About
the report
The KAPSARC Annual Report is a comprehensive summary of theCenter’s achievements in energy economics and the environment,
including the support provided by administrative functions. It aims toprovide accurate information on KAPSARC’s activities throughout 2022
highlighting the Center’s values and overall function.
This report provides a deeper understanding of KAPSARC’scontributions to the energy industry and the environment, making it
a valuable resource for those interested in learning more about theCenter’s work and impact.

How KAPSARC isenvisioning thefuturePage 9Learn more about theStrategic Objectives

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KAPSARC Annual Report 2022

Contents1.

Preface. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
The Chairman’s Message. . . . . . . . . . . . . .. . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . 9
The President’s Message. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
KAPSARC Key Highlights in 2022. . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . 14
Growth at KAPSARC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Academy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Publications . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

2. About KAPSARC. . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . 28
Strategic Objectives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....... . . . . . . . . . . . . . 30
KAPSARC’s Values . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Domains and Focus Areas. . . . . . . .. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Advisory Offerings . . . . . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Programs of Knowledge & Analysis. . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . 40

3. How KAPSARC Works. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
Organizational Structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
KAPSARC’s Journey Through the Year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Knowledge & Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
• Oil & Gas . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
• Transportation & Infrastructure. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . 52
• Utilities & Renewables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
• Climate & Sustainability. . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . 56
• Energy Macro & Microeconomics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
• Solutions Productization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Consulting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
• Pool of Consultants. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . 64
• Process Coordination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Finance & Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
• Facilities Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . .70• Certiﬁcations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
• Safety, Security & Transportation. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . 74
• Procurement. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
• Communications & Public Relations. . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . 78
• Information Technology. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . 80
• Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
• Finance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
• Cybersecurity. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
Other Departments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
• Strategic Planning & Institutional Initiatives. . . . . . . .. . . . .. . . . . . . . . . . . . . . . 90
• Strategic Partnership. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . 94
• Internal Audit, Compliance & Risk . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . 96
• Legal Counsel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 97

KAPSARC Annual Report 2022

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Preface8<<<<

KAPSARC Annual Report 2022>>>>

Preface

9

The Chairman’s Message

HRH Prince Abdulazizbin Salman Al SaudThe global energy landscape has shifted dueto the conflict between Russia and Ukraine.
The rise in energy prices and reduction ofenergy flows has brought back the issue
of energy security in full force. I havealways believed the energy policy has threeimportant pillars: energy security, accessto energy to enable economic growth, andsustainability to meet the goals of the Paris
Climate Agreement.
Domestically, it has been five years since thelaunch of Vision 2030, unleashing historicreform to the Saudi economy and society
to achieve the goals of the vision. Moreover,in 2021 the Saudi Green Initiative and the
Middle East Green Initiative were launchedto help mobilize climate action domesticallyand regionally. Saudi Arabia has set
ambitious targets for emission reductions, thedevelopment of renewable and low-carbonhydrogen as well as many other goals andinitiatives to ultimately achieve our goal ofreaching carbon neutrality by 2060. As anation that has always been at the forefrontof energy, Saudi Arabia is poised to leadthe world in the development of alternative
energy, and KAPSARC has a crucial role toplay in this journey.
In these unprecedented times and the evershifting needs of policy access to reliable
and accurate information has never been so
important for policy makers. It is that data,
based on empirical evidence, that will makea positive difference. Thus, KAPSARC’s
ongoing transformation into an advisory thinktank that works with other entities within theecosystem and global experts has progressed
exceptionally well over the last 12 months.
The people who contribute to our reports
are experts in their fields and those whoread them are decision-makers. Throughout

2022 we recorded significant achievementsin partnering with high-level, esteemedorganizations. These collaborations helped us
to provide valuable insights into the future of
the Saudi economy and its ability to withstandpotential challenges.
The Center has transformed into a trusted
partner and advisor for the energy ecosystemand has delivered on its new mandate
several significant projects to help advise
policymakers. KAPSARC’s new mandate is
being strengthened by ongoing initiatives,
including the KAPSARC School of Public
Policy, which now has a strategy andoperating model and is scheduled to open
in 2024. Additionally, the Saudi Energy
Leaders’ Assembly (SELA) exists to provide
opportunities for young professionals toenhance their organizational skills and now
has over 300 members.
However significant, 2022 was only the
beginning of the transformation. The Center,
energized by the ownership shown by
employees, will continue its transformation
journey to deliver the Center’s vision for longterm success, I am proud of everyone who
was involved and look forward to KAPSARC
making an ongoing contribution to the energy
field in 2023.

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KAPSARC Annual Report 2022

Prefacewhich are now more mainstream topics. These
are no longer challenges left to specialists but
are becoming a core part of public life. As aresult, we received increased demand for ourwork and services in these fields.

The President’s
Message

Fahad Alajlan

By the end of 2022, there were 14 ongoing
advisory projects, serving more than 13
different stakeholders. Among our research
activities, the team published the 2nd editionof the CCE Index, which measures countries’
performance and progress being made inachieving Circular Carbon Economies, and amajor paper on how OPEC+ impacts markets
and higher oil prices. As the energy sector
embraces digital transformation, we publishedpapers discussing the opportunities and risks
that energy companies should look at during
their digital journey.
Our research focused on policy analysis
and economic impact in Saudi Arabia, withpapers on the electricity sector’s regulation,
restructuring, and penetration of renewableenergy – and the impact of Saudi Arabia’s
economic reforms on diversification andresilience to shocks.

The year 2022 has been unprecedented
for projects we have worked on which are
crucial to changing the future of energy. I
am delighted to announce that KAPSARC
exceeded its goals for the year. We achieved
this by focusing on Project TASAMI, which
had two core components.

addressing energy security and affordability.
That is why KAPSARC started researching
critical minerals and rare earth metals supply
chains, and we plan to launch our first energy
outlook in 2024. By putting focus on these
crucial areas, it enables us to address futureenergy security.

Firstly, we transitioned to an advisory thinktank by launching a consulting function
and providing advisory services. Secondly,
we implemented the Project TASAMI
recommendations which involved improving
our “our operations and affairs.”

Engaging with international energy researchorganizations and partnering with others toshare knowledge is essential to our mission of
having a global impact. We have collaborated
with government bodies, private sectors, andinternational organizations like the WorldBank and UNFCCC to enable us to achieve
this ambition.

I am also proud to report on our expanding
regional and global impact. Our coordinationof the Middle East meeting for the IAEE in
Bahrain and workshops with the Islamic
Development Banks and other institutions
at COP27 in Sharm El Sheikh demonstrated
our clear commitment to collaboration andprogress with partners. KAPSARC will haveobserver status at COP28 in the UAE. As
almost 50% of global emissions come fromthe energy sector, it is necessary to workwith them to find solutions. KAPSARC will
once again be in attendance and produce
reports on the negotiations, discussing thepositions and important issues covered, as we
contribute to the conversation and collaborate
on solutions that benefit the world.

