RIYADH: Saudi utility giant ACWA Power has announced its successful expansion into China, securing over 1 gigawatt of renewable energy projects.
The portfolio includes solar photovoltaic and wind energy initiatives, which will be jointly owned by ACWA Power and leading Chinese renewable energy firms.
In a statement to Tadawul, ACWA Power confirmed that the projects are spread across several Chinese provinces and are in advanced stages of development. This milestone represents the company’s formal entry into China’s renewable energy sector, positioning ACWA Power for future growth in one of the world’s largest clean energy markets.
The expansion aligns with ACWA Power’s broader ambitions in China. Earlier this month, Yunhe Lyu, head of ACWA Power’s China operations, shared plans to invest up to $50 billion in renewable energy projects across the country by 2030. The company aims to acquire clean power assets with a capacity of up to 20 GW and to develop 1 million tonnes of green hydrogen.
“We have an ambitious target of investing up to $50 billion in green energy, renewable technologies, green hydrogen, and desalination projects by 2030,” Lyu told Bloomberg. “Our goal is to reach 1.3 GW of renewable energy capacity in China by the end of this year.”
ACWA Power’s strategy also involves collaboration with Chinese state-owned enterprises, both within China and abroad. For example, the company partnered with China Southern Grid International in July on a wind project in Uzbekistan and with State Power Investment Corp. on power initiatives in Saudi Arabia.
The expansion into China is part of a broader strengthening of economic ties between Saudi Arabia and China. Since Chinese President Xi Jinping’s visit to Riyadh in 2022, the two nations have deepened their economic collaboration, particularly in sectors aligned with Saudi Arabia’s Vision 2030.
In 2023, bilateral trade between the countries reached $107.23 billion, with China exporting $42.86 billion in goods to Saudi Arabia and importing $64.37 billion, primarily crude oil and petrochemical products. By August 2024, trade had already totaled $70.87 billion, continuing to show robust growth.
Notably, China has become the Kingdom’s leading source of greenfield foreign direct investment, contributing $21.6 billion from 2021 to October 2024. About one-third of this investment is in clean technologies such as solar, wind, and battery storage.
Saudi Aramco has also been instrumental in strengthening bilateral ties. In November, Aramco, in partnership with China’s Sinopec, began construction of a $9.82 billion petrochemical complex in Fujian province. The project will include a 320,000-barrel-per-day refinery and a 1.5-million-tonne-per-year ethylene plant, with full operational status expected by 2030. This project is set to boost China’s refining and petrochemical capacity while reinforcing Aramco’s position in the downstream energy sector.
Earlier in September, Aramco signed several key agreements with Chinese partners, including a development framework agreement with Rongsheng Petrochemical Co. Ltd. and a strategic cooperation agreement with Hengli Group Co. Ltd. These partnerships are aimed at enhancing China’s energy security and supporting the country’s industrial development.
Beyond traditional energy, Aramco’s collaboration with China also extends to advanced technologies and lower-carbon energy solutions. In March, Aramco President and CEO Amin Nasser addressed the China Development Forum in Beijing, underscoring the company’s commitment to being a reliable energy partner and its vision for future cooperation in the global energy transition.
