Malaysia to regulate large power users, sees US$20 billion in energy savings by 2050
MALAYSIA’S Parliament on Wednesday (Oct 11) passed a law that will require the country’s biggest energy consumers to implement power-saving measures, as it looks to slash its energy consumption and carbon emissions.
Malaysia has pledged to reduce its greenhouse gas emissions by 45 per cent across the economy by 2030, and to reach net-zero emissions by 2050.
The enforcement of the Energy Efficiency and Conservation Act is projected to save 2,017 million gigajoules (GJ) of energy use, equivalent to US$20.54 billion by 2050, Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad said when presenting the Bill in the lower house on Tuesday.
It is also expected to reduce emissions by 197,877 kilotonnes of carbon dioxide equivalent over the same period, and create new jobs in energy management and auditing, he said.
Nik Nazmi said on Wednesday the law would only apply to large power users that consume more than 21,600 GJ annually, adding that it aimed to bring 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.
A NEWSLETTER FOR YOU
Friday, 8.30 am
Asean Business
Business insights centering on South-east Asia's fast-growing economies.
The measures will apply to about 1,500 industrial consumers responsible for 70 per cent of energy consumption in the sector, as well as around 500 commercial consumers, which is less than 1 per cent 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.
Under the new law, large industrial and commercial consumers will be required to appoint a registered energy manager to carry out an energy audit and develop a power management system.
The entities will also need to submit periodic reports 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.
The measures will come into force a year after the law is gazetted, Nik Nazmi said. REUTERS
Share with us your feedback on BT's products and services
