Malaysia to regulate large power users, expects $28b in energy savings by 2050
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Malaysia has pledged to reduce its greenhouse gas emissions by 45 per cent across the economy by 2030.
PHOTO: REUTERS
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KUALA LUMPUR – Malaysia’s Parliament on Wednesday 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 reach net-zero emissions by 2050.
The enforcement of the Energy Efficiency and Conservation Act is projected to save 2,017 million gigajoules of energy use, equivalent to RM97.1 billion (S$28 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.
Mr Nik Nazmi said on Wednesday that the law would apply only to large power users that consume more than 21,600 gigajoules 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.
The measures will apply to about 1,500 industrial consumers responsible for 70 per cent of energy consumption in the sector, and around 500 commercial consumers. These figures make up less than 1 per cent of the total number of users in both sectors, Mr 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 need to submit periodic reports on their energy consumption to the regulatory authorities.
The law will also require buildings larger than 8,000 sq m to comply with energy efficiency requirements.
The measures will come into force a year after the law is gazetted, Mr Nik Nazmi said. REUTERS
