المملكة: "Energy efficiency"..6 controls to enhance the performance of electricity generation facilities

The Saudi Energy Efficiency Center has proposed the regulatory framework Reducing waste and improving the efficiency of operation and production, and enhancing sustainability in the energy sector.

The Center indicated that the new regulatory framework applies to a group of vital activities within the utility sector, which include electricity generation and co-production, seawater desalination, electricity transmission and distribution, and any other scope that will be included later by decision of the Center’s Board of Directors, as required by technical and regulatory developments.

Energy efficiency targets in the utilities sector

The Center stated that energy efficiency targets will be It is calculated on two main levels: the first relates to electricity generation stations and units, cogeneration and seawater desalination, and the second relates to electricity transmission and distribution networks.

He stressed that all existing stations and units are obligated to achieve the targets and standards that the Center will issue in accordance with detailed regulations and instructions during the specified regulatory cycle.

With regard to the method of calculating the targets, the Center explained that they differ depending on the activity, and are as follows:

• In electricity generation and cogeneration plants, the target will be efficiency. Thermal equivalent, measured in British thermal units per kilowatt hour.
• In seawater desalination plants, efficiency is measured based on Energy consumption per cubic meter of desalinated water, in kilowatt-hours per cubic meter.
• As for transmission and distribution networks, the target will be calculated based on the percentage of energy loss sent on the network, measured as a percentage representing the difference between sent and sold energy.

Requirements for commitment to energy efficiency

The Saudi Energy Efficiency Center confirmed that compliance with the targets requires companies operating in the utilities sector to provide the center with accurate data And up-to-date, including the names of station representatives at the technical and administrative levels, in addition to providing it annually with energy efficiency data for stations, units, and networks with the required quality.

The commitment includes the necessity of cooperating with the center’s measurement and verification teams during field visits, and submitting an annual work plan outlining the measures the company will take to improve energy efficiency in its facilities.
Companies are also required to submit supporting documents and technical reports upon request, in addition to submitting to requirements for data auditing and reviewing it periodically.

As for new projects, any initial design for new stations or units within existing stations will be subject to prior review by the center, which will issue a “Initial Design Review” certificate." As a basic condition before the start of the detailed design phase.

After completing the detailed design, companies must submit it to the center to obtain the final approval certificate. The final designs of the stations will also be reviewed before the start of implementation to ensure full compliance with the requirements and standards for energy efficiency determined by the center.

Flexibility mechanism to achieve efficiency

The center indicated the adoption of the flexibility mechanism to evaluate performance and achieve efficiency at the corporate level, explaining that this mechanism is based on calculating the surplus or deficit in efficiency at the level of operational units.

Units that achieve better performance than the target record “savings.”"while the lowest performing units record a “deficit.”"

The performance results of all units affiliated with the company are then collected to determine the extent to which the company has achieved the general target, so that the company is considered committed if it is able to achieve the required total savings even if some units do not achieve the individual targets.

Settlement mechanism in the event of external factors

The Center stated that if there are external factors that negatively affect the efficiency of the stations, the settlement mechanism will be applied in accordance with the controls and regulations determined by the Centre.

This mechanism is used when the company does not achieve the targets despite Applying the flexibility mechanism, provided that the decrease in efficiency is the result of circumstances beyond the company’s control, such as emergency breakdowns or unexpected environmental or operational conditions.

In this case, the Center evaluates the negative impact and excludes it from the company’s final performance in the target year, ensuring fairness of the evaluation.

Mitigation mechanism and special case studies

In the event that some companies are unable to achieve energy efficiency targets even after applying the flexibility and settlement mechanisms, the Center clarifies that these companies have the right to submit official requests to implement the mechanism Mitigation.

These requests must include the reasons for not achieving the targets, along with submitting economic and technical feasibility studies proving the futility of achieving the proposed targets.

The Center requires companies wishing to benefit from this mechanism to have exhausted all possible solutions, whether capital or non-capital, and to be committed to operating and maintenance instructions in accordance with the recommendations of equipment manufacturers.

They must provide the Center with all supporting documents to prove their efforts to improve performance.

If these conditions are met, the Center will study the impact on the stations’ performance and consider the extent to which the targets have been achieved at the company level as a whole, in preparation for implementing the mitigation mechanism in accordance with the specified controls.

Dealing with non-compliant companies

The Saudi Energy Efficiency Center stressed that companies’ non-compliance with efficiency targets and requirements is sufficient reason to take regulatory measures against them, indicating that violating companies will be subjected to specific measures by the relevant authorities in accordance with the relevant regulations and instructions.

The Center reserves the right to take any additional measures it deems appropriate to ensure the achievement of energy efficiency goals, within its statutory powers and in coordination with the relevant government agencies, while notifying companies sufficiently in advance before applying any measure.

The Center confirmed at the conclusion of the regulatory framework that all provisions and texts contained are subject to the interpretation of the Center exclusively, as it is the final authority in this regard, especially in the event of any conflict with other regulatory documents.

He clarified that the application of this framework does not exempt utility sector companies from Commitment to other laws and regulations in force in the Kingdom, and that the new framework takes effect after its official approval and cancels any previous frameworks and regulations issued by the Center that conflict with it.

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