Shanghai Electric Group Co. Ltd. formalised two major energy agreements in the Middle East in April, reinforcing its expansion strategy in the region through solar and wind power initiatives. The Chinese company signed a 2-gigawatt contract for a photovoltaic project in Saudi Arabia with Abu Dhabi Future Energy Company (Masdar), and a comprehensive wind energy agreement with Mawarid Group in Oman.
Acceleration of solar projects in Saudi Arabia
The photovoltaic project, named Sadawi, spans 40 square kilometres and currently stands as Shanghai Electric’s largest solar engineering, procurement and construction (EPC) operation. With an annual capacity exceeding 6 billion kilowatt-hours, the installation will be able to supply electricity to up to 700,000 households and is part of Saudi Arabia’s National Renewable Energy Programme, supporting the country’s Vision 2030.
The cooperation with Masdar involves the deployment of advanced photovoltaic technology, using next-generation solar panels to harness the kingdom’s high solar irradiation. The agreement also highlights a drive for industrial integration, with a focus on localised manufacturing and the involvement of domestic stakeholders in the project’s implementation.
Wind energy deployment and technology transfer in Oman
In Oman, Shanghai Electric will collaborate with Mawarid Group on a wind power project involving turbine supply, technology transfer and the design of a local factory. The partnership supports Oman’s Vision 2040, aimed at diversifying energy sources while stimulating domestic economic growth through the development of a local supply chain.
Oman’s Minister of Energy and Minerals, Salim Al Aufi, stated that the project offers an opportunity to strengthen technological ties between China and Oman, particularly in the fields of energy storage, hydrogen and photovoltaic technology. The initiative also seeks to establish a sustainable industrial footprint in the country’s wind power sector.
Regional outlook for Shanghai Electric
These two agreements represent a strategic step for Shanghai Electric as it continues to establish itself in the Gulf’s energy markets. Group Chairman Wu Lei said the partnerships will enable Chinese technological strengths to align with the natural resources and energy ambitions of the host countries. He noted that the aim is to deliver comprehensive industrial solutions adapted to local contexts.
The Saudi project offers Shanghai Electric a foothold for further development in the region, while the Omani initiative could pave the way for regional industrial synergies in clean energy. Both initiatives are seen as industrial drivers rather than symbolic projects.