Over the past year, KAPSARC set institutional
KPIs for our internal operations, publications,projects, and extended work, and we
exceeded most of them. We hired more staff
to tackle important issues related to theenergy transition, climate, and sustainability,

KAPSARC continues its domestic
engagements working with NGOs,
educational institutions, and the public toraise awareness about energy-related issues.
Our events, partnerships with universities,
and participation in the Arabic Language Day

These changes have had a significant positive
impact on our organization, and we are proud
to have achieved these milestones.
In 2022, the trilemma of energy security,
affordability, and sustainability became
ever more pronounced. Before last year,
sustainability was the primary focus, but
we were all reminded of the importance of

>>>>

11

celebration illustrate our efforts to connect
with diverse audiences.
Throughout 2022, we entered bilateralengagements and exchanged views,
including with international visitors andrespected organizations such as the IMF.
We also launched a School of Public Policy
and Executive programs in partnership with
the International Institute for Management
Development and National Singapore National
University. We look forward to launching our
climate and sustainability training for nonexperts in May 2023.
Our priority for 2023 is to continue to
implement the recommendation of Project
TASAMI while also improving on advisory,
research, and publication fronts to complete
the center transformation. There will bea focus on delivering major projects andupgrades to our infrastructure, including
a new building for the School of Public
Policy. Our goal is to continue meeting
the Kingdom’s energy and sustainability
needs while positively impacting global
policymaking.
In closing, I want to say a heartfelt thank you
to everyone. Your hard work and dedication
make KAPSARC a success, and I am honored
to work alongside such a talented anddedicated team. I am proud of what we haveaccomplished together and excited about
what lies ahead.

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KAPSARC Annual Report 2022

KEY PROJECTSKAPSARC
received

From

12

70

ADVISORY
PROJECTREQUESTSSTAKEHOLDERS
with

9,156
HOURS SPENTDURING 2022

Preface

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KAPSARC Annual Report 2022

KAPSARCKey Highlights in 2022>>>>

PrefaceCo-hosted significant activities
in partnerships with distinguished entities

Advancing the Circular Carbon Economy
in Saudi Arabia
The Road to Net Zero:
Regional and Global Prospects

KAPSARC has been active in enhancing
its thought leadership by engaging
policymakers locally & internationally

Bridging the Investment Gap
for Sustainable Energy Transitions
CO2 Emissions Reduction Progress And
Future Perspectives In Aviation

Critical Global Gas – Hydrogen Market Issues

Key Engagements
IAEE International Conference
Engaged in continuous meetings and high-level
preparation ahead of hosting the 44th IAEEInternational Conference in Riyadh on February 4-9,
2023

The Strategic and Economic Value of Joint
Oil Stockpiling Arrangements for Middle
East Exporters and ASEAN Importers

T20
Co-chaired, Governing Climate Target Energy
Transition and Environmental Protection (Task Force3)

Shale Renaissance

COP27

Shell Scenarios: Examine Potential Futures
for the Kingdom of Saudi Arabia

Co-hosted four side events with Institute of Energy
Economics Japan, World Environment Center,
Oxford Institute for Energy Studies, and the Islamic
Development Bank. Invited panelists/moderators toeight side events.

KAPSARC – EFI Joint Work Program
Workshops and studies on deep decarbonization
policies and technologies

Further details to each engagement are mentioned in the next pages

Carbon Markets in the Gulf Cooperation
Council Countries

Advancing the Global Circular
Carbon Economy

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80

Publications

KAPSARC Annual Report 2022

• Discussion& Methodology
Papers• Commentaries• Conference
Papers• Data Insights• T20 Policy Briefs• Instant Insights• Workshop Briefs• Journal Papers• KAPSARC
Quarterly Reports

62

Internal Knowledge Sharing Events

72

Workshops

Projects

Experts

24
23

Preface

>>>>

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KAPSARC Annual Report 2022

KAPSARCKey Highlights 2022

Published a totalof 1,390 datasets,
representing a 7%
increase over last
year

>>>>

Preface19

Growthat KAPSARC

Acquired and cataloged 90
new data subscriptions andtools needed for analysis andadvisory​​

258

Served over 10,700
policy simulator runson the web: increaseof 99% over last year

214
129

137

148

+19% increase in search
activity: up to 3M searchactions ​this year

+5 new policy
simulators released
this year, bringing thetotal up to 15
Initiated productization of
the models (to run on cloud):
KGEMM is now accessible toenergy ecosystem throughthe cloud

2018

2019

2020

2021

Staff numbers for the period 2018-2022.

2022

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KAPSARC Annual Report 2022

Staff numbers increased by 21%
in 2022.

Saudi
nationals

75% of the staff are Saudi
nationals.

Staff consists of 25 nationalities
in 2022.

Preface

>>>>

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KAPSARC Annual Report 2022

KAPSARC’s Academy
Inspired by His Royal Highness, the Minister of Energy, Prince
Abdulaziz bin Salman Al Saud’s passion for education, humancapital development, and innovation, the KAPSARC Academy
was launched in 2022 to play a pivotal role in public policy
education in the Kingdom of Saudi Arabia.
The Academy strives to serve as a world-class education andresearch institution for the next generation of public policy
leaders and professionals, both within Saudi Arabia andglobally. By creating a nexus between academia, industry,and government in the field of public policy, the academy
aims to share and apply knowledge and best practices toaddress the most pressing public policy challenges and theirsolutions.
To accomplish this goal, the KAPSARC Academy intends toattract regional and global public policy students, as well as
local MBA students, through joint degree programs. It will
also provide executive education training to professionals in
the public and private sectors, focusing on developing theirleadership, management, and public policy skills. In addition,
the academy will collaborate with prominent local and global
educational institutions to enhance its offerings.

>>>>

Preface

Vision•To be a world-class education and research institution for the next
generation of public policy leaders and professionals, within theKingdom of Saudi Arabia and globally

Mission•Enable and empower future policy leaders and professionals, within
the Kingdom of Saudi Arabia and globally, to positively inform socioeconomic choices•

Focus on the most pressing public policy challenges and theirsolutions•

Create a bridge between academia, industry, and government in the
public policy sphere so that knowledge and best practices can beshared and applied

The Public Leadership Executive program

The first training course, the Public Leadership Executive
Program, was delivered in October 2022.

142

119

42

34 Full programs
8 Selected

Nominatedcandidates

Acceptedcandidates

30%

Registeredcandidates

modules

70%

23

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KAPSARC Annual Report 2022>>>>

PrefacePublications
Reports and research
published throughout 2022

Evaluation of Public Investment Projects

Climate Change Policies and Governance• How Can Governments, Oil and Gas Enterprises, and Research Institutions
Collaborate to End Routine Gas Flaring?

• The Circular Carbon Economy Index 2022.

• Resilience of Saudi Arabia’s Economy to Oil Shocks: Effects of Economic
Reforms.

• Digital Transformation in the Context of the Energy Transition.

• Moving Saudi Arabia’s Role in the Global Methane Pledge Forward.

Future of Transport and Fuel Demand• Understanding the Trajectory of Urban and Transport Development in Riyadh.
• India’s Updated NDC: A Pathway to Net-Zero by 2070?
• Future of Fuels in the Aviation Sector.
• How Long Will the Semiconductor Crisis Affect the Traditional Automotive
Sector? Implications for car fuel demand.

• Implementing Circular Carbon Economies in the Gulf and Beyond.

• Digital Transformation in the Oil and Gas Industry: Hype or Hope?
• The Gulf Cooperation Council and the Circular Carbon Economy:
Progress and Potential.
• Plastics in the Circular Carbon Economy.
• Potential implications of the EU Carbon Border Adjustment
Mechanism.
• COP 26 Outcomes and Opportunities for Saudi Arabia and Other
Arab Countries.

• Current and Future Trends in Saudi Arabia’s Container Throughput.

Future of Global Oil Markets• Post-Covid Recovery of Air Traffic in Saudi Arabia.

• Gaming Out the Proposed Price Cap on Russian Oil.

• Understanding the Willingness to Make the Modal Shift to the New Metro in
Riyadh.

• KAPSARC Oil Market Outlook (KOMO).

Regional Energy Markets• A Closer Look at the IEA Storage Releases.

• Fostering Net-Zero Transition Pathways: The Role of Clean Hydrogen.
• The Current State and Future of Clean Hydrogen Projects Worldwide.
• The European Energy Collapse: A Chain of Contingencies or a Recurring
Nightmare?
• How Realistic Is Hydrogen for Electrification?
• The Economics and Resource Potential of Hydrogen Production in Saudi
Arabia.

