On the 11th of October 2023, Malaysia parliament has passed the Energy Efficiency Conservation Act (EECA) which supersedes the Efficient Management of Electrical Energy Regulations 2008 (EMEER 2008). What changes can we expect to see in 2024?
Intent
To improve and increase energy efficiency and to avoid waste of energy by regulating the efficient consumption of energy and conservation of energy. The main difference between EECA and previous EMEER is that the previous regulations do not require mandatory audits.
Who?
- Major energy consumes with annual energy bills more than the following (21,600 gigajoules of annual energy):
- RM2.4 million (electricity bill) and/or,
- RM1 million (natural gas bill)
- The affected / relevant organizations are required to submit mandatory energy audits and continuous energy efficiency improvements
- Office buildings with area of 8,000 m2 or bigger caps the Building Energy Intensity (kWh/m2/year) to a maximum 250 kWh/m2/year
When?
Dewan Rakyat passed the bill on 11th October 2023, which had been in the works for almost 10 years. However, the Ministry may appoint different dates for the coming into operation of different provisions of this Act.
For now, we anticipate that the EECA will be enforced 12 months after it was gazetted. Consumers must conduct their first energy audit which is tentatively targeted around October of 2024.
How?
Energy consumers are required to appoint an energy manager to manage energy efficiency and conservation. The energy manager must be registered with the Energy Commission (EC). The energy manager shall develop and implement an energy management system which includes energy policy, energy objectives and processes to achieve the objectives. Energy audit and efficiency reports are to be submitted to the EC and to allow EC registered energy auditor to conduct periodic energy audits.
With the EECA in place, we can expect more careful considerations and efforts in reducing energy wastage and prioritize energy efficiency from all sectors in Malaysia.
