PowerChina consortium signs contracts for Saudi Afif 1 & 2 PV IPP Projects

Deal Analysis

A PowerChina-led consortium has signed contracts with Saudi Afif Renewable Energy Company for the development of the Saudi Afif 1 & 2 PV IPP Projects, representing a significant 2GW of solar capacity in Saudi Arabia. The deal underscores PowerChina's growing influence in the international renewable energy market and Saudi Arabia's commitment to diversifying its energy mix through large-scale solar projects. The involvement of multiple PowerChina subsidiaries as developers and EPC consortium members highlights a vertically integrated approach to project execution. This development is particularly noteworthy due to its scale and the strategic partnership between Chinese and Saudi entities. The 2GW capacity represents a substantial addition to Saudi Arabia's renewable energy portfolio. The deal also signals continued investment and expansion of Chinese companies in the Middle East's renewable energy sector, leveraging their expertise in solar technology and project development. The successful execution of these projects could further solidify PowerChina's position as a leading global player in renewable energy infrastructure.

2GW solar capacity represents a substantial project size.
PowerChina-led consortium demonstrates Chinese expertise in solar development.
Saudi Afif Renewable Energy Company signifies Saudi Arabia's commitment to renewable energy.
Multiple PowerChina subsidiaries involved as developers and EPC consortium members.

Market Context: Saudi Arabia is actively pursuing renewable energy projects as part of its Vision 2030 plan to diversify its energy sources and reduce reliance on fossil fuels. The solar sector is a key focus area, attracting significant investment and international partnerships.

Source Intelligence

KEY DETAILS

The construction period for both projects is 26 months. The 2GW Furais PV project is located approximately 85 kilometres north of Jeddah, Makkah Province in western Saudi Arabia.

“

Deal Size

the total contract value exceeding RMB30 billion (US$4.2 billion).

“

Capacity

the 2GW Furais PV project (PIF Phase VI)

“

Location

Both projects are located in Afif Town, Riyadh Province, in central Saudi Arabia.

“

Announcement

On 11 October, PowerChina announced that its subsidiaries, China Hydropower Construction Group International Engineering and PowerChina Huadong Engineering Corporation Limited, have formed a consortium with China Power Construction Group and signed contracts with Saudi Afif Renewable Energy Company for the Saudi Afif 1 PV IPP Project and the Saudi Afif 2 PV IPP Project.

“

Signing

On 11 October, PowerChina announced that its subsidiaries, China Hydropower Construction Group International Engineering and PowerChina Huadong Engineering Corporation Limited, have formed a consortium with China Power Construction Group and signed contracts with Saudi Afif Renewable Energy Company for the Saudi Afif 1 PV IPP Project and the Saudi Afif 2 PV IPP Project.

PARTIES MENTIONED IN SOURCE

P

PowerChina developer

"PowerChina announced that its subsidiaries, China Hydropower Construction Group International Engineering and PowerChina Huadong Engineering Corporation Limited, have formed a consortium with China Power Construction Group and signed contracts with Saudi Afif Renewable Energy Company for the Saudi Afif 1 PV IPP Project and the Saudi Afif 2 PV IPP Project."

E

Energy China developer

"Energy China announced that a consortium formed by its subsidiaries China Energy Construction International Construction Group, China Energy Construction Group Guangdong Huodian Engineering and China Power Engineering Consulting Group Northwest Electric Power Design Institute, has signed three new solar and wind EPC contracts with a project company jointly established by Saudi International Power and Water Company, Saudi Aramco Power Company and the kingdom’s sovereign wealth fund, the Saudi Public Investment Fund (PFI)."

S

Saudi Afif Renewable Energy Company buyer

"PowerChina announced that its subsidiaries, China Hydropower Construction Group International Engineering and PowerChina Huadong Engineering Corporation Limited, have formed a consortium with China Power Construction Group and signed contracts with Saudi Afif Renewable Energy Company for the Saudi Afif 1 PV IPP Project and the Saudi Afif 2 PV IPP Project."

S

Saudi International Power and Water Company buyer

"a project company jointly established by Saudi International Power and Water Company, Saudi Aramco Power Company and the kingdom’s sovereign wealth fund, the Saudi Public Investment Fund (PFI)."

S

Saudi Aramco Power Company buyer

"a project company jointly established by Saudi International Power and Water Company, Saudi Aramco Power Company and the kingdom’s sovereign wealth fund, the Saudi Public Investment Fund (PFI)."

S

Saudi Public Investment Fund (PFI) investor

"a project company jointly established by Saudi International Power and Water Company, Saudi Aramco Power Company and the kingdom’s sovereign wealth fund, the Saudi Public Investment Fund (PFI)."

high quality Enriched Feb 19, 2026