• The Effects of Russian Sanctions on the Global Economy.

• Global Crude Oil Storage Index: A New Benchmark for Energy Policy• Investment Challenges Affecting the Oil and Gas Industry.
• Integrated Oil Companies and the Requiem for a Transition: How Are
They Coping with Climate Change?
• Country Horizon: Russia.
• Natural Gas Price Surge: Implications for International Energy
Markets and the Way Forward.

25

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KAPSARC Annual Report 2022>>>>

PrefacePublications
Reports and research
published throughout 2022

Electricity Sector Transitions

Models, Data and Tools• Status of Global Concentrated Solar Power Installations.

• A Remaining Piece of the COVID-19 Puzzle: Saudi Arabia’s Remittances
Account.

• Insights from India’s Journey to Over 100 Gigawatts of Renewable Energy.
• Reliability Implications of Unexpected Tripping of Inverter-Based Resources.
• Trends in Global Solar PV Installation in 2021.
• Cost, Emission, and Macroeconomic Implications of Diesel Displacement in the
Saudi Agricultural Sector: Options and Policy Insights.
• Keeping the Nuclear Energy Option Open.
• One Year After the Texas Blackout: Lessons for Reliable and Resilient Power
Systems.
• Investing in Net-Zero Emission Ambitions: Global ESG Frameworks and CCUS
Projects.
• Policy Responses to the Reliability Crisis in the Power Grid.
• The Implications for the Power Sector from Innovation by Startup Companies.
• Understanding the Dynamics of Renewable Energy Transition: Country
Performance and Potential.
• Understanding the Dynamics of the Renewable Energy Transition: The
Determinants and Future Projections Under Different Scenarios.
• Cross-seasonal Fuel Savings from Load Shifting in the Saudi Industrial Sector.
• Achieving Renewable Energy Targets Without Compromising the Power
Sector’s Reliability.
• Understanding the Dynamics of the Renewable Energy Transition:
A Determinant Index Approach.

• How to Mitigate Transportation Emissions in Saudi Arabia? The Role of Energy
Price Governance.
• Determinants of Remittance Outflows: The Case of Saudi Arabia.
• Energy Open Data, Energy Policy Scenario Models and Tools.

Productivity and Economic Diversification• Saudis in the Private Sector: Women Leading the Way.
• Impact of Stay-home Orders on the Electricity Demand of Residential
Buildings: Case Study of Saudi Arabia.
• Balancing China’s Energy Security and Its Transition to Carbon Neutrality.
• Role of Energy Efficiency in Designing Carbon-neutral Residential
Communities: Case Study of Saudi Arabia.
• The Role of Building Energy Efficiency in Shaping the Energy Transition in
Saudi Arabia: Key Challenges and Initiatives.

27

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AnnualReport 2022

02.
About
KAPSARC

KAPSARC Annual Report 2022

KAPSARC Annual Report 2022

>>>>

31

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KAPSARC Annual Report 2022

KAPSARC’s
Strategic Objectives
1. Provide advice to the Saudi energy sector using ouranalytical capabilities and expertise.

2. Produce internationally recognized research, tools, anddata to impact global policymaking.

3. Incubate distinctive talent for the advancement of Saudi
Arabia’s energy sector.

4. Use KAPSARC’s unique foundations and resources fornovel initiatives to maximize institutional impact.

About KAPSARC

>>>>

31

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KAPSARC Annual Report 2022>>>>

About KAPSARC

33

KAPSARC’s
ValuesIntergrityand Honesty
Transparent

Value
Creation
Innovate

One
Organization

Excellence
MindsetCollaborate

Growthand Impact
Learn

Our values serve as the cornerstone of our organization. They are a
set of fundamental beliefs and assumptions that guide and motivate
our employees to achieve our desired culture. Our values are basedon our new vision and mission and are the driving force behind
everything we do, they form the bedrock of our strategic objectives.
We believe that by upholding our values, we can create a workplacethat encourages collaboration, creativity, and growth. Our values
inspire us to be accountable, respectful, and inclusive in all our
endeavors as we strive to create a culture that values diversity,
promotes learning, and encourages personal and professional
development.

Transparency

Learning

Collaboration

Transparency is afundamental principle andwe believe in acting withintegrity and honesty, andour teams know that they
can rely on each other toshare information and maketheir actions visible to all.
By fostering a culture oftransparency, we can build
trust and accountability,
both within our organization
and with our partners andstakeholders.

A core value at KAPSARC,
we believe every employee
has the potential to grow andimprove, and we encourage
our team members to seekout new opportunities forlearning and development. By
finding learning in everything
we do, we can continue topush ourselves to be the best
we can be.

Collaboration is at the heartof everything we do. We
recognize that no one person
has all the answers, andthat the best solutions often
come from a diverse group ofindividuals working together
toward a common goal. Our
teams work together, building
purposeful relationships
grounded in cooperation,
fairness, and respect, andby working together, we canachieve more than we ever
could alone.

Excellence
At KAPSARC, we arededicated to excellence,
hold ourselves to the highest
standards and strive todeliver the best possible
results. Our commitment tocontinuous improvement
drives us to constantly seekout new and innovative ways
to enhance our work.

Innovation
Our employees areencouraged to generate
new ideas and turn theminto useful solutions thatadd value to KAPSARC andthe energy ecosystem. We
believe that by embracing
innovation, we can stay aheadof the curve and continue tomake a positive impact in our
industry.

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KAPSARC Annual Report 2022

Domains& Focus Areas

About KAPSARC

>>>>

35

KAPSARC’s Guiding Principles
Defining Domains & Focus Areas• KAPSARC determines its domains and areas of focus based on their relevance to the Saudi
energy ecosystem.

Domains are broad fields that KAPSARC could engage in, while• Requests submitted by the energy ecosystem in 2020 and 2021 serve as a reference point for
determining KAPSARC’s focus areas.

focus areas drive the yearly selection of projects and capability• KAPSARC benchmarks against other relevant organizations to inform its focus areas.

planning.
These focus areas are crucial in defining the scope of KAPSARC’s• Feedback from the KAPSARC Research & Advisory workshop is taken into account when
determining the organization’s domains and areas of focus.

involvement with the Saudi energy ecosystem and driving theorganization’s thought leadership in a targeted and impactfulmanner.

KAPSARC has identified three domains based on engagements with similar organizations,benchmarking activities, and multiple internal workshops. These domains are primarily related
to the needs of the energy ecosystem:

1. Global Hydrocarbon Markets.
2. Saudi Energy Sector, including power and renewables.
3. Climate and Sustainability, including carbon management.

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About KAPSARC

The Three Domains
1. Global Hydrocarbon
Markets

2 . Saudi Energy Sector

3 . Climate and Sustainability

Definition

Definition

Definition

Global demand-supply trends, policies, economics, and technologicaladvancements related to hydrocarbons.

The study of KSA’s energy demandsupply trends, policies, economics,
and technological advancements in
power, renewables, hydrogen, andmobility.

Carbon management, global energy
transition, environmental and resource energy footprint, adaptationand the resilience of energy systems.

To align with KSA’s interests in the
global hydrocarbons market, it is
crucial to focus on hydrocarbons.
This approach ensures that we do not
miss out on topics of high relevanceto KSA, such as upstream oil andgas, and can effectively cater to thecountry’s needs while maintaining astrong foothold in the global market.
Our commitment to this strategy will
enable us to provide KSA with thebest possible service and support.

Rationale• Carbon management is the centralcomponent of this domain.

Identified focus areas• Industry

Rationale

Focusing on a broad range of energy
topics beyond hydrocarbons are
essential to meet KSA’s overall energy
demands.

