The sovereign wealth fund of Saudi Arabia, known as the Public Investment Fund (PIF), is on the verge of finalizing an agreement with Envision Energy, a Chinese firm, to establish a facility that will manufacture wind turbines within the Kingdom. This strategic move aims to localize the supply chains crucial for the energy sector.
Reports indicate that the deal may be concluded as early as this week, according to sources familiar with the ongoing discussions.
Joining the venture is Vision Industries, a renewable energy manufacturing entity that operates privately.
Envision Energy’s involvement extends beyond this plant; they are currently providing wind turbines for a $9 billion initiative, the Neom Green Hydrogen Company.
Last May marked a pivotal moment when the Saudi Power Procurement Company (SPCC), backed by the state, engaged in two power purchase agreements (PPA) with a consortium spearheaded by Japan’s Marubeni Corporation. These agreements were aimed at sourcing electricity from two significant wind power projects, AlGhat and Wa’ad Alshamal, with capacities of 600 megawatts and 500 megawatts, respectively.
Saudi Arabia’s commitment to amplifying its renewable energy output is evident in the significant increase from 700 megawatts in 2022 to an excess of 2.2 gigawatts, with expectations to develop even further – over 8 gigawatts and 13 gigawatts of renewable energy are currently in the pipeline.
