The sovereign wealth fund of Saudi Arabia, the Public Investment Fund (PIF), has announced a significant move in fostering the nation’s renewable energy production capabilities through a series of strategic partnerships. A collaboration involving the globe’s second-ranked producer of solar cell components will lead to the establishment of a $2.8 billion energy manufacturing plant within Saudi borders.
An official statement from TCL Zhonghuan Renewable Energy Technology Co. detailed one of the three agreements endorsed by PIF on July 16, which are poised to strengthen the Kingdom’s renewable energy infrastructure.
PIF’s subsidiary, Renewable Energy Localization Co. (RELC), is at the forefront of these initiatives, pairing with Saudi-based Vision Industries to create joint ventures aimed at propelling the sector forward.
One such endeavor will see RELC and Envision Energy join forces to position Saudi Arabia as a leading producer of wind turbines and associated equipment.
Additionally, a partnership with Jinko Solar is set to advance the domestic production of photovoltaic cells and modules, contributing to the nation’s energy diversification efforts.
In pursuit of sustainable development and a commitment to reduce carbon footprints, Saudi Arabia has vigorously diversified its energy mix. By the year 2030, the Kingdom aims to generate a minimum of 50 percent of its electricity from renewable sources.
Yazeed Al-Humied, PIF’s deputy governor and head of MENA Investments, expressed approval for the agreements, highlighting their alignment with Saudi Arabia’s strategic goal to localize advanced renewable technology and fulfill the nation’s pledge to augment the proportion of local content in energy projects. By 2030, in accordance with the Ministry of Energy’s National Renewable Energy Program, the objective is to localize 75 percent of renewable project components.
Al-Humied further emphasized the potential of these projects to transform Saudi Arabia into an international nexus for renewable technology exports. Through entities like RELC, PIF seeks to bolster the renewable energy and investment sector while fostering public-private partnerships.
Further details revealed that the collaboration with TCL Zhonghuan Renewable Energy’s subsidiary Lumetech S.A. PTE. would localize the production of solar photovoltaic ingots and wafers, with an impressive annual capacity of 20 gigawatts. In this joint venture, RELC, Lumetech, and Vision Industries will hold stakes of 40 percent, 40 percent, and 20 percent, respectively.
The agreement with Envision Energy will encompass the manufacturing and assembly of important wind turbine parts, including blades, aiming for an estimated 4 GW of annual generation capacity. RELC is set to own 40 percent of this joint venture, with Envision claiming 50 percent and Vision Industries the remaining 10 percent.
Similarly, the joint venture with Jinko Solar will focus on the domestic manufacture of photovoltaic cells and modules for high-efficiency solar power, anticipating an annual production capacity of 10 GW. The ownership stakes mirror that of the TCL Zhonghuan deal, with RELC and Jinko Solar each holding 40 percent, and Vision Industries 20 percent.
Collectively, through its involvement with Acwa Power and Badeel, PIF is developing eight renewable energy projects boasting a total capacity of 13.6 GW, representing an investment exceeding $9 billion by the wealth fund and its partners.
Underlining the country’s commitment to green energy, Saudi Arabia’s Minister of Energy, Prince Abdulaziz Al-Saud, has initiated the Geographic Survey Project for Renewable Energy. This groundbreaking project will pinpoint the most advantageous locations for future solar and wind power projects across the Kingdom.
