meed-logo

line1 line2 line3
SIGN IN / REGISTER

PIF signs renewables joint ventures

17 July 2024

Register for MEED's 14-day trial access 

Saudi Arabia's sovereign wealth vehicle, the Public Investment Fund (PIF), has announced the signing of three new agreements to localise the manufacturing and assembly of equipment and components needed for solar and wind power projects.

Renewable Energy Localisation Company (RELC) – a fully owned PIF company – entered into the three agreements, in line with the Saudi Energy Ministry’s drive to localise the production of renewable energy components, the PIF said in a statement on 16 July.

RELC focuses on "creating partnerships between leading global manufacturers and the Saudi private sector to meet growing local and export demand for renewable energy, and secure and strengthen local supply chains".

The first joint venture (JV) comprises China-headquartered wind power technology company Envision Energy and Saudi firm Vision Industries. The new company plans to manufacture and assemble wind turbine components including blades with an estimated annual generation capacity of 4GW. Under this agreement, RELC will hold 40% of the JV, with Envision holding 50% and Vision Industries holding 10%.

The second JV features China-based solar photovoltaic (PV) supplier Jinko Solar and Vision Industries. The JV entails localising the manufacture of PV cells and modules for high-efficiency solar generation. Under the agreement, which projects annual production of 10GW in generation capacity, RELC will hold 40% of the JV, with Jinko Solar holding 40% and Vision Industries holding 20%.

The final JV was formed by Lumetech, a subsidiary of China's TCL Zhonghuan Renewable Energy, and Vision Industries. This deal will localise the production of solar PV ingots and wafers with annual production sufficient to generate 20GW of power. Under this agreement, RELC will hold 40% of the JV, with Lumetech holding 40% and Vision Industries having 20%.

The PIF said: "These agreements will enable the localisation of advanced power generation and manufacturing technologies for renewable energy production in Saudi Arabia, as well as maximising local content to help meet growing domestic, regional and international demand."

It expects the agreements to "enhance the ability of local manufacturing to benefit from the global energy transition and will support the PIF’s efforts to consolidate Saudi Arabia’s position as a global centre for exporting products and services for the renewables sector". 

Yazeed Al-Humied, deputy governor and head of Middle East and North Africa investments at the PIF, said the new agreements will contribute to localising the production of 75% of the components in Saudi Arabia’s renewable projects by 2030, in line with the Energy Ministry’s National Renewable Energy Programme.

He added that these projects will also enable Saudi Arabia to become a global hub for the export of renewable technologies.

Overall, the PIF, through Riyadh-headquartered utility developer Acwa Power and Badeel, is developing a total of eight renewable energy projects with a total capacity of 13.6GW, involving more than $9bn in investments from the PIF and its partners. These joint projects include Sudair, Shuaibah 2, Ar Rass 2, Al-Kahfah, Saad 2, Haden, Muwayh and Al-Khushaybi.

Related read: Developers regroup for Saudi renewables plans

https://image.digitalinsightresearch.in/uploads/NewsArticle/12153329/main.jpg
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Adnoc builds long-term oil and gas production potential

    7 April 2026

     

    Between 2023 and 2024, Abu Dhabi National Oil Company (Adnoc Group) spent an estimated $37bn on projects critical to achieving its upstream targets: increasing oil production capacity to 5 million barrels a day (b/d) by 2027 and attaining gas self-sufficiency by the end of the decade.

    The state energy company spent more than $22.5bn in 2023 alone, marking the highest annual oil and gas project spending on record in the UAE. The Hail and Ghasha sour gas development – accounting for approximately $17bn – remains the single-largest contract award in the country’s hydrocarbons sector.

    A slowdown in capital expenditure (capex) following two years of elevated spending is therefore in line with expectations. While engineering, procurement and construction (EPC) contract awards for upstream projects declined in 2025 and into this year, Adnoc has still committed close to $10bn over the past 15 months.

    The largest award during this period came from Adnoc Offshore, which let contracts worth $7.5bn for three EPC packages under the Lower Zakum Long-Term Development Plan (LTDP-1). Spain’s Tecnicas Reunidas and Abu Dhabi-based NMDC Energy and Target Engineering Construction Company were selected last February to execute the works.

