Malaysia’s parliament has approved the Energy Efficiency and Conservation Act, a law that will require the country’s largest energy consumers to adopt power-saving measures, as reported by Reuters on October 9. The law applies to large power users consuming more than 21,600 gigajoules (GJ) annually. Under the new rules, large industrial and commercial consumers must appoint a registered energy manager responsible for conducting energy audits and developing power management systems. Additionally, these entities must submit regular reports on their energy consumption to regulatory authorities. Buildings exceeding 8,000 square meters must comply with specified energy efficiency requirements.

The legislation aims to align Malaysia’s energy efficiency regulations with international standards. It is expected to impact around 1,500 industrial consumers, responsible for 70% of energy consumption in the sector, and around 500 commercial consumers. Although these entities account for less than 1% of the total number of users in both sectors, they are significant contributors to energy consumption. Minister of Natural Resources, Environment, and Climate Change, Nik Nazmi, estimates that this legislation will lead to substantial energy savings amounting to 2,017 million GJ by 2050, equivalent to RM97.1bn (USD20.5bn) in energy bills. Nik Nazmi also anticipates the law will help reduce greenhouse gas (GHG) emissions by 197,877 kilotons of carbon dioxide equivalent by 2050. This legislation aligns with Malaysia’s commitment to reducing greenhouse gas emissions by 45% from 2005 levels by 2030 and achieving net-zero emissions by 2050.

Sources:

https://www.reuters.com/sustainability/climate-energy/malaysia-parliament-approves-energy-efficiency-law-2023-10-11/

https://www.straitstimes.com/asia/se-asia/malaysia-parliament-approves-energy-efficiency-law

https://climatepromise.undp.org/what-we-do/where-we-work/malaysia