Malaysia to invest RM13b by 2040 to improve energy efficiency
30 Aug 2023
Malaysia sees as much as RM6 billion worth of investments from now to 2040 to improve energy efficiency, as it aims to achieve an average of 21% energy savings by 2040 under the National Energy Transition Roadmap (NETR).
This is on top of the RM7 billion targeted to retrofit government buildings to be more energy efficient by the same timeline, according to the NETR Phase Two report.
Investments for both smart devices installation and government building retrofit are targeted at RM2 billion each as at 2030, the report said.
By 2040, the energy savings target is set at 15% for the residential sector, as opposed to 22% for the commercial and industrial (C&I) sector.
“The targets mark a significant leap from the goals previously declared in the National Energy Policy 2022-2040 at 10% for residential and 11% for C&I by 2040,” the report said.
Energy efficiency — using less energy for more productivity — is one of the key components in Malaysia’s energy transition agenda, to provide headroom for the power generation segment to pivot from its current dependence on fossil fuel plants to renewable energy.
The government previously announced plans to table the Energy Efficiency and Conservation Act in the Parliament by the end of this year.
Major retrofit for government buildings to enhance energy efficiency
In the NETR, among the levers identified in relation with energy efficiency are mandatory audits for larger C&I buildings, establishment of green building codes for energy-intensive buildings, and the major energy efficiency retrofit initiative among government buildings.
Prime Minister Datuk Seri Anwar Ibrahim, when launching the NETR, said the “major retrofit programme” for government buildings will see the development of an energy service companies (ESCO) platform to connect small and medium enterprise ESCOs with government projects.
Source: The Edge Malaysia
