Saudi PIF inks trio of renewables component manufacturing JVs
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Partnerships with China’s Envision Energy, Jinko Solar, Lumetech, and Kingdom’s Vision Industries to support localised supply chain opportunity and future export potential.
Saudi Arabia’s Public Investment Fund (PIF) has signed deals with three Chinese firms to boost local manufacturing and assembly capabilities of vital components and associated equipment used for solar and wind power generation.
The latest in a series of utilities and clean energy investments by the sovereign wealth fund, the trio of agreements was inked by PIF-owned, Renewable Energy Localization Company (RELC), along with Saudi Arabia’s Vision Industries, a leading investor and developer of clean energy industrial projects and local supply chains.
The new JVs will support Saudi Arabia’s domestic energy requirements and enhance the ability of local manufacturing to benefit from the global energy transition. Aligned with the government’s clean energy ambition and strategy, the latest signings also reinforce PIF’s ongoing efforts to consolidate the Kingdom’s position as a global centre for exporting products and services for the renewables sector.
RELC has partnered with Shanghai-headquartered wind power technology company Envision Energy and Vision Industries for the manufacture and assembly of wind turbine components, including blades, with an estimated annual generation capacity of four gigawatts. Envision will hold 50 per cent with RELC and Vision Industries holding 40 per cent and 10 per cent, respectively.
The second JV, agreed with Jinko Solar and Vision Industries, will see photovoltaic cells and modules for high-efficiency solar generation manufactured locally, with anticipated annual generation capacity of 10 gigawatts. RELC and Jinko Solar will both hold 40 per cent, with Vision Industries at 20 per cent.
The final Vision Industries-partnered JV will also bring TCL Zhonghuan Renewable Energy subsidiary, Lumetech, on board to localise production of solar photovoltaic ingots and wafers with the goal of generating 20 gigawatts of power. RELC and Lumetech will hold 40 per cent each, and Vision Industries 20 per cent.
RELC’s mandate is the creation of partnerships between leading global manufacturers and the Saudi private sector to meet growing local and export demand for renewable energy, and secure and strengthen local supply chains. The company’s focus is on securing the most appropriate mix for electricity production and replacing liquid fuels currently used in electricity and other sectors in Saudi Arabia, in line with national efforts toward achieving Vision 2030 targets.
The involvement of Vision Industries, together with these three Chinese companies reflects PIF’s continuous efforts in attracting international investors while further enabling the Saudi private sector.
Commenting on the announcement, Yazeed Al-Humied, Deputy Governor and Head of MENA Investments, PIF, said: “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 per cent of the components in Saudi Arabia’s renewable projects by 2030 in line with the Ministry of Energy’s National Renewable Energy Program.
“These projects will also enable Saudi Arabia to become a global hub for export of renewable technologies. PIF aims to achieve these targets through its projects and portfolio companies, including RELC, which support PIF’s progress in renewable energy and investment, and enhance partnership with the private sector.”
PIF, through Acwa Power and Badeel, currently has eight renewable energy projects under development, with an investment value of more than US$9 billion and total capacity of 13.6 gigawatts.
Located across the Kingdom, the Sudair, Shuaibah 2, Ar Rass 2, Al Kahfah, Saad 2, Haden, Muwayh and Al Khushaybi projects are intended to enable and support the local private sector through significant local content requirements and procurement of equipment, supplies and services through local supply chains.
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