What is a Registered Energy Manager? Understanding Their Role Under the New Act

 

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What is a Registered Energy Manager? Understanding Their Role Under the New Act

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Key Takeaway: The Energy Efficiency and Conservation Act (EECA) 2024 mandates that specific energy-intensive businesses and large buildings in Malaysia must appoint a Registered Energy Manager (REM). This role is crucial for ensuring compliance, implementing effective energy management, and unlocking significant cost savings and sustainability benefits.

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Problem: Has the buzz around Malaysia's new energy laws left you wondering what's next for your business?

Agitate: The Energy Efficiency and Conservation Act (EECA) 2024 is here, and it brings a mandatory requirement for certain businesses to have a Registered Energy Manager. Ignoring this new rule could lead to hefty fines and missed opportunities for major cost savings.

Solve: Don't be caught off guard! This guide will clarify exactly What is a Registered Energy Manager? Understanding Their Role Under the New Act, breaking down their duties, who needs one, and how they can actually transform your energy consumption into a source of savings.

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Summary

The Energy Efficiency and Conservation Act (EECA) 2024, effective January 1, 2025, makes it compulsory for "Energy Consumers" in Malaysia to appoint a Registered Energy Manager (REM). An "Energy Consumer" is typically an industrial or commercial business consuming 21,600 Gigajoules (GJ) or more annually, or an office building with a gross floor area of 8,000 square meters or more. A REM's primary role is to develop and implement an Energy Management System (EnMS), conduct energy data analysis, identify efficiency opportunities, and submit required reports to the Energy Commission (EC). Appointing a REM is essential for compliance, avoiding penalties, and driving sustainable energy practices within your organization.

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The Big Picture: Malaysia's New Energy Efficiency and Conservation Act (EECA) 2024

Let's start with the big news: Malaysia has a brand new law called the Energy Efficiency and Conservation Act 2024, or EECA 2024 for short. This important law officially came into effect on January 1, 2025. It's a huge step for Malaysia as the country works towards becoming more sustainable, using less energy, and reducing its impact on the environment.

Why is this law so important? Because Malaysia, like many countries, uses a lot of energy, and a significant portion of that energy still comes from sources that create greenhouse gases. By using energy more smartly, Malaysia aims to:

• Reduce Carbon Emissions: Cut down on the gases that contribute to climate change.
• Improve Energy Security: Rely less on imported fuels and make sure Malaysia has enough energy for its own needs.
• Boost Economic Competitiveness: Businesses that use less energy save money, becoming more efficient and competitive.

The EECA 2024 is the government's main tool to make sure that happens, especially for big energy users. And a key part of this law involves a new role: the Registered Energy Manager. This article will help you understand What is a Registered Energy Manager? Understanding Their Role Under the New Act.

 

Who Needs a Registered Energy Manager (REM)? Defining "Energy Consumers"

The EECA 2024 doesn't apply to every single business or household in Malaysia. It's specifically targeted at "Energy Consumers" – meaning businesses and buildings that use a lot of energy. If your business falls into this category, then appointing a Registered Energy Manager (REM) isn't just a good idea; it's a legal requirement.

So, how do you know if your business is an "Energy Consumer" under this new law? Here are the main thresholds:

• For Industrial or Commercial Businesses: Your business is considered an Energy Consumer if it consumes 21,600 Gigajoules (GJ) or more of energy per year.
• To give you a better idea, 21,600 GJ is roughly equal to using about RM2.4 million worth of electricity in a year, or around RM1 million worth of natural gas in a year. This applies to large factories, manufacturing plants, big data centers, and other heavy energy users.
• For Office Buildings: If you own or manage an office building (or a complex of office buildings) that has a gross floor area of 8,000 square meters or more, it is also considered an Energy Consumer under the Act. This means large commercial high-rises or multi-building office parks.

If your business meets these thresholds, the Energy Commission (EC) – the main government body in charge of energy in Malaysia – will likely identify your facility and may notify you directly. Once identified as an Energy Consumer, you have a legal obligation to appoint a Registered Energy Manager. This is why it's crucial to understand What is a Registered Energy Manager? Understanding Their Role Under the New Act.

 

What is a Registered Energy Manager? Understanding Their Role Under the New Act.

