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Malaysia Achieves Electricity Savings Worth RM2.2 Billion



Malaysia has achieved significant success in energy efficiency, which has been described as the first fuel of the energy transition, said Deputy Prime Minister Datuk Seri Fadillah Yusof.


Fadillah, who is also the energy transition and water transformation (PETRA) minister, highlighted that as of June this year, the country achieved 5.82% in electricity savings, equivalent to 8,769 gigawatt hours (GWh) and valued at RM2.21 billion.


“This is great progress, as we target to reduce electricity demand growth by 8%, resulting in a total reduction of 38 million tonnes of CO2 equivalent in greenhouse gas emissions and expected savings of approximately 52,000GWh of electricity by 2025,” he said in his opening remarks at Enlit Asia 2024.


His speech was delivered by PETRA Deputy Minister Akmal Nasrullah Mohd Nasir. 


Fadillah said vital to this achievement were programmes and initiatives such as the Minimum Energy Performance Standards, energy audit in commercial and industrial sectors, and the Building Energy Index labelling programme, which resulted in substantial energy savings and reduced carbon emissions.


He said Malaysia would expand its renewable energy (RE) capacity and recently had allowed the export of RE and cross-border energy trade in pursuit of the 70% target in installed capacity.


Earlier this year, the government agreed to establish the Energy Exchange Malaysia (ENEGEM) for cross-border green electricity sales to neighbouring countries.


“PETRA believes that the ENEGEM platform will allow Malaysia to further strengthen its cross-border electricity integration framework while paving the way for greater RE development and regional cooperation on cross-border energy trading between ASEAN countries,” Fadillah said.


He noted that Malaysia’s RE development would increase further, fostering investment throughout the RE chain and diversifying the country’s RE programmes through a “willing buyer-willing seller” principle.


The Corporate Renewable Energy Supply Scheme (CRESS) has been introduced to boost corporate access to green electricity supply.


Under the CRESS programme, eligible RE generators and corporate companies can arrange for green electricity supply with the agreed terms through the existing supply system.


Fadillah highlighted that these achievements reflected the government’s dedication to driving the energy transition, not only within Malaysia but throughout the ASEAN region.


“We must acknowledge that no single entity or country can achieve this monumental task alone. Strong partnerships and collaborations across borders, industries, and sectors are essential,” he added.


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