Chinese solar module manufacturers TCL Zhonghuan and JinkoSolar are set to build USD $3bn of new solar farms in Saudi Arabia.
Saudi Arabia’s Public Investment Fund (PIF) announced on Tuesday. The news comes as the Kingdom’s PIF is investing in making its renewable power local.
As Europe and the USA reinforce trade barriers, and competition begins to mount in the Middle East’s renewable industry, electing Chinese firms for the development demonstrates Saudi Arabia’s new strategy.
It additionally demonstrates China’s prominence in the Middle East’s green energy sector, as the East Asian country expands its footprint across the international solar sector.
In an early announcement of the upcoming project, JinkSolar’s Middle East-based subsidiary has partnered with Saudi Arabia’s Vision Industries consultancy and Renewable Energy Localisation Company (RELC) – the latter owned by PIF.
In the consortium, JinkoSolar will build a 10GW solar cell and module factory in a currently unspecified location in Saudi Arabia. The project is expected to cost $1bn, to be covered by both internal funds and external financing.
In a statement, JinkoSolar said about the news: “Pursuant to the Agreement, Jinko Middle East, RELC and VI agree to form a joint venture in Saudi Arabia with Jinko Middle East, RELC and VI holding 40%, 40% and 20% equity interest, respectively.
“The formation of the joint venture is subject to customary preconditions, including obtaining the requisite regulatory approvals.”
[Image credit: JinkoSolar]
