The Public Investment Fund (PIF) recently announced the signing of three agreements to localize the manufacturing and assembly of equipment and components necessary for solar and wind power in Saudi Arabia. These agreements, facilitated by the Renewable Energy Localization Company (RELC), aim to support Saudi Arabia’s energy needs and strengthen its position in clean power. One of the agreements involves a joint venture with wind power technology company Envision Energy and Saudi firm Vision Industries to manufacture wind turbine components. The second JV includes manufacturer Jinko Solar and Vision Industries to localize high-efficiency photovoltaic cells and modules for solar generation. The third JV is with LUMETECH S.A. PTE. LTD and Vision Industries to focus on localizing production of solar photovoltaic ingots and wafers.
These agreements will enable Saudi Arabia to localize advanced renewable energy technologies and maximize local content, meeting domestic, regional, and international demand. The involvement of Vision Industries and Chinese companies underlines PIF’s strategy to attract international investment and strengthen local supply chains. Yazeed Al-Humied, Deputy Governor and Head of MENA Investments at PIF, stated that these agreements are part of PIF’s commitment to localize advanced renewable technologies in Saudi Arabia, aiming to achieve 75% localization of renewable project components by 2030. The agreements will also establish Saudi Arabia as a global hub for renewable technology exports.
PIF is currently developing eight renewable energy projects with a total capacity of 13.6 GW and over $9 billion in investment. These projects are designed to support the local private sector through significant local content requirements and procurement from local supply chains. Utilities and renewables are strategic sectors for PIF, aligning with Saudi Arabia’s Vision 2030 goals for economic diversification and sustainability. The agreements represent the latest investments by PIF in the utilities and renewables sector, further solidifying Saudi Arabia’s position in clean energy.
The agreements with Envision Energy, Jinko Solar, and LUMETECH S.A. PTE. LTD will help localize the production of wind and solar power components in Saudi Arabia. RELC, a wholly owned PIF entity, facilitates partnerships between global manufacturers and the Saudi private sector to meet local and export demands for renewable energy. These agreements will not only meet local energy needs but also position Saudi Arabia as a major player in the global renewable energy market. The involvement of Vision Industries and Chinese companies highlights PIF’s efforts to attract foreign investment and strengthen local supply chains.
The localization of advanced renewable energy technologies in Saudi Arabia is a key focus for PIF, as the country aims to achieve 75% localization of renewable project components by 2030. These agreements with Envision Energy, Jinko Solar, and LUMETECH S.A. PTE. LTD will play a significant role in achieving this goal. Through these partnerships, Saudi Arabia will be able to maximize local content, support domestic, regional, and international demand, and establish itself as a global exporter of renewable energy products and services. PIF’s commitment to supporting the local private sector through these agreements underscores its dedication to economic diversification and sustainability.
The establishment of joint ventures with Envision Energy, Jinko Solar, and LUMETECH S.A. PTE. LTD is a significant step towards achieving Saudi Arabia’s renewable energy goals. These agreements demonstrate PIF’s commitment to investing in the utilities and renewables sector to meet the country’s energy needs and support economic diversification. The partnerships with global manufacturers and the Saudi private sector will not only localize the production of renewable energy components but also enhance local supply chains and create export opportunities. By developing these renewable energy projects and supporting local content requirements, PIF is helping to position Saudi Arabia as a global leader in renewable energy technology.
