Saudi Arabia's Public Investment Fund (PIF) announced it has established an energy services company (ESCO).
The sovereign wealth fund's firm, Super Esco, was established with capitalisation worth $507m (SAR1.9bn).
Super Esco will work with the kingdom's Ministry of Energy, Industry, and Mineral Resources; Ministry of Finance; and the Saudi Energy Efficiency Centre, to create partnerships with the private sector.
The firm will fund and manage the retrofit of government and public-sector buildings in the kingdom.
"These projects will help reduce government spending [in] the electricity sector, which will in turn reduce natural resource consumption while rationalising capital investments in expansion projects for the production, generation, transmission, and distribution of electricity," according to a report published by the kingdom's state news agency, SPA.
PIF will leverage the growth prospects of energy efficiency in the kingdom, a sector with projects estimated to be worth $800m (SAR3bn) annually.
According to PIF, the sector is internationally valued at $34.7bn (SAR130bn), with developments in the US, Europe, and China reportedly accounting for 90% of the global market share.