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Energy Efficiency and Conservation Bill 2023 passed in the Malaysian Parliament

IEN would like to congratulate Malaysia for passing the Energy Efficiency and Conservation Bill 2023. Having been among the stakeholders for the bill - ten years in the making - we are delighted to see it passed by the Malaysian parliament this week (11 Oct 2023).

The bill requires mandatory energy audits and continuous energy efficiency improvements for the major energy consumers, which is defined as those consumers with annual energy bills in excess of:

  • RM2.4 million (electricity bill) and/or

  • RM1 million (natural gas bill)

In terms of primary energy, this translates into an annual primary energy consumption exceeding 21,600 GJ (gigajoules).

The bill also caps the Building Energy Intensity (kWh/m2/year) of large office buildings (8,000 m2 or bigger) to max. 250 kWh/m2/year. If the energy consumption is in excess, energy efficient conservation measures and/or retrofitting must be undertaken to bring the building into compliance.

Once enacted, the Energy Efficiency and Conservation Act (EECA) will regulate approximately 75% of the industrial energy consumption and about 21% of the commercial building energy consumption.

The EECA has the full potential to bring about substantial change in the energy consumption of the commercial and industrial sector. Below is a good reference of how legislated building energy efficiency + energy efficient retrofit subsidy programs helped to cut the energy consumption to half for the entire building stock in Denmark:

Will the EEAC allow Malaysia to "break the curve" for energy consumption in buildings? We certainly hope so! Energy efficient retrofit subsidies and enforcement will be key to the success of the EEAC.

Looking forward to following and contributing to this new exciting journey of energy efficiency in Malaysia!

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Read and download the Energy Efficiency and Conservation Bill 2023 below:


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