Shanghai Electric Group has signed a Memorandum of Understanding (MOU) to collaborate with Saudi Arabia's ACWA Power on global clean energy projects.
Image: Jianhua Zheng (left), the CEO and Chairman of Shanghai Electric and Muhammed A.Abunayyan (right), the Chairman of ACWA Power. Photo: Courtesy of PRNewsfoto/Shanghai Electric.
Under the collaboration, a range of energy projects, including gas turbines construction, desalination development, thermal, photovoltaic, solar thermal, wind and combined cycle power generation are covered.
The Saudi government plans to expand renewable energy generation to represent 30% of the country’s energy supply by 2030, as part of its 2030 Vision reform plan.
Shanghai Electric said that since April 2018, it has been working alongside ACWA Power to construct solar facilities in contribution towards this target.
Shanghai Electric’s chairman and CEO Zheng Jianhua said: “This win-win partnership will allow us to work more closely with ACWA Power to develop clean-energy projects globally and to build our brand internationally as we continue to expand operations along initiative countries.”
Shanghai Electric said that it follows methods for global development to support the brand’s expansion, that includes the establishing of new enterprises in nine Belt and Road countries, including Vietnam, India, Saudi Arabia, Iraq and Malaysia.
As part of the second phase development, the company has recently won the coal-electricity integration project in Pakistan Thar; the solar-thermal power project in Dubai; the power projects in Pakistan Qasim and Sahiwal; and constructions of the Panamanian and Serbian gas turbine projects.
In September 2017, a consortium of ACWA Power and Shanghai Electric bagged the contract to build the AED14.2bn ($3.87bn) 700MW Mohammed bin Rashid Al Maktoum Solar Park Phase 4 project in Dubai.
Dubai Electricity and Water Authority (DEWA) had awarded the contract to the consortium. The bid placed by the consortium of Saudi Arabia’s ACWA Power and China-based Shanghai Electric was the lowest levelised cost of electricity (LCOE) at 7.3 cents per kilowatt hour (kW/h).