    The Lower Zakum field, located 65 kilometres northwest of Abu Dhabi, is majority-owned by Adnoc Offshore (60%). Other stakeholders include an Indian consortium led by ONGC Videsh (10%), Japan’s Inpex (10%), China National Petroleum Corporation (10%), Italy’s Eni (5%) and France’s TotalEnergies (5%).

    Adnoc Offshore aims to increase production capacity at Lower Zakum to 520,000 b/d by 2027 and sustain that level through 2034.

    Offshore contracts in 2026

    So far this year, Adnoc Offshore has awarded contracts for two key projects: the Satah Al-Razboot (Sarb) deep gas development and the expansion of the Nasr oil field.

    Adnoc achieved final investment decision (FID) on the Sarb project in January and awarded the main EPC contract to US-based McDermott International. The contract is estimated to be worth around $500m, sources told MEED.

    The project is expected to deliver 200 million cubic feet a day (cf/d) of gas by the end of the decade – enough to power more than 300,000 homes.

    The scope includes the EPC of an offshore wellhead tower with four gas production wells, which will be connected to Das Island for processing through Adnoc Gas facilities. Works also include the installation of pipelines and intra-field connections linking the Sarb field to Das Island.

    Also in January, Adnoc Offshore awarded McDermott a $942m contract for the Nasr-115 project, which will increase production capacity at the Nasr offshore field to 115,000 b/d. The field is located about 130km northwest of Abu Dhabi.

    McDermott’s scope covers full EPCI services for two topside structures, a new manifold tower, a jacket, a bridge, associated pipelines, subsea cables and brownfield modifications.

    Strategic projects in queue

    Over the next 12-18 months, Adnoc’s upstream spending is expected to shift from meeting near-term production targets –now largely within reach – to building longer-term capacity beyond 2030.

    Following $1.3bn in EPC awards in 2024 for the Upper Zakum expansion to 1.2 million b/d, Adnoc Offshore is advancing the next phase, which will increase capacity to 1.5 million b/d.

    Located 84km offshore, Upper Zakum is the world’s second-largest offshore oil field. Adnoc Offshore has divided the EPC scope into three packages, with contractors submitting commercial bids for the UZ1.5MMBD project in February.

    Adnoc Offshore is also progressing the Umm Shaif gas cap and surface pressure boosting project, aimed at increasing gas production by 550 million cubic feet a day (cf/d) and condensate output by 50,000 b/d. About 520 million cf/d of additional gas is expected to be fed into Adnoc’s sales gas network.

    The first phase of the project has been split into three EPC packages:

    • Offshore package 1: fabrication of a 30,000-tonne gas compression system
    • Offshore package 2: fabrication of a 30,000-tonne gas compression system
    • Onshore package: EPC of gas inlet and processing systems at Das Island

    Adnoc Offshore is currently evaluating commercial bids submitted in February for these packages.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16285814/main.gif
    Indrajit Sen
  • Contractor wins Oman housing substation contract

    7 April 2026

    Oman’s Public Authority for Social Insurance has awarded a contract for the supply, installation, execution and maintenance of a main power substation for its affordable housing project.

    The contract was awarded to Kuwait-based Al-Ahleia Switchgear Company.

    The project comprises a 400/132/11kV main substation for the Affordable Housing Project, known locally as Al-Masaken Al-Muyassara.

    The tender was announced last November, with the bid envelopes opened on 16 December 2025.

    Al-Ahleia Switchgear submitted another bid in March for a contract to build three 132/11kV main transformer stations for Kuwait’s Public Authority for Housing Welfare (PAHW).

    As reported by MEED, the company’s price of KD10.5m ($34.1m) was the lowest of two offers for the engineering, procurement and construction (EPC) contract.

    Separately, in December, Al-Ahleia Switchgear submitted the lowest bid of KD33.9m ($110.3m) for a contract to build a 400/132/11 kV substation at the South Surra township for Kuwait’s PAHW.

    The bid was marginally lower than the two other offers submitted by Saudi Arabia’s National Contracting Company (NCC) and India’s Larsen & Toubro.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16285335/main5555.jpg
    Mark Dowdall
  • UAE reviews $1.63bn fourth federal road project

    7 April 2026

    UAE authorities on 6 April unveiled details of the AED6bn ($1.63bn) fourth federal corridor scheme, a major highway programme aimed at boosting inter-emirate connectivity, increasing road capacity and easing congestion.

