Shanghai Electric Signs MOU with Saudi's ACWA Power to Co-develop Global Solar Projects
- The MOU marks an expansion in Shanghai Electric's operations in Belt and Road Initiative countries.
- Represents a further step towards ACWA Power's goal of generating electricity capacity of 150GW of Power by 2030.
DUBAI, United Arab Emirates, April 25, 2019 /PRNewswire/ -- Shanghai Electric Group Co., Ltd. ("Shanghai Electric" or "the Group"), a leading multinational power generation and electrical equipment manufacturing conglomerate, has signed a Memorandum of Understanding (MOU) to collaborate with Saudi Arabia's ACWA Power on global clean energy projects, continuing the group's expansion into Belt and Road initiative countries (initiative countries).
The two clean-energy providers signed the strategic partnership during a visit by Shanghai Electric's Chairman and CEO Zheng Jianhua to Saudi Arabia on April 16. The scope of the cooperation covers a range of energy projects, including gas turbines construction, desalination development, thermal, photovoltaic, solar thermal, wind and combined cycle power generation.
As part of the "2030 Vision" reform plan, the Saudi government aims to expand renewable energy generation to represent 30% of the country's energy supply by 2030. Shanghai Electric has worked alongside ACWA Power to construct solar facilities since April 2018 in contribution towards this target.
"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." said Zheng, adding that the Group plans to invest more in the region over the next several years.
Shanghai Electric has made efforts to grow overseas. In 2018, the Group's overseas business income exceeded RMB 11.2 billion (about US$1.67 billion). Approximately 11% of this growth is attributable to global investment enterprise income, international engineering income and export business income.
To support the brand's expansion, Shanghai Electric follows methods for global development. The first method has seen the company establish new enterprises in nine Belt and Road countries, including Vietnam, India, Saudi Arabia, Iraq and Malaysia. The second concurrent phase of development sees the brand expand its project footprint in initiative countries. Recent wins include 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.
About Shanghai Electric Group Co., Ltd.
Shanghai Electric Group Co., Ltd. (Shanghai Electric), listed in Shanghai and Hong Kong, is a large integrated equipment manufacturing enterprise specialized in energy equipment, industrial equipment and integration services. Since the 1990s, Shanghai Electric's sales revenues have ranked in the top 3 Chinese equipment manufactures. In 2017, Shanghai Electric was selected as one of the Top 500 Global Manufacturing Companies, entering into the Fortune China Top 500 in the same year. The Group is ranked within the top 100 of ENR's 2018 Top 250 International Contractors and has a brand value of 70.6 billion yuan.
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