MEWR to introduce Energy Conservation Act in 2013

Companies that consume more than the equivalent of 15 GWh of energy annually will be required to monitor and report their energy use to the National Environment Agency.

Dr Amy Khor, Senior Parliamentary Secretary for the Environment and Water Resources, said, “The Government is now looking at energy management practices for companies. International experience indicates that the implementation of energy management programmes in companies is one of the most cost-effective ways to improve energy efficiency, and companies can expect to reduce their energy consumption by at least 10 to 15%. These energy management practices ought to be the norm for the companies, and some countries like Japan have mandated energy management practices for their companies.”

At the National Sustainability Conference 2010 on 29 July 2010, Dr Amy Khor expressed the Ministry of the Environment and Water Resources’ intention to introduce an Energy Conservation Act by 2013 to set minimum energy management requirements for large industrial energy users. “Such companies that consume more than the equivalent of 15 GWh of energy annually will be required to appoint an energy manager, monitor and report their energy use to the NEA, and develop and submit their energy efficiency improvement plans. NEA is currently consulting with companies on the detailed requirements under the proposed Act,” she explained.

A $10 million scheme, the Energy Efficiency Improvement Assistance Scheme, was previously introduced to provide up to 50% co-funding for the engagement of specialist companies to conduct appraisals and identify specific measures for energy efficiency improvement. The National Environment Agency (NEA), which administers the scheme, has approved 177 applications to date.