Saudi Arabia, in its efforts to boost renewable energy production, has entered into joint ventures with Chinese solar companies, amounting to approximately three billion dollars.

The Chinese company Jinko Solar announced its first joint venture with Saudi Arabia's Public Investment Fund and a private renewable energy company to establish a solar module and cell manufacturing plant worth around one billion dollars. The project will be financed through a combination of domestic and foreign funding.

The Renewable Energy Localization Company, a unit of Saudi Arabia's Public Investment Fund, and Vision Industries will hold 40 percent and 20 percent stakes in this joint venture, respectively. The Middle Eastern unit of Jinko Solar will hold the remaining shares.

According to Jinko Solar, the facility is expected to have an annual production capacity of 10 gigawatts of solar cells and modules. In another joint venture, Saudi Arabia's Public Investment Fund partnered with TCL Zhonghuan Renewable Energy Technology, the world's second-largest solar wafer manufacturer, and Vision Industries for a $2.08 billion plant.

Three years ago, Saudi Crown Prince Mohammed bin Salman unveiled the Vision 2030 roadmap to diversify the economy, enhance global engagement, and improve the quality of life. This economic program aims to develop 60 gigawatts of renewable energy capacity by 2030, which is several times the current capacity of 2.8 gigawatts and comparable to 80 gigawatts of gas and oil-fired power plants.

With consistent winds from the Red Sea and abundant sunshine, Saudi Arabia is well-suited for renewable energy production. Meanwhile, Saudi Aramco has plans to invest $110 billion over the next few years to develop the Jafurah gas field, estimated to hold 200 trillion cubic feet of gas. This gas will be used to produce blue hydrogen, a cleaner fuel.

According to Oil Price, the Saudi government is also constructing a five-billion-dollar green hydrogen plant to supply fuel for the futuristic city of Neom. This hydrogen plant will utilize solar and wind energy to produce four gigawatts of clean power to generate green hydrogen.