Identified focus areas• Transport• Infrastructure• Power• Energy efficiency

Rationale• The environmental and resource
footprint of plastics and electric
batteries are critical for the future ofhydrocarbons.
• Climate change impacts and theadaption of energy systems domatter for the Kingdom.

Identified focus areas• Hydrogen• Upstream Oil and Gas• Carbon capture, utilization, andstorage (CCUS)• Petrochemicals• Nature-based solutions• Transportation• Storage• Industrial Demand• Climate and sustainability – targets
and financing

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KAPSARC Annual Report 2022

KAPSARC’s
Advisory Offerings
Evidence-based research and insights• Sector-specific outlooks, such as those from energy-intensive industries.
• Analysis of technology, markets, and risk.
• Sensitivity, feasibility, and impact analysis.
• Publication of journal papers and reports, including academic papers.
• Policy analysis.
• Ad hoc expert interview/insights.
• Review/validation of external reports & data.
• Sensitivity analysis (e.g., scenario planning).
• Feasibility analysis (cost analysis).
• Needs-based assessment.
• Market analysis.
• Technology assessment (e.g., new tech).

Data, models, and tools (analytics)• Data sharing, e.g., datasets.
• Development of models, tools/software, and data platforms.
• Benchmarking.

Strategy• Strategy development.

Knowledge sharing• Workshops, forums, and seminars.
• Virtual offerings, such as podcasts and webinars.

About KAPSARC

>>>>

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KAPSARC Annual Report 2022

Programs of
Knowledge & Analysis

Energy Macro &Microeconomics

Oil
& Gas

Utilities& Renewables• Analyzing the interactionof energy andmacroeconomics througheconomic models.

• Studying the evolving
global energy landscape,including supply, capacity,
tech, investment, andeconomic effects.

• Assessing the implicationsof the global energy
transition.

• Analyzing trends in oil andgas markets.

• Supporting the Kingdom increating a long-term value
framework for its energy
transition plan.

Climate& Sustainability

Transportation& Infrastructure

Solutions
Productization• Highlighting the benefitsof a risk-informed carbon
management strategy.

• Investigating future
domestic transport energy
demand and modelingefficient and resilient urban
systems.

• Enhancing energy
economics understanding
with open data and insightapplications.

• Evaluating the broader
economic impact of energy
market and policy changes.

• Identifying effective
tech and policy options
for climate mitigation
and adaptation, whileconsidering risks.

• Providing data and web
application platforms forresearchers and policy
stakeholders.

About KAPSARC

>>>>

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AnnualReport 2022

03.
How
KAPSARCWorks

KAPSARC Annual Report 2022

How KAPSARC Works

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KAPSARC Annual Report 2022

Organizational
Structure
PresidentInternal Audit & Risk

Legal Counsel

Strategic Partnerships

Strategic Planning &Institutional Initiatives

Knowledge & Analysis

Consulting

Finance & Operations

Oil & Gas
(upstream &downstream)

Climate &Sustainability

Pool ofConsutants

Facilities
Management

Finance

Transportation &Infrastructure

Energy Macro &Microeconomics

Staffing
Management

Safety, Security& Transportation

Information
Technology

Utilities &Renewables

Solutions
Productization

Process
Coordination

Procurement

Cybersecurity

Communications &Public Relations

Human
Resources

How KAPSARC Works

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KAPSARC Annual Report 2022

KAPSARC’s
Journey ThroughThe Year
KAPSARC consists of three functions andvarious administrative offices that manage
all internal and external procedures. Eachfunction comprises multiple specialized
departments or programs.

How KAPSARC Works

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KAPSARC Annual Report 2022

Knowledge & Analysis
The Knowledge & Analysis function aims to produce globally
recognized analysis, data presentation, and actionable insights. It
fosters a culture of excellence and aims to maximize KAPSARC’scapacity for successful engagement on a global scale.
Objectives• Partner with Consulting to advance KSA’s energy sector through evidencebased and expert recommendations.
• Produce internationally recognized analysis, insights, data, and products in
our focus domains to impact global policymaking.
• Leverage KAPSARC capabilities to effectively engage in global, regional, andlocal policy dialogues.
• Adopt a culture of excellence, knowledge transfer, growth, and mentorshipto hire, develop, and retain thought leaders.

How KAPSARC Works

Key Achievements in 2022
• Explored and promoted applicationsof behavioral economics to streamline
domestic energy consumption.
• Developed KAPSARC models of Saudi
Arabia’s economy to enhance cost-benefit
analyses of energy policies and projects.

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• Produced publications and increased
expertise on alternative uses ofhydrocarbons – hydrogen, critical minerals.
• Analyzed the integration of renewables into
the KSA power grid.
• Assessed demand side management
including its broader economic implications.

• Built a model capturing the macroeconomic
effects of Saudi Arabia’s 2060 Net Zero
Emissions.

• Evaluated the major economic, reliability,and environmental challenges facing thepower and utility sectors.

• Published new results on OPEC+’s market
stabilization actions and the global economy• Assessed the trends in policies, regulations,and technological evolutions on energy
demand and the subsequent environmental
impacts of transportation systems andinfrastructure.

• Produced an analysis of the impact of Vision
2030 on the Saudi economy’s resilience tooil price shocks.
• Launched the 2nd edition of the Circular
Carbon Economy Index and an interactive
lab feature hosted on the CCE Index web
portal.
• Expanded analytical modeling capabilities in
estimating GHG emissions in Saudi Arabia.
• Partnered with the Energy Futures Initiative,
the Oxford Institute for Energy Studies, and
the World Bank Group on joint studies in gas
markets, the hydrogen economy, integrated
energy outlooks, and energy efficiency.
• Launched the 2nd edition of the Circular
Carbon Economy Index – with an expanded
list of countries from 30 to 64, covering 90%of the Global Economy and CO2 emissions.
• Assessed the impact of energy efficiency on
CO2 emissions in the Kingdom.
• Produced internationally recognizedpublications on investment challenges
affecting the oil and gas industry.

• Evaluated the impact of transport
infrastructure investments on sustainable
futures for KSA.
• Used spatial models to assess interventionsin urban planning for impact on energy
demand and sustainability.

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Oil & Gas
(Upstream and Downstream)
The Oil and Gas (O&G) program produces internationally recognizedthought leadership to support and guide the energy ecosystem, focusing
on the challenges and opportunities in the hydrocarbon space. The program
oversees numerous active projects in four key focus areas: oil, gas, refining
and petrochemicals, and energy security and resilience, as well as training,developing, and retaining local talent to ensure knowledge transfer and careerdevelopment.

Objectives• Publish economic and market analysis reports to shape policymaking anddevelop evidence-based recommendations.
• Develop and customize O&G models and tools relevant to Saudi Arabia.
• Partner with Consulting to develop expertise in O&G and related sectors to
support KAPSARC’s advisory services.
• Cultivate a team of local and international experts in the fields of oil andnatural gas.
• Increasingly embrace energy security, social welfare, and climate change inthe oil and gas sector.

How KAPSARC Works>>>>

Key Achievements in 2022
• Released 61 external publications including five book chapters, eight Commentaries, eight
journal articles, 11 Instant Insights, seven Workshop Briefs, four KOMO reports, four T20
policy briefs, five Data Insights, a country report, and seven Discussion Papers.
• Organized 14 workshops and webinars in conjunction with 16 strategic partners.
• Developed six analytical tools and models active or in development.
• Delivered two key knowledge-sharing initiatives through coaching, mentoring, andknowledge dissemination.
• Held 13 professional and academic engagements and featured in 19 media outlets.

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Transportation& Infrastructure

How KAPSARC Works

Key Achievements in 2022•

Contributed to G20 Indonesian Presidency with policy briefs.

