
5
Residential Energy Model for Evaluating Energy Demand and Energy Efciency Programs
in Saudi Residential Buildings
Introduction
Residential buildings dominate the demand
side of the electricity sector in Saudi Arabia.
From 2009 to 2018, homes accounted for
around 50% of total electricity consumption in the
Kingdom, far more than commercial or government
structures (SAMA 2019). Due to the hot climate,
air conditioning (AC) alone comprised 64% of
household electricity use as of 2019.
Until several years ago, residential electricity
consumption grew swiftly alongside the country’s
steadily expanding housing stock. From 2007 to
2018, household electricity use increased 45%,
driven by a 73% rise in housing units (SAMA 2019).
However, the two trends have since diverged.
Housing demand, especially from younger
segments of the population, has continued to climb,
to the extent that in early 2020, the Ministry of
Housing launched an initiative to develop 200 million
square meters of new residential projects around the
country (Al Riyadh 2020). Yet since 2016, electricity
consumption growth has decelerated signicantly
across all sectors, including residential buildings,
largely due to government efforts to reform the
energy sector and rationalize electricity markets.
These have resulted in higher consumer electricity
prices and increased energy efciency, depressing
demand.
Over the last two decades, the government
has gradually introduced stricter standards and
regulations to curb energy consumption in the
building sector. Since 2001, the authorities have
implemented and regularly updated minimum
energy performance standards (MEPs) for
refrigerators, freezers, washing machines, and air
conditioners (SASO 2012, 2013, 2014b, 2018a,
2018b, 2018c, 2018d). In 2010, the government
established the Saudi Energy Efciency Center
(SEEC), which “aims to rationalize and increase the
energy efciency in production and consumption
in order to preserve the [Kingdom of Saudi Arabia]
KSA natural resources and enhance the economic
and social welfare of KSA population” (SEEC 2020).
Regulators also adopted new thermal requirements
in 2014 to improve the energy performance of new
residential buildings. However, the energy efciency
of buildings in Saudi Arabia remains low, partly due
to the difculty of enforcing regulations (Alrashed
and Asif, 2014; Shenashen, Alshitawi, and Almasri
2016; Krarti, Dubey, and Howarth 2017).
Energy efciency retrots can decrease both fuel
consumption and the need for electricity generation
capacity, potentially making them very cost-effective
investments. Given their modest upfront costs and
high rates of return, targeted energy efciency
programs will often prove attractive for households
and businesses. Krarti, Dubey and Howarth (2017)
found that Saudi Arabia has signicant potential
for energy savings through energy efciency
requirements, not only in new construction, but
also through retrotting energy systems in existing
buildings. Their study estimates that in 2014, a
nationwide retrot program that included AC and
insulation for Saudi Arabia’s existing building stock
could have saved over 100 terawatthours per year
(TWh/year), or 25% of the Kingdom’s total electricity
consumption, and reduced its peak demand by 25
gigawatts (GW), or 27%.
This paper describes the methodological
underpinnings of the Residential Energy Model
(REEM) from the perspective of assessing the
economic and environmental benets of retrotting
Saudi Arabia’s existing residential building stock.
Our analysis considers the impacts of a wide range
of energy efciency measures (EEM) on both
energy consumption and peak demand, for 54
prototypes of residential buildings dened by type,
vintage, and location (climatic zone). The remainder
of the paper is organized as follows. The rst section