UAE's Etihad Esco and Saudi's Vision Invest establish energy company
Vision Invest, formerly known as Acwa Holding, marks 'major milestone' for UAE firm, Dewa boss says
The UAE’s Etihad Esco has joined the parent company of Saudi Arabia’s Acwa Power to establish an energy management company in the kingdom.
HE Saeed Mohammed Al Tayer, managing director and chief executive officer of Dubai Electricity and Water Authority (Dewa), signed the shareholders agreement for the new JV with Mohammad Abunayyan, chairman of Vision Invest, which was formerly known as Acwa Holding. Eng Ibrahim Al Nassar has been named chief executive officer of the JV company.
Vision Invest and Etihad Esco’s joint venture (JV) will provide energy efficiency systems for public- and private-sector schemes, and has been established to support Saudi Arabia’s Vision 2030, the economic diversification mandate that prioritises long-term sustainability.
Commenting on the news, Al Tayer said that Etihad Esco – which is owned by Dewa – had reached a “major milestone” by entering an agreement with Vision Invest, with the move likely to support its expansion strategy for the Gulf and the world.
He continued: “We are proud to form this alliance with Vision Invest to collaborate in the field of retrofitting integrated energy efficiency solutions. [The partnership] marks Etihad Esco’s first JV outside the UAE, and we are proud that the first entry is into Saudi Arabia.”
Vision Invest’s chairman, Abunayyan, added that Etihad Esco’s track record would support “the energy efficiency drive in the kingdom” and contribute to the “achievement of the efficiency and sustainability targets” set by Vision 2030 and the recently announced National Industrial Development Logistics Program.
Etihad Esco is a ‘super Esco’ that has retrofitted more than 2,000 facilities to date, with the energy performance contractor’s work resulting in average savings of 25-35%. Chief executive officer of the firm, Ali Al Jassim, said this translates to savings worth “88 gigawatts of electricity, 246 million imperial gallons of water”, as well as CO2 emission reductions of 370 tonnes.
Saudi Arabian investment holding firm Vision Invest was founded in 2002, with its portfolio including the utilities giant Acwa Power. Escos are rapidly gaining traction in Saudi Arabia, with the kingdom’s sovereign wealth fund, Public Investment Fund, forming a super Esco worth $507m (SAR1.9bn) late in 2017.