The National Energy Services Company (Tarshid) has launched a comprehensive energy efficiency retrofitting project at Imam Abdulrahman Al Faisal Hospital in Riyadh, a initiative set to cut energy consumption across 13 hospital buildings by 30 percent. Announced via the Saudi Press Agency on November 18, 2024, the project covers a total built area of 27,000 square meters and represents a significant step in the Kingdom’s efforts to modernize public infrastructure while advancing its sustainability goals. The program will replace aging cooling systems, install advanced control technologies, and upgrade lighting across the hospital’s facilities, all in line with best-in-class international standards.
For a capital city that serves millions of residents and visitors, the efficient operation of major healthcare facilities is not merely a technical matter but a public health priority. Hospitals operate around the clock, consuming vast amounts of electricity for cooling, ventilation, lighting, and medical equipment. By targeting these energy loads, Tarshid aims to demonstrate that sustainability and high-quality patient care can go hand in hand. The project also signals a broader national push to embed energy efficiency into the fabric of Saudi Arabia’s public sector, reducing operational costs and environmental impact simultaneously. How often do we consider that the hospitals treating our illnesses can also help heal the environment?
Context and Background
Why does a hospital in Riyadh matter to the global conversation on energy efficiency? Because healthcare facilities are among the most energy-intensive buildings in any modern city. Imam Abdulrahman Al Faisal Hospital, a well-known medical institution in the Saudi capital, operates continuously and requires reliable power for climate control, sterilization, diagnostic imaging, and life-support systems. Over time, such facilities accumulate legacy equipment that, while functional, may no longer meet optimal efficiency benchmarks. Tarshid’s intervention addresses this challenge head-on through a structured retrofitting program that begins with detailed on-site surveys and technical studies.
Tarshid, established in 2017, has quickly become the leading company in Saudi Arabia’s energy services sector. Its mandate encompasses promoting energy and operational efficiency as well as renewable energy solutions across government, commercial, and industrial buildings. The company operates under the umbrella of the Kingdom’s broader energy transformation strategy, which seeks to reduce domestic consumption of fossil fuels and free up resources for export and value-added industries. By focusing on the public sector first, Tarshid is building a track record that can be replicated across diverse building types and regions.
The Imam Abdulrahman Al Faisal Hospital project is not an isolated pilot but part of a systematic effort. Tarshid’s Managing Director and CEO, Waled bin Abdullah Al-Ghreri, explained in a press release that the company identified 11 key areas for energy efficiency measures following comprehensive audits. These areas focus on heating, ventilation, and air conditioning (HVAC), lighting, and control systems. The hospital’s size—13 buildings spanning 27,000 square meters—makes it a substantial test case for how large healthcare campuses can be transformed without disrupting medical services. What does it take to retrofit a working hospital while patients continue to receive care? The answer lies in meticulous planning and phased implementation.
Key Details of the Retrofitting Program
What exactly will change inside these hospital buildings? The project’s technical scope is both broad and precise. Tarshid will replace existing chillers and several split and packaged air conditioning units with more energy-efficient models. Chillers are typically the largest single energy consumers in commercial and institutional buildings, especially in hot climates like Riyadh, where cooling demand peaks for much of the year. Upgrading these units alone can yield substantial savings. In addition, the project entails installing control systems for air conditioning units, chilled water pumps, air handling units, and cooling fans. These controls optimize operation based on real-time demand rather than running at constant speeds.
A building management system (BMS) will be installed to centralize monitoring and control of the hospital’s mechanical and electrical systems. Occupancy sensors in rooms and clinics will ensure that lighting and ventilation are adjusted when spaces are empty, avoiding waste. Furthermore, the project will retrofit existing lighting with high-performance, energy-saving LED systems. LED technology not only consumes less electricity but also produces less heat, which in turn reduces the load on cooling systems—a beneficial feedback loop. Together, these measures aim to reduce annual electricity consumption from approximately 11 million kilowatt-hours to 7.8 million kilowatt-hours, achieving the targeted 30 percent energy savings.
