China wins $972m contract for new Saudi solar plant

Reuters/Faisal Al Nasser

A Chinese state-backed consortium has won a $972 million engineering, procurement and construction (EPC) contract to build a two-gigawatt (GW) solar project near Mecca in Saudi Arabia.

The Saudi PIF phase IV Haden photovoltaic project is being developed by Buraiq Renewable Energy Company, a joint venture between Acwa Power, the Public Investment Fund and Saudi Aramco Power Company, a wholly owned unit of Aramco.

A consortium of three subsidiaries of China Energy Engineering Corporation (CEEC) will build the project, which is expected to commence commercial operations by early 2027, CEEC said in a statement to the Shanghai stock exchange.

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The project is expected to generate 156 billion kilowatt-hours of electricity upon completion in 25 years, reducing carbon dioxide emissions by 147 million metric tonnes.

Saudi Arabia has become China’s fifth-largest module export market in the first half of the year after not being in the top 10 countries last year, China Daily newspaper reported, quoting the data from the Photovoltaic Industry Association.

The total export value of China’s PV products reached $18.7 billion in the first half of 2024, with modules accounting for about 87 percent, the report said.

• 1,200 sites to be surveyed for Saudi solar and wind power drive
• Saudi adds 5,500MW to meet its renewable energy target
• PIF in $50bn pact with Chinese financers

Since early this year, Saudi Arabia has tendered 6.7GW of solar and wind renewable energy projects, with plans to expand tenders before year-end to reach at least 20GW.

Last month, the Renewable Energy Localization Company, a unit of PIF, signed three joint venture agreements with Chinese companies to support the kingdom’s clean energy needs.

Saudi Arabia intends to produce 130GW of renewable energy by 2030.