A consortium of China Energy Engineering Corporation and Saudi partners is building a 2-gigawatt solar power plant.
China Power Engineering Corporation signed CEEC Globa l “A contract within a Saudi-Chinese alliance, worth 6.98 billion yuan ($972 million) to build Solar power station In Saudi Arabia, it said in a filing to the Shanghai Stock Exchange.
The project is considered to be the establishment of Solar power station, the latest in a series of agreements between China and Saudi Arabia in the field of renewable energy.
Solar power plant construction details
A joint venture, comprising a consortium of China Energy Engineering Group and Saudi partners including the Saudi Public Investment Fund, ACWA Power and Saudi Aramco Energy, is set to build the 2GW solar power plant.
According to the disclosure, the implementation of the solar power plant construction project, which includes the design through to the operation phase, is expected to extend over a period of 31 months, with an additional warranty period of 24 months.
The project contract, which is being implemented by a Saudi-Chinese consortium, and which involves independent third parties, is considered a normal business activity and does not affect disclosure obligations under the Hong Kong Stock Exchange listing rules.
Two factories for manufacturing solar cells and panels
Last month, Chinese renewable energy technology company TCL Zhonghuan struck deals with Saudi entities, including Public Investment Fund, on a $2.08 billion project to manufacture silicon crystals and chips.
China’s Jinko Solar has also signed a separate agreement to invest in a 10-gigawatt solar cell and panel plant in Saudi Arabia at a cost of $985 million.
6 renewable energy projects
Starting in 2024, Saudi Arabia aims to issue annual tenders for new renewable energy projects with a total capacity of 20 gigawatts, with the goal of reaching between 100 and 130 gigawatts by 2030, depending on the growth in electricity demand.
Moreover, since the beginning of 2024, 6 new renewable energy projects have been launched with a total capacity of 6.7 GW.
Additional capacities are planned to be launched during the current year to achieve the annual capacity target of 20 gigawatts.
The projects of the National Renewable Energy Program in the Kingdom aim to achieve the goals of the optimal energy mix in the Kingdom, and to replace liquid fuels used in the power generation sector and other sectors in the Kingdom, as part of the energy system’s efforts to achieve the goals of the Kingdom’s Vision 2030.
