Interview: Waled Al Ghreri, CEO, National Energy Services Company (Tarshid)
Which initiatives are encouraging energy conservation among consumers and businesses?
WALED AL GHRERI: Energy efficiency throughout the Kingdom is being encouraged through multiple initiatives, such as regulatory intervention, awareness campaigns and financial incentives. With respect to regulatory intervention, the Saudi Energy Efficiency Programme, which was introduced in 2012, has established more than 30 energy efficiency standards and technical regulations. These standards include mandatory energy efficiency labels on sold products, and building codes requiring energy-efficient materials, designs and appliances, which assist businesses and individuals in making more informed consumer choices.
The National Energy Efficiency Campaign, spearheaded by the Saudi Energy Efficiency Centre, has educated millions of consumers and businesses about the importance and benefits of energy conservation. These efforts have resulted in significant behavioural changes, encouraging the adoption of energy-saving practices across the Kingdom. Financial incentives have also reduced the upfront costs of adopting technologies that are more sustainable. For example, an initiative launched in September 2024 to replace old air conditioners provides rebates of SR1000 ($267) per unit, making energy-efficient air conditioners more accessible to households.
What mechanisms have been adopted to deliver large-scale energy-efficient projects?
AL GHRERI: Innovative financing mechanisms are accelerating the implementation of large-scale projects through the provision of capital, expertise and risk-sharing capabilities. Key mechanisms include public-private partnerships (PPPs), green bonds and energy performance contracts (EPCs), with each advancing energy efficiency. PPPs are particularly effective in accelerating energy conservation by combining the strengths of both the public and private sectors, with the former providing regulatory support and funding, and the latter contributing expertise, innovation and operational efficiency. Green bonds have emerged as an important financing tool for energy projects by funding sustainability initiatives while attracting environmentally conscious investors. The Public Investment Fund, the country’s sovereign wealth fund, has been a leader in green bond issuances, raising $8.5bn for projects that contribute to environmental sustainability, including energy efficiency. EPCs are another mechanism that accelerate large-scale energy-efficiency projects. Under EPCs, energy service companies implement energy-conservation measures and guarantee a specified level of cost savings. The client faces minimal financial risk as the project continues to be funded by revenue that is generated over time.
In what ways have EPCs contributed to making an impact on the energy efficiency market development in Saudi Arabia?
One of the initiatives that has made a significant impact has been the adoption of EPCs, which not only incentivises the implementation of energy-savings technologies, but also promotes knowledge sharing, fosters learning about sustainability and boosts productivity, creating a productive environment for energy efficiency growth. EPCs play a crucial role in reducing energy consumption and greenhouse gas emissions, directly supporting climate goals and advancing the “Reduce” pillar of the Circular Carbon Economy (CCE) framework.
These measures not only contribute to Saudi Arabia’s national sustainability targets but also support the global effort to combat climate change and promote sustainable development, reinforcing the Kingdom’s commitment to the CCE framework and to its international environmental commitments.
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