Energy Efficiency in KSA: Necessity and Expectations

Dr. Naif M. AlabbadiSEEC, Director General

nabbadi@kacst.edu.sawww.kacst.edu.sa

Royal Commission at Yanbu, May 29, 2012

Outline

• BackgroundKSA Energy consumption pattern.How we are compared to others?

• EE a source of energy!EE played an important role in saving World Energy.Electricity consumption in USA. It is also true in KSA.

• EE plays a role in CO2 emission reduction.

• Establishment of SEEC “Vision, Mission & Str. Map”

LocalPrimary

FuelConsumpt

ion

40 %

53%

17% 12%

12%19%

4%11%

2% 6%

7%

Residential

Governmental

Commercial

Primary fuel

consumed Locally

Utilities

Industries

Transportation

Other

6%

11 %

Fuel

Feed Stock

Electricity

Energy Flow in KSA

Other Include: Agricultural sector, Hospitals, Mosques, Street lighting, Road paving, Charity organizations, Construction fuel, LPG in homes.

Primary Energy Demand

2008 2013 2018 2023 20280

1000

2000

3000

4000

5000

6000

7000

8000

9000

7000

9000

11000

13000

15000

17000

En

erg

y In

ten

sity

(B

tu/G

DP

)

19000

Sau

di

Pri

mary

En

erg

y C

on

sum

pti

on

(M

BD

oe)

30% reduction in energy demand

30 % reduction in energy demand can save 2.25 million of barrels of oil

equivalent in 2028Ref. Net Zero Energy Building, A. Alkhowaiter, Saudi Aramco Chair, April 3rd 2012.

Total Energy and Electricity Consumption per capita and GDP

per capita (2010)

Ref. ADEME and IPEEC, Energy efficiency trends in G20 countries , Sept 2010.

Japan

USA

1 2 3

UK 0.8

2

0.9

KSA

Source: IEEJ, August 2007

Background – Industry

0.0

1.0

2.0

3.0

4.0

Japan

2.6

EU

2.9

China

3.1

USA

3.1

KSA

3.7

Overall energy intensity

(BOE/ton )

Steel

Source: JICA (2006 data)

1.4

Industrial energy Intensity per GDP level

Background – Buildings & Appliances

ENVELOPE HVAC LIGHTING

0

3

5

8

10

13

10.1

9.7

8.5

7.8

7.5

A/C energy efficiency rating

Note: Lighting for residential units only, Saudi Arabia number based on a sample of residential unitsSource: High EER at 46ºC Kingdom of Saudi Arabia Air Conditioner Project Report, Protector Engineering Group, IEA, ESMA

0

5

10

15

20

5.7

8.6

9.3

10.0

16.4

Lighting electricity consumption

(kWh/m2 p.a. )

0

20

40

60

80

100%

Saudi residential units

Insulated

Not

insulated

Insulation in Saudi residential buildings

0

500

1,000

1,500

2,000

2010

779

2020

1,307

2030

Road ( diesel )

Road ( gasoline )

1,939

kbpd

Aviation

Shipping

4%

5%

3%

2%

2010-2030

CAGR

Gasoline & diesel for road transport use were 92% of

total transport fuel consumption in

2010

Background – TransportationSAUDI TRANSPORTATION

FUELS DEMAND (2010-2030)

Source: Saudi Aramco

FUEL ECONOMY OF PASSENGER VEHICLES IS LOW

0

5

10

15

20

17

16

UK

15

Brazil

13

USA

11

KSA

8

Fuel economy of passenger vehicles

(km/L )

France Japan

Typical House in Saudi Arabia: Energy

Efficiency Measures

House Orientation

Efficient Lighting

Reduce Air Infl.

Double Glazing

Shade Windows

Roof Insulation

Wall insulation

Improve A/C

Base Case

0% 10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Chart Title

When all the measures are applied (Best-In-Class) the energy use drops by 60%

Ref. Net Zero Energy Building, A. Alkhowaiter, Saudi Aramco Chair, KSU, April 3rd 2012.

EE Fueling the World!

Ref. Worldwide Trends in Energy Use and Efficiency, Key Insights from IEA Indicator Analysis, IEA, 2008.

EE was the most important “fuel” in the IEA11 during the period (1973-2005)

EE Contribution to Lower Electricity

Consumption/capita

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1960

1962

1964

1966

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

Cons

umpti

on (k

Wh

per c

apita

)

United States

California

California post-1975 average annual growth rate = 0.2%

United States post-1975 average annual growth rate = 1.6%

Ref. DSM Plan for KSA, ECRA, April 2011.

Examples of EE Potential in KSA: EE &

LM Study

2005 2007 2009 2011 2013 2015 2017 2019 202120

30

40

50

60

70

80

GW-14% by 2021

Annual Benefits 2016 2021

Energy (GWh) 10,200 (3.5%) 29,200 (7.6%)

Peak (MW) 5,100 (8.5%) 10,500 (14.0%)

CO2 (000 tons) 3,000 8,600

Ref. DSM Plan for KSA, ECRA, April 2011.

Wells Upstream Downstream

Transportation

UtilitiesEnd User

Industrial

Terminals &

Distribution

1 MWh

3.61.1

3.6

4.0 4.2 MWh

Ref. Net Zero Energy Building, A. Alkhowaiter, Saudi Aramco Chair, KSU, April 3rd 2012.

KSA Energy Supply Chain

Energy efficiency provides half of CO2

emissions reduction in the 450 Scenario

Ref. World Energy Outlook, IEA, 2011.

