Shanghai Electric's Strategic Renewable Energy Partnerships
In early April 2025, Shanghai Electric (SEHK:2727, SSE:601727) secured two significant cooperation agreements in the Middle East aimed at propelling the region's energy transition through innovative renewable energy projects. These agreements include a landmark contract for a 2-gigawatt photovoltaic project with Abu Dhabi Future Energy, commonly known as Masdar, in Saudi Arabia, and a comprehensive collaboration agreement focused on wind energy with the Mawarid Group in Oman. These initiatives align closely with Saudi Arabia's Vision 2030 and Oman's Vision 2040, both of which aim to facilitate the transition to sustainable energy sources.
The Sadawi photovoltaic project, developed in partnership with Masdar, is set to become the world's largest solar engineering, procurement, and construction (EPC) project undertaken by Shanghai Electric. Spanning an area of 40 square kilometers, the facility is projected to generate more than six billion kilowatt-hours of electricity annually, enough to power approximately 700,000 households and reduce carbon dioxide emissions by three million tons. Utilizing cutting-edge photovoltaic technology, this project seeks to maximize the extensive sunlight available in Saudi Arabia and represents a critical component of the country’s renewable energy program.
In Oman, Shanghai Electric has embarked on a collaborative effort with the Mawarid Group to supply wind turbines, transfer key technologies, and design on-site manufacturing facilities. This partnership aims to harness Oman's natural resources, establish a localized supply chain, and promote long-term economic growth within the region.
Wu Lei, the Chairman of Shanghai Electric Group, highlighted the significance of this partnership, stating, "This marks the beginning of a comprehensive collaboration between Shanghai Electric and Masdar. Furthermore, it represents a pivotal moment for Shanghai Electric as we continue to establish our presence in the burgeoning energy market of the Middle East. I look forward to seeing both parties work together to create a flagship project that contributes meaningfully to the global energy transition."
Masdar's CEO, Mohamed Jameel Al Ramahi, expressed a strong commitment to the partnership, citing the potential for deepening cooperation in areas such as wind energy, photovoltaic systems, and energy storage in the future.
Omani Minister of Energy and Minerals, Salim Al Aufi, praised Shanghai Electric's technological expertise in wind energy, recognizing the partnership as a strategic opportunity to expand collaborative efforts. He reiterated the government's readiness to enhance cooperation in sectors such as energy storage, hydrogen energy, and solar power to facilitate a transformation of Oman's energy sector.
Wu Lei emphasized the alignment of Singapore’s Vision 2040 and the government’s green hydrogen strategy with the developmental objectives of Shanghai Electric. He remarked on the opportunity to integrate advanced technologies and quality products within the context of Oman's resource advantages and market potential. The initiative aims to establish a localized supply chain while fostering the execution of additional high-quality projects, ultimately supporting Oman's energy transition and fostering a new chapter in energy collaboration between China and Arab nations.
These partnerships hold immense strategic and industrial significance. The wind energy project in Oman is expected to propel the nation’s transition from traditional energy sources to diversified, clean energy options, including wind and hydrogen. It will also enhance technical collaboration between China and the Arab world. The photovoltaic project in Saudi Arabia directly aids the Kingdom’s objectives of reducing reliance on fossil fuels, contributing to economic diversification, and establishing a foundation for the expansion of Shanghai Electric within the Middle East's solar energy market.
This dual collaboration exemplifies Shanghai Electric’s technology-driven, locally-focused approach to renewable energy, reinforcing the company's standing as a global leader in the sector through its expertise and innovation in wind and solar power.
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