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Saudi Arabia's PIF partners with Chinese firms to localize green energy production

With the launch of Saudi Vision 2030 in 2016, the country is committed to diversifying its economy away from crude oil
 

Saudi Arabia's PIF joins hands with Chinese companies to localize green energy 

Saudi Arabia’s Public Investment Fund (PIF) has partnered with three Chinese photovoltaic companies to localize the manufacturing and assembly of solar and wind power equipment in the Kingdom.

PIF’s fully-owned subsidiary, Renewable Energy Localization (RELC), and Saudi firm Vision Industries have signed agreements with Envision Energy, Jinko Solar, and TCL Zhonghuan Renewable Energy Technology. The goal is to localize advanced power generation and manufacturing technologies for renewable energy production in Saudi Arabia, maximizing local content to meet growing domestic, regional, and international demand, PIF announced.

“These agreements are part of PIF’s commitment to localize advanced renewable technologies in Saudi Arabia, aiming to achieve 75 percent localization of renewable project components by 2030, as outlined in the Ministry of Energy’s National Renewable Energy Program,” said Yazeed Al-Humied, Deputy Governor and Head of Middle East and North Africa Investments at PIF. “They will also establish Saudi Arabia as a global hub for renewable technology exports.”

 

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RELC, Vision Industries, and Envision will form a joint venture to manufacture and assemble wind turbine components in Saudi Arabia, with an annual generation capacity of 4 gigawatts. Envision will hold 50 percent of the JV, RELC 40 percent, and Vision Industries the remaining 10 percent.

Additionally, RELC and Vision Industries will establish a JV with Lumetech, a subsidiary of TCL Zhonghuan, to produce solar photovoltaic ingots and wafers with an annual production capacity of 20 GW. RELC and Lumetech will each own 40 percent of the JV, with Vision Industries holding 20 percent. The new plant in Saudi Arabia will be the largest solar wafer plant outside China, with a total investment of USD 2.1 billion.

 

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RELC and Vision Industries will also partner with Jinko Solar to establish a JV for the localized manufacturing of PV cells and modules, with an annual generation capacity of 10 GW. RELC and Jinko Solar will each hold 40 percent of the JV, with Vision Industries holding the remainder. The JV will have a total investment of SAR 3.7 billion (USD 990 million).

RELC facilitates partnerships between global manufacturers and the Saudi private sector to meet the growing demand for renewable energy and to strengthen local supply chains, in line with Saudi Vision 2030. Vision Industries, co-founded in 2021 by Abunayyan Holding and Al Muhaidib Group, aims to build a new energy industry chain in Saudi Arabia.

 

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With the launch of Saudi Vision 2030 in 2016, the country is committed to diversifying its economy away from crude oil, aiming for green energy to account for half of its energy mix by 2030, totaling 58.7 GWh.

In another related development, Chinese renewable energy company Sungrow Power Supply announced an agreement with Saudi Arabian investment firm Algihaz Holding to build the world’s largest energy storage project in Saudi Arabia, with a total capacity of 7.8 gigawatt-hours. Sungrow will provide key equipment and power management systems for the project.

Source: https://www.yicaiglobal.com/

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