1. Kingdom of Saudi Arabia Saudi Energy Efficiency Program
Achieving Best EE in a High Ambient Temp. Environment Using Both Equipment and Building Design
Kingdom of Saudi Arabia
Saudi Energy Efficiency Program
July 2018

2. Kingdom has had a steep increase in energy consumption
overall_1_ columns_1_
61_84
The Saudi Energy Efficiency Center was initiated based on a clear case for change
Kingdom has had a steep increase in energy consumption
~4% per year
[START]
The positives:
The Kingdom has enjoyed a long period of economic and population growth, and industrialization.
This led to continuously improving lifestyle and well-being for the Saudis.
The cost:
However this development came at the price of an unprecedented energy consumption growth and its resulting pull on our precious hydrocarbon endowment:
From less than a million barrel of oil equivalent in 1980
To roughly 4.2 million barrel of oil equivalent today
And potentially reaching 8 plus million barrel of oil equivalent in 2030 in a business as usual scenario
[CLICK TO NEXT SLIDE]
~5% per year
(1): MMBDOE = million barrel a day of oil equivalent

3. SEEC was founded to enable the Kingdom to embark on an ambitious Energy Efficiency effort
Description
Mission
Key objectives
Established through Council of Ministers in 2010
Launched the Saudi Energy Efficiency Program (SEEP) in 2012
Improve Saudi Arabia energy efficiency and coordinate all related activities between stakeholders
Develop energy efficiency program
Coordinate between all stakeholders to propose energy efficiency policies and regulations, and monitor their implementation
Promote awareness
[START]
In the face of the strategic imperatives mentioned before, the Kingdom embarked on an Energy Efficiency journey by:
Establishing the Saudi Energy Efficiency Center (SEEC) in 2010, as the custodian of the demand side energy efficiency in the Kingdom.

4. Established through Council of Ministers decision
overall_0_ columns_1_
28_85 30_85 31_85 21_85
The establishment of the Center reflects the interest of the state in rationalizing and upgrading energy efficiency in KSA
2010
2012
2013 – 2018
Now
SEEP
Full-fledged program with 12 teams
New mandate for SEEC has been approved in 2018
Scope of work expanded to cover:
Power generation
Water desalination
Feedstock in industry
Inter-agency effort to launch the Saudi Energy Efficiency Program (SEEP), with guiding principles, a clear strategy and strong governance
Program covered mainly demand management for the following sectors:
Transportation
Industry
Buildings
Established through Council of Ministers decision
~80 initiatives at different stages (feasibility, design, execution)

5. SEEC’s efforts follow the three ‘I’s cycle
4_84
SEEC’s efforts follow the three ‘I’s cycle
Implementation
Integration
Identification

6. Implementation Integration Identification
38_84
Identification: SEEC identifies and prioritizes sectors based on potential savings in energy consumption
Implementation
Integration
Identification

7. KSA energy consumption
1038_84 11_84 6_84 5_84
The Saudi Energy Efficiency Program identified and focused on the three sectors with the highest energy consumption in KSA
KSA energy consumption
40%
11%
38%
21%
Petchem
Steel
Cement
others
21%
Light duty
Heavy duty
40%
52%
90%
90%
Major sectors
29% 4%
65%
10%
Based on the Kingdom’s energy consumption statistics in 2016

