Public Investment Fund, Riyadh, Saudi Arabia, established a new energy services company to increase energy efficiency across government and other public buildings.
By royal decree, all government entities must contract with the new company, Super Esco, on an exclusive basis to improve energy savings across public buildings and facilities, said a news release from the sovereign wealth fund.
Super Esco has been established with 1.9 billion Saudi riyals ($506 million), and forms part of Vision 2030, which aims to diversify the economy and drive environmental sustainability of the Saudi kingdom.
Super Esco, in partnership with the Ministry of Energy, Industry and Mineral Resources; the Ministry of Finance; and the Saudi Energy Efficiency Center, will provide new investment opportunities by creating partnerships with the private sector to complete projects, the release said. Super Esco will fund and manage the retrofit of government and other public buildings, which represent more than 70% of projects in the sector.
Projects in Saudi Arabia's energy-efficiency sector are valued at an estimated 42 billion riyal, equating to about 3 billion riyal globally. The sector globally is valued at 130 billion riyal, with projects in the U.S., Europe and China accounting for 90% of total share.
PIF has $183 billion in assets, according to the Sovereign Wealth Fund Institute. Spokesmen could not be reached for comment be press time.