Jeddah: Top oil exporter Saudi Arabia plans to cut up to 40 per cent of its energy use, largely by channelling investment to improve insulation, its water and power minister said on Saturday.
Power demand in the top crude oil producer is rising at an annual rate of 8 per cent, requiring investments of close to $80 billion (Dh293.77 billion) by 2018.
Without reducing the rate of energy consumption, the kingdom could see oil available for export drop some 3 million barrels per day (bpd) to less than 7 million bpd in 2028, Khalid Al Falih, the chief executive of state oil firm Saudi Aramco had warned last year. "Insulation in homes is expected to lower energy consumption by 40 per cent," the power minister said yesterday.
"Now it will be mandatory and we are working on implementing it," he said, giving no timeframe.
Air-conditioners
He added that air-conditioners make up for 70-80 per cent of energy used in the country.
The kingdom has established the King Abdullah City For Atomic and Renewable Energy (KA-CARE) to diversify its energy mix and reduce its dependence on fossil fuels domestically that it would rather export.
