The Public Investment Fund (PIF) of Saudi Arabia has unveiled new collaborative ventures with three prominent Chinese firms, with the goal of fostering the domestic production of solar and wind power equipment within the kingdom.
An alliance with Envision Energy, a producer of wind turbines, will see the establishment of facilities focused on the fabrication and assembly of wind turbine parts, aiming for an annual output of 4 GW. Concurrently, a cooperative agreement with JinkoSolar Holding Co Ltd will result in the creation of a solar cell and module production line with a capacity of 10 GW per annum. Additionally, a partnership with TCL Zhonghuan Renewable Energy Technology Co Ltd is set to yield a solar ingot and wafer production capability of 20 GW each year.
The collaborative ventures engage the Renewable Energy Localization Company (RELC), entirely owned by PIF, and Vision Industries, a local entity dedicated to investing in sustainable industries and their associated supply chains. In the arrangement with Envision, the Chinese entity will possess a 50% share, while the RELC and Vision Industries will claim 40% and 10%, respectively.
These collaborations are poised to introduce cutting-edge technologies for generating renewable power in Saudi Arabia, catering to escalating domestic and global demand, and positioning the nation as a pivotal exporter of renewable energy products and services.
The new agreements are part of PIF’s efforts to localise advanced technologies in the renewable sector in Saudi Arabia and meet commitments to increase the share of local content, as well as contribute to localising the production of 75% of the components in Saudi Arabia’s renewable projects by 2030 in line with the Ministry of Energy’s National Renewable Energy Programme,
explained Yazeed Al-Humied, deputy governor and head of MENA Investments at PIF.
The joint initiative with TCL Zhonghuan Renewable Energy involves a subsidiary of the Chinese firm, along with RELC and Vision Industries, holding stakes of 40%, 40%, and 20% respectively. TCL Zhonghuan Renewable Energy’s stock exchange disclosure revealed that the proposed 20-GW wafer facility is projected to necessitate a capital infusion exceeding USD 2 billion.
PIF also highlighted its ongoing development of eight renewable energy projects through ACWA Power and Badeel, which collectively represent 13.6 GW of capacity across various sites including Sudair, Shuaibah 2, and others. These projects are designed to empower the local private sector by enforcing local content requirements and sourcing equipment, supplies, and services via domestic supply chains, the fund further added.
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