The environmental impact of these savings is tangible. The reduction equates to conserving over 5,000 barrels of oil equivalent and avoiding approximately 2,000 metric tons of harmful carbon emissions. To put that in perspective, it is equivalent to planting more than 32,000 seedlings annually. Such figures illustrate how targeted efficiency measures in a single institution can contribute meaningfully to national climate goals. The project also promises to improve the performance and reliability of air conditioning and lighting equipment, which can enhance the comfort and safety of patients, staff, and visitors. Who wouldn’t want a hospital that is both greener and more comfortable?
International and Regional Impact
How does a hospital retrofit in Riyadh resonate beyond Saudi borders? Energy efficiency is a global priority, and countries around the world are watching how large economies manage their transition. Saudi Arabia’s efforts align with international frameworks such as the Paris Agreement and the Sustainable Development Goals, particularly those related to affordable and clean energy, sustainable cities, and climate action. By demonstrating that significant savings are achievable in complex facilities, Tarshid provides a model that other nations in the region—many of which share similar climate and infrastructure challenges—can study and adapt.
Regional cooperation on energy efficiency is growing, and Saudi Arabia is positioning itself as a leader. The Kingdom’s experience with Tarshid could inform similar programs in neighboring Gulf states, where cooling demand and public building stocks are comparable. Moreover, international companies specializing in energy services, HVAC equipment, and building automation may find opportunities to partner with Saudi firms as the retrofitting market expands. The project also contributes to Saudi Arabia’s reputation as a responsible global citizen, committed to reducing emissions while maintaining economic growth. In a world where climate action is increasingly scrutinized, such concrete projects speak louder than pledges.
Economic and Strategic Significance
Why should economists and business leaders pay attention to energy efficiency in hospitals? Because every kilowatt-hour saved is a cost avoided. For government-run facilities, reduced electricity bills translate into fiscal savings that can be redirected to patient care, medical equipment, or staff training. At a time when Saudi Arabia is diversifying its economy and optimizing public spending, efficiency gains are a strategic asset. The project also supports the growth of a domestic energy services industry, creating skilled jobs in auditing, engineering, installation, and maintenance. Tarshid’s role as a catalyst helps build local expertise that can be exported over time.
From a macroeconomic perspective, reducing domestic energy consumption supports the Kingdom’s goal of freeing up hydrocarbon resources for higher-value uses, including petrochemicals and export. It also aligns with the Circular Carbon Economy approach championed by Saudi Arabia, which emphasizes reducing, reusing, recycling, and removing carbon emissions. The hospital project is a small but replicable example of how the public sector can lead by example. As more entities adopt similar measures, the cumulative impact on national energy intensity and carbon footprint will grow. What could be more strategic than saving money while saving the planet?
Vision 2030 Alignment
How does this hospital project fit into the grand tapestry of Saudi Vision 2030? Vision 2030 is not only about economic diversification and social reform; it also encompasses sustainability, quality of life, and government efficiency. Tarshid’s mission aligns directly with these objectives by promoting energy and operational efficiency and renewable energy. The retrofitting of Imam Abdulrahman Al Faisal Hospital contributes to the Vision’s environmental sustainability goals, including the reduction of carbon emissions and the optimization of energy use. It also supports the health sector’s transformation by improving the infrastructure of a key medical facility, indirectly enhancing patient experience and operational resilience.
Furthermore, the project exemplifies the Vision’s emphasis on public-private collaboration and innovation. Tarshid operates as a national champion, working with government ministries and agencies to implement best practices. Each successful project builds confidence and encourages wider adoption. As Saudi Arabia continues its journey toward a more sustainable and diversified future, initiatives like this one demonstrate that the Kingdom is not just setting targets but executing them on the ground. The 30 percent energy reduction at this hospital is a measurable step toward a greener, more efficient Saudi Arabia—a goal that benefits every citizen and resident. In the end, what greater vision is there than building a healthier, more prosperous, and sustainable nation for generations to come?
20 Questions
Q1. What is the main purpose of the Tarshid project at Imam Abdulrahman Al Faisal Hospital?
A1. The project aims to implement a comprehensive energy efficiency retrofitting program across the hospital’s buildings in Riyadh, targeting a 30 percent reduction in energy consumption and improved performance of air conditioning and lighting systems.
Q2. How many buildings and what total area will be covered by the retrofitting?
A2. The program covers 13 buildings with a total area of 27,000 square meters, all located within the Imam Abdulrahman Al Faisal Hospital campus in Riyadh, Saudi Arabia.
