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China Fund News reporter heard

The Middle East is becoming a new hot spot for photovoltaic companies to expand overseas!

On the evening of July 25, Junda shares announced that the company plans to invest in the construction of an Oman high-efficiency battery production base project with an annual output of 5GW (hereinafter referred to as the Oman battery project), with an estimated total investment of US$280 million, equivalent to approximately RMB 2.021 billion.

On the same evening, PowerChina announced that the company's branch and subsidiary formed a consortium and signed the EPC (engineering general contracting) contract for the Abu Dhabi PV3 Ajiban 1.5GW photovoltaic project, with a value of approximately US$755 million, equivalent to approximately RMB 5.384 billion.

The Middle East may become the best solution for going overseas

Junda shares announced that the company plans to invest in the Oman battery project in order to actively implement its global development strategy, deepen its global customer service capabilities, and further meet the needs of the overseas photovoltaic market.

To this end, Junda Holdings has established Jietai New Energy Technology (Oman) Sohar Free Trade Zone Co., Ltd. as the investment, operation and management entity of the project.

At the same time, Junda shares plans to introduce external shareholders to carry out the Oman battery project in the form of a joint venture, so as to effectively integrate overseas capital, upstream and downstream customers in the industrial chain and other resources, and thus achieve the goal of sustainable development of its overseas business.

Since 2023, Junda Co., Ltd. has successively developed customers in Asia, Europe and other regions, and the proportion of overseas sales revenue has continued to increase, reaching 4.69% in 2023 and 11.62% in the first quarter of 2024.

The Oman battery project is an important overseas layout of Junda Shares. The project is located in the Sohar Free Trade Zone in Oman, which is the core location of the trade route between Europe and Asia, adjacent to the vast markets of the Middle East, Europe and Asia, and has strong international trade location advantages.

Photovoltaic industry insiders analyzed that the Middle East has abundant light resources, coupled with local government support and huge market demand, as well as the advantages of free trade agreements with multiple countries, the Middle East may be the best solution for Chinese photovoltaic companies to go overseas.

At present, Oman has signed a long-term free trade agreement with major Western countries, and the Oman Sohar Free Trade Zone also has corresponding preferential policies for import and export business. Junda shares believes that the above situation is conducive to the international sales of the company's photovoltaic products produced in Oman.

At the same time, according to plans such as Oman's "Vision 2040" and Saudi Arabia's "Vision 2030", major countries in the Middle East regard the development of renewable energy as a national development strategy. The local photovoltaic market in the Middle East is gradually emerging and has great development prospects.

The Middle East Photovoltaic Industry Association previously released the "Photovoltaic Outlook Report 2024", predicting that the installed capacity of photovoltaic systems in the Middle East and North Africa will reach 40GW in 2024 and 180GW in 2030.

The photovoltaic industry chain is expanding overseas

The overall overseas expansion of the domestic photovoltaic industry chain has become a new trend. Recently, Zhu Gongshan, chairman of GCL Group, said that it is expected that within three to five years, China's photovoltaic industry will complete the first phase of the overseas expansion of the entire industry chain.

Recently, JinkoSolar, the leader in photovoltaic modules, and TCL Zhonghuan, one of the two giants in silicon wafers, have both received large orders from the Middle East market. Junda shares are mainly engaged in the battery link of the photovoltaic industry chain, while China Power Construction Corporation is mainly engaged in the engineering construction link.

Recently, China Power Engineering's Abu Dhabi branch and its subsidiary East China Institute Middle East Co., Ltd. formed a consortium and signed an EPC contract for the Abu Dhabi PV3 Ajiban 1.5GW photovoltaic project with Ajiban Photovoltaic Project Holding Co., Ltd. The amount is approximately US$755 million, equivalent to approximately RMB 5.384 billion.

The main engineering content of the above project is the design, construction, procurement, installation, commissioning, trial operation of the 1500MW photovoltaic power station and the 400KW booster station, as well as the operation and maintenance work within the warranty period of 24 months. The total construction period is approximately 28 months.

In terms of location, the above-mentioned project is located in the Ajiban area of ​​Abu Dhabi, UAE, about 88 kilometers northeast of Abu Dhabi city and bordering Dubai.

Junda shares announced that as the cost of the domestic photovoltaic industry chain continues to decline, the cost of photovoltaic power generation continues to drop, photovoltaic power generation has become more competitive globally, promoting rapid growth in demand in the overseas photovoltaic market.

At the same time, major overseas countries are working to build local photovoltaic industry chains, but due to the high technological barriers of photovoltaic cells and high requirements for talent and R&D, overseas photovoltaic cell production capacity is relatively scarce.

Editor: Xiaomo

Audit: Wooden Fish

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