The Business Benefits of Having a Registered Energy Manager on Your Team

 https://www.techikara.com/

The Business Benefits of Having a Registered Energy Manager on Your Team

Reading Time: Approximately 7-8 minutes

Key Takeaway: With energy costs constantly rising and new laws like Malaysia's Energy Efficiency and Conservation Act (EECA) 2024 now in force, effective energy management is no longer optional – it's crucial for your business's survival and growth. But navigating these complexities requires specialized expertise. Discover The Business Benefits of Having a Registered Energy Manager on Your Team, and learn how this professional can transform your energy consumption from a burden into a powerful competitive advantage.

---

Problem: Your business is facing increasing energy bills, and you're worried about complying with new energy efficiency laws, but you don't have a clear strategy or the in-house expertise to tackle these challenges effectively.

Agitate: Without professional guidance, you risk escalating operating costs, potential fines for non-compliance, and missing out on significant opportunities for savings and government incentives. This unmanaged energy drain directly impacts your profitability and long-term sustainability.

Solve: The solution is clear: bringing in a Registered Energy Manager (REM). This guide outlines The Business Benefits of Having a Registered Energy Manager on Your Team, showing you how this specialized professional can systematically reduce your energy consumption, ensure legal compliance, unlock financial incentives, and boost your company's overall efficiency and reputation.

---

Summary

A Registered Energy Manager (REM) is a certified professional recognized by Malaysia's Energy Commission (EC) for their expertise in energy management. Under the Energy Efficiency and Conservation Act (EECA) 2024, certain large energy consumers (using >21,600 MWh/year) are now mandated to appoint an REM. The Business Benefits of Having a Registered Energy Manager on Your Team include: significant cost savings through identifying and implementing energy efficiency measures, ensuring compliance with EECA 2024 (avoiding fines up to RM50,000), accessing government grants (like EACG 2.0) and tax incentives (GITA), improving operational efficiency, boosting sustainability and brand reputation, and fostering a culture of energy awareness within the company. An REM is crucial for developing and overseeing an effective Energy Management System (EnMS).

---

1. Why Energy Management is Now a Big Deal for Businesses in Malaysia

For a long time, energy costs were just another bill businesses paid. But things have changed a lot. Energy prices are going up, and there's a growing focus on being "green" and environmentally friendly. Most importantly for businesses in Malaysia, there's a new law that makes energy management a must-do for many.

This new law is called the Energy Efficiency and Conservation Act (EECA) 2024. It officially started on January 1, 2025. The EECA 2024 is a big step for Malaysia to manage how we use energy, save resources, and reach our goal of becoming a "carbon neutral" nation by 2050.

Who does EECA 2024 affect?

The law specifically targets "Energy Consumers" who use a lot of energy. This mainly includes large factories and big commercial buildings.

• For Industrial Users (like Factories): If your factory uses more than 21,600 MWh (megawatt-hours) of energy per year, you are considered a "large energy consumer" under this Act. To give you an idea, 21,600 MWh/year is roughly equivalent to an annual electricity bill of RM2.4 million or a natural gas bill of RM1 million.
• For Commercial Buildings (like large Office Buildings): If your building is an office building with a Gross Floor Area (GFA) of 8,000 square meters (m2) or more, it will also be subject to parts of this Act (specifically, needing a Building Energy Intensity label, and potentially a mandatory energy audit if performance is poor).

What does the EECA 2024 require of these large energy consumers?

One of the most important requirements under the EECA 2024 is that these companies must appoint a Registered Energy Manager (REM). They also need to set up and follow an Energy Management System (EnMS).

So, it's no longer just about paying your energy bills. Now, it's about actively managing your energy use, finding ways to save, and having a qualified expert lead the way. This brings us to The Business Benefits of Having a Registered Energy Manager on Your Team.

 

2. Who is a Registered Energy Manager (REM)?

A Registered Energy Manager (REM) is a special professional who has been officially certified and registered by the Energy Commission (EC) in Malaysia. Think of them as the "energy doctor" for your business. They have the training, knowledge, and experience to understand how your company uses energy, find where it's being wasted, and then put plans into action to save energy and money.

What does it take to become an REM?

To become a Registered Energy Manager in Malaysia, a person usually needs:

• To be a Malaysian citizen.
• A relevant qualification, often a degree or diploma in science, engineering, technology, or architecture from a recognized university.
• Significant working experience (often 2-10 years, depending on their academic qualifications) in managing energy efficiently in buildings or industrial facilities.
• To successfully complete specific training courses and assessments approved by the Energy Commission.
• To demonstrate a strong understanding of the EECA 2024 and other energy regulations.

What does an REM actually do for your business?

