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The Kingdom of Saudi Arabia (KSA) is blessed with an abundance of energy resources. This has allowed the government to keep energy prices low through a system of direct and indirect subsidies. The nation has benefited greatly from these policies, but together with increased prosperity and sophistication, a culture of wasteful energy usage has become established. KSA already uses much more energy per capita than other countries at similar stages of development, and the rapidly increasing demand due to the pace of economic and social development means its energy sector must urgently provide additional capacity.

Substantial reductions in energy consumption, and therefore to the required additional capacity, can be achieved by improving energy efficiency. Measures include reducing peak demand, applying modern cogeneration technologies, and establishing a national culture of responsible energy usage. The energy efficiency market in KSA is estimated to be worth billions of Saudi Riyals, and although the government has done much to promote energy conservation, much still needs to be done to identify and overcome the many technical and institutional barriers – this is where the National Energy Efficiency Program (NEEP) comes in.

NEEP’s task is to find ways in which to reduce existing energy demand, to reduce the rate of increase in energy demand, and to provide sustainable alternatives to building additional energy generation capacity. An additional requirement is to encourage sensitivity to local and global environmental protection issues.

With the support of international, governmental, and commercial agencies, NEEP is promoting a variety of energy efficiency and conservation measures. It is working from both supply and demand sides, and is targeting consumers, commerce, and industry. Its activities range from consumer appliances to industrial boilers, from time-of-use tariffs to private sector investments, from management training to drafting policies and regulations.

NEEP is also committed to providing up-to-date information about all aspects of energy efficiency to meet everyone’s needs, be they shopper or industrialist, minister or student.

All activities are based on national needs and take energy sector reform and restructuring into account. Each activity has detailed but flexible work plans with measurable outputs. Implementation is incremental, so that at the end of each stage, progress can be monitored, results evaluated, and information disseminated. Only technologies and practices proven under conditions similar to those in KSA will be applied.