Some big news recently heard in the domestic solar industry really boosted morale of many people. The joint venture formed by China Energy Engineering Corporation (CEEC) signed an EPC contract with the Saudi side for the Saudi PIF Phase IV Haden 2GW PV project, with a contract amount of about 972 million USD (about 6.979 billion RMB). Meanwhile, Tongwei will acquire a total of no less than 51% equity of Runergy through cash capital increase and other means to achieve controlling over Runergy.
The winning of large overseas orders reflects the competitiveness of Chinese PV industry. And the acquisition of domestic companies accelerates the recovery of the PV industry.
Large Orders And Acquisition
CEEC announced on August 13th that a joint venture formed by its subsidiaries, as the general contractor, has recently signed an EPC contract for the Saudi PIF Phase IV Haden 2GW PV project with Brick Renewable Energy, the project company established by Saudi International Power and Water Company, Saudi Public Investment Fund, and Saudi Aramco Power Company.
CEEC stated that the project is planned to achieve commercial operation in early 2027. After completion, it is expected to generate about 156.189 billion kWh of electricity over 25 years, reducing carbon dioxide emissions by nearly 147 million tons and helping Saudi Arabia achieve its goal of net-zero emissions by 2060.
To promote the transformation of energy structure, Saudi Arabia’s 2030 Vision proposes to increase the proportion of new energy to 50% by 2030, mainly with PV power generation. In December 2023, Saudi Arabia announced that it would bid for 20 GW of renewable energy projects annually starting from 2024, with a total installed capacity of 130 GW by 2030.
CEEC stated that the fulfillment team has fully entered the site. All parties of the China Energy Construction Consortium will continue to increase resource investment, and strive to build the project into a green demonstration project linking Saudi Arabia’s 2030 Vision with the Belt and Road.
While winning large overseas orders, China’s PV industry has also embarked on acquisition.
On August 13th, Tongwei announced that it plans to sign a Capital Increase Intention Agreement with Runergy and other companies. After Tongwei completes due diligence, audit, and evaluation work on Runergy and reaches a formal capital increase plan with all parties, it will acquire a total of no less than 51% equity of Runergy through cash capital increase and other means with total transaction amount no more than 5 billion RMB to achieve controlling over Runergy. In 2023, Runergy was ranked fifth in global PV cell shipments.
Tongwei stated that this transaction complies with the opinions of the relevant departments on guiding the orderly and healthy development of PV industry, which is conducive to promoting the integration of high-quality resources, reducing social resource waste and inefficient competition, and improving the overall efficiency of the PV industry.
Export to Middle East
Recently, China’s PV industry has been actively expanding its manufacturing sector to the Middle East for further moving towards globalization.
In mid July, Jinko Solar announced that its wholly-owned subsidiary, Jinko Middle East, had signed a shareholder agreement with RELC, a wholly-owned subsidiary of the Saudi Public Investment Fund, and Vision Industries Company (hereinafter referred to as VI) to establish a joint venture in Saudi Arabia to build a 10GW high-efficiency battery and component project with a total investment of approximately 3.693 billion SR (about 985 million USD). The joint venture will be included in Jinko Solar’s consolidated financial statements. According to the agreement, Jinko Middle East, RELC, and VI will establish a joint venture in Saudi Arabia, holding 40%, 40%, and 20% equity respectively.
Jinko Solar stated that after official production, it is expected that the annual production capacity of high-efficiency PV cells and modules will reach 10GW each, making it the largest overseas manufacturing base for China’s PV cell and module industry, and also Jinko Solar’s largest overseas investment project to date. It’s reported that Jinko Solar’s market share in the Middle East exceeded 50% in 2023, with a market share of over 70% in Saudi Arabia.
In mid July, TCL Zhonghuan announced that based on its technological and manufacturing advantages, as well as the needs of globalization, the company planned to sign a shareholder agreement with VI and RELC to establish a joint venture company and build an annual production capacity of 20GW PV crystal chip project in Saudi Arabia. The announcement showed that the total investment of the project is expected to be approximately 2.08 billion USD. TCL Zhonghuan holds 40% of the shares through its wholly-owned subsidiary in Singapore, RELC holds 40% of the shares, and VI holds 20% of the shares.
