Under the Efficient Management of Electrical Energy Regulations 2008 (Malaysia), a building or installation may be classified as a designated installation if it meets certain energy consumption thresholds.
The figures you mentioned are:
Annual energy consumption: 21,600 GJ (Gigajoules)
Gross floor area: 8,000 m²
These are criteria used to determine whether a building must appoint a Registered Electrical Energy Manager (REEM) and comply with energy management requirements.
1. What does 21,600 GJ mean?
21,600 GJ is the total electrical energy consumed in one year.
To better understand this figure:
1 GJ = 277.78 kWh
Therefore,
21,600 GJ × 277.78 = approximately 6,000,000 kWh/year
or
6 GWh/year
6,000 MWh/year
This is equivalent to:
500,000 kWh/month
16,400 kWh/day
Average electrical demand ≈ 685 kW continuously throughout the year
Typical facilities consuming around 6 GWh/year
Examples include:
Large office complexes
Hospitals
Universities
Shopping malls
Large hotels
Manufacturing plants
Palm oil refineries
Solvent extraction plants
2. What does 8,000 m² mean?
This refers to the gross floor area (GFA) of a building.
An 8,000 m² building could typically be:
8-storey office building with 1,000 m² per floor
Shopping mall
Hospital
University faculty building
Large hotel
The floor area criterion is mainly intended for commercial buildings where energy use is closely related to building services such as:
Air conditioning
Lighting
Lifts and escalators
Chilled water systems
Ventilation
3. Why are these thresholds important?
If a building exceeds either threshold (subject to the applicable regulations in force), the owner is generally required to:
Appoint a Registered Electrical Energy Manager (REEM).
Monitor and analyse electricity consumption.
Implement energy-saving measures.
Maintain energy records.
Submit reports to the relevant authority when required.
Conduct periodic energy assessments or audits as prescribed.
The objective is to reduce:
Electricity wastage
Operating costs
Carbon emissions
Peak electricity demand
4. Example Calculation
Suppose an office building has:
Gross Floor Area = 10,000 m²
Annual electricity consumption = 4,800,000 kWh
Convert to GJ:
4,800,000 × 0.0036 = 17,280 GJ
Result:
Floor area exceeds 8,000 m² ✔
Energy consumption is below 21,600 GJ ✘
Depending on the specific regulatory requirements applicable, the building may still fall within the scope because of its floor area.
5. Industrial Example
A palm oil refinery operates:
Average demand = 1 MW
Operating hours = 24 hours/day
Annual energy:
1 MW × 8,760 hours = 8,760 MWh/year
= 8,760,000 kWh/year
= 31,536 GJ/year
This exceeds 21,600 GJ/year, meaning the facility would generally fall within the designated threshold based on energy consumption.
Summary
| Criterion | Threshold | Equivalent |
|---|---|---|
| Annual energy consumption | 21,600 GJ/year | 6,000,000 kWh/year (6 GWh/year) |
| Gross floor area | 8,000 m² | Large commercial/institutional building |
| Average electrical demand equivalent | ≈685 kW | Continuous average over one year |
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