A Registered Energy Manager (REM) is a qualified professional who has been officially recognized and registered by the Energy Commission (EC) of Malaysia. Their main job is to help large energy-using organizations effectively manage their energy consumption, reduce waste, and comply with the requirements of the EECA 2024.

Think of a REM as your company's dedicated energy expert. They don't just tell you to save energy; they put systems in place, measure results, and make sure your company is on track to meet its energy goals and legal obligations. This role is central to the success of the EECA 2024.

 

The Essential Duties and Responsibilities of a REM

The EECA 2024 clearly outlines the duties that a Registered Energy Manager must perform. These aren't just suggestions; they are legal responsibilities. For businesses, knowing What is a Registered Energy Manager? Understanding Their Role Under the New Act means understanding these specific tasks:

• 1. Develop and Implement an Energy Management System (EnMS):
• This is a core responsibility. An EnMS is a structured framework for managing energy use within an organization. It's like a quality management system, but focused specifically on energy.
• The REM helps design the system, sets up procedures, and makes sure staff understand and follow them. This includes establishing an energy policy, setting energy objectives and targets, and creating action plans.
• 2. Collect and Analyze Energy Consumption Data:
• A REM must continuously monitor and collect data on all types of energy consumed by the business (electricity, natural gas, diesel, etc.).
• They analyze this data to identify trends, pinpoint areas of high consumption or waste, and understand where energy is being used most effectively (or inefficiently).
• 3. Conduct Energy Performance Monitoring and Measurement:
• The REM is responsible for tracking how well the energy management system is working and whether the business is meeting its energy saving targets.
• They use key performance indicators (KPIs) to measure energy efficiency improvements over time.
• 4. Prepare and Submit Energy Efficiency and Conservation (EE&C) Reports:
• One of the most critical compliance duties is the preparation of annual EE&C reports. These reports detail the company's energy consumption, the energy-saving measures implemented, and the progress made.
• These reports must be submitted to the Energy Commission (EC) regularly, as specified by the Act. The REM ensures the accuracy and completeness of these reports.
• 5. Identify Energy Saving Opportunities and Recommend Measures:
• Based on their analysis and the energy audit findings (which we'll discuss later), the REM proposes specific projects or changes that can reduce energy consumption.
• This includes recommending new technologies, operational changes, or behavioral adjustments that can lead to energy savings.
• 6. Monitor Implementation of Energy Saving Measures:
• It's not enough to just recommend. The REM also tracks the implementation of these energy-saving measures and verifies that they are actually achieving the intended savings.
• 7. Provide Training and Awareness:
• An effective energy management system requires the involvement of employees. The REM helps educate staff on energy efficiency practices and raises awareness about the company's energy goals.
• 8. Ensure Compliance with the Act:
• Ultimately, the REM acts as the primary point of contact and ensures that the Energy Consumer fully complies with all relevant provisions of the EECA 2024 and any related regulations or guidelines from the EC.
• 9. Other Duties as Prescribed by the EC:
• The Energy Commission may, from time to time, issue additional duties or guidelines for Registered Energy Managers, and the REM must adhere to these.

These duties show that a REM is an active participant in your business's energy strategy, not just a certificate holder.

 

REM Type 1 vs. REM Type 2: What's the Difference?

The EECA 2024 actually specifies two types of Registered Energy Managers, based on the complexity and scale of the energy consumption they manage:

• REM Type 1:
• Focus: This type of REM is qualified to manage energy for "Energy Consumers" with lower (but still significant) energy consumption, typically facilities that primarily use electrical energy.
• Threshold: If your business consumes between 21,600 GJ and 50,000 GJ per year, you will likely need to appoint a REM Type 1.
• Expertise: Their expertise is strong in electrical energy systems, basic energy management principles, and identifying efficiency opportunities in common commercial and industrial electrical applications.
• REM Type 2:
• Focus: This type of REM is qualified for "Energy Consumers" with very high and often more complex energy consumption, including those that extensively use thermal energy (like steam, hot water, or heat processes).
• Threshold: If your business consumes 50,000 GJ or more per year, you will need to appoint a REM Type 2.
• Expertise: REM Type 2 managers have a broader and deeper understanding, including expertise in thermal energy systems, boilers, industrial processes, and more advanced energy management strategies, in addition to electrical energy.

