Saudi Arabia Boosts Renewable Energy Industry with Chinese Partnerships

Signing New Agreements to Enhance Clean Energy

In a significant move to bolster the renewable energy industry in Saudi Arabia, the Public Investment Fund (PIF) has signed agreements with three leading Chinese companies aimed at developing major local projects. These initiatives are part of the Kingdom's efforts to localize supply chains in the clean energy sector.

Joint Venture for Wind Turbines

One of the key agreements was signed between "Envision Energy", a global leader in wind energy production, and "Vision Industries," a subsidiary of PIF. The project aims to manufacture and assemble wind turbine components locally, enhancing the Kingdom's independent production capabilities.

Localizing Solar Cell Manufacturing

The second agreement involves establishing a joint venture with "Jinko Solar", a leading manufacturer of solar energy technologies, and "Vision Industries." The project targets the production of photovoltaic solar cells and panels with an annual capacity of 10 gigawatts.

Project for Solar Alloy and Wafer Manufacturing

The third project includes cooperation with "Lomatek SE PTE", a subsidiary of TCL Zhonghuan Renewable Energy Technology, and "Vision Industries." This initiative aims to localize the manufacturing of solar alloys and wafers with a production capacity of 20 gigawatts per year.

Developing Renewable Energy Projects

PIF, through its subsidiaries "ACWA Power" and "Badeel," is working on developing eight renewable energy projects with a total capacity of 13.6 gigawatts. These projects involve investments exceeding $9 billion, including notable projects such as "Sudair," "Shuaibah 2," "Ar-Rass 2," "Al-Kahfah," "Saad 2," "Hodan," "Al-Moyeh," and "Al-Khashaibi."

Chinese Interest in the Saudi Market

Amid increasing pressure on profit margins and escalating trade tensions with the United States, Chinese clean energy companies are turning to Saudi Arabia to expand their industrial bases. This collaboration enhances the reliability and safety of investment in the Kingdom's renewable energy sector.

Strengthening Energy Cooperation

During a meeting held in Beijing, Chinese Vice Premier He Lifeng emphasized deepening cooperation in energy, trade, and finance with Saudi Arabia, highlighting the importance of strategic partnerships in promoting sustainability and innovation in this sector.

Exploiting Renewable Energy Resources

According to Saudi Energy Minister Prince Abdulaziz bin Salman, Saudi Arabia continues to leverage its abundant solar and wind energy resources to enhance the transformation of the energy mix in the Kingdom.