•

Published more than 50 publications focused on the following:°
Transport and energy demand for land, aviation, and maritime

The Transport and Infrastructure (T&I) program focuses on exploring thesectors, including passengers and freight.

energy, economic, and environmental impacts of evolving technology trends,° Energy transition, environmental challenges, and opportunities in thetransport sector.

policy developments, and investments in all sectors related to transportationand infrastructural systems. The program assesses the impact of thetransformations in road, rail, aviation, and maritime transport to analyze their° Behavior analysis and policy studies on vehicle ownership and modal
shift decisions.

impact on global and local oil demand.

° Potential for alternative fuels for the maritime sector.

Objectives•° Future of Fuels in the Aviation Sector.

Collaborate with Consulting to help the energy ecosystem understand the° Studies on electric vehicles (EV) in reducing CO2 emissions.

implications of local and global developments in the transportation andinfrastructure sectors.
••

Deliver research outputs on transportation and infrastructure themes to•Hosted and co-hosted six workshops on transport matters focused on
the following:influence local and global policymaking.

° Lifecycle analysis in the LDV sector.

Showcase research at major KAPSARC-hosted and international° Sustainable urban planning in cities to achieve energy efficiency andconferences to foster dialogue with the ecosystem and global
stakeholders.
•>>>>

Support experts in their growth and development as thought leaders.

sustainability targets.
° Role of sustainable fuels in transport like hydrogen, sustainableaviation fuel.

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Utilities& Renewables
The Utilities and Renewables (U&R) program analyzes the major economic,
reliability, policy, and environmental challenges that confront the power
and utility sectors. These challenges include the integration of renewable
power, the role of innovation, such as green hydrogen, in meeting net-zerocommitments, international electricity trade, and market and regulatory
reform. The U&R program is committed to providing comprehensive andinsightful analysis of these complex issues, providing actionable insights that
can help these industries navigate the challenges they face.

Objectives• Partner with Consulting to provide evidenced-based knowledge and analysis
on utilities and renewables to the energy ecosystem, contributing to theeconomic development of KSA’s energy sector.
• Build and/or provide quantitative models, methods, studies, and tools that
support policy decision-making within the KSA.
• Showcase research at major KAPSARC-hosted and international conferences
to foster dialogue with the ecosystem and global stakeholders.
• Train, develop, and retain local talent to ensure knowledge transfer andcareer development in the renewable and utilities sector.

Key Achievements in 2022
• Contributed to the formulation of the electric vehicle charging infrastructure
policy which was enacted this year.
• Assessed policy options and associated cost and macro implications ofdisplacing diesel in the Saudi agricultural sector.
• Assessed reliability implications of deploying high shares of renewableenergy into the Saudi power sector (Best Paper Award; IEEE Smart Grid
Conference).
• Quantified the economic and resource potential of hydrogen production in
Saudi Arabia.

How KAPSARC Works

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KAPSARC Annual Report 2022

Climate & Sustainability
The Climate and Sustainability program advises the Kingdom on how toachieve its sustainability and climate targets. It does so by producing stateof-the-art national, regional, and global climate-energy-economic models,
analysis, and insights. These focus on climate economics, climate change
policies, and environmental sustainability. This includes aligning consulting
activities with core research projects and vice versa. With a focus researching
on developing net-zero emission strategies for KSA (including regulatory andpolicy instruments) and extending the CCE Index outreach through regional
deep dives, the department aids in developing energy efficiency strategies
in KSA. Outreach efforts include plans to attend COP28 and T20, other highimpact events, and hosting more KAPSARC workshops.

Objectives• Partner with Consulting to offer high-quality advisory services to support theKingdom in achieving its climate and sustainability targets, including its netzero emissions target and Paris Agreement commitments.
• Produce and disseminate cutting-edge data, insights, and analyses in theareas of climate economics, climate change policies, and environmental
sustainability through research publications and outreach activities.
• Cultivate a renowned team of local and international experts in the fields ofclimate change and sustainability.

How KAPSARC Works>>>>

Key Achievements in 2022
• Launched the second edition of the Circular Carbon Economy Index with aninteractive Lab feature hosted on the CCE Index web portal.
• Published 37 papers, conducted 10 workshops, and presented at over 90
events.

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Energy Macro& Microeconomics
The Energy Macro & Microeconomics (EM&ME) program investigates how
energy sectors and markets interact with economies. The program addresses
policy questions relevant to the energy ecosystem and develops modelingtools that can help assess the economy-wide consequences of reshaping
energy markets. These tools are designed to provide insights into the potential
impacts of economic policy decisions on energy sectors and help inform
policy decisions that can drive sustainable growth and development.

Objectives• Produce economic analysis that informs policymaking in Saudi Arabia byleveraging KAPSARC’s modeling and analytical capabilities.
• Publish economic analysis of Saudi Arabia’s domestic and global actions that
advance Saudi perspectives in the international policy debate.
• Partner with Consulting to develop and customize economic models andtools that serve the needs of the energy ecosystem.
• Contribute to enhancing and showcasing KAPSARC’s expertise in energy
economics through developing local talent and sharing impactful insights
with strategic partners.

Key Achievements in 2022
• Promoted applications of behavioral economics to streamline domesticenergy consumption.
• Developed models of Saudi Arabia’s economy to enhance cost-benefit
analyses of energy policies and projects.
• Built a model for the macroeconomic effects of Saudi Arabia’s 2060 Net Zero
Emissions.
• Published new findings on the market stabilization efforts of OPEC+ and theirimpact on the global economy, which were presented to the staff of the
OPEC Secretariat.
• Produced an analysis of the impact of Vision 2030 on the Saudi Arabian
economy’s ability to withstand fluctuations in oil prices.

How KAPSARC Works

>>>>

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KAPSARC Annual Report 2022

Solutions Productization
The Solutions Productization department is working toward becoming thetrusted partner for making a lasting positive impact in the energy sector of
Saudi Arabia. It strives to provide quality consulting services, building on
KAPSARC capabilities and resources to solve complex problems and makea sustainable impact for our stakeholders through creativity, tenacity, andteam spirit. It achieves this through a range of methods, including creating
visually impactful infographic data stories, expanding the datasets, and reach,of the KAPSARC open data portal, and will extend this via the creation of a
KAPSARC Policy Simulations Lab that improves the reach and understandingof KAPSARC Data, Models, and Simulators.

Objectives• Deliver internationally recognized high-quality data portals with machinereadable data and analytics. Deliver energy economy and climate data
through KAPSARC data-portal and other channels.
• Deliver easy-to-use policy scenario simulators that enable stakeholders
to derive insights using KAPSARC energy, economy, and climate models.
Disseminate KAPSARC data, model, and policy simulator products to theenergy ecosystem and highly recognized industry partners through theworkshop.

How KAPSARC Works>>>>• Introduce data and model-tools awareness campaign, expanding reach.
Disseminate KAPSARC data, model and policy simulator products to theenergy ecosystem and highly recognized industry partners through yearlyhigh impact workshop covering energy, climate and economy policy tools.
• Increase internal knowledge sharing.
• Optimize the publications process.

Key Achievements in 2022
• Added 80 new datasets to the data portal, launched five policy simulators,
namely, CCE Index COP27 edition, Hydrogen Cost Analyzer, Global Energy
Macro-Econometric Model Simulator, Input-Output Model, and The Climate
Adaptation and Mitigation Partnership eSankey Visualization.
• Delivered two energy and climate online policy simulators: Oil Revenue
Calculator and Carbon Management Simulator.

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Consulting
The Consulting function provides the Kingdom’s energy ecosystem with worldclass advisory services in the fields of energy economics and sustainability. It
does so by leveraging KAPSARC’s models, methods, and tools (MMTs) as wellas its subject matter expertise.

