ACWA Power Expands Into China With Over 1gw Renewable Energy Projects

By Abbas Nazil

Saudi Arabia’s utility giant ACWA Power has made a significant entry into China’s renewable energy sector, securing over 1 gigawatt (GW) of solar photovoltaic and wind energy projects across multiple provinces.

This development, disclosed in a statement to Tadawul, marks a milestone in ACWA Power’s expansion strategy as it strengthens its foothold in one of the largest and fastest-growing clean energy markets globally.

The projects, jointly owned by ACWA Power and prominent Chinese renewable energy firms, are in advanced stages of development, reflecting the company’s commitment to accelerating the adoption of green energy.

This expansion aligns with ACWA Power’s ambitious plan to grow its presence in China, targeting investments of up to $50 billion by 2030 in renewable energy, green hydrogen, and desalination projects.

The company also aims to reach 1.3 GW of renewable energy capacity in China by the end of 2024, bolstering its reputation as a leader in clean energy innovation.

Yunhe Lyu, head of ACWA Power’s China operations, emphasized the significance of these initiatives, stating, “We have an ambitious target of investing up to $50 billion in green energy, renewable technologies, green hydrogen, and desalination projects by 2030.”

The company also aims to develop 1 million tonnes of green hydrogen and acquire clean power assets with a capacity of up to 20 GW over the next decade.

ACWA Power’s strategy extends beyond standalone projects, leveraging strategic collaborations with Chinese state-owned enterprises.

Recent partnerships include a wind energy project in Uzbekistan with China Southern Grid International and power infrastructure initiatives in Saudi Arabia with State Power Investment Corp.

These collaborations highlight ACWA Power’s integrated approach to sustainable energy development, both within China and globally.

This expansion aligns with broader economic and strategic ties between Saudi Arabia and China. Following Chinese President Xi Jinping’s 2022 visit to Riyadh, the two nations have intensified their economic collaboration, particularly in sectors that support Saudi Arabia’s Vision 2030 objectives.

In 2023, bilateral trade between Saudi Arabia and China totaled $107.23 billion, with trade continuing to flourish in 2024, reaching $70.87 billion by August.

China has also become Saudi Arabia’s leading source of greenfield foreign direct investment, contributing $21.6 billion from 2021 to October 2024, with one-third directed toward clean technologies like solar, wind, and battery storage.

Saudi Aramco has played a pivotal role in these bilateral relations, reinforcing energy security and industrial development in China.

In November, Aramco and Sinopec began constructing a $9.82 billion petrochemical complex in Fujian province, featuring a 320,000-barrel-per-day refinery and a 1.5-million-tonne-per-year ethylene plant.

Scheduled for completion by 2030, this project aims to enhance China’s refining and petrochemical capacity while cementing Aramco’s presence in the downstream sector.

Additionally, Aramco signed critical agreements with Chinese firms, including a development framework with Rongsheng Petrochemical Co. Ltd. and a strategic cooperation agreement with Hengli Group Co. Ltd., to strengthen China’s energy security and support its industrial growth.

Beyond conventional energy, Aramco has committed to exploring advanced technologies and lower-carbon energy solutions in partnership with Chinese entities, underscoring a shared commitment to a sustainable global energy transition.

As ACWA Power expands its renewable energy footprint in China, it not only reinforces its position as a key player in the clean energy sector but also contributes to the strengthening economic and technological ties between Saudi Arabia and China, paving the way for a greener and more collaborative future. END

Source: ArabNews