SR1.9 billion company to boost energy efficiency


Saudi Gazette report

Riyadh — Saudi Arabia’s Public Investment Fund (PIF) has established the National Energy Efficiency Services Co. with a capital of SR1.9 billion, according to a statement carried by Saudi Press Agency (SPA) on Wednesday.

The new company aims to increase the energy efficiency of buildings and government facilities in the Kingdom and contribute in supporting the establishment of the energy efficiency sector in the Kingdom in line with Vision 2030 to diversify the economy and drive environmental sustainability.

The new company, in partnership with the ministries of energy and finance, and the Saudi Energy Efficiency Center, will offer new investment opportunities to the Saudi business sector through public-private partnerships.

The overall opportunity for the Saudi market is estimated at $42 billion or about SR3 billion annually.

The company will finance and manage restoration projects of government buildings and facilities, which account for about 70 percent of total projects in this field. These projects will contribute in reducing government spending on electricity consumption, which will be reflected in the reduction in the consumption of oil and rationalization of capital investments in expansion projects for the production, generation, transmission and distribution of electricity.

The size of the global energy efficiency sector is estimated at SR130 billion, of which the US, Europe and China together account for 90 percent, SPA said.

PIF this week announced plans to establish a recycling company, which will cover all kinds of recyclable materials across the Kingdom and value chain stages.

Aligned with the Kingdom’s Vision 2030 goal to safeguard the country’s environment by improving recycling across the Kingdom, the new company will develop and operate projects designed to increase landfill diversion rates and recycle waste, creating alliances with private sector companies to achieve the highest international standards.

Preliminary studies have indicated that the Kingdom currently recycles around 10 percent of recyclable waste matter, with 90 percent disposed through landfill sites, causing damage to the environment.

More than 40 percent of recyclable materials in the Kingdom are produced in three major cities: Riyadh, Jeddah, and Dammam.

Recyclable materials in the Kingdom amount to 50 million tons. The new plan offers the opportunity to recycle around 85 percent of this material, utilizing it as a source of alternative energy to be used in manufacturing.