JinkoSolar, one of the world’s leading Chinese photovoltaic (PV) module manufacturers, has signed a major supply deal with Saudi Arabian power developer ACWA Power.
The agreement will see JinkoSolar provide 3GW of PV modules for two key solar projects in Saudi Arabia as part of ACWA Power’s portfolio under the Saudi Public Investment Fund Phase IV (PIF4).
The 3GW module supply will be split between two solar projects: the 1.8GW Al-Khushaybi solar project and the 1.2GW Haden project.
For the projects, JinkoSolar will deliver modules from its advanced N-type tunnel oxide passivated contact (TOPCon) Tiger Neo series.
Specifically, the Al-Khushaybi project will receive modules from JinkoSolar’s series 78, featuring a power conversion efficiency of 22.7% for monofacial modules and 23.3% for bifacial variants.
Meanwhile, the Haden project will be equipped with JinkoSolar’s 66 series, which offers an efficiency of 23.5% for monofacial modules and 23.3% for bifacial ones.
The deal is expected to boost JinkoSolar’s position in the Middle East solar market, particularly in Saudi Arabia, where the company has gained a dominant foothold.
As of 2023, JinkoSolar’s market share in the Middle East exceeded 50%, and it controlled more than 70% of Saudi Arabia’s solar module market. JinkoSolar’s says it remains commitment to the region as Saudi Arabia accelerates its renewable energy initiatives in line with its Vision 2030 goals.
In addition to its module supply role, JinkoSolar is part of a consortium planning to establish a 10GW solar cell and module factory in Saudi Arabia.
The company is operating through its local subsidiary, JinkoSolar Middle East DMCC, in collaboration with Vision Industries (VI), a Saudi-based consultancy, and Renewable Energy Localisation Company (RELC), a subsidiary of Saudi Arabia’s Public Investment Fund (PIF).
Together, the partners aim to form a joint venture, with JinkoSolar and RELC each holding a 40% stake, while VI will retain the remaining 20%.
Though details of the $1 billion project are still sparse, JinkoSolar confirmed that financing would come from a mix of internal and external sources.
Once operational, the factory is expected to further enhance Saudi Arabia’s domestic solar manufacturing capabilities, contributing to the country’s broader energy diversification efforts.
The Al-Khushaybi and Haden projects have already secured international partnerships for their construction. Indian firm Larsen & Toubro has been contracted to build the Al-Khushaybi project, while China Energy Engineering Corporation (CEEC) will handle the Haden project.
Both projects are scheduled to come online in the first quarter of 2027, alongside the 2GW Muwayh project. Together, these three projects represent a total investment of $3.2 billion.
The new supply deal comes on the heels of a power purchase agreement (PPA) signed by the Saudi Power Procurement Company (SPPC) to acquire power generated from these projects.
The combined capacity of the projects reflects Saudi Arabia’s determination to meet its renewable energy targets as outlined in Vision 2030. By the end of 2023, the country had connected 2.8GW of renewable capacity to the national grid, with an additional 13.76GW of projects in various stages of development.
In August, CEEC signed a $972 million deal for the 2GW Haden project. Once completed, the Haden project is expected to generate around 156 billion kilowatt-hours of electricity over 25 years, reducing carbon dioxide emissions by nearly 147 million metric tons.
Saudi Arabia’s broader renewable energy strategy aims to increase the share of renewables to 50% by 2030. The country plans to attract 20GW of renewable energy projects annually starting in 2024, with a total target of 130GW by 2030. The Saudi government’s targets, combined with increasing foreign investment, have transformed the country into a hotspot for solar power development.
In the first half of 2023, the total export value of China’s photovoltaic products reached $18.67 billion, with modules accounting for about 87% of that figure. Saudi Arabia became China’s fifth-largest export market for solar modules during this period, climbing from outside the top 10 just a year ago.
