Three major photovoltaic giants officially announced their landing in Saudi Arabia

At present, with the solar energy storage entering the era of parity and the fierce competition in the domestic photovoltaic industry, domestic photovoltaic enterprises are flocking to "go overseas", which has driven enterprises to continuously seek to expand larger markets and development space. The rapid growth of demand in overseas emerging markets will become a new profit growth point.
On the evening of July 16, JinkoSolar announced that its wholly-owned subsidiary Jinko Middle East and two wholly-owned subsidiaries of the Saudi Arabian Public Investment Fund signed a "Shareholder Agreement" to establish a joint venture in the Kingdom of Saudi Arabia to build a 10GW high-efficiency battery and component project. The total investment of the project is about 3.693 billion Saudi riyals (about 985 million US dollars), which is also JinkoSolar's largest overseas investment project to date.
TCL Zhonghuan also announced that it plans to sign a "Shareholder Agreement" with Vision Industries and PIF's subsidiary RELC to establish a joint venture to jointly build a 20GW photovoltaic crystal wafer project in Saudi Arabia with a total investment of about 2.08 billion US dollars. This project is also TCL Zhonghuan's largest overseas crystal wafer factory.
On the same day, Sungrow announced that it had successfully signed the world's largest energy storage project with Saudi Arabia's ALGIHA, with a capacity of up to 7.8GWh. Delivery will begin this year and full capacity will be connected to the grid in 2025.
Why do many photovoltaic companies choose to enter the Saudi market? The reasons why photovoltaic companies have cooperated to build factories in Saudi Arabia may be as follows:
Policies are favorable: Saudi Arabia plans to achieve a 50% share of renewable energy in its energy structure by 2030, and the installed capacity will reach 58.7GW. At the same time, many Middle Eastern countries such as the UAE have also proposed similar 30/50 plans, which has brought new opportunities for domestic new energy companies to go overseas in the Middle East.
Huge demand: The Middle East is rich in light resources and is the world's largest exporter of fossil energy, but the penetration rate of photovoltaic power generation in the region is low, and there is broad space for photovoltaic demand in the future. With the increasing global demand for clean energy, the prospects for the photovoltaic market in the Middle East are also very broad, which provides huge market opportunities for Chinese photovoltaic companies.
Unique natural advantages: Saudi Arabia is located in the Middle East and has abundant light resources, which provides unique natural conditions for the development of the photovoltaic industry; as a major oil exporter, Saudi Arabia has strong economic strength and a stable political environment, providing a good investment environment for photovoltaic companies; Saudi Arabia is located in the heart of the Middle East, with convenient transportation, which is convenient for the transportation and export of photovoltaic products.
In recent years, the Middle East has launched many large-scale photovoltaic project bidding plans and issued a series of incentive policies and development goals. Taking Saudi Arabia as an example, it plans to achieve a renewable energy installed capacity of 58.7GW by 2030, and the proportion of power generation will increase to 50%.
At present, domestic photovoltaic giants are flocking to the Middle East market, which will help absorb domestic phased production capacity in the short term. Companies that take the lead in deploying overseas emerging markets are expected to seize the opportunity in the global market.
However, industry insiders have analyzed that "going overseas" is not a "life-saving straw". Cost control and production efficiency improvement are the key. At the same time, photovoltaic companies need to be vigilant about the cost control pressure brought by factors such as industrial chain, technical support capabilities, and international market changes in the process of "going overseas".