Saudi to Invests on Solar Energy Generation in Joint Ventures with Chinese Firms

By Shubhendra Anand , 15 January, 2025

Solar Energy Insights

Saudi Arabia is preparing to enter into renewable energy production in 2024. Despite being one of the leading oil production countries, Saudi emphasizes renewables production. This is due to the growing influence of clean energy transitions globally. Nations are investing in renewable sources to increase their clean fuel generation. Therefore, oil-producing countries like Saudi Arabia decide to sail on the same boat. Hence, in a joint venture with Chinese solar farms in 2024, Saudi Arabia has agreed to accelerate its renewable production.

Saudi Arabia will enter the renewable sector in joint ventures with two Chinese solar firms in 2024. JinkoSolar and TCL Zhonghuan Renewable Energy Technology Co are two Chinese solar firms. The joint venture plans to establish two solar plants in the country, which will require an investment worth USD 3 billion. Experts cite this initiative by Saudi as a campaign to promote renewable energy production in the energy sector. Oil production dominates Saudi Arabia's primary economy. However, the changing dynamics of the energy sector force the country to opt for green energy, too. The nations plan to establish a clean energy sector with 70 percent clean power globally.

Additionally, the clean energy transition aims at net zero emissions by 2050. However, reducing carbon emissions can reduce the emission rate in the environment. Reducing dependency on fossil fuels, including oil and gas, seems possible. Therefore, Saudi's breakthrough to promote solar energy aims at long-term commitments to green energy transformation.

Saudi has set up a plan for the last five years, starting in 2024, that shows the country's vision through 2030. This includes a roadmap to many innovations in the industry following a more significant investment in the renewables generation. Saudi's future visions cover the development of 60 gigawatts of renewable energy by the end of 2030. Currently, the capacity of Saudi's renewable energy is about 3 gigawatts. Therefore, the country plans to set up a clean energy transition with its robust investment through joint ventures with Chinese firms in solar energy.