The Public Investment Fund (PIF) announced on Tuesday the signing of three new agreements to localize the manufacturing and assembly of equipment and components necessary for solar and wind power in Saudi Arabia. These agreements were entered into by the Renewable Energy Localization Company (RELC), a wholly owned PIF entity, in alignment with the Saudi Ministry of Energy's initiative to localize renewable energy component production. The agreements represent the latest investments by PIF in the utilities and renewables sector, aimed at supporting Saudi Arabia's energy needs and strengthening its position in clean power. RELC facilitates partnerships between global manufacturers and the Saudi private sector to meet local and export demands for renewable energy and enhance local supply chains. The first agreement involves a joint venture (JV) with wind power technology company Envision Energy and Saudi firm Vision Industries, focusing on manufacturing wind turbine components, including blades, with an estimated annual generation capacity of 4 gigawatts (GW). RELC holds a 40% stake in the JV, while Envision holds 50% and Vision Industries holds 10%. The second JV features manufacturer Jinko Solar and Vision Industries, targeting the localization of high-efficiency photovoltaic cells and modules for solar generation, with an annual production capacity of 10 GW. RELC holds 40%, Jinko Solar holds 40%, and Vision Industries holds 20%. The third JV is with LUMETECH S.A. PTE. LTD, a subsidiary of TCL Zhonghuan Renewable Energy, and Vision Industries, focusing on localizing production of solar photovoltaic ingots and wafers, with an annual production capacity sufficient for 20 GW of power. RELC holds 40%, LUMETECH holds 40%, and Vision Industries holds 20%. These agreements will enable Saudi Arabia to localize advanced renewable energy technologies and maximize local content, meeting domestic, regional, and international demand. They support PIF's efforts to position Saudi Arabia as a global exporter of renewable energy products and services. The involvement of Vision Industries and Chinese companies underscores 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, "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, as outlined in the Ministry of Energy's National Renewable Energy Program. They will also establish Saudi Arabia as a global hub for renewable technology exports." PIF is currently developing eight renewable energy projects, including Sudair, Shuaibah 2, Ar Rass 2, Al Kahfah, Saad 2, Haden, Muwayh, and Al Khushaybi, 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. — SG
