Malaysia renews 10-year energy plan, targeting savings of around $21.5 billion

On Tuesday, Malaysia renews a 10-year energy efficiency plan, aiming for savings of around $21.5 billion. The renewed National Energy Efficiency Action Plan (NEEAP) will span until 2035 and seeks to cut energy demand by 11.6%, according to the Energy Transition and Water Transformation Ministry. This would result in cumulative energy savings of 815,382 terajoules compared to business-as-usual projections, equating to a 26.1 million metric tons CO2-equivalent reduction, the statement said.

The initial NEEAP, running between 2016 and 2025, achieved electricity savings of 60,886 gigawatt-hours, or roughly 16.1 billion ringgit ($3.9 billion), surpassing its 52,233 gigawatt-hours target, Economy Minister Akmal Nasir stated during the plan's launch. This amounted to an estimated 35.6 million tonnes CO2-equivalent reduction, he said.

Malaysia has been encouraging businesses and investors to focus on energy sustainability, with power demand projected to soar due to the AI infrastructure boom. The nation is the fastest-growing data-center hub in Southeast Asia, attracting billions in investments from major global tech firms like Amazon and Microsoft. In 2023, Malaysia enacted legislation requiring major energy consumers to implement power-saving measures, as part of its pledge to cut greenhouse gas emissions by 45% across the economy by 2030 and achieve net-zero emissions by 2050.