KUCHING: Industrial players and commercial consumers should prioritise energy efficiency before investing heavily in renewable energy, as cutting energy waste offers the fastest and most cost-effective pathway to decarbonisation, according to energy systems, electrification and sustainability expert IR Dr Gobbi Ramasamy.
He stressed that the cleanest and cheapest form of energy is the energy that is never consumed, saying companies can achieve immediate reductions in both operating costs and carbon emissions simply by eliminating energy waste before deploying capital-intensive renewable energy systems.
Speaking during a webinar titled Industrial Decarbonisation Through Energy Efficiency & Renewable Energy on Friday (July 24), Gobbi said the strategy is particularly crucial in Malaysia, where around 80 per cent of electricity generation still comes from natural gas and coal.
“Every unit of electricity consumed carries a carbon footprint because the grid remains largely fossil fuel-based. On average, one unit of electricity generates about 0.22 kilogrammes of carbon dioxide (CO₂).
“By eliminating waste at the consumption level, companies immediately reduce their dependence on grid electricity while cutting emissions at the same time,” he said.
Gobbi explained that improving energy efficiency does not necessarily require major infrastructure investments, as relatively simple technological upgrades can deliver substantial savings.
He cited the example of replacing conventional mechanical throttling valves with Variable Speed Drives (VSDs) on industrial pumps.
A mechanically throttled 30-kilowatt pump operating at a 50 per cent flow rate continues consuming significant amounts of electricity despite reduced output. By contrast, electronically regulating the pump’s speed using VSD technology can reduce power demand dramatically, lowering daily carbon dioxide emissions by as much as 62 per cent while maintaining the same operational performance.
He said the same principle applies beyond industrial operations, noting that households and commercial premises can also reduce their carbon footprint by ensuring equipment operates only at the capacity required.
Gobbi also highlighted the role of the Energy Efficiency and Conservation Act (EECA) in accelerating Malaysia’s decarbonisation agenda through mandatory energy management practices for high-energy consumers.
Under the Act, industrial and commercial facilities consuming at least 21,600 gigajoules of energy over 12 consecutive months, as well as buildings with a gross floor area exceeding 8,000 square metres, will be required to implement structured energy management systems.
Affected organisations must appoint a Registered Energy Manager (REM), conduct mandatory energy audits and establish formal Energy Management Systems (EnMS) to improve energy performance.
“The EECA is an important catalyst for industries to systematically reduce energy waste, creating a practical and sustainable pathway towards decarbonisation,” he said.
Gobbi noted that Malaysia’s national energy efficiency initiatives are expected to generate cumulative savings exceeding 1,400 million gigajoules, translating into an estimated RM71.24 billion in cost savings while supporting the country’s target of achieving carbon neutrality by 2050.
