Regional Heterogeneity in Residential Electricity Demand in Saudi Arabia: Evidence from Monthly Panel Data (2009–2024)

Residential electricity demand is a crucial component of electricity consumption in the Kingdom of Saudi Arabia (KSA), necessitating an understanding of its key drivers to support effective energy planning and demand-side management. The data set for this study comprises monthly data from the KSA’s electricity distribution regions (Western, Central, Eastern, and Southern) for the period 2009–2024. It models electricity consumption per subscriber, unlike previous studies that present aggregate electricity consumption, providing a more accurate representation of householders’ electricity consumption patterns. The associations of climatological temperature, electricity bills, and household income are estimated using a pooled regression model applying regional dummy variables and separate regressions by region. The results show a strong association between the climatological temperature profile and residential electricity demand, reflecting pronounced seasonal cooling patterns across the four regions. Residential electricity demand shows a relatively weak association with realized billing exposure, whereas income exhibits a negative association with electricity consumption per subscriber. Robustness analysis controlling for the secular time trend and using annual first differences indicate that this negative association persists, although its magnitude is sensitive to model specification. Significant regional differences were also identified, particularly in the Central and Eastern regions, demonstrating that a single national approach to assessment would not adequately represent residential electricity demand across KSA. These findings provide valuable evidence for region-specific electricity pricing, demand-side management, and long-term energy planning.