National Energy Efficiency Action Plan Yields RM10.5 Billion Savings

The Energy Transition and Water Transformation Ministry (Petra) has reported significant progress under the National Energy Efficiency Action Plan (NEEAP), with cumulative energy savings reaching 39,382 GWh, valued at RM10.5 billion.

As of December 2023, the annual energy saving rate stood at 5.9%, equivalent to 8,667 GWh and worth over RM2.1 billion. Petra noted that data centre operators consuming electricity of three million kWh or more over six months are subject to the Efficient Management of Electrical Energy Regulations (Emeer) 2008.

Currently, 22 data centres are regulated under Emeer, with 20 located in Selangor and Kuala Lumpur, one in Penang, and one in Johor Bahru.

The Malaysian Communications and Multimedia Commission is developing a technical code for green data centre specifications to enhance energy efficiency and reduce carbon emissions.

Petra is also working on the Energy Efficiency and Conservation Bill, which aims to bolster the legal framework for energy efficiency. The bill is expected to help achieve national energy savings of 2,017 million GJ, worth RM97.1 billion, and reduce carbon emissions by 197,877 Mg of CO2 by 2050.

In response to increased data centre operations, the Planning and Implementation Committee for Electricity Supply and Tariff (JPPPET) has approved the Peninsular Malaysia Electricity Supply Development Plan 2024-2050. This plan includes extending the operating periods of several power plants and adding new generation capacity—700 MW by 2030 and 2.8 GW between 2031 and 2034—to ensure electricity supply security.

Regarding water reserves, the National Water Services Commission recommends a reserve margin of 10 to 15%. In 2023, the reserve margin for treated water in Peninsular Malaysia and Labuan was 14.7%, indicating stability in water supply to support increased data centre investments.

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