The Public Investment Fund (PIF) of Saudi Arabia has entered into three new joint ventures (JVs) aimed at advancing the localization of renewable energy manufacturing within the Kingdom. These ventures are a strategic move to align with the goals of the Saudi Ministry of Energy and support the nation’s ambitious Vision 2030 plan.
The collaborations will bring together PIF’s Renewable Energy Localization Company (RELC) and global industry leaders to boost the domestic production of solar and wind power equipment. These ventures mark a significant step in Saudi Arabia’s pursuit of becoming a key player in the renewables sector.
RELC’s partnerships are designed to meet the increasing demand for renewable energy locally and internationally, while also bolstering the Saudi supply chains. The strategy aims to diversify electricity production sources and reduce reliance on liquid fuels.
One of the agreements includes a partnership with Envision Energy and Vision Industries to manufacture and assemble wind turbine components, such as blades, with a projected annual output of 4 gigawatts (GW). RELC will own a 40% stake, Envision Energy 50%, and Vision Industries 10% in this JV.
The second JV involves Jinko Solar and Vision Industries, focusing on the production of photovoltaic cells and modules. The anticipated capacity is 10 GW per year. Ownership stakes are distributed with RELC and Jinko Solar each holding 40%, and Vision Industries owning the remaining 20%.
The third venture aligns with LUMETECH S.A. PTE. LTD, a subsidiary of TCL Zhonghuan Renewable Energy, and Vision Industries. This JV will produce solar photovoltaic ingots and wafers sufficient for 20 GW of power annually. RELC, LUMETECH, and Vision Industries will each have a 40%, 40%, and 20% stake, respectively.
These JVs are expected to localize advanced renewable energy production technologies in Saudi Arabia, and are in sync with PIF’s strategy of increasing local content and supporting Saudi Arabia’s role as a global hub for renewable energy products and services.
Vision Industries, a prominent investor in clean energy projects, will be part of these ventures, underscoring PIF’s commitment to attract international investment and empower the local private sector.
Yazeed Al-Humied, Deputy Governor and Head of MENA Investments at PIF, emphasized the significance of these agreements in localizing cutting-edge renewable technologies and achieving the objective of producing 75% of renewable project components domestically by 2030. PIF continues to drive renewable energy and investment through projects and portfolio companies like RELC.
Currently, PIF, along with Acwa Power and Badeel, is developing eight renewable energy projects totaling 13.6 GW capacity, representing over $9 billion in investments. These projects aim to boost the local private sector and utilize domestic supply chains.
Renewable energy development in Saudi Arabia is integral to Vision 2030, which seeks to transform and diversify the nation’s economy. PIF plays a vital role in this transformation by investing in various strategic sectors and fostering public-private partnerships.
