By Ir. Al-Khairi Mohd Daud
The household energy cost in Malaysia is among the cheapest in ASEAN countries at US$0.047-US$0.08 per kWh. In Thailand, it is US$0.100-$0.110 and in Singapore,it is US$0.200-US$0.250 per kWh. In Malaysia, tariff is kept low because of abundant natural gas resources and significant government subsidies. The support, however,is not sustainable.
The government has been proactively working towards sustainable development and reducing its carbon
footprint. In July 2023, the Ministry of Economy launched the National Energy Transition Roadmap (NETR) in which energy efficiency was one of the six energy transition levers that would stimulate investment and create high-value jobs, fostering a just, sustainable and inclusive energy system.
Following the roadmap, the Energy Efficiency & Conservation Act (EECA) 2024 Act 861, was introduced in
July 2024 to promote energy efficiency and conservation across various sectors. This Act supports Malaysia’s commitment to global climate goals by introducing new responsibilities for industries and creating opportunities for engineers involved in energy efficiency and energy transition economy.
Overview of the EECA Enacted to establish a comprehensive framework for energy management, the EECA emphasises the importance of managing energy consumption and optimising energy, especially for large energy users (LEU) in industries such as oil and gas, petrochemicals, buildings, and households. The Act defines energy as electricity ,chilled water, steam and hot water, all of which can come from multiple resources. The Act, however, does not apply to Sabah and Sarawak as these states have developed their own enactment.
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