The Public Investment Fund (PIF) of Saudi Arabia has revealed the signing of three vital partnerships aimed at boosting the domestic manufacturing of solar and wind energy components. These initiatives underscore the kingdom’s commitment to fulfilling its energy requirements and solidifying its foothold in the realm of renewable energy.
These strategic collaborations are established through the Renewable Energy Localization Company (RELC), a subsidiary entirely owned by PIF, which aligns with the Saudi Ministry of Energy’s goal to advance the production of renewable energy parts domestically.
One of the agreements announced is a joint venture with Envision Energy and Vision Industries, concentrating on the production of wind turbine parts, including blades, aiming for an estimated annual capacity of 4 gigawatts (GW). In this venture, RELC, Envision Energy, and Vision Industries hold stakes of 40%, 50%, and 10% respectively.
Another partnership involves Jinko Solar and Vision Industries, focusing on the creation of high-efficiency photovoltaic cells and modules for solar power generation, boasting an annual capacity of 10 GW. Here, RELC and Jinko Solar each have a 40% share, while Vision Industries has a 20% stake.
The third collaboration is with LUMETECH S.A. PTE. LTD, a subsidiary of TCL Zhonghuan Renewable Energy, alongside Vision Industries. This joint venture is dedicated to the production of solar photovoltaic ingots and wafers, with the capacity to support 20 GW of power annually. In this JV, RELC, LUMETECH, and Vision Industries each hold 40%, 40%, and 20% of the shares, respectively.
The fruition of these agreements will allow Saudi Arabia to not only localize advanced renewable energy technologies but also to meet the demands for such technologies domestically and internationally. This initiative plays a critical role in PIF’s strategy to position the kingdom as a leading global exporter of renewable energy products and services, while also attracting international investments and bolstering local supply chains.
Yazeed Al-Humied, Deputy Governor and Head of MENA Investments at PIF, articulated that these efforts are part of the fund’s dedication to localizing modern renewable technologies in the kingdom, aiming for 75% localization of renewable project components by the year 2030. This aligns with the objectives set by the Ministry of Energy’s National Renewable Energy Program and is a step towards establishing Saudi Arabia as a primary center for exporting renewable technology.
PIF is actively developing multiple renewable energy projects with a combined capacity of 13.6 GW and an investment sum surpassing $9 billion. These projects are designed to support the local private sector and are characterized by significant local content prerequisites and procurement from local supply chains.
The focus on utilities and renewable energy is in line with the strategic sectors identified by PIF, which support the broader Vision 2030 initiative for economic diversification and sustainability in Saudi Arabia.
