ACWA Power Expands into China with Over 1 GW Renewable Energy Projects

Saudi utility giant ACWA Power has announced its successful entry into China’s renewable energy sector with over 1 gigawatt (GW) of solar and wind energy projects. The portfolio, jointly owned by ACWA Power and prominent Chinese renewable energy firms, spans several provinces and is in advanced development stages.

In a statement to the Saudi stock exchange, Tadawul, ACWA Power confirmed this milestone as a key step in its global growth strategy. The move aligns with the company’s ambitious plans to invest $50 billion in renewable energy, green hydrogen, and desalination projects in China by 2030.

Speaking earlier this month, Yunhe Lyu, head of ACWA Power’s China operations, revealed the company’s target of achieving 1.3 GW of renewable energy capacity in China by the end of 2025 and acquiring up to 20 GW of clean power assets. Additionally, ACWA Power aims to develop 1 million tonnes of green hydrogen in the country.

The company’s China strategy also involves collaborations with state-owned enterprises, both domestically and internationally. Recent partnerships include a wind project in Uzbekistan with China Southern Grid International and renewable initiatives in Saudi Arabia with State Power Investment Corporation.

This expansion is part of broader economic collaboration between Saudi Arabia and China, underpinned by initiatives such as Saudi Arabia’s Vision 2030. Bilateral trade between the two nations reached $107.23 billion in 2023, with significant growth continuing into 2024. China remains Saudi Arabia’s largest trading partner and a key source of greenfield foreign direct investment, contributing $21.6 billion from 2021 to 2024, with one-third allocated to clean energy projects.

In addition to renewable energy, ACWA Power’s entry into China coincides with significant projects by Saudi Aramco, including a $9.82 billion petrochemical complex in Fujian province in partnership with Sinopec. This facility, featuring a 320,000-barrel-per-day refinery and a 1.5-million-tonne-per-year ethylene plant, is expected to be operational by 2030.

The collaboration between the two countries extends beyond energy, encompassing advanced technologies and lower-carbon solutions, further strengthening the ties initiated during Chinese President Xi Jinping’s 2022 visit to Riyadh.