An REM isn't just someone who sits in an office. They are hands-on and play a critical role in how your business uses energy. Their main duties, as outlined by the Energy Commission and the EECA 2024, include:

• Auditing and Analyzing Energy Use: They regularly check how much electrical and thermal energy your company consumes. They'll dig into your energy bills, look at how each machine or part of your building uses power, and find patterns of energy consumption.
• Developing Energy Management Systems (EnMS): They help your company set up a system (the EnMS) to plan, do, check, and improve how you manage energy. This includes setting energy goals, making action plans, and getting buy-in from top management.
• Advising on Energy-Saving Measures: Based on their audits and analysis, they'll suggest specific ways to save energy. These could be simple "no-cost" changes (like turning off lights) or bigger investments (like upgrading old machines or installing solar panels). They will use detailed energy audit reports (often done by a Registered Energy Auditor, or REA, with whom they will work closely) to help propose these actions.
• Monitoring and Verifying Savings: They don't just suggest changes; they monitor the results to make sure the energy-saving measures are actually working and saving the money they were supposed to. They make sure the data is accurate.
• Keeping Records and Reporting: They supervise the keeping of all energy-related records and make sure that all the required information and reports are submitted to the Energy Commission on time. This is super important for legal compliance.
• Promoting Energy Awareness: They help create a culture of energy efficiency within your company, training staff and encouraging everyone to think about how they can save energy.

So, having a Registered Energy Manager on Your Team means you have an expert whose full-time job (or a significant part of it) is to look after your energy use and find ways to make it better.

 

3. The Business Benefits of Having a Registered Energy Manager on Your Team

Now that we know who an REM is and what they do, let's talk about the specific advantages for your business. The Business Benefits of Having a Registered Energy Manager on Your Team are many and can significantly impact your company's bottom line and reputation.

• 1. Significant Cost Savings on Energy Bills:
• This is often the biggest and most direct benefit. An REM's primary goal is to reduce your energy consumption. They are experts at finding "hidden" energy waste (like leaky compressed air, inefficient motors, or uninsulated pipes) that you might not even know about.
• By systematically identifying these issues and recommending solutions, an REM can help your business save 10%, 20%, or even more on your monthly electricity and fuel bills. Over a year, this can add up to huge savings that go straight back into your company's profits.
• They help you choose the most cost-effective upgrades, ensuring that any money you spend on energy efficiency projects gives you a good return on investment.
• 2. Ensuring Compliance with EECA 2024 and Avoiding Fines:
• As mentioned, if your business is a large energy consumer under the EECA 2024, appointing an REM is mandatory. An REM ensures your company follows all the rules, submits the right reports on time, and develops the required Energy Management System (EnMS).
• Avoiding Fines: If you don't comply with the EECA 2024, your company could face penalties. For example, failing to appoint an REM or submit required reports can lead to fines of up to RM50,000. An REM helps you avoid these costly penalties, giving you peace of mind.
• They stay updated on the latest regulations, so you don't have to worry about missing any changes.
• 3. Accessing Government Grants and Tax Incentives:
• The Malaysian government provides various incentives to encourage businesses to become more energy efficient. An REM is often well-versed in these programs and can help your company apply for them.
• Energy Audit Conditional Grant (EACG 2.0): SEDA Malaysia offers grants (up to RM100,000 for industrial sites, RM60,000 for commercial buildings) to help cover the cost of energy audits. An REM can help you apply for this grant and work with a Registered Energy Auditor (REA) to conduct the audit.
• Green Investment Tax Allowance (GITA): This incentive provides tax allowances for companies that invest in green technology assets (like energy-efficient machinery, solar panels, or waste heat recovery systems). An REM can identify eligible projects and help with the application process to maximize your tax savings.
• Having an REM means you have someone actively looking for ways to get financial support for your energy-saving projects, making them even more affordable.
• 4. Improved Operational Efficiency and Equipment Lifespan:
• Energy waste often goes hand-in-hand with inefficient operations. For example, motors that are too old or not properly maintained use more energy and are also more likely to break down.
• An REM's work in optimizing energy use can lead to better performance from your equipment. When machines run more efficiently, they typically experience less wear and tear, extending their lifespan and reducing maintenance costs and downtime.
• They can also help identify and fix operational issues that cause energy waste, like systems running unnecessarily or at sub-optimal settings.
• 5. Enhanced Sustainability and Corporate Reputation:
• In today's world, being a "green" or sustainable company is not just a trend; it's a strong business advantage. Consumers, investors, and even employees increasingly prefer to associate with environmentally responsible businesses.
• An REM helps your company reduce its carbon footprint by lowering energy consumption, which directly contributes to fighting climate change.
• This commitment to sustainability can significantly enhance your brand image, attract new customers who value eco-friendly practices, and help you recruit and retain top talent who are looking for purpose-driven companies. It shows you're a forward-thinking business.
• 6. Data-Driven Decision Making and Continuous Improvement:
• An REM establishes an Energy Management System (EnMS), which is all about collecting and analyzing data on your energy use. This means you get clear, accurate information on where your energy is going.
• Instead of guessing, you make decisions based on real numbers. This allows for continuous improvement, where the REM constantly monitors energy performance, identifies new opportunities, and adjusts strategies to ensure ongoing savings.
• They help you set realistic energy targets and track your progress against them, keeping your company accountable.
• 7. Internal Expertise and Training:
• Having an REM on your team means you have in-house expertise. They can train your staff, raise energy awareness across the company, and empower employees to contribute to energy-saving efforts.
• This builds a culture of responsibility for energy use, ensuring that energy efficiency becomes a part of everyone's job, not just a one-time project.