This differentiation ensures that the complexity of your business's energy profile is matched with the appropriate level of expertise from your Registered Energy Manager.

 

Becoming a Registered Energy Manager: Qualifications and Training

So, how does someone become a Registered Energy Manager in Malaysia? It's not something you can just decide to be overnight. The Energy Commission (EC) has strict requirements to ensure that REMs are qualified and competent. This pathway typically involves:

• Academic Qualification: A relevant engineering degree (e.g., electrical, mechanical, chemical) or a related technical qualification is usually a prerequisite.
• Work Experience: Candidates need several years of practical experience in energy management, engineering, or a related field. The specific number of years often depends on their academic qualifications.
• Training Course: Candidates must attend a specialized training course on energy management approved by the Energy Commission. These courses cover the principles of energy efficiency, energy auditing, energy management systems (like ISO 50001), relevant laws (like EECA 2024), and practical aspects of energy conservation.
• Examination: After completing the training, candidates must pass a challenging examination administered or approved by the EC. This exam tests their knowledge and understanding of energy management principles and practices.
• Registration with Energy Commission: Upon successfully meeting all the above requirements, individuals can apply to the Energy Commission to be officially registered as a REM. This registration needs to be renewed periodically.

Businesses can choose to either train an existing employee to become a REM (if they meet the qualifications) or hire an external REM. The key is that the individual must be officially registered with the EC.

 

Beyond Compliance: The Real Value a REM Brings to Your Business

While appointing a REM is a legal requirement under the EECA 2024, their value extends far beyond just ticking a compliance box. A good Registered Energy Manager can bring significant, tangible benefits to your business:

• 1. Significant Cost Savings: This is often the most direct and appealing benefit. By identifying inefficiencies and implementing energy-saving measures, a REM can help your business drastically cut down on its electricity and fuel bills. These savings directly improve your bottom line.
• 2. Improved Operational Efficiency: Energy waste often points to inefficient operations. By optimizing energy use, a REM can help streamline processes, extend the lifespan of equipment, and improve overall operational effectiveness.
• 3. Enhanced Sustainability and ESG Credentials: In today's world, investors, customers, and employees increasingly care about a company's environmental impact. A REM helps your business achieve its sustainability goals, reduce its carbon footprint, and boost its Environmental, Social, and Governance (ESG) rating, which can attract green investment and improve brand image.
• 4. Proactive Risk Management: A REM helps identify and mitigate risks related to energy supply disruptions, volatile energy prices, and non-compliance with regulations. They can help your business be better prepared for future energy challenges.
• 5. Access to Incentives and Grants: REMs are often knowledgeable about government incentives, grants (like the Energy Audit Conditional Grant - EACG 2.0), and financing schemes for energy efficiency projects. They can help your business tap into these funds.
• 6. Data-Driven Decision Making: A REM brings a systematic, data-driven approach to energy management. This means decisions are based on facts and figures, leading to more effective and measurable improvements.
• 7. Long-Term Energy Strategy: Beyond immediate savings, a REM helps develop a long-term energy strategy for your business, ensuring sustained efficiency improvements and adaptability to future energy landscapes and policies.
• 8. Competitive Advantage: Businesses that manage their energy effectively can gain a competitive edge through lower operating costs, a stronger brand reputation, and readiness for carbon-related regulations (like the upcoming carbon tax).

Understanding What is a Registered Energy Manager? Understanding Their Role Under the New Act goes hand-in-hand with realizing the strategic advantage they provide.

 

Penalties for Non-Compliance: Why You Can't Ignore a REM

The EECA 2024 is serious about ensuring compliance, and the penalties for not following the rules, especially regarding the appointment of a REM, can be substantial. This highlights why it's not just a recommendation but a legal obligation.