Q3. What specific energy efficiency measures will be implemented?
A3. Measures include replacing chillers and split/packaged AC units, installing control systems for AC units, chilled water pumps, air handling units, and cooling fans, adding a building management system and occupancy sensors, and retrofitting lighting with LED systems.
Q4. Who is the CEO of Tarshid and what did he say about the project?
A4. Waled bin Abdullah Al-Ghreri, Managing Director and CEO of Tarshid, stated that after comprehensive surveys and technical studies, Tarshid identified 11 key areas for energy efficiency measures, focusing on HVAC, lighting, and control systems.
Q5. How much will annual electricity consumption be reduced?
A5. Annual electricity consumption is expected to drop from approximately 11 million kilowatt-hours to 7.8 million kilowatt-hours, representing a 30 percent reduction and significant operational savings for the hospital.
Q6. What is the environmental impact of the project in terms of oil equivalent and carbon emissions?
A6. The reduction equates to conserving over 5,000 barrels of oil equivalent and avoiding approximately 2,000 metric tons of harmful carbon emissions annually, equivalent to planting more than 32,000 seedlings each year.
Q7. When was Tarshid established and what is its role in Saudi Arabia?
A7. Tarshid was established in 2017 and has become the leading company in Saudi Arabia’s energy services sector, promoting energy and operational efficiency as well as renewable energy across various building types.
Q8. How does this project align with Saudi Vision 2030?
A8. It aligns with Vision 2030’s sustainability goals by achieving significant energy savings and reducing carbon emissions, supporting the Kingdom’s strategic objectives for environmental stewardship and economic diversification.
Q9. What are the 11 key areas identified by Tarshid for energy efficiency measures?
A9. While the full list is not detailed in the release, the focus areas include HVAC systems, lighting, and control systems, which are typically the largest energy consumers in hospital buildings.
Q10. Will the project disrupt hospital operations during implementation?
A10. Tarshid’s phased approach and detailed planning are designed to minimize disruption. Retrofitting is typically scheduled to avoid interfering with critical medical services and patient care.
Q11. What is a building management system and why is it being installed?
A11. A building management system centralizes monitoring and control of mechanical and electrical systems, optimizing energy use in real time. It is being installed to ensure sustained efficiency gains.
Q12. How do occupancy sensors contribute to energy savings?
A12. Occupancy sensors detect when rooms and clinics are empty and adjust lighting and ventilation accordingly, preventing unnecessary energy consumption in unoccupied spaces.
Q13. What are the benefits of replacing old chillers with energy-efficient models?
A13. Chillers are major energy consumers, especially in hot climates. Newer models use less electricity to provide the same cooling, reducing both costs and carbon emissions significantly.
Q14. How does LED lighting retrofitting help beyond reducing electricity use?
A14. LEDs produce less heat than traditional lighting, which reduces the load on air conditioning systems, creating a compounding energy-saving effect and improving overall building comfort.
Q15. What does the term ‘barrels of oil equivalent’ mean in this context?
A15. It is a unit of energy that expresses the amount of oil that would be needed to produce the same energy. Saving 5,000 barrels means less oil is consumed for electricity generation.
Q16. How does this project contribute to Saudi Arabia’s climate goals?
A16. By avoiding 2,000 metric tons of carbon emissions annually, the project supports the Kingdom’s commitments under international agreements and its own sustainability targets.
Q17. Are there similar Tarshid projects elsewhere in Saudi Arabia?
A17. Tarshid has implemented numerous energy efficiency projects across government, commercial, and industrial buildings in Saudi Arabia, contributing to a nationwide reduction in energy intensity.
Q18. What economic benefits does the hospital expect from the retrofit?
A18. The hospital will benefit from lower electricity bills, improved equipment reliability, and reduced maintenance costs, allowing more resources to be directed toward patient care and medical services.
Q19. How does this project support the growth of Saudi Arabia’s energy services sector?
A19. It creates demand for skilled professionals in energy auditing, engineering, and installation, helping to build a local workforce and expertise that can serve future projects.
Q20. What is the long-term vision for energy efficiency in Saudi Arabia’s public sector?
A20. The long-term vision is to embed energy efficiency as a standard practice across all public facilities, reducing costs and emissions while enhancing service quality and supporting Vision 2030’s sustainability objectives.
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