Saudi sovereign wealth fund forms $507m-worth ESCO
Public Investment Fund has established Super Esco, which will fund and manage the retrofit of government and public-sector buildings in the kingdom
Saudi Arabia's Public Investment Fund (PIF) announced it has established an energy services company (ESCO).
The sovereign wealth fund's firm, Super Esco, was established with capitalisation worth $507m (SAR1.9bn).
Super Esco will work with the kingdom's Ministry of Energy, Industry, and Mineral Resources; Ministry of Finance; and the Saudi Energy Efficiency Centre, to create partnerships with the private sector.
The firm will fund and manage the retrofit of government and public-sector buildings in the kingdom.
"These projects will help reduce government spending [in] the electricity sector, which will in turn reduce natural resource consumption while rationalising capital investments in expansion projects for the production, generation, transmission, and distribution of electricity," according to a report published by the kingdom's state news agency, SPA.
PIF will leverage the growth prospects of energy efficiency in the kingdom, a sector with projects estimated to be worth $800m (SAR3bn) annually.
According to PIF, the sector is internationally valued at $34.7bn (SAR130bn), with developments in the US, Europe, and China reportedly accounting for 90% of the global market share.