Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has recently entered into two significant partnerships with Chinese solar PV manufacturers JinkoSolar and TCL Zhonghuan Renewable Energy. These collaborations are anticipated to inject a substantial 30GW of solar PV production capacity, spanning from ingots to modules, into the kingdom’s renewable energy sector.
The deals, orchestrated by the Renewable Energy Localization Company (RELC)—a wholly-owned entity of PIF—and with contributions from Saudi renewables investor Vision Industries (VI), mark a strategic move to bolster domestic manufacturing capabilities in solar technology.
The first of the two ventures is with Lumetech, a subsidiary of TCL Zhonghuan Renewable Energy, which is set to establish a 20GW ingot and wafer manufacturing operation. The financing and construction of this facility will be a joint effort between Lumetech, RELC, and Vision Industries, with the former two holding a 40% stake each, and the latter holding the remaining 20%.
Conversely, JinkoSolar’s agreement is centered on creating a 10GW annual capacity for n-type solar cells and modules within the nation. While the specific technology to be employed was not disclosed, JinkoSolar is widely recognized for its tunnel oxide passivated contact (TOPCon) products and has expressed intentions to transition its production capacity predominantly to n-type products by the year’s end.
The investment structure mirrors that of the Lumetech deal, with JinkoSolar and RELC acquiring 40% equity each, and Vision Industries securing the remaining 20%. The exact timeline and locations for the construction of these manufacturing plants remain under wraps, with their development contingent on market dynamics.
Yazeed Al-Humied, deputy governor and head of MENA Investments at PIF, emphasized that these agreements align with the kingdom’s vision to localize cutting-edge technology in the renewable sector. The initiatives aim to fulfill a target of localizing 75% of renewable project components by 2030, as part of the Ministry of Energy’s National Renewable Energy Program, and position Saudi Arabia as a key exporter of renewable technologies.
In addition to these agreements, other recent developments in the region include a partnership between US solar tracker manufacturer GameChange Solar and Chinese company Jiangsu Zhenjiang New Energy Equipment (JZNEE). This collaboration is slated to bring about a new tracker manufacturing facility in Dammam, Saudi Arabia, with an initial capacity of up to 3GW, potentially expandable to 5GW, and expected to commence commercial production later this year.
Moreover, the United Arab Emirates is also exploring the potential establishment of a polysilicon facility through cooperation between solar manufacturer GCL Tech and Mubadala Investment Company, aiming to create a comprehensive silicon ecosystem of regional and global significance.