8. 24_85
Industry: Overview of SEEP’s ongoing initiatives and planned initiatives for
Initiative
New and existing plants energy efficiency
Developed baseline for 180+ Saudi petchem, cement and steel plants for ~50 different production processes
Established energy intensity (EI) targets based on international benchmarks for the petchem, cement and steel processes:
Developed enforcement mechanism with 11 government entities to leverage their current mandates to help plants reach their aspirational improvement level and signed a joint agreement in this regard
Implementing the new and existing plants frameworks (i.e. EI targets) on the petchem, cement and steel sub-sectors
Assessing the applicability of the existing and new plants frameworks (i.e. EI targets) on the aluminum sub-sector
Developing new frameworks to cover new sub-sectors (other than petchem, cement, steel and aluminum) in SEEC’s scope
Electric motors standard
Issued standard in December (SASO IEC )
Started implementing MEPS (minimum energy performance standard) in August 2015
Updating the standard to align with best international practices
The new standard will be issued in 2018
Energy management system
Developed factbase on Energy Management System (EnMS)
Developing support structure to help industrial plants in implementing energy management system such as ISO 50001
[START]
In the industry sector, Energy Intensity targets for existing and new plants were agreed with petrochemicals, cement and steel plants in 2014 and have started to be enforced
We conducted benchmark and gap analysis for 180+ petrochemical, cement and steel plants across the Kingdom to support this effort.
[CLICK TO NEXT SLIDE]

9. KSA energy consumption
1038_84 11_84 6_84 5_84
The Saudi Energy Efficiency Program identified and focused on the three sectors with the highest energy consumption in KSA
KSA energy consumption
40%
11%
38%
21%
Petchem
Steel
Cement
others
21%
Light duty
Heavy duty
40%
52%
90%
90%
Major sectors
29% 4%
65%
10%
Based on the Kingdom’s energy consumption statistics in 2016

10. economy standard for light duty vehicles
22_85
Transportation: Overview of SEEP’s ongoing initiatives and planned initiatives for
Initiative
Fuel
economy standard for light duty vehicles
Issued the fuel economy standard in November 2014
Started implementing the standard in January 2016
Developing and issuing phase 2 ( ) of the fuel economy standard
Updating the standard to include electric vehicle fuel economy calculation
Tire
Rolling resistance/
wet grip
Issued a standard in April based on the work done by the EU
Started implementing the standard in November 2015
Enforcing the phase 2 standard in November 2019
economy label
Issued a standard in December 2013
Started implementing the standard in August 2014
Enforcing the phase 2 label for 2019 MY vehicles
Updating label to include electric vehicles
HDV regulations
Drafted a first version of the aerodynamic regulation and shared it with the manufacturers
Implementing the aerodynamic regulation
On the road program
Benchmarked scrappage programs that take place around the world
Finalizing the feasibility analysis of the program implementation
[START]
In transportation, we have designed and issued three energy efficiency standards and regulations.
The most essential is the Saudi Fuel economy standard for light duty vehicles.
The development of this standard took only 2 years (versus 4-5 years in most other countries), and an agreement was reached with 80+ automotive manufacturers, representing 99% of the Saudi market.
In addition, the Saudi Fuel Economy regulations have a broader coverage than most other fuel economy regulations in the world as used cars are also addressed with a minimum fuel economy level.
The implementation of this standard started in January 2016.
[CLICK TO NEXT SLIDE]

11. KSA energy consumption
1038_84 11_84 6_84 5_84
The Saudi Energy Efficiency Program identified and focused on the three sectors with the highest energy consumption in KSA
KSA energy consumption
40%
11%
38%
21%
Petchem
Steel
Cement
others
21%
Light duty
Heavy duty
40%
52%
90%
90%
Major sectors
29% 4%
65%
10%
Based on the Kingdom’s energy consumption statistics in 2016

