Introduction
Due to the abundance of natural resources in the Kingdom of Saudi Arabia (KSA), the issues of energy efficiency materials and strategies were frequently overlooked. For this reason, Saudi Arabia lags behind other developing countries in terms of developing energy consumption standards and rational patterns. After the launch of the National Energy Efficiency Program (NEEP) in 2003, the situation has been improved, but there are still a number of deficiencies in the sphere, including:
- the lack of efficiency knowledge on the individual, corporate and state levels;
- the shortage of energy-efficient materials and technical specialists.
NEEP in Saudi Arabia
As a part of the United Nations Development Program, the National Energy Efficiency Program (NEEP) in Saudi Arabia was launched in 2003 and was later extended to 2011. The main goals of this program are to develop efficient and rational consumption patterns to satisfy the growing energy demand and protect the environment at the same time.
The main incentives in the frames of the NEEP in Saudi Arabia include regular energy auditing in the industrial and commercial sectors, developing policies for energy-consuming regulation in residential buildings and improving the exchange of information related to the efficiency of energy consumption (United Nations Development Program). The main objectives of the NEEP included removing the barriers to customers’ and suppliers’ awareness on the importance of the issues of energy efficiency through workshops and training programs. Additionally, the program is aimed at developing energy-efficient standards for the construction of new buildings and equipment.
The achievements of the NEEP included the improvement of the institutional infrastructure for ensuring the widespread use of more efficient technologies. The awareness of the importance of proper management of energy usage and its advantages was increased on the national level. The Energy Efficiency Information and Awareness Center played an important role in educating the stakeholders on different levels. The energy efficiency labels were helpful for reducing energy consumption per capita.
The 40 audits which were done in the course of the NEEP and the advertizing program were helpful for developing the databases and spreading the information to different categories of consumers. It is notable that an international consulting firm has been hired for supporting the implementation of the NEEP project in Saudi Arabia. Regardless of noticeable improvements of the current situation with energy consumption in Saudi Arabia, there are a number of gaps in the existing procedures and policies regulating supply and consumption of the energy efficient materials.
The main challenges and solutions for the NEEP in Saudi Arabia
The NEEP in Saudi Arabia faced a number of challenges which became important hindrances for the effective implementation of the project. The main local problems include:
- the summer peak demand,
- the lack of the consumers’ awareness,
- the gaps in national policies;
- insufficiency of international cooperation and private sector involvement.
The so-called summer peak demand refers to significant seasonal variation in energy demand and consumption. Due to the peculiarities of the local climate, the demand for air conditioning in summer is rather high which leads to overconsumption of energy and causes its shortage (NEEP).
Another significant problem faced by the NEEP is the lack of awareness on energy efficiency on individual and national levels. In that regard, the Energy Efficiency Information & Awareness Center played an important role in improving the consumers’ understanding of the importance of using energy efficient equipment, constructions and designs. Lacking understanding of the long-term economic gains of using energy efficient materials and strategies, the inhabitants of Saudi Arabia frequently gave preference to the short-term cost-saving goals, deciding on cheaper materials and working methods. However, overlooking the opportunities for more efficient energy consumption had a negative impact upon the resources of the country as well as its economical development (NEEP). However, taking into account the recent achievements of the Energy Efficiency Information & Awareness Center and the NEEP in general, it can be stated that energy efficient blockwork as well as other parts of the building envelope, including those of lighting and insulation can be interesting for the Saudi Arabia’s engineers and consumers.
Due to its unique position and availability of national resources, the local energy prices are rather low. For this reason, Saudi Arabia falls behind other developing countries in the issues of efficient energy consumption. However, by adopting the experience of other countries, Saudi Arabia can take the advantages of this situation. Additionally, the participation of the private center can be improved by explaining the main stakeholders the possible benefits of starting energy service companies and becoming involved into the energy efficiency projects.
Mechanisms of the private center participation
There are numerous instruments that governments use to subsidize and encourage more firms to venture into the use of renewable energy sources and this is mostly because the government acknowledges the fact that it is not easy for businesses to adopt sustainable and reliable sources of energy (Oxford Business Group, 2008). The Saudi government is part of the GCC states and individuals who import or adopting renewable energy sources usually get full government support either in form of capital grants or tax exemptions. The Saudi Arabian government through the ministry of energy ensures that it offers operating support by granting these individuals and businesses price subsidies, green certificates and unique tax regimes to encourage more businessmen to follow suit (International Resource Center, 2011). The Unified Economic Agreement amongst GCC Member states, Saudi Arabia included supports the option of exclusion of customs duties for renewable products the existing GCC member countries given that actually over 50% of the plant equity belongs to a GCC nation. It is such an incentive that is pushing firms within Saudi Arabia to opt importing renewable energy technology so that the country cannot only develop in the long run using more sustainable sources of energy but also to ensure that it reaps returns for the various investors (International Resource Center, 2011).
Therefore, it can be stated that with the growing interest in the energy efficient materials and strategies in Saudi Arabia’s consumers, the offer of supplying the energy efficient blockwork from Iceland can be rather interesting for the local engineers. Taking into account the lack of experience of Saudi Arabia’s technical workers and the lack of awareness on capabilities of efficient energy consumption, it can be stated that international cooperation with suppliers from another country can become an opportunity for adopting the valuable experience and improving the policies and strategies implements on the national level.
Recommendations for effective international cooperation
Taking into account the peculiarities of the situation in Saudi Arabia regarding the poor awareness of the domestic consumers, lack of technicians and energy efficient equipment and materials, it can be stated that the main steps towards the effective cooperation and supply of the energy effective blockwork into the country include:
- preliminary research;
- effective marketing;
- training of the staff.
Regardless of the positive effects of the NEEP, there are particular gaps in the existing policies and procedures of efficient energy consumption in Saudi Arabia. For this reason, a preliminary research of the current situation in the sector is important for enhancing the chances for the future success. The outdated wasteful philosophy can be still used by engineers unwilling to go with the time and adapt to the ongoing changes. Therefore, effective marketing strategies need to be imposed for drawing the attention of the potential consumers to the possibility of future financial gains as opposed to the short-term cost-saving goals. The Saudi Arabian General Investment Authority (SAGIA) pays a lot of attention to attracting foreign investors and explaining them the main advantages of starting their business in Saudi Arabia. Moreover, visiting SAGIA website, the potential investors can access all the necessary information concerning the steps of starting the cooperation with Saudi Arabian consumers and the documentation required at each of these stages.
The training programs for the staff should comprise the awareness and technical components. Raising the awareness of the staff on the importance of using energy efficiency strategies for reducing the pollution of the environment and achieving future financial gains is significant for enhancing the effectiveness of the cooperation.
As to the second component, the technical knowledge and practical skills need to be taken into account for improving the outcomes of cooperation.
Conclusion
The achievements of the NEEP had impact upon the energy efficiency awareness on different levels in Saudi Arabia. Therefore, the current situation in Saudi Arabia offers plenty of opportunities for starting the international cooperation with the local consumers and supplying energy efficient blockwork or other energy efficient materials, but requires preliminary research for making the informed choices and training programs for raising the awareness of the employees.
References
International Resource Center (2011) Saudi Arabia Country Profile, Web.
National Energy Efficiency Program (2011) United Nations Development Program Kingdom of Saudi Arabia, Web.
Saudi Arabia’s National Energy Efficiency Program Challenges and solutions (n.d.) NEEP, 2011. Web.
Taleb, HN & Sharples, S 2011, ‘Developing sustainable residential buildings in Saudi Arabia: A case study’, Applied Energy vol. 88, pp. 383-391.