    The project comprises a 68-kilometre corridor with 10 major interchanges, four flyovers and six to eight lanes in each direction.

    Officials provided technical updates on the corridor, including revised connection points and coordination with local authorities to finalise route alignments in line with broader development plans.

    Suhail Mohamed Al-Mazrouei, minister of energy and infrastructure, said the programme underscores the central role of infrastructure in the UAE’s development agenda and competitiveness. He was speaking while chairing the first meeting of the UAE Infrastructure and Housing Council this year.

    The council also reviewed progress on federal infrastructure initiatives aimed at improving transport efficiency and strengthening coordination between federal and local authorities.

    Al-Mazrouei said the next phase will focus on accelerating the delivery of high-impact projects to enhance transport system performance and support the shift towards smart and sustainable mobility in line with population growth and urban expansion.

    The council also assessed progress on linking Ajman to the third and fourth federal corridors, which is expected to provide alternative routes, improve traffic flow and further enhance mobility between the emirates.

    On public transport, the council reviewed a study on transport links between Dubai, Sharjah and Ajman to address rising commuting demand.

    The proposed plan includes 10 priority routes incorporating bus rapid transit and dedicated lanes, with connections to key hubs such as the Dubai Metro and city centres.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16285296/main.jpg
    Yasir Iqbal
  • Kingdom Holding Company signs Riyadh project deal

    7 April 2026

    Saudi Arabia’s Kingdom Holding Company has signed an agreement with Sumou Real Estate Company under which Sumou will manage the development, marketing and sale of a 3-million-square-metre land plot in Riyadh.

    The scheme is expected to generate about SR4bn ($1bn) in total sales.

    In a Tadawul disclosure, Kingdom Holding Company said its subsidiaries, Kingdom Real Estate Development Company and Trade Centre Company, have appointed Sumou as the exclusive development manager for the site.

    The project is scheduled to be implemented over 36 months, starting once the masterplans are approved by the relevant authorities.

    In a separate stock exchange statement, Sumou said it will be paid 6.5% of total infrastructure development costs and 2.5% of project sales, in addition to the brokerage commission paid by buyers.

    Kingdom Holding Company said the agreement aligns with its long-term strategy for its Riyadh landbank, which originally totalled around 20 million sq m and is being developed in phases.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16284668/main.jpg
    Yasir Iqbal
  • Saudi Arabia’s Jubail industrial city hit by missile debris

    7 April 2026

    Explosions were reported in Saudi Arabia’s Jubail industrial city on 7 April. Saudi authorities said the country’s air defence systems intercepted seven ballistic missiles targeting the Eastern Province, with debris landing near energy facilities, primarily in Jubail.

    Jubail is one of the world’s largest petrochemical production hubs, with an annual output of about 60 million tonnes, accounting for an estimated 6% to 8% of global supply.

    The incident places renewed focus on the kingdom’s flagship petrochemical cluster, where majority state-owned Saudi Basic Industries Corporation (Sabic) is a key investor.

    Jubail also hosts major downstream oil, gas and petrochemical assets operated by Saudi Aramco, US-based Dow and France’s TotalEnergies, underscoring the industrial zone’s international significance.

    Saudi officials said damage assessments are ongoing.

    The developments follow an Israeli strike on 6 April targeting a major petrochemical complex in Iran’s southern Asaluyeh region, described as the country’s largest industrial hub.

    Separately, authorities closed the King Fahd Causeway – the main bridge linking Saudi Arabia and Bahrain – early on 7 April as a precaution amid heightened security concerns.

    The King Fahd Causeway Authority said in a post on X that vehicle movement had been “suspended as a precautionary measure” due to Iranian attacks targeting Saudi Arabia’s Eastern Province.

    The 25-kilometre bridge is Bahrain’s only road link to the Arabian Peninsula.

    US President Donald Trump has issued an ultimatum for Iran to reopen the Strait of Hormuz and threatened to bomb Iranian power plants and bridges if Tehran does not comply by 8pm EDT on 7 April.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16283711/main2424.jpg
    Indrajit Sen