Azernews.Az

Malaysia has extended its National Energy Efficiency Action Plan (NEEAP) through 2035, with a target of cutting energy demand by 11.6% and saving an estimated $21.5 billion, AzerNEWS reports.

The extension was announced by Malaysia’s Ministry of Energy Transition and Water Transformation.

Under the updated plan, cumulative energy savings are expected to reach approximately 815,382 terajoules compared with projected consumption if current trends continue. The measures could also prevent around 26.1 million tonnes of CO₂-equivalent emissions.

Malaysia’s previous energy-efficiency programme, which covered 2016–2025, saved around 60,886 gigawatt-hours of electricity, equivalent to approximately 16.1 billion ringgit ($3.9 billion), according to Economy Minister Akmal Nasir.

The results exceeded the original target of 52,233 gigawatt-hours and helped reduce emissions by an estimated 35.6 million tonnes of CO₂ equivalent.

However, Malaysia faces an interesting energy dilemma. At the same time as it is pushing for greater efficiency, the country is rapidly expanding its data-center industry. Demand for electricity is expected to rise further as cloud computing, artificial intelligence and other digital technologies expand.

In 2023, Malaysia introduced legislation requiring major energy consumers to implement energy-saving measures, reflecting the government’s efforts to manage growing demand.

The country has also set a target of cutting greenhouse gas emissions by 45% by 2030 and achieving carbon neutrality by 2050.

The challenge for Malaysia will be balancing two rapidly growing priorities: becoming a regional hub for AI and data centers while keeping electricity demand, emissions and energy costs under control. This could make energy efficiency one of the key factors shaping the country’s economic strategy over the next decade.