Dubai, UAE, 19 May 2019: The governmental mandate for the National Energy Services Company (NESCO) — Tarshid and the pressure on energy tariffs are factors driving the building sector in Saudi Arabia to take swift action in addressing the need for energy efficiency, said Francisco Ramalheira, Business Development & Marketing Director, Enova, while giving an update on the market in the region. He said that the Saudi Energy Efficiency Programme (SEEP) focuses on three sectors that represent more than 90% of energy consumption in the country — Industry (44%), Buildings (29%) and Transportation (21%), he said. Elaborating, he said, “We are pleased to be working closely with Tarshid, the National Energy Services Company (NESCO) in the Kingdom of Saudi Arabia.” Elaborating, he said that with projects nearing completion, and other projects presently at the execution stage, we will most likely see an annual energy saving in excess of 41 GWh, which he said, is equivalent to the emissions reduced by nearly 30,000 tons of CO₂.

Francisco Ramalheira

Ramalheria pointed to how integrated energy and Facilities Management are enhancing and contributing to the scope of energy efficiency in the Kingdom. He said, “We are contributing and benefiting from the Saudi Vision 2030.” Today, he said, upstream actions from the government are being implemented, such as the review of construction codes for thermal insulation and for the labelling of high-efficiency equipment. With regard to existing building stock, he said, the most common solution is to develop a retrofit programme and to regain control over the way systems are managed, while also implementing a sound operation and maintenance strategy that will drive down consumption. “The ongoing programme is ambitious,” he added, and it will offer plenty of opportunity for companies like us to address the needs and requirements from a holistic and sustainable perspective.

Elaborating on whether building owners have sufficient incentives to invest in energy efficiency, Ramalheria said that a significant portion of the operating cost of a building is associated with the consumption of utilities. While tariff reviews have been made, he said, the expenditure on utilities is evident. “Energy utilisation in the Kingdom of Saudi Arabia’s building stock represents a significant improvement in potential,” he said. Based on our experience of typical buildings in Saudi Arabia, a saving of 30% can be achieved with an investment that will be recuperated within a period of four years. Together with a strong and reliable partner, he said, this should be a reason for building owners and managers to invest in energy efficiency and to adopt conservation solutions for their assets.

In addition, he highlighted how the energy and facilities management markets in Saudi Arabia are fast maturing, and on how service-level agreements are developing at a rapid pace. “Innovation and digitalisation are two common words in the typical tender solicitation,” he said. Technology that was cutting edge a few years ago today has become the status quo, he added. “Clients,” he said, “demand efficient and flexible solutions that are transparent and simple in terms of visibility.”

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