The National Energy Services Company (Tarshid) has signed a contract with Saudi Arabia Railways (SAR) to implement comprehensive energy efficiency measures across SAR’s headquarters and the buildings and facilities at Riyadh North Station, marking a pioneering initiative in the Kingdom’s private, logistics, and transportation sectors. Announced on December 18, 2024, via the Saudi Press Agency, the agreement aims to align with Saudi Vision 2030 and the Saudi Green Initiative by applying sustainable and low-carbon energy solutions.
Context and Background
Tarshid, established under the umbrella of Saudi Arabia’s energy efficiency drive, is tasked with spearheading retrofitting projects across the Kingdom. This collaboration with SAR, the national railway operator, is the first of its kind within the logistics and transportation sector, signaling a broader push to integrate sustainability into critical infrastructure. The project supports the goals of Vision 2030 by reducing energy consumption and carbon emissions, key pillars of the Kingdom’s environmental ambitions.
Key Details of the Project
The retrofit project is estimated to achieve annual energy savings of approximately 7 GWh, accumulating to 105 GWh over its lifespan. Specific measures include installing a chiller control system and variable speed drives for chilled water pumps, implementing a control system for air handling units and exhaust fans integrated with the central cooling plant, and deploying solar panels on rooftops across the project’s buildings and facilities. Upgrades also include high-performance LED lighting systems along with occupancy sensors and motion detectors throughout SAR’s headquarters and Riyadh North Station.
Board Member and CEO of Tarshid Waled Al-Ghreri stated: “At Tarshid, we are committed to achieving the goals of Saudi Vision 2030 by increasing energy efficiency and promoting sustainability through strategic partnerships with both public and private sectors. Our collaboration with SAR aims to deliver measurable energy efficiency improvements and enhance operational performance. We look forward to establishing SAR as a benchmark for energy efficiency within the logistics and transportation sector.”
Environmental and Economic Impact
The project is set to improve air conditioning and lighting performance while significantly reducing environmental impacts. It is expected to save over 168,000 barrels of oil and avoid approximately 60,000 metric tons of carbon emissions, equivalent to planting more than one million seedlings over the project’s duration. These figures underscore the tangible benefits of such retrofitting initiatives in supporting the Kingdom’s sustainability goals while lowering operational costs for the transportation sector.
Vision 2030 Alignment
Tarshid continues to support the Kingdom’s strategic sustainability objectives under Vision 2030 by advancing energy-saving measures and reducing carbon emissions. This partnership with SAR represents a concrete step toward building a more sustainable and efficient infrastructure network, contributing to the broader vision of a diversified and resilient economy. As Saudi Arabia accelerates its green transition, such projects position the Kingdom as a regional leader in energy efficiency and environmental stewardship.
20 Questions
Q1. What is the main purpose of the contract between Tarshid and SAR?
A1. The contract aims to implement energy-saving measures and enhance energy efficiency across SAR’s headquarters and Riyadh North Station, supporting Saudi Vision 2030 and the Saudi Green Initiative.
Q2. When was the contract announced?
A2. The contract was announced on December 18, 2024, via the Saudi Press Agency.
Q3. What is Tarshid?
A3. The National Energy Services Company (Tarshid) is a Saudi entity focused on energy efficiency and retrofitting projects to reduce consumption and emissions.
Q4. What is SAR?
A4. Saudi Arabia Railways (SAR) is the national railway operator responsible for passenger and freight services across the Kingdom.
Q5. What types of buildings are covered in the project?
A5. The project covers SAR’s headquarters building and the buildings and facilities of SAR’s Riyadh North Station.
Q6. What are the estimated annual energy savings?
A6. The project is estimated to achieve annual energy savings of approximately 7 GWh.
Q7. What are the total energy savings over the project’s lifespan?
A7. Cumulative energy savings over the project’s lifespan are estimated at 105 GWh.
Q8. What energy-saving technologies will be installed?
A8. Technologies include a chiller control system, variable speed drives, control systems for air handling units, solar panels, LED lighting, and occupancy sensors.
Q9. Where will solar panels be installed?
A9. Solar panels will be installed on rooftops across the project’s buildings and facilities.
Q10. What did Tarshid CEO Waled Al-Ghreri say about the partnership?
A10. He said Tarshid is committed to Vision 2030 goals and that the collaboration aims to make SAR a benchmark for energy efficiency in logistics and transportation.
Q11. How will the project improve lighting performance?
A11. It will upgrade to high-performance LED lighting systems with occupancy sensors and motion detectors.
Q12. How many barrels of oil are expected to be saved?
A12. Over 168,000 barrels of oil are expected to be saved over the project’s duration.
Q13. How much carbon emissions will be avoided?
A13. Approximately 60,000 metric tons of carbon emissions will be avoided.
Q14. What is the tree-planting equivalent of the emissions reduction?
A14. The avoided emissions are equivalent to planting more than one million seedlings over the project’s duration.
Q15. Why is this project considered a first of its kind?
A15. It is the first such agreement within the Kingdom’s private, logistics, and transportation sectors.
Q16. How does the project support Vision 2030?
A16. It advances energy-saving measures and reduces carbon emissions, aligning with Vision 2030’s sustainability and economic diversification goals.
A17. It supports the Saudi Green Initiative by applying sustainable and low-carbon energy solutions.
Q18. What is the role of SAR in this project?
A18. SAR is the recipient of the energy efficiency upgrades, enabling it to serve as a benchmark for other transportation entities.
Q19. Will the project affect operational performance at SAR?
A19. Yes, it is expected to enhance operational performance by improving air conditioning and lighting systems.
Q20. How does Tarshid contribute to the Kingdom’s sustainability objectives?
A20. Tarshid leads energy-saving retrofits through strategic public-private partnerships, directly supporting the Kingdom’s Vision 2030 sustainability targets.
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