Saudi Utility Giant Secures Over 1 Gigawatt of Renewable Energy Projects
In a significant development, ACWA Power, the leading Saudi utility giant, has announced its successful expansion into China’s renewable energy sector. The company has secured over 1 gigawatt (GW) of renewable energy projects, marking its formal entry into one of the world’s largest clean energy markets.
Joint Ownership with Chinese Renewable Energy Firms
The portfolio includes solar photovoltaic and wind energy initiatives that will be jointly owned by ACWA Power and leading Chinese renewable energy firms. This strategic partnership reflects the company’s commitment to collaborating with local stakeholders in China, enhancing its understanding of the market, and developing tailored solutions for the region.
Projects Spread Across Several Chinese Provinces
According to a statement issued to Tadawul, ACWA Power confirmed that the projects are spread across several Chinese provinces and are in advanced stages of development. This milestone represents a significant achievement for the company, positioning it for future growth in China’s thriving renewable energy sector.
Aligning with Broader Ambitions in China
The expansion aligns with ACWA Power’s broader ambitions in China. Earlier this month, Yunhe Lyu, head of ACWA Power’s China operations, shared plans to invest up to $50 billion in renewable energy projects across the country by 2030. The company aims to acquire clean power assets with a capacity of up to 20 GW and develop 1 million tonnes of green hydrogen.
Ambitious Targets for Clean Energy Expansion
"We have an ambitious target of investing up to $50 billion in green energy, renewable technologies, green hydrogen, and desalination projects by 2030," Lyu told Bloomberg. "Our goal is to reach 1.3 GW of renewable energy capacity in China by the end of this year."
Collaboration with Chinese State-Owned Enterprises
ACWA Power’s strategy also involves collaboration with Chinese state-owned enterprises, both within China and abroad. For instance, the company partnered with China Southern Grid International in July on a wind project in Uzbekistan and with State Power Investment Corp. on power initiatives in Saudi Arabia.
Strengthening Economic Ties between Saudi Arabia and China
The expansion into China is part of a broader strengthening of economic ties between Saudi Arabia and China. Since Chinese President Xi Jinping’s visit to Riyadh in 2022, the two nations have deepened their economic collaboration, particularly in sectors aligned with Saudi Arabia’s Vision 2030.
Robust Growth in Bilateral Trade
In 2023, bilateral trade between the countries reached $107.23 billion, with China exporting $42.86 billion in goods to Saudi Arabia and importing $64.37 billion, primarily crude oil and petrochemical products. By August 2024, trade had already totaled $70.87 billion, continuing to show robust growth.
China Becomes Leading Source of Greenfield Foreign Direct Investment
Notably, China has become the Kingdom’s leading source of greenfield foreign direct investment, contributing $21.6 billion from 2021 to October 2024. About one-third of this investment is in clean technologies such as solar, wind, and battery storage.
Saudi Aramco Reinforces Bilateral Ties
Saudi Aramco has also been instrumental in strengthening bilateral ties. In November, Aramco, in partnership with China’s Sinopec, began construction of a $9.82 billion petrochemical complex in Fujian province. The project will include a 320,000-barrel-per-day refinery and a 1.5-million-tonne-per-year ethylene plant, with full operational status expected by 2030.
Enhancing China’s Refining and Petrochemical Capacity
This project is set to boost China’s refining and petrochemical capacity while reinforcing Aramco’s position in the downstream energy sector. Earlier in September, Aramco signed several key agreements with Chinese partners, including a development framework agreement with Rongsheng Petrochemical Co. Ltd. and a strategic cooperation agreement with Hengli Group Co. Ltd.
Advanced Technologies and Lower-Carbon Energy Solutions
Beyond traditional energy, Aramco’s collaboration with China also extends to advanced technologies and lower-carbon energy solutions. In March, Aramco President and CEO Amin Nasser addressed the China Development Forum in Beijing, underscoring the company’s commitment to being a reliable energy partner and its vision for future cooperation in the global energy transition.
A Reliable Energy Partner
Nasser’s address highlighted Aramco’s dedication to supporting China’s industrial development and enhancing the country’s energy security. The partnership between Aramco and Chinese entities is expected to drive innovation, create new opportunities, and promote sustainable growth in both countries.
By expanding into China’s renewable energy sector, ACWA Power has solidified its position as a leading player in the global clean energy market. As the company continues to grow and develop its presence in China, it will undoubtedly contribute significantly to the country’s efforts to achieve a cleaner and more sustainable energy future.
