Saudi's Desert Technologies Plans 5 GW Solar Manufacturing

Desert Technologies To Build 3 GW Cell, 2 GW Module Facility In Saudi Arabia

By Saur News Bureau/ Updated On Wed, Nov 6th, 2024

Jeddah-based Desert Technologies, which already operates a PV assembly line in Saudi Arabia with an annual capacity of 110 MW for high-efficiency PERC monocrystalline modules (up to 540Wp power output) has announced a major expansion plan.

With an annual nameplate capacity of 5GW, the firm plans a 3GW solar cell manufacturing capacity and a 2GW for PV modules assembly unit. With innovations like a containerised solar generator behind it, Desert Technologies has not yet announced any partners or favoured technology for the major new expansion. Indications from local industry contacts are that it will be a TOPCon line.

For Saudi Arabia, the step up by a local player is welcome, as the country seeks to become a regional manufacturing hub for solar as well, to go with its dominance of the oil sector. In July, the Saudi Arabia’s Public Investment Fund (PIF) signed two solar PV manufacturing agreements that would see 30GW of domestic manufacturing capacity built in the country, from ingots to modules.

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The country offers the benefit of a strong emerging local consumption market for output, thanks to solar plans that, even while being behind schedule, look set to pick up pace now along with an energy storage plan for 30 GW. With abundant land and cheap land available, the Middle East is widely expected to award some eye catching tenders in the near future at record low rates, as developers take advantage of local incentives and record low rates for modules.

Top Chinese firms have paid attention as well, with Jinko, Longi, Tongwei and the likes seeking to be a key part of large new tenders. India’s L&T has also focused most of its solar EPC business in the region only, seeing better margins and lower credit risk in the region.

Between the announcements in Saudi Arabia and neighbouring Oman, besides other Middle East nations, the middle east potentially could have close to 50 GW of its own module manufacturing capacity by 2030, a number that could serve local requirements as well as the broader MENA region comfortably. It remains to be seen how much actually comes online.