This study suggests that energy efficiency programs in buildings can provide up to a 27 percent reduction in electricity consumption and a 30 percent reduction in peak electricity demand for Saudi Arabia. It is well recognized, however, that given the low electricity prices in Saudi Arabia there is little incentive for households and businesses to invest in energy efficiency. On the other hand, when system-wide benefits of energy efficiency investments are included their value is much higher, especially from the government’s perspective. These wider benefits include the reduced need for new electricity generation capacity investment, reduced carbon emissions and new employment opportunities.
