Two major Chinese state-owned energy enterprises have signed cooperation agreements on PV and wind power projects with Saudi companies, with the total contract value exceeding RMB30 billion (US$4.2 billion).
On 11 October, PowerChina announced that its subsidiaries, China Hydropower Construction Group International Engineering and PowerChina Huadong Engineering Corporation Limited, have formed a consortium with China Power Construction Group and signed contracts with Saudi Afif Renewable Energy Company for the Saudi Afif 1 PV IPP Project and the Saudi Afif 2 PV IPP Project. The contract values are approximately RMB5.843 billion and RMB5.876 billion, respectively, with a total of approximately RMB11.719 billion.
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Both projects are located in Afif Town, Riyadh Province, in central Saudi Arabia. The scope of work includes the construction of a 2,000MW PV site, 33/132kV on-site booster stations, 132kV transmission lines, partial connection facilities and interface facilities for the grid station, as well as access roads. The construction period for both projects is 26 months.
PowerChina stated that in 2025, driven by robust overseas market demand, the company had achieved significant growth in the value of overseas contracts signed. From January to August, the value of its newly signed overseas contracts reached RMB179.841 billion, a year-on-year increase of 21.9%. Based on the projects secured in Q3, the new energy sector has emerged as a major growth driver.
On the same day, Energy China announced that a consortium formed by its subsidiaries China Energy Construction International Construction Group, China Energy Construction Group Guangdong Huodian Engineering and China Power Engineering Consulting Group Northwest Electric Power Design Institute, has signed three new solar and wind EPC contracts with a project company jointly established by Saudi International Power and Water Company, Saudi Aramco Power Company and the kingdom’s sovereign wealth fund, the Saudi Public Investment Fund (PFI). The total contract value is approximately US$2.745 billion, equivalent to about RMB19.554 billion.
Specifically, the three signed EPC contracts are as follows: the 2GW Furais PV project (PIF Phase VI), with a contract value of US$831 million and a construction period of 26 months; the 1GW Shakira wind power project (PIF Phase V), with a contract value of US$663 million and a construction period of 26 months; and the 2GW Stella wind power project (phase V), with a contract value of US$1.251 billion and a construction period of 30 months. The projects are all part of the Saudi PIF, the kingdom’s sovereign wealth fund.
The overseas market has also become an important growth engine for Energy China. According to the announcement, the value of Energy China’s newly signed overseas contracts in the first three quarters reached RMB290.92 billion, a 12.05% year-on-year increase and significantly higher than the 2.25% growth rate in the domestic market.
