China and Saudi Arabia have embarked on several landmark projects to jointly bolster renewable energy efforts, which will pave the way for significant advancements in renewable energy infrastructure and technology that will benefit both nations, according to analysts.
Sungrow Power Supply, a Chinese photovoltaic inverter manufacturer, signed an agreement with Saudi Arabia's Algihaz Holding for an energy storage project with a capacity of up to 7.8 gigawatt-hours — the largest energy storage project in the world. Photovoltaic inverters convert direct current electricity to alternating current, which then flows into the electric grid.
The project, which involves three sites, is expected to begin delivery in 2024 and achieve full grid-connection capacity by 2025, further enhancing the stability and reliability of Saudi Arabia's power grid, Sungrow said in a statement.
In another project, JinkoSolar, the world's largest solar panel producer by shipments, pressed ahead with overseas expansion plans to build the largest overseas manufacturing plant for N-type solar cells and modules, partnering with Saudi Arabia's Public Investment Fund. N-type solar cells feature higher efficiency and stability and reduced degradation.
With an investment of around $1 billion, the facility, JinkoSolar's most significant overseas investment to date, is expected to have an annual production capacity of 10 gigawatts for high-efficiency solar cells and modules once operational, and would be the largest manufacturing base for Chinese photovoltaic products abroad, the company said.
Furthermore, TCL Zhonghuan Renewable Energy Technology Co has announced the establishment of a joint venture, also with Saudi Arabia's Public Investment Fund, to build a factory to produce 20 GW of photovoltaic crystal wafers, which serve as semiconductors. With a total investment of approximately $2.08 billion, the factory will further solidify the renewable energy collaboration between China and Saudi Arabia, TCL Zhonghuan said.
Analysts said they believe that these initiatives highlight win-win cooperation between China and Saudi Arabia and represent a strategic alliance aimed at mutual benefits and sustainable development. The projects will leverage the two countries' strengths and resources while setting a model for international cooperation in combating climate change, they said.
Nicholas Lua, an analyst at global consultancy Rystad Energy who covers the solar supply chain, said, "These gigawatt-scale announcements stand to turbocharge domestic solar manufacturing in Saudi Arabia, enabling the country to capitalize on the Middle East's exceptional solar energy potential of more than 2,000 kilowatt-hours per square meter annually in solar irradiation."
Solar manufacturing in Saudi Arabia and other Middle Eastern countries could further expand Chinese solar companies' presence on the global stage, he added.
Luo Zuoxian, an analyst at the Sinopec Economics and Development Research Institute, said the projects will further diversify Saudi Arabia's energy sources and enhance local grid stability and reliability, thanks to the advanced technology and expertise brought by Chinese companies.
On the other hand, these ventures will also provide an excellent opportunity to expand China's renewable energy footprint and showcase its technological advancements on the global stage, he said.
Luo said he believes that the successful implementation of the projects will not only bolster China's renewable energy industry, but also strengthen its economic ties with Saudi Arabia, fostering a long-term strategic partnership.
The deepening renewable energy cooperation between China and Saudi Arabia exemplifies a strategic alliance aimed at sustainable development, he said. By leveraging their respective strengths and resources, the two nations are poised to achieve significant advancements in renewable energy, setting a benchmark for international cooperation in the fight against climate change, he added.
Li Xiande, chairman of JinkoSolar, said the partnership with Saudi Arabia is another major milestone in the company's globalization strategy, and will further help the company optimize its global manufacturing and marketing infrastructure and enhance its global competitiveness.
Qian Jing, vice-president of JinkoSolar, said the factory in Saudi Arabia will be the company's fourth plant abroad, after those in Malaysia, Vietnam and the United States.
Countries in the Middle East enjoy good credit, sufficient financing resources, stable conditions, an ambitious market and policy support, Qian said.
"China and the global market still show increasingly strong demand prospects for clean energy, prompting the solar industry's top players to further expand high-efficiency capacity in the long term," she added.
Qian said that energy storage will be the company's second-most important business after solar module production, and JinkoSolar aims to become the world's leading storage company within the next three to five years.
京公网安备 11010202009201号