Role of Energy Services Companies in Promoting Energy and Environmental Sustainability in the GCC Region

EasyChair Preprint 15234

Abstract

Energy Service Companies (ESCOs) play a vital role in enhancing energy efficiency and environmental sustainability in the oil-rich, Gulf Cooperation Council (GCC) region. With high energy demand and abundant fossil fuel resources, the GCC faces sustainability challenges that ESCOs address by offering tailored energy solutions to public and private sector entities. Globally, the ESCO market has shown significant growth, with China commanding a dominant share and the US experiencing steady revenue growth between 2014 and 2018. Conversely, the ESCO market in Europe has seen relatively less development. This research adopts a literature review methodology to analyze ESCO practices, challenges, trends, and overviews within the GCC. Super-ESCOs like Etihad and Tarshid ESCO lead energy efficiency initiatives in Dubai and Saudi Arabia, respectively, reflecting a regional change towards sustainability. In the GCC, ESCOs face obstacles such as Lack of awareness, funding limitations, complex contracts, and client hesitancy, etc. Despite challenges, initiatives like Dubai's Etihad, Saudi Arabia's Tarshid, Ras Al-Khaimah’s RAK, Sharjah’s SEWA, Oman’s APSR, and Abu Dhabi’s ADES Energy Service’s ESCOs demonstrate tangible energy savings and CO₂ reductions. This study aims to provide insights into ESCO dynamics, identify barriers, and highlight the importance of ESCOs in advancing energy efficiency in the GCC. Also, it reveals the critical role of ESCOs in addressing sustainability challenges and advancing energy diversification in the region.

Keyphrases: ESCOs in GCC region, Greenhouse gases., Sustainability, energy efficiency, renewable energy

@booklet{EasyChair:15234,
  author    = {Syed Ilyas and Muhammad Asif},
  title     = {Role of Energy Services Companies in Promoting Energy and Environmental Sustainability in the GCC Region},
  howpublished = {EasyChair Preprint 15234},
  year      = {EasyChair, 2024}}