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Dewan Rakyat passes Energy Efficiency and Conservation Bill 2023, to regulate energy use and conservation

Dewan Rakyat passes Energy Efficiency and Conservation Bill 2023, to regulate energy use and conservation

KUALA LUMPUR: The Dewan Rakyat today passed the Energy Efficiency and Conservation Bill 2023 to regulate the efficient consumption and conservation of energy in the country.

Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad said the bill, among others, would strengthen the legal framework related to energy efficiency and conservation practices to ensure full involvement at various levels.

"The bill closely aligns with the energy transition initiative towards achieving net-zero greenhouse gas (GHG) emissions by energy-related sectors by 2050 and it is also one of the key initiatives under the National Energy Transition Roadmap (NETR).

"Following this, the enforcement of this bill will also support the principles of sustainable development in line with the green economic development agenda under the 12th Malaysia Plan (12MP) and contribute to the achievement of the nation's Net Zero GHG Emissions aspiration by 2050.

"Hence, I believe that this bill will enable the government to make more effective long-term energy development plans in all identified sectors and optimise the investment costs in the construction of electric power generation facilities," he said in Dewan Rakyat, during the tabling of the bill. 

Based on the blue paper circulated in Parliament, the bill also detailed the appointment of the Energy Commission to advise the minister in all matters relating to energy efficiency and conservation.

The commission also has the authority to recommend to the government any policy, laws, action and measures relating to energy efficiency and conservation; and to promote, develop or implement policies and initiatives.

Meanwhile, the bill also emphasises comprehensive oversight under the provisions of Energy User Obligations, specifically targeting large energy consumers in the industrial and commercial sectors. 

Energy users exceeding the threshold value of 21,600 gigajoules (GJ) per year are also required to implement Energy Saving Measures, which include the mandatory appointment of Registered Energy Managers  to develop energy management systems and conduct energy audits, according to the bill.

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