What's Happening?
Abunayyan Holding, a Saudi Arabia-based company, and U.S. solar tracker maker Nextpower have finalized their joint venture, Nextpower Arabia. This partnership aims to advance utility-scale solar projects across the Middle East and North Africa (MENA)
region. The joint venture will establish a manufacturing facility in Jeddah, Saudi Arabia, to produce solar tracking systems and related solutions. The facility, set to open in the second quarter of 2026, will have a manufacturing capacity of up to 12 gigawatts per year and is expected to create approximately 2,000 jobs. This initiative aligns with Saudi Arabia's National Renewable Energy Program, which seeks to increase the share of renewables in the country's energy mix by 2030.
Why It's Important?
The joint venture between Abunayyan Holding and Nextpower is significant as it supports Saudi Arabia's clean energy goals and contributes to the region's economic development. By localizing advanced manufacturing and building technical capabilities, the partnership aims to strengthen the regional solar supply chain. This move is expected to accelerate the deployment of solar technology in the MENA region, which is crucial for meeting renewable energy and net-zero targets. The investment in local manufacturing also aligns with Saudi Arabia's Vision 2030, which emphasizes industrialization and economic diversification.
What's Next?
The joint venture plans to invest around $88 million in equity and debt funding over the next two years to support the manufacturing facility and workforce development. As the facility becomes operational, it is expected to enhance the regional solar supply chain by sourcing key materials locally, including Saudi-produced steel. This development could lead to increased collaboration with other regional governments and businesses, further boosting the adoption of renewable energy solutions in the MENA region.