Saudi Energy Efficiency Center;

SEECEstablished by the council of ministers decision # 363 dated (24/11/1431; 31 October 2010) that mandated the transfer of NEEP to a Permanent National Center for Energy Efficiency named: Saudi Energy Efficiency Center. • Temporary within KACST’s and report

directory to KACST’s president.

Supervised by a committee composed of representatives from related stakeholders:

Saudi Energy Efficiency Center;

SEEC

Ministries of:Petroleum and MineralsWater and ElectricityMunicipality and rural AffairsCommerce and IndustryTransportationCulture and InformationHousingFinance (Customs)

Presidency of Meteorology and EnvironmentKing Abdullah City for Atomic and Renewable Energy

Saudi Standards, Metrology and Quality OrganizationElectricity & Co-Generation Regularity AuthorityRoyal Commission for Jubail and YanbuSaline Water Conversion CorporationClean Development Mechanism CommitteeSaudi AramcoSaudi Electricity CompanySABICTwo Private Sector Representatives

SEEC’s Vision

To play a leading role for KSA to achieve the world average energy intensity by 2020 capitalizing on the support of the stakeholders

and integration of their EE efforts.

SEEC’s Mission

Support preserving the national energy resources to enhance the national development and economy through the rationalization of energy consumption and improving energy efficiency in order to achieve the lowest possible levels of energy intensity.

SEEC’s Mission…continue

SEEC’s main activities include: Development of policies, rules and

regulations governing EE and support their implementation.

Support the integration of the stakeholders’ efforts to improve EE and coordination amongst them.

Promote EE awareness at both public and institutional levels.

Participate, as needed, in the implementation of EE pilot projects.

Reso

urc

es

/ Infr

as t

ructu

reA

dd

ed V

alu

es/

\ Di r

ect

Ou

tpu

t s

Int e

rnal

Op

erat

i on

sN

atio

nal

P

ersp

ecti

ve Vision Mission Values

National culture supportive of EE

Optimal Use of Energy Resources to Support The National Development

Information, consultancy and

specialized services

Policies, Regulations and Specifications

Comprehensive National EE

Program

Raise Public Energy Saving

Awareness

Support The Institutional EE

Awareness

Leadership Role in Raising EE

Awareness, Edu. and Training

Active Role In The Implementation of Pilot Projects

Application of Best Practices in Project

Implementation

Identify Pilot Projects Require SEEC Participation

Outstanding ability in the development of policies,

regulations and specifications and follow-up the application

Support Research and Studies

Build Specialized Expertise in Policies,

Regulations and Specifications Development

Effective Coordination and Integration

Among Stakeholders

Build EE database for those involved and

facilitate the access to it

Develop a Practical Program for

Communication and Coordination between the Concerned Parties

Human Resources Dev. of knowledge and information sys. Institutional structure

Dev. of Human

Resources Manag. Sys.

Dev. of knowledge. Manag. Sys.

Dev. of Information

System

Activation of interl.

Cooperation

Work Processes

Dev.

Building institutional

culture

Support Moral and Financial Incentives

Samples of SEEC’s Activities for 2012

Developinga “Holistic National Energy

Efficiency Program”:• Targeting main consuming

sectors (Buildings, Industry and Transportation)

• Mandatory• Set EE Goals for each sector• Coordinated by SEEC• Implemented by Stakeholders

Mandatory EE Program Framework

Sub-sectors EE savings goals

Initiatives to achieve the EE savings goals

Enablers to implement initiatives

Mandatory EE savings goals

Sectors

Buildings Transport Industry

Newbuildings

Existingbuildings

Newplants

Existingplants

Newfleet

Existingfleet

Initiatives Initiatives Initiatives Initiatives Initiatives

EEsavingsgoals

Regulations (specific to initiatives)

ESCO’s (Energy Service Companies)

Funding

Governance

Awareness

Hands-on training program on Energy Auditing in two facilities.

5 short courses (five days) training on Energy Auditing. Half-a-day workshops on energy efficiency in buildings in

cooperation with Chambers of Commerce. One-hour educational lectures about the importance of

energy efficiency targeting engineering and technical colleges students.

Energy Managers Qualification program. Establish a qualification program for energy efficiency

practitioners.

Training and Building Capacity (2012)

Energy Efficiency Awareness (2012)

Shopping mall exhibition aiming to introduce SEEC and the EE label for air conditioners.

Awareness and educational programs addressing women and children in amusement parks and summers municipalities’ entertainment activities.

Elementary School Campaign addressing 6-12 age students.

Campaign addressing government and large companies employees to introduce air conditioner EE labels.

Campaign about conserving energy using ATM. Other campaigns including: road LCD screens, SMS …

etc.

Energy Efficiency Awareness

Sh

op

pin

g M

all

Exh

ibit

ion

Energy Efficiency Awareness

Ele

men

tary

Sch

ool C

amp

aign

Energy Efficiency Awareness

Road LCD and ATM campaigns

Household Appliances EE Labels

2012 Targets:• Raise the minimum energy efficiency ratio (EER) for

windows and split air conditioners.

• Develop EE Labels for large capacity air conditioners, water heaters, home air heaters, electric kettles and other.

Energy Efficiency Information/Database

(2012) Establish energy label database in cooperation with SASO.

Design and establish the infrastructure for the Saudi Energy Efficiency database.

Develop SEEC portal and website.

THANK YOU