RIYADH: Saudi Arabia’s Public Investment Fund (PIF) on July 16 signed three major agreements to boost the Kingdom’s renewable power sector. The agreements are to stimulate local production of renewable energy component to help Saudi Arabia with its sustainability goals.
Key Deals:
- TCL Zhonghuan Renewable Energy Technology Co.: The partnership worth $ 2.8 billion involves the construction of a solar power production plant in Saudi Arabia. The joint venture (JV) will encompass manufacturing solar photovoltaic ingots and wafers with a capacity of 20GW per year. Both RELC and Lumetech S.A. PTE. will hold 40 percent of the JV while Vision Industries will hold 20 percent.
- Envision Energy: This deal focuses on the production of wind turbine components like blades with an estimated annual capacity of 4 GW. RELC will hold 40% of the JV, while Envision and Vision Industries will hold 50% and 10% respectively.
- Jinko Solar: This agreement will encourage localization of the production of photovoltaic cells and modules for high-efficient solar generation, aiming to get 10GW capacity per year. RELC and Jinko Solar will own 40 percent each of the JV, while Vision Industries will have a 20 percent share.
These initiatives are in line with Saudi Arabia’s objective to produce 50% of its electricity from renewable sources by 2030. The agreements also seek to localize 75% of all components that are used in renewable projects, as set forth by the Ministry of Energy’s National Renewable Energy Program.
According to Yazeed Al-Humied, the deputy governor of PIF, these projects will make Saudi Arabia a hub for renewable technology exports. Currently, the PIF, through Acwa Power and Badeel, is developing eight renewable energy projects with a total capacity of 13.6 GW, involving more than $9 billion in investments.
Additionally, Saudi Arabia’s Minister of Energy, Prince Abdulaziz Al-Saud created the Geographic Survey Project for Renewable Energy to pinpoint the areas in the Kingdom suitable for solar and wind power.
