The interactions between residential electricity consumption and the power sector within an economic equilibrium framework: A look at energy efficiency in Saudi Arabia

摘要

Energy efficiency in buildings has garnered significant attention in Saudi Arabia. This paper outlines the potential benefits that could have been realized by the local utilities in 2011 as a result of more efficient households. To quantify the benefits, we designed an integrated methodology in which an engineering-based residential electricity demand model is used within an economic equilibrium framework. The modeling approach allows us to capture the structural changes that could occur in the economy beyond the end-consumers. Raising the average air-conditioner energy efficiency ratio (EER) to 11 BTU/(W hour) from its 2011 average would have resulted in a 225-thousand-barrels-per-day reduction in crude oil burned for electricity generation. Alternatively, increasing the share of insulated homes from 27% to 64% would have allowed the power sector to lower its use of the fuel by 158 thousand barrels per day. Combining both measures in a single simulation yields incremental yet not additive reductions. All alternative scenarios result in reduced costs to the utilities and improve the average thermal efficiency for the electricity generated. The studied efficiency options mitigate electricity consumption during the peak load segment when the least efficient turbines are used. We additionally show how efficiency improvements in end-uses can cause other sectors in the economy to also become more efficient.