Malaysia to implement regulations for large power users


Malaysia’s Parliament on passed a law on 11 October that will require the biggest energy consumers to implement power-saving measures, as it looks to reduce its energy consumption and carbon emissions.

The country has promised to slash its greenhouse gas emissions by 45% across the economy by 2030, and to achieve net-zero emissions by 2050.

Nik Nazmi Nik Ahmad, the Environment and Climate Change Minister, said when presenting the bill in the lower house that the enforcement of the Energy Efficiency and Conservation Act is projected to save 2,017 million gigajoules (GJ) of energy use, equivalent to RM97.1 billion ($20.54 billion) by 2050.

It is also expected to lower emissions by 197,877 kt of CO2 equivalent over the same period, and bring new jobs in energy management and auditing, he said.

Nik Nazmi said the law would only apply to large power users that consume more than 21,600 GJ annually, adding that it aimed to bring the nation’s energy efficiency regulations in line with international standards.

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% of the total number of users in both sectors, he added.

Under the new law, large industrial and commercial users will be required to appoint energy manager to carry out an energy audit and develop a power management system. The entities will also have to submit periodic reports on energy consumption to regulatory authorities.

The law will also require buildings larger than 8,000 sqm to comply with energy efficiency requirements.

The law will next be sent to the upper house for approval before being gazetted. According to Nik Nazmi, the measures will come into force a year after the law is gazette.

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