Here are some of the potential penalties for an Energy Consumer that fails to comply with the Act:

• Failure to Appoint a Registered Energy Manager: If your business is identified as an Energy Consumer and you fail to appoint a REM as required by the Act, you could face significant fines. The Act specifies penalties for various offenses, which can include fines ranging from tens of thousands of ringgit (e.g., up to RM50,000 or more) and, in some cases, even imprisonment for individuals responsible.
• REM Not Fulfilling Duties: It's not enough to just appoint a REM on paper. The appointed REM must actually carry out their prescribed duties as outlined in the Act. If the REM fails to perform their functions, both the REM and the Energy Consumer could face penalties.
• Failure to Submit Reports: If the required annual Energy Efficiency and Conservation (EE&C) reports are not submitted to the Energy Commission, or if they contain false information, this can also lead to hefty fines.
• Non-Compliance with Energy Management System: Failing to establish, implement, or maintain an Energy Management System (EnMS) as required by the Act is another area of non-compliance that carries penalties.

These penalties are designed to ensure that businesses take their energy efficiency responsibilities seriously. The financial repercussions alone can far outweigh the cost of appointing a REM or investing in energy efficiency measures.

 

REM, REA, and ESCOs: How They Work Together

It's easy to get confused by all the acronyms in the energy efficiency world. While What is a Registered Energy Manager? Understanding Their Role Under the New Act is our focus, it's helpful to know how REMs fit into the broader ecosystem with other key players:

• Registered Energy Manager (REM): (Our focus) An internal or external professional who manages ongoing energy use, implements the EnMS, and reports to the EC. They focus on continuous improvement.
• Registered Energy Auditor (REA): An independent professional who conducts in-depth energy audits. These audits are one-time (or periodic) deep dives to identify all potential energy-saving opportunities. The REM might use the REA's report to guide their EnMS implementation plan. Some REMs may also be qualified REAs.
• Energy Service Company (ESCO): A company that provides a full range of energy solutions, which might include conducting energy audits (with REAs), designing and implementing energy efficiency projects, and sometimes even offering performance-based contracts where they guarantee savings. An ESCO might provide a REM as a service or work with your appointed REM.

Think of it this way: The REA diagnoses the problem (identifies where energy is wasted). The REM is like the doctor who prescribes the long-term treatment plan (implements the EnMS and oversees ongoing management). An ESCO is like a specialist contractor who performs the surgery or provides the equipment to fix the problems found.

 

Getting Ready: Next Steps for Your Business

Now that you have a clearer understanding of What is a Registered Energy Manager? Understanding Their Role Under the New Act, here's what your business should do to prepare:

1. Assess Your Energy Consumption: Gather your electricity and fuel bills for the past year to determine if your business meets the 21,600 GJ/year threshold or the 8,000 sqm GFA for buildings.
2. Understand Your Obligations: If you meet the thresholds, recognize that appointing a REM and implementing an EnMS is a legal requirement.
3. Explore Options for Appointing a REM:
• Internal REM: Do you have an existing employee with the right qualifications and experience who could be trained to become a Registered Energy Manager? This might be cost-effective in the long run.
• External REM: Consider engaging an energy consulting firm or an ESCO that offers REM services. They can provide an external REM who is already qualified and experienced.
4. Budget for Compliance: Factor in the costs associated with appointing a REM (salary or service fees), training, and implementing energy efficiency projects. Remember, these are often investments that pay for themselves through energy savings.
5. Stay Informed: Keep an eye on official announcements from the Energy Commission (EC) and SEDA Malaysia for further guidelines, training schedules, and updates related to EECA 2024.

By taking these steps, your business can ensure compliance, avoid penalties, and most importantly, position itself for a more energy-efficient, sustainable, and profitable future.

In summary, the Energy Efficiency and Conservation Act (EECA) 2024 makes the appointment of a Registered Energy Manager (REM) a mandatory requirement for significant energy consumers in Malaysia. Understanding What is a Registered Energy Manager? Understanding Their Role Under the New Act is crucial, as they are key professionals responsible for implementing an Energy Management System, analyzing consumption data, identifying savings, and ensuring ongoing compliance with the law. Beyond fulfilling legal obligations, a REM brings tangible value through cost reduction, enhanced sustainability, and improved operational efficiency, making them a strategic asset for any forward-thinking business in the evolving energy landscape.

Is your business ready to comply with the EECA 2024 and harness the power of energy efficiency? Don't risk penalties or miss out on potential savings. For expert advice on assessing your needs, understanding REM requirements, or finding a qualified Registered Energy Manager, WhatsApp or call us today at 0133006284. Let's make your business a leader in energy management!