Function Mission• The function strives to provide quality consulting services building on
KAPSARC capabilities & resources to solve complex problems and makea sustainable impact for our stakeholders through creativity, tenacity, andteam spirit. The vision is to become a trusted partner for making a lasting
positive impact in the energy sector of Saudi Arabia.

Objectives• Be the partner of choice for KSA energy sector stakeholders on key
initiatives that aim to preserve and promote the energy interests of Saudi
Arabia.
• Deliver impactful services to KSA energy sector stakeholders by leveraging
KAPSARC’s distinctive thought leadership, expertise, solutions, andpartnerships – in close collaboration with Knowledge & Analysis teams.
• Ensure sustainability of impact on the energy ecosystem by institutionalizing
the solutions and services provided.
• Adopt a culture of excellence, knowledge transfer, growth, and mentorshipto hire, develop, and retain consulting talent.

How KAPSARC Works

>>>>

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Pool of Consultants
The Pool of Consultants is in place to meet the increasing demand for
consulting services from the KSA energy sector in the context of the fierce
talent competition. It enables KAPSARC to strengthen our methodologies
and frameworks for the effective and efficient delivery of projects. Amid a
culture of excellence, knowledge transfer, professional growth, mentorship,and development, the department continues to grow the Pool of Consultants,
across all levels, by attracting talented professionals from top-tierorganizations.

Objectives• Deliver impactful services to KSA energy sector stakeholders by leveraging
KAPSARC’s distinctive thought leadership, expertise, solutions, andpartnerships, in close collaboration with Knowledge & Analysis teams.
• Manage the assigned projects and proposals effectively and efficiently andproduce/scope high-quality deliverables/solutions.
• Promote KAPSARC offerings to KSA Energy Ecosystem stakeholders andbuild awareness about KAPSARC’s capabilities.

Key Achievements in 2022
• The launch of 22 consulting projects, of which nine were completed during
the year.
• The satisfaction rate based on clients’ feedback reached 97.5%.
• The consulting team grew from six professionals at the beginning of 2022 to
17 professionals by the end of the year.

How KAPSARC Works

>>>>

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Process Coordination
The department manages external stakeholder requests by allocating
resources and overseeing projects, prioritizing requests in a timely andaccurate manner. They build relationships with stakeholders to understandproject needs and match personnel to engagements for quality and efficiency.
By identifying capabilities and expertise gaps in critical domains for the KSA
energy sector - including Climate Finance, ESG, petrochemicals, and more
- in collaboration with Knowledge & Analysis and the Pool of Consultants,
it can bridge the gap in terms of capabilities via partnerships and feedback
loop to Knowledge & Analysis and Pool of Consultants. The department also
continuously improves functional systems and processes in line with global
standards and changes in the business environment.

Objectives• Plan and fulfill requests for process coordination and staffing in a timely andeffective manner while ensuring the team (Experts and Consultants) is fully
utilized when staffing.
• Raise advisory capability by ensuring individual aspirations anddevelopmental gaps are considered as a part of the criteria of the staffing
process.
• Adopt a culture of excellence by continuously improving the processes.

Key Achievements in 2022
• The department received 72 consulting requests, out of which 22 wereconverted into projects.
• Handled 80 ad-hoc requests, which were staffed with experts andconsultants, tracked, and reported on.
• Successfully arranged the contribution of 74 KAPSARC Consulting and K&A
professionals, accounting for more than 28,000 manhours.
• Developed a functional and cross-functional workflow guideline along with
relevant forms and templates.
• Created visibility and transparency across multiple levels by developing andsharing reports and dashboards.
• Automated timesheet entries and approval process.

How KAPSARC Works

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Finance & Operations
Finance & Operations is responsible for providing support to all functions
including the management support offices. Plan and monitor the Center’s
finances, as well as the implementation of everyday activities to achieve its
strategic goals. It also ensures that the activities of procurement, including any
necessary agreements, are executed efficiently. This function plays a crucialrole at KAPSARC, as it is responsible for the continuation of operations as wellas supervising the completion of day-to-day obligations. It consists of several
departments:• Facilities Management• Safety, Security & Transportation• Procurement• Communications & Public Relations• Information Technology• Human Resources• Finance• Cybersecurity

How KAPSARC Works

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Facilities Management
The Facilities Management department is responsible for the tools andservices that support the functionality, safety, and sustainability of KAPSARC’sbuildings, grounds, and infrastructure. It aims to be a recognized Facilities
Management champion supporting of KAPSARC’s vision and provide quality
Facilities Management services in a safe, sustainable, and comfortable “workand live environment” to improve the quality of life of KAPSARC residents andthe productivity of the Center’s core business.

Objectives• Maintain high quality of service benchmarked against international standards
to ensure that the facilities meet the needs of KAPSARC, its employees, andthe community.
• Ensure the provision of regular, high-quality, and efficient services at the bestprices.
• Manage energy and water consumption of KAPSARC facilities.
• Achieve and maintain international quality system certificates.
• Support KAPSARC facility needs by upgrading existing facilities andimplementing new facilities as per KAPSARC strategic requirements.

How KAPSARC Works

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Key Achievements in 2022
• Maintained high levels of optimization for the PV plant’s production of free electrical power
to the KAPSARC site.
• Achieved 100% operational reliability of critical systems without any incidents affecting
business continuity.
• Received five prestigious international green building certifications (LEED EBOM Platinum
certifications) – the first in KSA at this level.

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Certifications
KAPSARC achieved five new LEED EBOM Platinum certifications.

1. Recreation Center &Apt1

4. CDK

KAPSARC RECREATION CENTER& APARTMENT-1

KAPSARC RECREATION CENTER& APARTMENT-1

Riyadh, Saudi Arabia

Riyadh, Saudi Arabia

LEED 2009
EXISTING BUILDINGS: OPERATIONS AND MAINTENANCE

LEED 2009
EXISTING BUILDINGS: OPERATIONS AND MAINTENANCE

November 2021

November 2021

2. Retail & Apt2
KAPSARC RETAIL & APARTMENT-2
Riyadh, Saudi Arabia

LEED 2009
EXISTING BUILDINGS: OPERATIONS AND MAINTENANCE

November 2021

3. Community Service &Apt3

KAPSARC COMMUNITY SERVICE& APARTMENT-3
Riyadh, Saudi Arabia

LEED 2009
EXISTING BUILDINGS: OPERATIONS AND MAINTENANCE

January 2022

5. Supermarket

How KAPSARC Works

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Safety, Security& Transportation
The Safety, Security, and Transportation department ensures that KAPSARC’sworking and living environments are risk-controlled and secure. It protects the
lives and health of workers, residents, and visitors by identifying, preventing,and managing the risks associated with safety and security.
The department is also responsible for providing a safe, reliable, efficient,environmentally friendly and satisfying transport system.

Objectives• Maintain safe and secure working and living conditions, and enhance thelives and health of employees, residents, and visitors.
• Raise safety and security awareness among employees and residents
through knowledge sessions, events, activities, and communication.
• Maintain high-quality transportation services, ensuring they meet the needsof KAPSARC.

How KAPSARC Works>>>>

Key Achievements in 2022
• Several safety and security-related awareness initiatives have been completed for
employees and residents.
• A total of 175 Life Ambassadors completed the First Aid training program in ROC,
Utility and RCC.
• Maintained high-quality transportation and safety-measure services with a 98.5%
customer satisfaction rating.
• Completed comprehensive KAPSARC Security Risk Assessment and Business
Impact Analysis covering the whole KAPSARC site.
• Updated KAPSARC Business Continuity Plan & KAPSARC Emergency Response
Plan to be aligned with the requirements of the Ministry of Energy (MOE) KSA.