12. 35_85 28_84
Buildings: We have designed and issued 22 energy efficiency standards and regulations for the buildings sector
Initiative
Air conditioners
Issued the small AC standard in 2012 according to the ASHRAE values
finalizing a new update for the standard
Issued the large AC standard in collaboration with AHRI.
Continue standard enforcement and begin enforcement for updated standard
Thermal insulation
Issued 15 thermal insulation standards
Issued a thermal insulation regulation for new buildings in collaboration with ASHRAE
Continue standard enforcement
White goods
Issued the standards in 2013 (Refrigerators, Freezers, Washing Machines)
Began enforcement and currently finalizing the washing machines and refrigerator standard updates as well as a new standard for clothes dryers
Continue enforcement for current standards and begin enforcement for new/updated standards
Saudi Building Code (SBC)
Updated, in collaboration with ASHRAE, the energy efficiency section of the SBC
Approve and enforce the Building code update
Energy Use Intensity (EUI)
Conducted a feasibility study and built a solid fact base based on international practices
Obtained approval to begin the high-level design of the EUI initiative
Aim to complete initiative design and begin implementation by 2020
Water heaters
Finalizing a new standard for water heaters
Begin standard enforcement
Lighting products
Issued the first part of the lighting product standard in Q3 2015
Currently submitting the second part of the lighting product standard to the World Trade Organization (WTO)
Continue enforcement for Lighting part I and begin enforcement for Lighting part II
[START]
We have designed and issued 18 energy efficiency standards and regulations for the buildings sector. Some examples include:
Small and large capacity air conditioners standards and product control:
In 2012, we developed and launched an Energy Efficiency standard, which sets required energy efficiency ratios (EER) at international levels.
Insulation products, electric home appliances and lighting products standards
[CLICK TO NEXT SLIDE]

13. Implementation Integration Identification
26_84
Integration: SEEC engages stakeholders on all sides to utilize expertise, inputs, and feedback
Implementation
Integration
Identification

14. 5_84
SEEP’s initiatives are developed by integrating inputs from all involved stakeholders
Government entities
For proper design and execution, we have engaged representatives from 30+ government entities
Private
sector
International entities
Technical experts
To identify and resolve technical challenges
To adapt success stories and avoid pitfalls
To devise technical solutions to the challenges faced
Design stage input providers
End users
For continuous feedback on initiative design
The Program relies on effective collaboration with all stakeholders. We engages continuously with:
Governmental entities (150+ representatives from 30+ government entities)
The private sector is represented by approximately 280 organization, for example:
95 organizations for white goods
38 organizations for ACs
53 organizations for insulation products
12 organizations for lighting products
81automotive manufacturers
Our international partners (e.g GIZ)
The most qualified local and international technical experts and consultancies
The general public and opinion leaders
The general public is engaged continuously through all media channels:
Conventional, i.e. TV, radio, roadside billboards, newspapers
New / social media, i.e. Youtube, Twitter, Instagram
42 opinion leaders are engaged:
Regularly in a general assembly / forum
And continuously as well through an online platform to exchange information, ideas and feedback

15. 14_85 45_84
SEEP’s initiatives are developed by integrating inputs from all involved stakeholders
Government entities
For proper design and execution, we have engaged representatives from 30+ government entities
Guide governmental stakeholders towards consensus on all proposed policies
Ensure no entity’s mandate is violated or stepped-over
Enable the entities for implementation by highlighting the needed resources and supporting their acquisition
SEEP’s Role
The Program relies on effective collaboration with all stakeholders. We engages continuously with:
Governmental entities (150+ representatives from 30+ government entities)
The private sector is represented by approximately 280 organization, for example:
95 organizations for white goods
38 organizations for ACs
53 organizations for insulation products
12 organizations for lighting products
81automotive manufacturers
Our international partners (e.g GIZ)
The most qualified local and international technical experts and consultancies
The general public and opinion leaders
The general public is engaged continuously through all media channels:
Conventional, i.e. TV, radio, roadside billboards, newspapers
New / social media, i.e. Youtube, Twitter, Instagram
42 opinion leaders are engaged:
Regularly in a general assembly / forum
And continuously as well through an online platform to exchange information, ideas and feedback

