Energy efficiency measures help safeguard industrial energy security

 Such measures reduce dependence on unstable or imported energy sources and exposure to external risks.

The energy transition and water transformation ministry said energy efficiency measures can include upgrading to high-efficiency motors, optimising process heating systems and implementing smart energy management systems. (EPA Images pic)

PETALING JAYA:

Energy efficiency cannot be seen merely as a cost-saving measure but as a core business strategy for companies to protect themselves against energy supply shocks, says the energy transition and water transformation ministry (Petra).

The ministry said that amid volatile global energy markets, improving energy efficiency reduces dependence on unstable or imported energy sources, making operations less vulnerable to price fluctuations, geopolitical disruptions and supply chain failures.

“While lowering utility bills is a clear benefit, the strategic value of energy efficiency in strengthening energy security is equally, if not more, important.

“Fuel price hikes or electricity supply interruptions can erode margins or halt production altogether. By improving efficiency, companies can reduce their energy demand, lowering their exposure to such external risks,” it said in a statement yesterday.

Petra said energy efficiency measures can include upgrading to high-efficiency motors, optimising process heating systems and implementing smart energy management systems.

As an example, it said an energy-intensive manufacturing plant that invests in process optimisation and energy recovery systems can “achieve significant load reductions, allowing it to maintain stable operations even during energy supply disruptions or peak pricing events”.

Petra said incorporating energy efficiency as a core business strategy also enables companies to respond more quickly to regulatory changes, carbon pricing or energy rationing policies.

“As global supply chains increasingly prioritise sustainability and carbon transparency, energy-efficient facilities stand out as more competitive, more resilient and more attractive to investors and clients,” it said.

The ministry said companies that reduce their baseline energy consumption also pave the way for more cost-effective and stable integration of renewable energy sources such as solar and biomass.

It also noted that governments across the Asean region are increasingly recognising energy efficiency as part of national energy security.

“Malaysia’s National Energy Efficiency Action Plan (NEEAP) and similar initiatives across the region increasingly frame energy efficiency not just as an environmental goal but as a national energy security priority,” it said.

Petra said that as energy markets become more complex, companies must recognise energy efficiency measures as a “legally mandated lever” to enhance energy security and support national sustainability goals.

It said the Energy Efficiency and Conservation Act (EECA) 2024, enforced from Jan 1 last year, marked a transformative shift in national energy policy.

“The Act targets large energy consumers, specifically those using at least 21,600 gigajoules a year, roughly equivalent to RM2.4 million in electricity or RM1 million in gas bills,” it said.

The ministry said that while the Act covers nearly 4% of industrial users, they account for around 66% of the industrial sector’s energy use.

“For the industrial sector, energy efficiency is more than a tool for trimming operational expenses; it is a strategic enabler of energy security, resilience and long-term competitiveness,” it said. - FMT