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Saudi Arabia’s Solar Manufacturing Expansion

Desert Technologies plans 5GW capacity to boost regional hub status

by Huda Marshad
November 6, 2024
in Energy
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Jeddah-based Desert Technologies, known for its PV assembly line in Saudi Arabia with a capacity of 110 MW for high-efficiency PERC monocrystalline modules, has announced a significant expansion plan. The company aims to establish a 3GW solar cell manufacturing capacity and a 2GW PV module assembly unit, totaling a 5GW annual capacity. Although specific partners or technologies have not been disclosed, industry sources suggest a potential focus on a TOPCon line.

This development is a positive step for Saudi Arabia, which aims to become a regional manufacturing hub for solar energy, complementing its oil industry dominance. Recently, the Public Investment Fund (PIF) signed agreements to establish 30GW of domestic solar PV manufacturing capacity, covering everything from ingots to modules.

The country benefits from a growing local market for solar energy, supported by plans for 30 GW of energy storage. With ample land and incentives, the Middle East is poised to offer competitive tenders at low rates. This has attracted interest from leading Chinese firms like Jinko, Longi, and Tongwei, as well as India’s L&T, which sees better margins and lower credit risks in the region.

By 2030, the Middle East, including Saudi Arabia and Oman, could achieve nearly 50 GW of local module manufacturing capacity, meeting both local and MENA region demands. The actual implementation of these plans remains to be observed.

Tags: Desert TechnologiesPV module assemblySaudi Arabiasolar cell manufacturingSolar Energy
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