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PIF ties up with China to meet renewable energy targets

By Pramod Kumar
The new agreements will contribute to localising the production of 75% of the components in Saudi Arabia’s renewable projects by 2030 Unsplash.com/Karsten Würth
The new agreements will contribute to localising the production of 75% of the components in Saudi Arabia’s renewable projects by 2030

Saudi Arabia’s Public Investment Fund (PIF) is swiftly moving towards localising renewable energy components to achieve its 2030 targets.

The Renewable Energy Localization Company (RELC), a unit of the sovereign fund, has signed three joint venture agreements with Chinese companies to support the kingdom’s clean energy needs.

RELC works to build partnerships between global manufacturers and the Saudi private sector to strengthen local supply chains.

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The first joint venture between Vision Industries, a Saudi private company, and Envision Energy, a wind power technology company, will manufacture and assemble wind turbine components, including blades with an estimated annual generation capacity of 4 gigawatts (GW).

RELC will hold 40 percent of the venture, Envision will have 50 percent and Vision Industries the remaining 10 percent.

The second venture, between Jinko Solar, a supplier of photovoltaic energy technologies, and Vision Industries, will localise the manufacturing of photovoltaic cells and modules for high-efficiency solar generation. The venture will have an annual production capacity of 10 GW.

RELC and Jinko Solar will each own 40 percent of the new venture, while Vision Industries will hold 20 percent.

The third joint venture is between Lumetech, a TCL Zhonghuan Renewable Energy subsidiary and Vision Industries, to produce solar photovoltaic ingots and wafers with annual production sufficient to generate 20 GW of power.

This venture will be owned 40 percent each by RELC and Lumetech. Vision Industries will retain 20 percent.

Yazeed Al-Humied, deputy governor and head of Mena Investments at PIF, said these projects will enable Saudi Arabia to become a global hub for the export of renewable technologies.

“The new agreements will contribute to localising the production of 75 percent of the components in Saudi Arabia’s renewable projects by 2030, he added.

Acwa Power and Badeel, PIF subsidiaries, are developing eight renewable energy projects with a capacity of 13.6 GW, involving over $9 billion of investment.

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