Saudi Arabia inks localization deals for wind energy systems
Date
10/28/2024 9:38:22 AM
(MENAFN) Saudi Arabia is set to embark on the local manufacturing of steel towers for wind energy systems, thanks to the recent signing of two significant agreements by the Kingdom’s Local Content and Government Procurement Authority (LCGPA). These agreements, established in collaboration with Al-Yamamah Steel Industries Co. and Arabian International Co. for Steel Structures, are designed to localize production and facilitate the transfer of essential knowledge within the wind energy sector. The contracts were finalized during the Energy Localization Forum held in Riyadh, where the Ministry of Energy and LCGPA oversaw the signing of a total of 107 agreements and memorandums of understanding, collectively valued at SR104 billion (approximately USD27.69 billion).
This initiative forms part of the broader National Renewable Energy Program, which is aligned with Saudi Arabia's Vision 2030. The program aims to capitalize on the country’s renewable energy potential while diversifying energy sources and stimulating economic growth. By fostering a robust renewable energy industry, the Kingdom seeks to ensure sustainable financial stability and enhance its energy security. The energy ministry highlighted on its official X account that these agreements will significantly bolster local content development and expand supply chains within the renewable energy sector, thereby contributing to a sustainable energy future that aligns with national objectives.
Furthermore, according to the LCGPA, these localization and knowledge transfer agreements are expected to pave the way for the establishment of new industries within Saudi Arabia, creating diverse job opportunities in the energy sector. The focus on enhancing local content is also intended to increase the Kingdom’s reliance on domestic products and services, ultimately boosting its competitiveness in both regional and global markets. This strategic move reflects Saudi Arabia's commitment to not only developing its renewable energy capabilities but also fostering economic growth and job creation through localized production efforts.
In summary, the agreements signed between LCGPA and the two steel companies signify a critical step towards establishing a self-sufficient and competitive wind energy industry in Saudi Arabia. By prioritizing local production and knowledge transfer, the Kingdom aims to secure its position as a leader in renewable energy while simultaneously driving economic diversification and job creation in alignment with its Vision 2030 goals.
MENAFN28102024000045015839ID1108824984
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.