Malaysia’s Energy Efficiency and Conservation Act 2024 (Act 861) and its accompanying Energy Efficiency and Conservation Regulations 2024 officially came into force on January 1, marking a significant step in the country’s pursuit of sustainability and alignment with the National Energy Transition Roadmap (NETR).
In a statement, the Energy Commission (EC) described the enforcement of these regulations as a milestone in Malaysia’s journey towards a more energy-efficient and environmentally sustainable future.
Gazetted on November 26, 2024, Act 861 applies to Peninsular Malaysia and the Federal Territory of Labuan and is enforced under the supervision of the EC. The act introduces comprehensive measures to improve energy efficiency standards, regulate energy-using products, and establish clear obligations for high-energy-consuming entities.
Key Provisions of Act 861
The legislation comprises ten main sections, outlining the obligations for energy users whose annual energy consumption meets or exceeds 21,600 GJ. These users are now required to:
- Appoint a registered energy manager.
- Develop and implement an energy management system.
- Prepare and submit an energy efficiency report.
- Conduct regular energy audits.
Buildings specified in the Third Schedule of the Act must also adhere to minimum energy efficiency standards, display energy intensity labels, and undergo periodic assessments to maintain compliance.
Additionally, manufacturers and importers of energy-using products (EUP) are obligated to:
- Ensure their products meet the Minimum Energy Performance Standards (MEPS).
- Display energy efficiency rating labels.
- Promote the adoption of energy-efficient products in the market.
Energy Managers and Auditors
The Act also introduces professional requirements for energy managers and energy auditors, mandating specific academic and professional qualifications to raise industry standards. Training institutions offering energy-efficiency programs must also meet registration requirements set forth by the EC.
Supporting Regulations for Enforcement
Complementing Act 861, the Energy Efficiency and Conservation Regulations 2024 provide detailed guidance on the operational aspects of compliance, including:
- Appointment of energy managers for entities exceeding the designated energy usage threshold.
- Implementation of energy management systems tailored to organizational needs.
- Submission of energy audit reports within stipulated timelines.
Notably, the regulations also enforce the annual renewal of energy intensity labels for designated buildings and reiterate MEPS compliance and mandatory energy efficiency labeling for products.
A Modernised Energy Framework
The implementation of Act 861 also repeals the Efficient Electricity Management Regulations 2008 under the Electricity Supply Act 1990 (Act 447). The EC highlighted this as a necessary move to align Malaysia’s energy governance framework with contemporary global standards and the evolving demands of sustainable energy management.
In conclusion, the enforcement of the Energy Efficiency and Conservation Act 2024 and its associated regulations represents a transformative shift in Malaysia’s energy policy, setting the stage for a more energy-conscious and sustainable nation in the years ahead.
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