ACWA Power to boost footprint in China

ACWA Power, a Riyadh, Saudi Arabia-based energy and water desalination giant, remains deeply committed to investing in China and is set to strengthen its foothold in China's rapidly growing renewable energy sector, said its top executive.

ACWA Power's founder and chairman, Mohammad A. Abunayyan, expressed strong optimism in the country's renewable energy market and long-term economic prospects, and plans to further expand its presence to meet growing demand in the country.

"China, now the world's largest renewable energy market, represents a key opportunity for ACWA Power to scale its expertise in green energy solutions," Abunayyan said on the sidelines of the Summer Davos meeting held recently in Tianjin.

The China market will play a key role in ACWA Power's energy-sustainable development strategy. By 2030, ACWA Power plans to expand its global asset base to approximately $250 billion, with investment in the China market expected to reach $30 billion to $75 billion.

He highlighted China's increasing importance to the company's global strategy, positioning it as the second most important market globally, only after Saudi Arabia.

"As the world's largest renewable energy market, China, a strategically vital market with immense long-term potential driven by robust demand and a commitment to renewable energy and advanced technologies, for us is extremely important, leading the way in clean energy," Abunayyan said.

"China's commitment to innovation, massive market size and opening-up policies represent key drivers for continued investment and growth in the sector."

Following years of collaboration with Chinese firms in third-party markets, the Middle East energy conglomerate formally entered China's renewable energy landscape this year, securing agreements for over 1 gigawatt of renewable energy projects across several provinces in the country, eyeing a multidecade investment strategy focused on solar, wind, desalination and green hydrogen.

Earlier this year, the company secured partnerships with two of China's major renewable power producers — Sungrow and Mingyang Smart Energy — to jointly develop and invest in solar and wind projects that will contribute to China's ambitious decarbonization targets.

The company is also exploring prospects in offshore wind, water desalination and green hydrogen, eyeing to invest heavily in research and development in China in the years to come.

Industry experts believe that due to the resilient demand growth, China has become the focus of multinational corporations.

Propelled by ambitious carbon neutrality goals and significant renewable energy investments, China presents a highly attractive market for global companies, said Lin Boqiang, head of the China Institute for Studies in Energy Policy at Xiamen University.

Engaging in this dynamic market provides access to the world's largest energy consumer base, enables diversification from fossil fuels and secures a strategic foothold in the global energy transformation, he said.

Abunayyan expressed strong confidence in China's economic trajectory, particularly its long-term potential and the quality of its growth, pointing to the huge demand within China, driven by its large population, growing middle-income group and the increasing energy needs from technological advancements like artificial intelligence.

This demand underpins ACWA Power's confidence in the market's long-term viability, he said.

A key focus area for its investment in China is desalination, which Abunayyan identified as the company's top priority sector in the market.

The company, the world's largest desalination player, said it is working to localize the components and supply chain for desalination within China, not only for domestic projects but also for use in its global ventures.

Abunayyan praised the Chinese government's efforts to improve the foreign investment environment in recent years, citing increased transparency and openness toward MNCs.

While acknowledging that the current global environment is "not easy" due to geopolitical tensions and potential short-term supply chain issues, Abunayyan maintained a resolutely optimistic stance on China's long-term outlook.

"I am very confident about the long term and ACWA Power will continue leveraging its strong existing partnerships with Chinese companies, including State-owned enterprises as well as private firms."