ACWA Power, a Riyadh, Saudi Arabia-based energy and water desalination giant, is set to expand its presence in China's burgeoning renewable energy market by securing investment agreements for over 1 gigawatt of renewable energy projects across multiple provinces.

As a formal entry into China's renewable energy market, the company has partnered with two of China's major renewable energy developers, Sungrow Renewables and Mingyang Smart Energy, to jointly develop and invest in solar and wind projects that will contribute to China's ambitious decarbonization targets, said the company.

Marco Arcelli, CEO of ACWA Power, said he believes the agreement is a significant step for ACWA Power in China, establishing operational presence in the renewable energy and water desalination sectors, and demonstrating its commitment to the market.

"We are excited to play a key role in China's clean energy and water transition, working alongside our Chinese partners to achieve shared sustainability goals," Arcelli said.

"We are not just investing in renewable energy projects but in Chinese expertise and building long-term relationships within the country."

Industry experts said the movement signals the company's ambition to capture a larger share of China's green energy transition.

Global energy companies are increasingly focusing on expanding their presence in China due to the country's rapid development of new energy technologies and its commitment to green energy transformation, said Wang Lining, director of the oil market department under the economics and technology research institute of China National Petroleum Corp.

"China's ambitious goals for carbon neutrality and its significant investments in renewable energy infrastructure, such as solar, wind and electric vehicles, present an attractive opportunity for international players," he said. "By tapping into China's burgeoning green energy sector, global energy companies can not only diversify their portfolios, but also gain access to the world's largest energy market, positioning themselves at the forefront of the global energy transition."

According to ACWA Power, the company's first agreement with Sungrow Renewables will see the development of a 132-megawatt solar photovoltaic portfolio in Guangdong province, while the second agreement with Mingyang Smart Energy established the foundation for both parties to jointly develop and invest in China's wind energy assets, with a starting portfolio of 200 MW.

The combined investment for the two portfolios amounts to $312 million. These projects are part of an initial batch that will gradually expand to over 1 GW capacity, solidifying ACWA Power's presence in China's renewable energy sector, it said.

"Our entry into China's renewable energy markets is a significant stride toward our global vision of a sustainable future," said Mohammad Abunayyan, founder and chairman of ACWA Power.

"Ultimately, our growth strategy is more than just adding megawatts; it's about building enduring partnerships that accelerate the global energy transition and contribute to a cleaner, more prosperous world for future generations."