Saudi’s PIF establishes $507m energy efficiency unit

Saudi Arabia’s Public Investment Fund (PIF) has established a SAR1.9bn ($506.6m) unit to improve energy efficiency across the kingdom in partnership with the private sector.

Super Esco will aim to increase energy efficiency at government and public buildings and boost the growth of the kingdom’s energy efficiency industry in line with its Vision 2030 reform agenda.

The company will work in partnership with the Minister of Energy, Ministry of Finance and Saudi Energy Efficiency Center and provide “new investment opportunities by creating partnerships with the private sector to deliver projects”, according to Saudi Press Agency.

Its will initially use its SAR1.9bn capitalisation to fund and manage the retrofit of government and public buildings, representing more than 70 per cent of projects in the sector.

The plan, which come amid expectations that the kingdom’s power generation capacity will need to increase from 77GW in 2014 to 156GW in 2040 to meet demand, will see government spending on electricity reduced and the rationalisation of capital investments for the production, generation and distribution of electricity.

The kingdom’s energy efficiency sector is currently valued at SAR42bn ($11.2bn) and growing at a rate of SAR3bn ($800m) annually, according to SPA.

Earlier this week, the PIF also announced plans to establish a recycling company.

This will seek to improve recycling in the kingdom and reduce the use of landfill sites through private sector partnerships.

Its initial aims are to increase the recycling of waste from 10 per cent to 85 per cent and to use waste as a source of alternative energy.