Abstract Chillers consume more than 40% of the total energy used in the commercial and industrial buildings for space conditioning. In this paper, energy consumption by chillers and chilled water pumps, condenser pumps and fan motors has been estimated using data collected by a walkthrough energy audit for the 16 faculties of the University of Malaya. It has been estimated that chillers and motors and pumps used in chillers consume 10,737 MWh (i.e. 51% of total energy consumption) of electric energy for different percentage of loadings. As chillers are major energy users, variable speed drives are applied in chillers to reduce their energy consumption. It has been estimated that about 8368 MWh annual energy can be saved by using efficient chillers at different loadings. It has also been found that about 23,532 MWh annual energy can be saved for chilled water supply pumps, condenser pumps and cooling tower fan motors by matching required speeds using variable speed drives for 60% of speed reduction. About 1,274,692 kg of CO 2 emission could be avoided for using energy efficient chillers at 50% load. It has been also found that about 2,426,769 kg CO 2 emission can be reduced by using variable speed drives for 60% speed reductions. Payback periods found to be only few months for using variable speed drives in chilled water pumps, condensers and fan motors.