Brunei must improve power efficiency and curb high consumption: PMO Smart meters, stricter efficiency standards introduced to reduce energy waste

BANDAR SERI BEGAWAN – Brunei is working to boost its power generation efficiency from the current rate of 28% to 50% by 2035, the Minister at the Prime Minister’s Office told the Legislative Council on Tuesday.

At present, nearly 70% of power generation depends on aging, less efficient plants, according to Pehin Dato Hj Halbi Hj Mohd Yussof.

To address this, new power plants set to come online in 2027 and 2028, will incorporate Combined Cycle Gas Turbine technology, which is expected to raise overall efficiency beyond 35%.

Brunei’s climate change policy includes a recommendation to phase out inefficient single-cycle power plants and enforce a minimum efficiency rate of 48% for all new facilities. It also calls for renewable energy to make up 30% of the power generation mix by 2035, primarily through solar photovoltaic technology.

The country ranks among the highest electricity consumers in the region. In 2021, Brunei’s per capita electricity consumption reached 8,000 kWh, significantly higher than Malaysia’s 5,000 kWh per capita, according to the ASEAN Energy Statistics 2023.

Pehin Dato Hj Halbi stressed the importance of improving both power generation efficiency and household and commercial consumption patterns.

He pointed to two key initiatives aimed at promoting more energy-conscious behavior among consumers: the nationwide implementation of the Unified Smart Metering System (USMS), which allows households to monitor their real-time energy usage.

And the Energy Efficiency Standard and Labelling Order, which has prohibited the import and sale of energy-inefficient electrical appliances since January 2023.

Despite these efforts, the minister noted that Brunei’s generous electricity subsidies — particularly a regressive tariff system for the commercial sector, where higher consumption results in lower rates — fail to incentivise energy-saving habits.

Over the past five years, the government has allocated more than $500 million annually for electricity, fuel, and rice subsidies. Meanwhile, unpaid electricity bills in the residential and commercial sectors reached $119 million in 2024.

To address this, authorities are switching post-paid meters to smart USMS meters and introducing installment payment options through salary, pension, and credit deductions.