The Public Investment Fund (PIF) of Saudi Arabia has declared the establishment of three collaboration agreements with Chinese entities through its wholly-owned Renewable Energy Localisation Company (RELC). These agreements aim to advance the local production of solar and wind energy equipment within the nation.
RELC has partnered with Vision Industries, a prominent Saudi firm specializing in the development of clean energy projects, as well as three Chinese enterprises to create joint ventures (JVs) that will cater to the rising demand both domestically and internationally. Additionally, these JVs will reinforce and secure the Kingdom’s local supply chains.
- A JV with Envision Energy, a wind power technology provider, will focus on the manufacture and assembly of wind turbine parts, including blades, striving for an annual capacity of 4 gigawatts (GW). In this venture, RELC will own a 40 percent stake, with Envision Energy holding 50 percent, and Vision Industries the remaining 10 percent.
- The second JV involves JinkoSolar and Vision Industries and will work on the localization of photovoltaic cell and module production for efficient solar energy generation. This JV aims for an annual capacity of 10 GW, with RELC and JinkoSolar’s subsidiary Jinko Middle East each holding a 40 percent share, and Vision Industries possessing a 20 percent share.
- The final JV with LUMETECH S.A, part of TCL Zhonghuan Renewable Energy, along with Vision Industries, is set to localize the production of solar photovoltaic ingots and wafers. They plan to produce an annual capacity sufficient for 20 GW of power generation, with RELC, LUMETECH, and Vision Industries holding 40 percent, 40 percent, and 20 percent stakes respectively.
While the PIF did not reveal specific investment figures, JinkoSolar indicated that its manufacturing JV would entail an investment close to $1 billion, funded through both internal resources and external financing.
Yazeed Al-Humied, Deputy Governor and Head of MENA Investments at PIF, emphasized that these JVs are expected to localize 75 percent of the components for Saudi Arabia’s renewable energy projects by 2030. This is in alignment with the Ministry of Energy’s National Renewable Energy Programme.
PIF is currently involved in the development of eight renewable energy projects through ACWA Power and Badeel, which include Sudair, Shuaibah 2, Ar Rass 2, Al Kahfah, Saad 2, Haden, Muwayh, and Al Khushaybi. These projects have a combined capacity of 13.6 GW and represent an investment of over $9 billion.
