Chinese company Shanghai Electric Group has signed a memorandum of understanding (MoU) with Saudi Arabia’s ACWA Power to co-develop global solar projects.
The strategic partnership agreement represents the group’s expansion into Belt and Road initiative countries, including Vietnam, India, Saudi Arabia, Iraq, Pakistan Thar, Dubai and Malaysia.
It covers a wide range of energy projects such as gas turbines construction, thermal, photovoltaic, solar thermal, wind and combined cycle power generation.
Shanghai Electric 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.”
Jianhua added that the company is planning to make further investments in the region over the next several years.
Since April last year, both companies worked together to develop and build solar facilities. ACWA Power aims to generate electricity capacity of 150GW of power by 2030.
Shanghai Electric has established new enterprises in nine Belt and Road countries such as Vietnam, India, Saudi Arabia, Iraq and Malaysia.
Recently, the company has secured the coal-electricity integration project in Pakistan Thar, solar-thermal power project in Dubai.
It is also working on power projects in Pakistan Qasim and Sahiwal and constructions of the Panamanian and Serbian gas turbine projects.
Shanghai Electric’s overseas business income exceeded around $1.67bn last year. Global investment enterprise income, international engineering revenue and export business income contributed nearly 11% of this increase.