Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), announced on Tuesday joint venture agreements with three Chinese companies aimed at localizing the manufacturing of solar and wind power equipment within the kingdom.
Under these agreements, PIF's Renewable Energy Localization Company (RELC) will collaborate with Envision Energy, JinkoSolar Holding Co Ltd, and TCL Zhonghuan Renewable Energy Technology Co Ltd to enhance local production capabilities.
Envision Energy will focus on wind turbine components with an annual capacity target of 4 GW, while JinkoSolar aims to establish a 10 GW annual production capacity for solar cells and modules. TCL Zhonghuan Renewable Energy plans to produce 20 GW of solar ingots and wafers annually.
“The new agreements are part of PIF's efforts to localize advanced technologies in the renewable sector in Saudi Arabia and meet commitments to increase the share of local content,” stated Yazeed Al-Humied, deputy governor and head of MENA Investments at PIF.
These ventures are expected to bolster Saudi Arabia's position in renewable energy manufacturing, catering to both domestic and international demand while facilitating the kingdom's goal to localize 75% of renewable project components by 2030.
The investment in manufacturing facilities underscores Saudi Arabia's strategic push towards sustainability and energy diversification.