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How KAPSARC Works>>>>

Procurement

Key Achievements in 2022

The Procurement department helps KAPSARC acquire essential supplies andservices. It works to fulfill approved purchase requests, providing long-term
agreements or items to the requesting parties. It also engages in external
communication with suppliers, contractors, service providers, and relevant
government entities. The procurement process is governed by KAPSARC’s
Procurement Policies and Procedures Manual. It aligns with its digitaltransformation by implementing necessary changes in the system for digital
signatures and fully automated with the SAP upgrade project.

• Enforced robust procurement governance on all procurement transactions throughpolicies and procedures. This will have an institutional impact by mitigating
operations and legal risks to protect the Center’s reputation and brand withexternal vendors.

Objectives• Procure goods and services with the best value for money and easy-to-use
policy-driven procurement tools, whilst ensuring the highest ethical standards
and supply market competitiveness.
• Maintain a robust network of preferred local and global suppliers capable ofmeeting KAPSARC’s business needs.
• Manage the overall procurement process, including tendering and contracting,effectively and efficiently.
• Proactively manage high-value contracts in an efficient and timely manner.

• Established the needed commitments (Contracts or Purchase Orders) promptly.

• Established and maintained excellent relationships with vendors.
• Recorded no defect rate for all 214 commitments established for the Center
without delivery variations or failures.

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Communications& Public Relations
The Communications and Public Relations department helps to build
KAPSARC’s brand image. It aims to raise the Center’s profile locally andglobally to make it the go-to advisory think tank in energy economics andsustainability. It does this through effective communications, media interaction
and creatively producing the products of different departments.

Objectives• Establish a long-term relationship with the KSA energy ecosystem and its
stakeholders to foster increased awareness, relationship, and collaboration
opportunities.
• Engage with the public through multiple initiatives to enhance its awarenessof the Center, its mandates, and its activities.
• Use various media platforms to inform external audiences about KAPSARC, its
mission, activities, and its impact to generate positive publicity and awareness.

>>>>

How KAPSARC Works

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Key Achievements in 2022
• Published 77 research publications across diverse formats, reaching a wider audienceand establishing KAPSARC as a thought leader. All publications were translated into
Arabic to promote knowledge-sharing and inclusivity in the Middle East and North
Africa region.
• Ensured user-friendly, visually appealing, easy-to-navigate, and up-to-date website
with the Center’s latest news and research findings aligned with the organization’s
brand identity and messaging.
• Organized 119 activities to engage internal and external stakeholders and showcase
KAPSARC’s impact on the global energy industry.
• Managed workshops in the Kingdom and overseas to facilitate knowledge exchange
and collaboration with diverse stakeholders.
• Achieved highly successful social media strategy for 2022, breaking yearly records
and effectively sharing research findings, and engaging with followers on Twitter,
LinkedIn, and YouTube.
• Elevated KAPSARC’s research and reputation in the media landscape.

• Manage events that support planned communications programs, and theCenter’s operations, and help achieve its strategic objectives.
• Maintain an efficient, timely, and convenient publishing process, and support
KAPSARC’s departments with publishing-related services and resources.

90%

3,640

20

year-on-year increase in media

mentions

languages

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KAPSARC Annual Report 2022

Information Technology
The Information Technology department fosters innovation
within KAPSARC by driving digital transformation initiatives,operating infrastructure platforms and delivering software
solutions.

Objectives• Support KAPSARC’s growth momentum by ensuring reliable,robust, and resilient network connectivity, maintaining
dependable platforms, and fulfilling service requests.
• Transform KAPSARC’s legacy processes through digitaltransformation and empower employees with a modern digital
workplace. That is achieved by providing appropriate tools,
technologies, and methods.
• Support the development of productized solutions and foster
an innovation culture with cutting-edge Proof of Concepts andexperimental concepts.

Key Achievements in 2022
• Digitized Performance Management and Goal Management
system in partnership with HR.
• Automated the Workshop Request Process forCommunications & Public Relations department and theKnowledge & Analysis function.
• Streamlined the Visitor Access Management System forbusiness visitors.
• Developed the IAEE conference website and ongoingengagement channel for the 2023 Riyadh IAEE Conference.
• Implemented a technology mind map wheel to the CCE
visualization tool to explore the circular carbon economy
variables.
• Launched the Saudi Energy Leaders Assembly (SELA)How KAPSARC Works

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Human Resources
The Human Resources (HR) department is responsible for attracting
and retaining talent by providing competitive compensation,
an appealing working environment, and maintaining a positive
culture. To achieve that, HR supports and manages all employeerelated activities, including training, professional development, andperformance management.

Objectives• Hire the best talent to support KAPSARC’s value proposition and its
required capabilities.
• Develop and implement a world-class human capacity-building
model for KAPSARC to incubate distinctive talent.
• Retain high-performing talent by enabling the attainment of
KAPSARC’s values and behavioral competencies.

>>>>

How KAPSARC Works

Human Capacity Building Model
KAPSARC has been working on building and fostering continuous learning for all
employees to enhance their knowledge, develop the required skills and grow theircareers.

SO3
Incubate distinctive talent for the advancementof Saudi Arabia’s energy sector
Strategic Outcomes

Larger pool of globally
distinguished talent.

Key Achievements in 2022
• The Performance Management Process has been automated,
including individual objective setting, self-reflection, and multi-raters,
to foster better assessment and promote a culture of continuous
feedback, collaboration, and excellence.
• Launched Graduate Development Program (GDP). It is a 12-monthprogram that aims to attract and develop graduates who havedistinguished themselves through high academic achievement.
The program seeks to build a strong pipeline of talent, serve thecommunity by grooming and developing talent and creating a brandimage for the Center.

Successfully training &developing the leadersof tomorrow.

Increased employee
belonging &satisfaction.

Supporting Initiatives

Several supporting initiatives that fall under thisstrategic objective

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Finance
The Finance department is responsible for managing the finances of theCenter and its subsidiaries, through accounting, treasury, budgeting, andcompliance functions to protect and preserve their assets. They ensure that
all financial operations and transactions are managed and accounted for incompliance with International Financial Reporting Standards and other legal
requirements. The department also aims to enhance the reliability of theCenter’s fiscal position and maximize the effective and efficient use of funds.

Objectives• Ensure compliance with International Financial Reporting Standards andother legally mandated standards.
• Enable other departments by ensuring all the financial operations andtransactions are adequately managed and accounted.
• Manage cash liquidity to ensure the availability of funds to cover liabilities
and process invoices.
• Maximize the efficient use of funds through effective financial planning andbudgeting.

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Cybersecurity
The Cybersecurity department holds the crucial responsibility of safeguarding
information systems and overseeing cybersecurity governance, compliance,and risk management throughout KAPSARC.

Objectives• Making KAPSARC more resilient to cyber-attack and better able to protect its
infrastructure from cyber-attacks.
• Establishing cybersecurity risk management program to oversee themeasurement and management of cyber risks.
• Building a strong cybersecurity culture within KAPSARC to support all cybersecurity objectives

Key Achievements in 2022
• Implemented a 24/7 monitoring and detection program that watches over
KAPSARC’s information systems against cybersecurity threats, incidents, orabnormal activities and responds to cybersecurity incidents by performing
proper analysis and investigation.
• Established a complete cybersecurity program to conduct gap assessments,
build a cybersecurity risk management framework and developing
governance (department strategy, policy, and process) capabilities.
• Increased cybersecurity awareness by sharing flyers and conducting training
for executives.
• Completed the Cybersecurity program, including a governance and risk
framework.

