An image shows an offshore wind farm in Guangdong province. As of the third quarter of 2024, a total of 39.1 million kilowatts of offshore wind power capacity in China had been connected to the grid. ZHOU GUOQIANG/FOR CHINA DAILY

ACWA Power, a Riyadh, Saudi Arabia-based energy and water desalination giant, is set to deepen its foothold in China's rapidly growing renewable energy sector.

Following years of collaboration with Chinese firms in third-party markets, ACWA Power has formally entered China's renewable energy landscape, securing agreements for over 1 gigawatt of renewable energy projects across several provinces in the country, eyeing a multidecade investment strategy focused on solar, wind, desalination and green hydrogen, said a top company executive.

"China, now the world's largest renewable energy market, represents a key opportunity for ACWA Power to scale its expertise in green energy solutions," said ACWA Power's founder and chairman, Mohammad A. Abunayyan

"China is leading the way in clean energy, and its commitment to energy transition aligns perfectly with ACWA Power's ambitions. We are confident that by combining our world-class technology with China's strong manufacturing base and policy support, we can make renewable energy more affordable and accessible," he said.

As a formal entry into China's renewable energy market, the Middle East energy conglomerate partnered with two of China's major renewable power producers — Sungrow Renewables and Mingyang Smart Energy — in January, to jointly develop and invest in solar and wind projects that will contribute to China's ambitious decarbonization targets.

Additionally, ACWA Power is exploring opportunities in offshore wind, renewable desalination and green hydrogen, which it views as integral to the global energy transition, it said.

Abunayyan said the company's expansion in China is a natural evolution of its global strategy.

"Our goal has always been to deliver affordable, sustainable and reliable power and desalinated water to the world. Our long-term partnership with Chinese companies — especially in technologies like solar, desalination and hydrogen — has been a cornerstone of that mission."

ACWA Power plans to invest heavily in research and development in China in the years to come, particularly in desalination technology, green hydrogen and electrification.

"Our innovation center in China will be a hub for developing cutting-edge solutions in water desalination, hydrogen and electrification. The Chinese market offers immense potential, not just in terms of scale, but also in the country's technical expertise and talent," he said.

Industry experts believe this move reflects the company's ambition to secure a larger stake in China's green energy transition.

Wang Lining, director of the oil market department under the economics and technology research institute of China National Petroleum Corp, said global energy companies are increasingly targeting China due to its rapid advancements in new energy technologies and its strong commitment to green energy transformation.

"China's ambitious carbon neutrality goals, coupled with substantial investments in renewable energy infrastructure — such as solar, wind and electric vehicles — make it an enticing market for international firms. By entering China's expanding green energy sector, global energy companies can not only diversify their portfolios, but also tap into the world's largest energy market, positioning themselves at the forefront of the global energy shift," Wang said.

Looking ahead, Abunayyan envisions ACWA Power playing a critical role in both the renewable energy and desalination sectors in China, with an eye toward expanding its asset base.

"By 2030, we aim to have $250 billion in assets under management, with $30 billion of that coming from our operations in China. This is just the beginning," he noted.

Despite challenges, including the complexities of securing long-term power purchase agreements and integrating renewable energy into China's vast grid system, Abunayyan expressed confidence in the country's ability to overcome obstacles.

"China has always been a leader in turning ambition into action. We believe in its vision, and we're here to stay for the long term," he said.

"For ACWA Power, 2025 is critical as the company works to solidify its position in China's energy market and expand its renewable energy footprint globally. Success in China will be the foundation for our future ambitions worldwide, and we're just getting started."