Malaysia’s Energy Efficiency And Conservation Bill Seeks To Save Billions

Malaysia’s Energy Efficiency And Conservation Bill Seeks To Save Billions

Malaysia’s parliament has just passed a law that will require the country’s biggest energy consumers to implement power-saving measures as the nation looks towards cutting down its power consumption and slashing carbon emissions.

Malaysia has pledged to reduce its greenhouse gas emissions by 45 percent across the economy by 2030, and to reach net-zero emissions by 2050.

The new law, dubbed the Energy Efficiency and Conservation Act, is expected to save about 2,017 million gigajoules (GJ) of energy use, equivalent to 97.1 billion ringgit (approximately US$20.54 billion) by 2050, Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad said when presenting the bill.

The bill is also projected to reduce emissions by 197,877 kilotonnes of carbon dioxide equivalent over the same period. It will also generate new jobs in the energy management sector.

Minister Nik Nazmi also mentioned that the law would only apply to large power users that consume more than 21,600 GJ annually. The move to pass the law is primarily aimed at bringing Malaysia’s energy efficiency regulations in line with international standards.

“Our focus is on users who consume energy above a very high threshold,” he said while wrapping up parliamentary debates on the bill. The measures will apply to about 1,500 industrial consumers responsible for 70% of energy consumption in the sector, as well as around 500 commercial consumers, which is less than 1 percent of the total number of users in both sectors,” Nik Nazmi said.

The law will next be sent to the Senate, or upper house, for approval before being gazetted.

According to reporting by Reuters, the new law will require large industrial and commercial consumers to appoint a registered energy manager to carry out an energy audit and develop a power management system. Periodic reports will also need to be submitted on their energy consumption to regulatory authorities.

The law will also require buildings larger than 8,000 square metres to comply with energy efficiency requirements. According to Minister Nik Nazmi, the requirements will come into effect after the law is gazetted.

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