China Energy Engineering secures $972m contract for Saudi solar power plant

China Energy Engineering Corp has signed a 6.98 billion yuan ($972 million) contract to construct a major solar power plant in Saudi Arabia, according to a Monday filing with the Shanghai Stock Exchange.

This project marks the latest in a series of significant China-Saudi renewable energy collaborations.

The 2-gigawatt (GW) photovoltaic power plant will be developed by a joint venture consisting of a China Energy Engineering consortium and Saudi partners, including the Kingdom’s sovereign wealth fund, the Public Investment Fund (PIF), ACWA Power and Saudi Aramco Power Company. The construction of the facility is projected to take 31 months.

This deal is part of a broader trend of increased Chinese investment in Saudi Arabia’s renewable energy sector. Last month, China’s TCL Zhonghuan Renewable Energy Technology entered into a $2.08 billion partnership with Saudi entities, including PIF, to establish a silicon crystal and wafer manufacturing facility. Additionally, JinkoSolar announced plans to invest $985 million in a 10 GW solar cell and module manufacturing plant in Saudi Arabia.

These projects underscore the growing energy cooperation between China and Saudi Arabia, as both nations seek to expand their renewable energy capacities and reduce dependence on fossil fuels.

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