a gradual reduction of our coal generation capacity. We own and operate 198 powers plants with an installed capacity of 16,283MW and we are cognisant of the need for us to decarbonise our generation fleet in a sustainable and responsible manner. CEO’S STRATEGIC & OPERATIONAL REVIEW Renewable energy and low-carbon energy sources are shaping the future, driven by a commitment to decarbonisation and climate action. FROM OUR LEADERSHIP Sec 2 35 DEVELOP THE ENERGY TRANSITION NETWORK At TNB, we strongly believe that there is no transition without transmission. This motivates us in building and maintaining intelligent, resilient and flexible electricity grids that enable the faster adoption of more RE sources. CEO’S STRATEGIC & OPERATIONAL REVIEWT o enhance automated network control and fast supply restoration, we continued the rollout of Distribution Automation (DA). Approximately 4,000 substations were successfully installed and commissioned with DA, covering about 2.6 million customers. This brings our total to 28,340 distribution substations, accounting for 34% of total distribution stations in Peninsular Malaysia. For our transmission network, we enhanced our Advanced Automatic Fault Analysis (AFA) system to improve response and restoration time during outages. Another aspect of developing the ET network is cross-border interconnections as they help in achieving ASEAN’s ET and decarbonisation targets. At TNB, we are constantly exploring opportunities to expand our regional interconnections through Memorandums of Understanding (MOUs) with ASEAN neighbours such as Indonesia, Thailand, and Singapore. These agreements are strategic stepping stones towards the development of interconnection projects that are expected to strengthen the ASEAN power grid. A key milestone was achieved with the completion of a joint feasibility study with EGAT Thailand in 2023, paving the way forward for the expansion of the