Industry sector

Introduction 

The industry sector consumes 47% of the primary energy in KSA, and the iron, petrochemical and cement industries account for the lion's share of the energy consumption in this sector that reaches to 70%, in this context the efforts and initiatives focused on the areas of basic industries, in full cooperation and coordination with the relevant government agencies such as ministries, authorities, and institutions in addition to large national companies and benefit from the international experiences in this field:

 

Consumption rate

Number of Companies

Number of Production processes number

Number of Factories and production lines

Industry

6%

15

2

30

Cement

2%

3

2

14

Iron and steel

62%

10

54

132

Petrochemical

 

Energy Auditing and Management in Factories

SEEC seeks to have a strategy to modify and raise the efficiency of energy consumption in factories, using systems and procedures, which is known as the concept of energy auditing and management inside it, in order to decrease the requirements of the energy consumption for each unit of productions units inside factories.

 

The Most Important Challenges faced energy efficiency efforts in the industrial sector in KSA

  • Lack of specific objectives to improve the level of energy efficiency (formerly) in the existing factories which lead to exacerbating energy consumption in it.
  • Absence of requirements of energy efficiency upon issuing the licenses to new factories, since the objective of energy efficiency in the industrial sectors included in the industry must be achieving the levels of energy efficiency to the average of first quarter of the international standards applicable in the year of factory design.
  • Lack of measurement of the pervious status of the production quantities and energy consumption.
  • Low prices of fuel and electricity, that resulted in ignoring the energy efficiency when purchasing industrial equipment and devices.
  • Limited experience in energy efficiency, and a lack of experience and trained skills in the field of energy efficiency due to the lack of focus on this area in the past.
  • Lack of usage of new techniques in the old factories, many of which are still working on these low technologies compared to the rate of energy efficiency.
  • Lack of internal policies of energy efficiency in the factories, few companies adopt internal polices related to energy efficiency.

In general, there are shortcomings in the government legislations required for monitoring and encouraging the energy efficiency programs in the industrial sector.  

Other activities contribute to improve the energy efficiency

  • SEEC is currently working on developing support program to apply the ISO 50001 standards in KSA, which is a standard concerned with establishing, implementing, maintaining and improving energy management system to support the continuous improvement of the energy performance, including energy efficiency, energy safety, and energy consumption, as this program will provide supporting toolkit to the industrial companies on implementation of ISO 50001 in the Saudi industry.
  • Activate the energy efficiency initiatives for the electrical engines, boilers and heat exchangers.

The spread of high efficiency engines in the Kingdom of Saudi Arabia faces several constraints and problems such as lack of regulatory framework, limited market data availability, lack of engine efficiency policies among end users, so the center works on activating energy efficiency initiatives in these engines as well as solve the existing problems and challenges face these industries, most notably:

  • Lack of energy efficiency standards
  • There is no classification for this equipment
  • There is no count for the imported equipment or locally manufactured equipment.

Objectives of industrial sector

  • Implement the framework of existing and new factories.
  • Expand the scope of work for existing and new factories to include the aluminum sector, in addition to starting to study a number of other sectors, designing and implementing a mechanism for a number of new industrial sectors.
  • Develop the supporting infrastructure to help companies execute and implement the ISO 50001 Energy Management System
  • Follow the application of the minimum energy efficiency standards for electric engines.
  • Design and implement an initiative to improve the efficiency of feedstock use in the manufacturing.

Rationalization of energy consumption in the industrial sector

SEEC‎ has cooperated with a number of government agencies to develop an eco-system in the view of obliging companies operating in the iron, cement or petrochemical industry to comply with energy efficiency standards and requirements established by SEEC. The relevant authorities have been identified and selected, as their bylaws and legislative regulation can be utilized to activate their roles in the binding mechanism of factories through:

  • Submitting an action plan for each factory explaining how to increase energy consumption.
  • Providing SEEC with the required energy efficiency information annually.

In this regard, SEEC has developed an Energy Reporting System website aiming at collecting energy efficiency data annually from companies and energy vendors, and working to issue annual reports for the listed factories that explain their annual performance, track progress in this field, and identify any potential problems.

  • Realize energy efficiency levels targeted in 2019.
  • Develop standards and requirements necessary for new factories, which can be identified through