The role of a Registered Energy Manager is multi-faceted and crucial for any large energy-consuming business in Malaysia. They are not just an expense; they are an investment that pays for itself many times over through savings, compliance, and improved business operations.

 

4. How to Get a Registered Energy Manager on Your Team

If your company falls under the EECA 2024 requirements or if you simply want to enjoy the many business benefits, here's how you can get a Registered Energy Manager on Your Team:

• Hire an In-House REM:
• This means employing a full-time staff member who has the qualifications and is registered (or will become registered) with the Energy Commission as an REM.
• Pros: They are fully dedicated to your company, have a deep understanding of your operations, and can build strong relationships with your internal teams.
• Cons: This is a significant salary commitment, and finding someone with the right blend of technical skills and energy management expertise can be challenging.
• Engage an External REM/Energy Service Company (ESCO):
• Many companies, especially those who don't want to commit to a full-time hire, choose to contract an external Registered Energy Manager or an Energy Service Company (ESCO) that employs REMs.
• Pros: You get immediate access to certified expertise without the overhead of a full-time employee. ESCOs often have a team of experts (including Registered Energy Auditors, REAs) who can provide a broader range of services. This can be more cost-effective for some businesses.
• Cons: They might not be on-site every day, so communication and collaboration need to be well-managed.

Steps to take:

1. Assess Your Energy Consumption: First, figure out if your annual energy consumption meets the EECA 2024 threshold (above 21,600 MWh/year). Check your electricity and fuel bills for the last 12-24 months.
2. Understand the EECA 2024 Requirements: Read up on the specific duties and timelines set by the Energy Commission for large energy consumers. This will help you know exactly what your REM will need to do.
3. Search for Qualified Professionals:
• You can check the Energy Commission's website for a list of Registered Energy Managers.
• Look for reputable Energy Service Companies (ESCOs) that offer REM services.
4. Interview and Evaluate: When choosing an REM (whether internal or external), look for:
• Their official registration number with the EC.
• Relevant experience in your industry (e.g., if you're a factory, someone with factory experience is better).
• A clear understanding of the EECA 2024 and energy management best practices.
• Good communication and analytical skills.
5. Develop a Clear Scope of Work: Whether hiring internally or externally, clearly define what the REM will be responsible for. This includes setting targets, reporting structures, and the specific areas they will focus on.
6. Integrate Them into Your Team: Ensure the REM has the necessary support and access to data, personnel, and decision-makers within your organization. Energy management is a team effort.

By taking these steps, you can successfully bring The Business Benefits of Having a Registered Energy Manager on Your Team to life in your company, making energy efficiency a core part of your business strategy.

In summary, with the strict requirements of Malaysia's EECA 2024 now in force, appointing a Registered Energy Manager (REM) is no longer an option but a crucial strategic move for large energy consumers. The Business Benefits of Having a Registered Energy Manager on Your Team are extensive, ranging from achieving substantial cost reductions through expert energy consumption analysis and implementation of efficiency measures, to ensuring full compliance with national regulations and avoiding costly fines up to RM50,000. Beyond legal necessities, an REM also unlocks access to valuable government incentives like the EACG 2.0 and GITA, enhances operational efficiency, improves equipment lifespan, and significantly boosts your company's sustainability credentials and market reputation. Their expertise fosters a culture of energy awareness and provides data-driven insights for continuous improvement.

Ready to transform your energy consumption into a powerful competitive advantage and ensure compliance with EECA 2024? Don't let energy waste drain your profits or put you at risk of penalties. Our team can help you understand the requirements and connect you with qualified Registered Energy Managers to develop a robust energy management strategy tailored for your business. WhatsApp or call us today at 0133006284 to discuss how a Registered Energy Manager can bring immense value to your organization.