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Other Departments•Strategic Planning & Institutional Initiatives•Strategic Partnerships•Internal Audit, Compliance and Risk
•Legal Counsel

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Strategic Planning& Institutional Initiatives
The Strategic Planning & Institutional Initiatives department provides a rangeof programs designed to achieve specific strategic objectives. Its primary
focus is to ensure that the Center remains competitive and adaptable tochange, while also taking advantage of new opportunities.
This department is a recent addition to the Center’s administrative structure,and it operates under the direct supervision of the President. Its primary goal
is to help the Center align with its organizational strategy. It promptly receives
requested documents from departments for quarterly operational andperformance reports.
Additionally, the department will implement a new project management tool
to improve data gathering, encourage collaboration, track and monitor the
performance of the organization, and establish objectives for the development
and prosperity of KAPSARC and assist in achieving these objectives throughan efficient strategic plan.

Objectives• Establish a solid foundation for strategy and operational planning practices
that will be integrated into the institutional framework.
• Develop and implement a comprehensive institutional performance
management system that will enable the organization to track and measureprogress toward its goals.
• Conduct monthly operational performance reviews and quarterly strategy
reviews to ensure the organization is on track to meet its objectives.
• Prioritize strategic initiatives to ensure they align with the organization’s
overall objectives and goals.

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Strategic
Partnerships
The Strategic Partnership department’s purpose is to institutionalize
relationships and the approach to collaboration, activate partnerships in
support of KAPSARC and Energy Ecosystem priorities, facilitate connections
and relationships for the Energy Ecosystem, and support Energy Ecosystemmessaging through evidence-based analytic and research work. Moving
forward, the focus will shift from establishing how to think about the
department function, and much more toward execution of the outreach andpartnership function on behalf of the Center’s priorities. This translates into
organizing several cross-program initiatives with partners, including KAPSARC
founding a think tank consortium in support of the Net Zero Producers Forum,building on the work initiated with the Payne Institute to expand the focus on
the role of materials and minerals in the energy transition - particularly the
supply constraints and potential supply chain bottlenecks - and supporting the
Ministry in its outreach efforts on several fronts.

Objectives• Leverage external partnerships to fill gaps in capability to respond torequests from the Energy Ecosystem in close coordination with K&A andConsulting.
• Enhance soft power and access for KAPSARC and the Energy Ecosystem inpriority geographies.
• Identify and work with like-minded partners with complementaryperspectives, priorities, and approaches.
• Prioritize and focus partnership activities to support the current thematicand geographic priorities of KAPSARC and the Energy Ecosystem.

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Key Achievements in 2022
During 2022, KAPSARC collaborated informally with a larger number of individuals andorganizations. However, these relationships were formalized in written agreements with a few
key partners to serve the benefit of the Center and the Energy Ecosystem. These formalized
partnerships include:• Derasat and KAPSARC signed a memorandum of understanding (MoU)• The Oxford Institute of Energy Studies and KAPSARC signed a research agreement in March2022• OIES and KAPSARC signed an MoU in May 2022
• The World Energy Council and KAPSARC signed a contract in May 2022
• The Energy Futures Initiative and KAPSARC signed a contract in June 2022
• The Institute of Energy Economics, Japan, and KAPSARC signed an MoU in August 2022
• The United States Association for Energy Economics and KAPSARC signed an MoU in
August 2022
• Aeon Collective, a cross-disciplinary Waqf based in Riyadh, and KAPSARC signed an MoU in
August 2022
• The Economics and Technology Research Institute of the China National Petroleum
Corporation and KAPSARC signed an MoU• The Institute of Energy at Peking University and KAPSARC signed an MoU in December 2022
• The Payne Institute for Public Policy at the Colorado School of Mines and KAPSARC signed
a contract to study the global demand for rare earth, materials, and minerals and theirutilization for energy sources.

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Internal Audit,
Compliance & Risk

Legal
CounselThe Internal Audit, Compliance, and Risk department plays a crucial role inensuring that KAPSARC operates efficiently and effectively, evaluating an in-depth
understanding of the business culture and analyzing all KAPSARC policies andprocedures, as well as analyzing data and providing recommendations that enable
the Center to make informed decisions that align with its objectives. The team isdedicated to identifying potential vulnerabilities and risks developing strategies
and implementing measures to mitigate them, safeguarding KAPSARC’s assets
and reputation, and maximizing opportunities for success. The wider function is toassist the organization in achieving strategic objectives and protecting its assets
through ongoing risk assessment and a full internal audit cycle of all activities toensure internal control, efficiency, effectiveness, and improvement of the Center’s
operations.

The Legal Counsel department plays a crucial role in ensuring that KAPSARC
operates in full compliance with all applicable regulations and laws. The
department helps protect the Center from exposure to legal risks and liability
by providing expert legal advice on a wide range of matters.

Objectives• Conduct a thorough review of the legal landscape to identify relevant
regulations and ensure that KAPSARC complies with them.

• Implement the approved Internal Audit Plan and communicate the results with
Senior Management and the Board of Trustees.
• Provide objective assurance on internal audit activity and consulting tocompliance, governance, and risk management-related processes and controls
across KAPSARC.
• Identify and document the organization’s risks in critical business processes,
define the internal controls within each process, and provide recommendations to
mitigate those risks.
• Communicate and provide training in audit, risk management, and compliance toall employees within the organization.

To achieve this, the Legal Counsel department takes charge of all legal affairs
at KAPSARC, planning, leading, and managing all related activities. Its scopeof work includes providing legal advice on a variety of matters, such as legal
documents, intellectual property rights, employment-related issues, policies
and procedures, corporate affairs, commercial transactions, new projects, andregulations.

Objectives• Develop standardized legal templates for engagement and partnershipagreements to streamline the process and ensure consistency.
• Draft new contracts for engagements and requests, and work with bothinternal and external stakeholders to ensure that any changes are alignedwith KAPSARC’s goals and objectives.
• Provide timely legal advice to all departments within KAPSARC, while also
managing trademarks and copyrights and engaging with external legal
entities for litigation support when necessary.

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Launch of the Graduate
Development Program(GDP)• Roll out of the 12-month program that aims to attract, nurture anddevelop top graduate trainees and equip them with the skills andexperience required to start their careers.
• The Program has been designed using a blended learning approachwith 70% on-the-job learning, 20% Social Learning, and 10% training.
• GDP is a 12-month program that aims to attract and develop
graduates who have distinguished themselves through high academic
achievement.

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The Program• 70% of the GDP learningjourney takes place on
projects that leveragereal-world assignments togrow capabilities• Regular feedback
GDPs are evaluated ona quarterly basis andgiven feedback by theirline mentor on theirperformance in the
program• The program seeks to build a strong talent pipeline, serve thecommunity by grooming and developing talent and create a brandimage for the center.

19• Buddy mentoring
Assigned mentor foreach GDP who provides
support and guidance toGDP, as well as on how tonavigate the KAPSARC
cultureFrom 2,000 applicants,
19 were accepted

Gender Distribution

31%
69%

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70%

On-the job
learning

20%

SocialLearning

In-house training
programs• Completed
Business Acumen,
Data Analysis, Highimpact Presentation• Planned
Data Management,
Research Methods,
Project Management

10%

Final Project
The final project will be related to GDP’s learning objectives.

Training

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KAPSARC’s
Continuous Efforts
Results of KAPSARC’s ongoing commitment inareas of employee engagement and organizationaltransparency.

Oversight Committees

Human Capital
3 Staff Reps

Capital Projects
3 Staff Reps

Periodic Updates

Health & Safety
3 Staff Reps

Cybersecurity

4

Leadership Briefings

3

Townhall Meetings

2
Achievements Reports

Alignment of organizational context throughperiodic communication, quarterly staff meetingsand monthly leadership briefings
Achievements by staff are being materialized anddocumented in quarterly reports and socializedwith all for better awareness of performance2
Poster Sessions

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