Saudi Arabia's Public Investment Fund (PIF) has announced the establishment of a new energy service company, Super Esco, designed to increase energy efficiency across government and public buildings.
A Royal decree has been issued requiring all government entities to contract Super Esco on an exclusive basis in order to improve energy savings across public buildings and facilities.
Super Esco has been established with a capitalisation of SR1.9 billion ($510 million), a statement said.
It added that the company will fund and manage the retrofit of government and public buildings, which represent over 70 percent of overall projects in the sector.
These projects will help reduce government spending on the electricity sector, which will in turn reduce natural resource consumption while rationalising capital investments in expansion projects for the production, generation, transmission, and distribution of electricity.
The company has been established to stimulate the growth of the kingdom’s energy efficiency industry, in line with the objectives of Vision 2030 to diversify the economy and drive environmental sustainability.
In partnership with the Ministry of Energy, Industry and Mineral Resources, the Ministry of Finance, and the Saudi Energy Efficiency Center, Super Esco will provide new investment opportunities by creating partnerships with the private sector to deliver projects.
Projects in Saudi Arabia’s energy efficiency sector have an estimated value of SR42 billion, or around SR3 billion annually.
Internationally, the sector is valued at SR130 billion, with projects in the US, Europe, and China accounting for 90 percent of the global market share.
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