In 2021, Saudi Arabia announced its intent to achieve carbon neutrality with the goal of reaching net-zero Global Greenhouse Gas (GHG) emissions, by 2060. In addition to efforts to transition to lower carbon sources of energy (natural gas, renewables, clean energy) and reduce carbon emissions (carbon capture), Saudi Arabia is working to increase its energy efficiency.
According to a King Abdullah Petroleum Studies and Research Center (KAPSARC) report,
“Buildings are among the largest contributors to worldwide energy consumption and greenhouse gas emissions. The built environment accounts for approximately 47% of global CO2 emissions and nearly half of Middle Eastern CO2 emissions. This finding is due mainly to the need for energy to heat, cool, and power buildings, as well as the materials used in their construction. Understanding energy demand dynamics and improving energy efficiency in buildings has, therefore, become an increasingly important priority for policymakers worldwide in an effort to mitigate climate change (Belaïd et al. 2022). Investing in building energy efficiency offers many benefits for both individuals and society.”
The Saudi Energy Efficiency Center (SEEC) was established in 2010 to increase efficiency and management of energy production and consumption in the industrial sector, which consumes about 48% of Saudi Arabia’s primary energy.
In 2021 it launched its Energy Management Program to increase capacity building and public awareness of energy efficiency. Energy efficiency teams have been set up in 280 government entities to focus on awareness, technical training, and tools to help reduce consumption.
The SEEC also recently conducted its Saudi ESCO 2024 forum that convened key service providers, experts, and beneficiaries in order to feature cutting edge industry methods, energy-saving initiatives, tactics, and energy efficiency success stories.
At the Saudi ESCO Forum 2024 Johnson Controls Arabia (JCA) was recognized as one of the first “Class A” Energy Services Company (ESCO) in Saudi Arabia. JCA received a prestigious SEEC award for efforts in promoting sustainable and energy-efficient buildings across various sectors, including hospitality, healthcare, and higher education. JCA has excelled at reducing buildings’ carbon-footprint while significantly lowering energy consumption and costs.
Johnson Controls Arabia also works closely with another key player in Saudi Arabia’s energy efficiency efforts.
The National Energy Services Company of Saudi Arabia (Tarshid) was established in 2017 as a joint venture between the Ministry of Energy and the Public Investment Fund (PIF).
Tarshid has the mandate to develop, fund and manage impactful energy efficiency projects in government and commercial sectors and plans to launch 50 solar photovoltaic projects across Saudi Arabia this year, following 10 projects last year.
Tarshid also aims to start around 84 building retrofit projects this year, targeting energy savings of about 2.1 terawatt-hours nationwide.
Amazingly, in Saudi Arabia HVAC consumes more than 75% of the overall utility bill consumption. Working with leading technology and manufacturing firms in this sectors such as Johnson Controls Arabia is a critical part of Saudi Arabia’s over all climate and carbon mitigation plan.
Johnson Controls Arabia estimates that for just the projects on which it has worked with Tarshid they have achieved more than $26 million in energy savings since 2019.
Ultimately, successfully increasing its energy efficiency will be critical to achieving Saudi Arabia’s climate goals.
“The building and construction sectors combined are accountable for more than one-third of the world’s final energy consumption and for nearly 40% of total direct and indirect carbon dioxide (CO2) emissions (IEA 2021). Further, buildings use 25% of the world’s water and 40% of the world’s resources. This demand continues to grow, due principally to improved energy access in developing countries, increased ownership and use of energy-using devices, and the fast growth in building sizes worldwide (Belaïd and Rault 2021).”
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