RIYADH: A Spanish firm, which manufactures parts for solar power plants, has opened a factory in Saudi Arabia as the Kingdom moves towards its goal of generating half of its energy from renewable sources.
PV Hardware Middle East, a subsidiary of the Madrid-headquartered company, will manufacture trackers, mounting structures, and cleaning robots for the Saudi solar market.
Solar trackers help maximize solar production by making sure the panels follow the movement of the sun. They are generally used in large-scale utility facilities.
“Under this license, PV Hardware Middle East will manufacture its technology in the Kingdom, and will develop and train local manufacturers, equipping them with the knowledge to produce subassembly parts of this technology themselves,” the company said in a press release.
PVH announced in May 2019 it was planning to enter the Saudi market when it signed an agreement with Saudi steel manufacturer Al Yamamah Solar Systems Factory.
The Kingdom is aiming to generate 50 percent of its energy from renewables by 2030, with the remainder provided by gas.
Solar power is a major part of this goal as EDF Renewables, a subsidiary of French state-controlled power group EDF, has teamed up with Abu Dhabi’s renewable energy company Masdar and privately-owned Saudi firm Nesma Co. to build a 300-megawatt utility-scale photovoltaic solar power plant. The plant is expected to be operational in 2022.
At the same time, Saudi Arabia is eager to increase local production. During the first three months of 2021, the Kingdom issued 307 new factory licenses representing a total investment of SR17.72 billion ($4.73 billion).
Only 240 licenses were issued during the same period last year, which is an increase of 27.9 percent year-on-year, according to data from the Ministry of Industry and Mineral Resources’ official website.
In terms of investment, $8.94 million was pumped in over the same period in 2020, meaning there was a 428.6 percent increase in total investment in the industrial sector during the first quarter (Q1) of this year.
