Saudi Arabia’s PIF signs JVs for 30 GW solar, 4 GW wind manufacturing

Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, on Tuesday announced joint venture agreements with a trio of Chinese companies aimed at localising the manufacturing of solar and wind power equipment in Saudi Arabia.

A joint venture with wind turbine maker Envision Energy will manufacture and assemble wind turbine components, targeting an annual capacity of 4 GW. A partnership with JinkoSolar Holding Co Ltd (NYSE:JKS) aims to create an annual production capacity of 10 GW for solar cells and modules, while a deal with TCL Zhonghuan Renewable Energy Technology Co Ltd (SHE:002129) seeks to produce 20 GW of solar ingots and wafers annually.

The joint ventures involve the Renewable Energy Localization Company (RELC), which is fully owned by PIF, and Vision Industries, a Saudi firm investing in green industries and value chain. In the deal with Envision, the Chinese company will hold a 50% stake, while RELC will have 40% and Vision Industries 10%.

The agreements will bring advanced power generation and manufacturing technologies for renewable energy production in Saudi Arabia, helping to meet growing domestic, regional and international demand, while positioning Saudi Arabia as an exporting hub for renewables products and services.

“The new agreements are part of PIF’s efforts to localise advanced technologies in the renewable sector in Saudi Arabia and meet commitments to increase the share of local content, as well as contribute to localising the production of 75% of the components in Saudi Arabia’s renewable projects by 2030 in line with the Ministry of Energy’s National Renewable Energy Programme,” said Yazeed Al-Humied, deputy governor and head of MENA Investments at PIF.

The joint venture with TCL Zhonghuan Renewable Energy is between a subsidiary of the Chinese company, RELC and Vision Industries, with the parties holding 40%, 40% and 20% respectively. According to a stock exchange statement by TCL Zhonghuan Renewable Energy, the planned 20-GW wafer factory is expected to require an investment of more than USD 2 billion (EUR 1.8bn).

PIF said that through ACWA Power and Badeel it is currently developing a total of eight renewable energy projects representing 13.6 GW of capacity, namely Sudair, Shuaibah 2, Ar Rass 2, Al Kahfah, Saad 2, Haden, Muwayh and Al Khushaybi. The projects aim to enable the local private sector through local content requirements and procurement of equipment, supplies and services through local supply chains, the fund added.

(USD 1 = EUR 0.917)

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