Saudi Arabia’s PIF enters three joint ventures for renewable energy localization
![](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/07/2-Dawn.jpg)
Saudi Arabia’s Public Investment Fund (PIF) announced it had inked three new agreements to localize the manufacturing and assembly of components required for solar and wind power.
The agreements signed by the PIF have been entered into by the Renewable Energy Localization Company (RELC), a PIF-owned company. These agreements support the ministry’s goal of localising renewable energy component production.
Establishing these three joint ventures (JVs) marks PIF’s ongoing commitment to invest in the utilities and renewables sector. This investment aims to meet Saudi Arabia’s energy requirements and reinforce its leadership in clean power initiatives.
Also read: Emirates Global Aluminium announces Green Finance Framework
The first JV entails RELC partnering with Envision Energy and Vision Industries to manufacture wind turbine components, including blades.
This collaboration aims to achieve an annual generation capacity of 4 gigawatts (GW). RELC holds a 40% stake in the JV, with Envision holding 50% and Vision Industries holding the remaining 10%.
In the second JV, RELC has teamed up with Jinko Solar and Vision Industries to localize the production of photovoltaic cells and modules for high-efficiency solar generation. The JV targets an annual production capacity of 10 GW.
RELC owns 40% of this venture, with Jinko Solar and Vision Industries holding 40% and 20%, respectively.
The third JV sees RELC as a partner with LUMETECH S.A. PTE. LTD, a TCL Zhonghuan Renewable Energy subsidiary, and Vision Industries.
This agreement focuses on localizing the production of solar photovoltaic ingots and wafers, aiming for an annual production capacity sufficient to generate 20 GW of power. RELC holds 40% of the JV, with LUMETECH and Vision Industries holding 40% and 20% respectively.
Also read: Abu Dhabi’s oil company partners with Japanese bank for $3 billion green financing facility
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.”
He also highlighted that these projects would facilitate Saudi Arabia’s ambition to establish itself as a global hub to export renewable technologies.
They emphasized that PIF aimed to realize these objectives through its various projects and portfolio companies, including RELC.
These initiatives were intended to bolster PIF’s renewable energy and investment advancements and strengthen collaborations with the private sector.
Quote of the Day
No quotes found.
Newsletter
Related News