16. International entities Design stage input providers
13_84 14_84 16_84 46_85
SEEP’s initiatives are developed by integrating inputs from all involved stakeholders
Private
sector
International entities
Technical experts
Design stage input providers
To identify and resolve technical challenges
To adapt success stories and avoid pitfalls
To devise technical solutions to the challenges faced
The Program relies on effective collaboration with all stakeholders. We engages continuously with:
Governmental entities (150+ representatives from 30+ government entities)
The private sector is represented by approximately 280 organization, for example:
95 organizations for white goods
38 organizations for ACs
53 organizations for insulation products
12 organizations for lighting products
81automotive manufacturers
Our international partners (e.g GIZ)
The most qualified local and international technical experts and consultancies
The general public and opinion leaders
The general public is engaged continuously through all media channels:
Conventional, i.e. TV, radio, roadside billboards, newspapers
New / social media, i.e. Youtube, Twitter, Instagram
42 opinion leaders are engaged:
Regularly in a general assembly / forum
And continuously as well through an online platform to exchange information, ideas and feedback
Involve manufacturers, importers, labs, and international entities
Learn from and apply global best practices
Ensure implementation is feasible, fair, and befitting KSA needs
SEEP’s Role

17. For continuous feedback on initiative design
8_84 32_85
SEEP’s initiatives are developed by integrating inputs from all involved stakeholders
End users
For continuous feedback on initiative design
Launch interactive awareness campaigns for all SEEP initiatives
Provide constant communication to answer questions outside the campaigns
Launched a mobile application (Ta’kad) in 2015 to facilitate making purchase choices based on energy efficiency and verifying genuine products (~570k current users)
SEEP’s Role
The Program relies on effective collaboration with all stakeholders. We engages continuously with:
Governmental entities (150+ representatives from 30+ government entities)
The private sector is represented by approximately 280 organization, for example:
95 organizations for white goods
38 organizations for ACs
53 organizations for insulation products
12 organizations for lighting products
81automotive manufacturers
Our international partners (e.g GIZ)
The most qualified local and international technical experts and consultancies
The general public and opinion leaders
The general public is engaged continuously through all media channels:
Conventional, i.e. TV, radio, roadside billboards, newspapers
New / social media, i.e. Youtube, Twitter, Instagram
42 opinion leaders are engaged:
Regularly in a general assembly / forum
And continuously as well through an online platform to exchange information, ideas and feedback

18. Implementation Integration Identification
28_84
Implementation: SEEC supports the relevant entities in executing the outputs of the previous steps
Implementation
Integration
Identification

19. 24_85 7_85
Implementing EE standards on equipment resulted in notable improvements for the affected products
Small ac
Reduced the maximum allowed electricity consumption by 26-32% between 2007 and revisions
refrigerators
26%
32%
Increased T1 EER 57% for split-type ACs and 36% for window-type from to 2018
Only increased T3 EER for split-type ACs by 35% and for window types by 14% since 2012 due to ambient temperature limitations on usable gases

20. Improvements in T3 EER for small ACs were limited in comparison to T1
7_85
Improvements in T3 EER for small ACs were limited in comparison to T1
Small ac
Increased T1 EER 57% for split-type ACs and 36% for window-type from to 2018
Only increased T3 EER for split-type ACs by 35% and for window types by 14% since 2012 due to ambient temperature limitations on usable gases
Any alternative gases considered should allow raising the T3 EER limitations

21. The implemented standards for AC also include large capacity ACs
31_89
The implemented standards for AC also include large capacity ACs
Scope
Electrically operated air conditioners
Condensing units
Chillers
VRF
Absorption chillers
Close control air conditioners and condensing units serving computer rooms
Minimum Energy Performance Standard (MEPS)
Electrically operated air conditioners vary by type and capacity, EER from 9.7 to 12.5
Condensing units vary by type and capacity, EER from 10.5 to 13.5
Chillers vary by type and capacity, EER from 9.7 to 20.5
VRF vary by type and capacity, EER from 9.5 to 12.0
Absorption chillers vary by type and capacity, EER from 2.0 to 3.4
Close control air conditioners and condensing units serving computer rooms vary by type and capacity, COP from 1.70 to 2.70*
(*) Note: EER=COP*3.41

