Riyadh - Sharikat Mubasher: Saudi’s Public Investment Fund (PIF) announced signing three new agreements with an aim to localize the manufacturing and assembly of equipment and components needed for solar and wind power.
These agreements have been entered into by the Renewable Energy Localization Company (RELC) – a fully-owned PIF company, according to an official press release. They come in line with the Saudi Ministry of Energy’s drive to localize the production of renewable energy components.
The three joint ventures (JVs) represent the latest in a series of investments by PIF in the utilities and renewables sector to support Saudi Arabia’s energy needs and consolidate its position in the field of clean power.
RELC focuses on creating 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. It works toward achieving the most appropriate mix for electricity production and replacing liquid fuels currently used in electricity and other sectors in Saudi Arabia, in line with Saudi efforts toward achieving Vision 2030 targets.
The first agreement involves a JV with the wind power technology company Envision Energy and the Saudi firm Vision Industries. It will involve the manufacture and assembly of wind turbine components including blades with an estimated annual generation capacity of 4 gigawatts (GW). Under this agreement, RELC will hold 40% of the JV, with Envision holding 50% and Vision Industries holding 10%.
The second JV features the manufacturer Jinko Solar, which supplies photovoltaic energy technologies, and Vision Industries. This JV entails localizing the manufacture of photovoltaic cells and modules for high-efficiency solar generation. Under the agreement, which envisages annual production of 10 gigawatts (GW) generation capacity, RELC will hold 40% of the JV, with Jinko Solar holding 40% and Vision Industries holding 20%.
The third JV is with LUMETECH S.A. PTE. LTD, a subsidiary of TCL Zhonghuan Renewable Energy, along with Vision Industries. This deal will localize the production of solar photovoltaic ingots and wafers with annual production sufficient to generate 20 GW of power. Under this agreement, RELC will hold 40% of the JV, with LUMETECH holding 40% and Vision Industries having 20%.
Yazeed Al-Humied, Deputy Governor and Head of MENA Investments at PIF said: “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, as well as contribute to localizing 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 Program. These projects will also enable Saudi Arabia to become a global hub for the 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.”
Overall, PIF, through Acwa Power and Badeel, is currently developing a total of eight renewable energy projects with a total capacity of 13.6 GW, involving over $9 billion of investment from PIF and its partners. These joint projects: Sudair, Shuaibah 2, Ar Rass 2, Al Kahfah, Saad 2, Haden, Muwayh, Al Khushaybi, 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.
