Saudi Arabia's Photovoltaics Open up to China: Four Major Under Construction and Under Construction Photovoltaic Projects

As a traditional energy powerhouse, Saudi Arabia is actively seeking a transition to clean energy. The planning and implementation of a series of solar energy projects undoubtedly inject new vitality into the global renewable energy field.Especially the recently announced 3.7 gigawatt solar project by Saudi Power Procurement Company (SPPC), 

as well as the highly anticipated Neom Green Hydrogen Solar Photovoltaic Park, Al Shuaibah 2 Solar Photovoltaic Park, and Ar Rass 2 Solar Photovoltaic Park.T

he successful implementation of these projects will not only have a profound impact on the renewable energy landscape in Saudi Arabia and even globally, but also demonstrate the key role of China and other global renewable energy leaders in this transformation.

This article is about China's Sudege trade, providing an in-depth introduction to industrial policies, laws and regulations, industry trends, market demand, competitive landscape, and potential trading opportunities in the fields of investment, trade, and engineering construction between China and Arab countries.

Through these collaborations, Chinese and other investors will gain broader market space and cooperation opportunities, and work together with Saudi Arabia to promote the future of global clean energy.

1 ：Neom Green Hydrogen Solar Photovoltaic Park

With the continuous growth of global demand for renewable energy, the Neom Green Hydrogen Solar Photovoltaic Park in Saudi Arabia is rapidly becoming a focus of international attention.

This project not only has a grand scale, but its potential environmental and economic value also makes it a milestone in the field of sustainable energy.

The project is located in the future city of Neom in Saudi Arabia, covering a vast area with a total installed capacity of 2930 megawatts and an overall value of 8.5 billion US dollars.

The core goal of this park is to provide impetus for the production of green hydrogen. Green hydrogen, as a clean combustion fuel, does not produce greenhouse gas emissions during its production process, and is therefore considered a key element in promoting global energy transformation.By utilizing solar energy as an endless renewable resource, the Neom project not only helps to reduce carbon emissions, but also opens up new avenues for the future application of hydrogen energy.

Although the project is still under construction and brings together multiple industry giants, including NEOM, ACWA Power, and other companies, the participation of these partners undoubtedly provides strong guarantees for the successful implementation of the project.Currently, several well-known companies have confirmed their participation in projects, such as Hitachi Energy and Larsen&Toubro. Chinese photovoltaic equipment manufacturer Sunshine Power will also participate in it.

 The professional knowledge and experience of these companies will provide strong support for the smooth implementation of the project.

2; Al Shuaibah 2 Solar Photovoltaic Park

The Shuaibah region of Saudi Arabia is rapidly emerging as a new focus of the global solar energy industry. Among them, the Al Shuaibah 2 solar photovoltaic park has attracted much attention, not only because of its huge scale, but also because of its key role in promoting the transformation of clean energy.

The project has an astonishing 2.03 gigawatts (GW) of capacity, which is enough to rank among the world's largest solar photovoltaic parks, demonstrating its enormous potential in meeting energy demand.In August 2023, 

the project successfully completed financial delivery, marking a new stage of construction for the project. Although the specific construction completion schedule has not been announced yet, this important milestone undoubtedly lays a solid foundation for the smooth progress of the project.

The Al Shuaibah 2 solar photovoltaic park is jointly owned and developed by ACWA Power and Badeel. As a company under the Saudi Arabian Public Investment Fund (PIF), Badeel's participation in the project further highlights the importance of the project for Saudi Arabia and even global clean energy transformation.

Although information on specific contractors and suppliers has not yet been made public, considering the scale and complexity of the project, it is expected that multiple leading companies in the solar energy industry will participate. The execution mode of this alliance model also means that multiple companies will cooperate closely in different aspects of the project, jointly promoting the successful implementation of the project.It is worth mentioning that the Al Shuaibah 2 project is part of the larger Al Shuaibah 1 and Al Shuaibah 2 solar photovoltaic projects, with a total capacity of up to 2.6 gigawatts. This vast project portfolio not only demonstrates Saudi Arabia's ambition in the field of renewable energy, but also provides strong support for its transition to clean energy.

3；Ar Rass 2 Solar Photovoltaic Park

In the Qasim region of Saudi Arabia, a solar photovoltaic park called Ar Rass 2 is expected to become one of the largest solar power plants in the world.

The power generation of Ar Rass 2 solar photovoltaic park reaches up to 2000 megawatts (MW). At present, the Ar Rass 2 solar photovoltaic park is in the pre construction stage and is expected to start construction in 2025.Although the specific completion time has not been announced yet, it is foreseeable that this project will become a highly anticipated new member of the global renewable energy portfolio in the coming years.

The project is led by ACWA Power, a renowned developer, investor, and operator of electricity and seawater desalination plants in Saudi Arabia.It is worth mentioning that China's leading solar module manufacturer, Jingke Energy, has signed a contract to supply 3.8 gigawatts (GW) of n-type solar panels for the project.These advanced battery panels have higher efficiency and better performance in hot desert climates, providing strong guarantees for the successful implementation of the project.As part of a larger development plan, the Ar Rass 2 project, together with the already operational Ar Rass 1 solar photovoltaic park, reflects Saudi Arabia's plan to diversify its energy structure and transition towards a more sustainable future.

4：Saudi Power Procurement Company's 3.7 gigawatt photovoltaic project

In November 2023, Saudi Power Procurement Company (SPPC) took an important step in the field of renewable energy by announcing the selection of qualified bidders for four solar projects with a total installed capacity of up to 3.7 gigawatts.

These projects are not only an important component of the National Renewable Energy Program (NREP), but are also scheduled to be put into operation in 2025, demonstrating Saudi Arabia's determination and speed in the transition to clean energy.

These four solar projects include Rumah-1 and Rumah-2 IPP, located in the central region of Saudi Arabia; And Nairyah-1 and Nairyah-2 IPP, located in the eastern region. Among them, the largest project is Al Sadawi located in the Eastern Province, with a capacity of up to 2 GWac, demonstrating Saudi Arabia's ambition in terms of individual project scale.

At present, SPPC has successfully screened 23 project development bidders and shortlisted them. Although detailed information on specific contractors and suppliers has not yet been made public, it is foreseeable that these selected bidders will be responsible for selecting their partners and suppliers during the development phase.It is worth noting that Chinese companies such as Jingke Energy and Guojia Investment Huanghe Company occupy a place in the list of "management and technical members", while China Electric Power Construction is listed in the list of "management members", which reflects China's strength and influence in the global renewable energy field.It is expected that these solar projects will be completed and put into operation by 2025. During this period, SPPC will finalize the contract details with the selected bidders and ensure the smooth progress of the project.

The successful implementation of these four solar energy projects will have a profound impact on the renewable energy landscape in Saudi Arabia and even globally, and provide new cooperation opportunities and market space for leading companies in the global renewable energy field such as China.