22. 36% reduction in load/consumption fuel used in Generation
20_85 58_85 31_84 4_84
The improved efficiency of the AC significantly contributes to lowering electricity consumption and demand
Before updating
standard (2012)
After updating
standard (2018)
Inefficient AC units:
Quantity: 4 , EER: 7.5
Capacity: 18,000 Btu/h
Electricity demand : 9.6 kW
Electricity consumption:25,920 kWh/year
Efficient AC units:
Quantity: 4 , EER: 11.8
Capacity: 18,000 Btu/h
Electricity demand: 6.1 kW
Electricity consumption:16,470 kWh/year
36% reduction in load/consumption
due to standard update
fuel used in Generation
GHG
emissions
Note: 2,714 operating hours per year at full load equivalent assumed in the calculations

23. Saudi Arabia Climate Data by City
How High Ambient Temperature conditions affect the heat load and the system efficiency
zone 1 represent 70-80% of total KSA population.
(HAT) could reach around 50°C in summer, this will lead to:
Up to 12 daily Operating hours for ACs.
+ 30% decrease in AC efficiency.
Saudi Arabia Climate Zones
10 year (SI)
Zone
Elevation
DB 1%
DB max
CDD18.3
CDD10
Latitude
Longitude m C
AL-AHSA
25.30N
49.48E 1
178 46
49.8
3573
6389
AL-MADINAH
24.55N
39.70E
636
44.2
47.7
3757
6715
DHAHRAN
26.27N
50.17E 17 44
49.3
3398
6258
GIZAN
16.88N
42.58E 7
37.9
42.3
4409
7451
MAKKAH
21.43N
39.77E
240
44.1
49.2
4758
7800
RIYADH OBS. (O.A.P.)
24.70N
46.73E
620
43.9
47.2
3342
6107
Zone 1 is extremely hot with CDD 18.3 C greater than 5,000;
Zone 2 is very hot with CDD 18.3 C greater than 3,000;
Zone 3 is hot for the remaining cities.
Saudi Arabia Climate Data by City

24. Energy use intensity (EUI)
5_85 11_85 12_85
Going beyond equipment, SEEP has initiatives targeting energy efficient building design
Insulation materials
Saudi Building code
Energy use intensity (EUI)
Introduced standards for 15 insulation types used in the Kingdom
Began enforcing insulation requirements on residential buildings in 2015
Updated the Saudi Building Code concerning energy efficiency in buildings (SBC-601) to mandate use of standard- compliant insulation
Also added requirements for ventilation and use of energy efficient equipment
Currently designing a program to rate buildings based on their EUI (energy consumption per square meter)
One aim of the program is to make energy efficient design more attractive to design offices

25. Enforcement follows three stages
9_85 11_84 17_85 18_85
To ensure the standards are properly followed, SEEC cooperates with relevant entities to enforce them
Enforcement follows three stages
Monitoring and enforcement tours 1
Announcement workshop 2 3
Market Sampling
Announcement workshops are held for all standards with manufacturers, importers, laboratories
Dates and deadlines for the enforcement plan are declared
Within a year from the announcement of a standard, factory visits and customs ports monitoring for non-compliant products begin
Within the following year, visits for markets and warehouses to check efficiency labels begin
Samples are purchased randomly from retailers across the kingdom
The compliance statistics obtained from this plan serve to judge the effectiveness of the previous stages
Stages 2 and 3 are ongoing

26. 10_85 11_85 12_85
The three stage enforcement process contributes to keeping the Saudi markets clean of low efficiency products
enforcement results
Small ac
insulation
refrigerators
Confiscated: ~960k
Re-exported: ~352k
Recycled: ~338k
Refurbished: ~328k
Confiscated: ~78 tons
Re-exported: 439 tons
Recycled: ~78 tons
Confiscated:184
Re-exported: ~120k
Recycled: 184

27. SEEC’s efforts in energy efficiency helped slow the growth of electricity demand and consumption
CAGR
Before
After
~5%
3.5%
~7%
3.7%

28. But these results can be severely impacted by changes to the allowed cooling gases
If the alternatives proposed for the Montreal Protocol do not achieve the efficiency, safety, and the high ambient temperature requirements for KSA, we may lose the results of our efforts so far

29. Thank you