110 F. AL-SULAYMAN
better qualify it to take advantage of opportunities globally. This approach
is not new, and many of the largest contenders in international renewable
energy tenders are state-owned or state-backed companies; EDF, Engie,
Enel, Masdar, and others.
The second and more prominent element of this constituency is the
PIF itself. Through its investment in ACWA Power and its more broad
interest in the renewable energy space through its partnership with
SoftBank, the PIF is also positioning itself to take advantage of—and
simultaneously drive forward—the energy transition set to take place in
the Kingdom. The pace with which this transition takes place, and the
degree to which the PIF is able to leverage these opportunities to tackle
others in future developing markets, is now undoubtedly a priority for
the PIF. The PIF-SoftBank partnership is also set to include manufacturing and energy storage plans, ensuring that many of the opportunities
made available by the energy transition strategy will be within its grasp.
In a similar vein, SABIC—the state-owned petrochemical giant—recently
announced the launch of a JV with the SCHMID Group to manufacture vanadium redox flow batteries in the Kingdom. All these plans also
broadly fit into Vision 2030 plans to encourage local manufacturing.
And as observers will note from recent political developments, the
PIF is closely linked to the current leadership of the Kingdom, with its
managing director having assumed the position of Chairman of Aramco
months before the 2020 IPO. This alignment of interests in the political
economy of the state likely bodes well for the progress of Saudi Arabia’s
renewables plans.
This arrangement mirrors a somewhat similar one that had taken shape
in the UAE between 2014 and 2018, as Masdar—a company owned by
Abu Dhabi’s Mubadala—began to accumulate a solar energy portfolio by
winning tenders in Dubai, and using this experience to compete globally. 39 This strategy extended in to the commercial and industrial space as
well, as Mubadala invested in Enviromena, a solar project developer that
has since become a regional leader.
The late rentier state, characterized by state capitalist tendencies, is now
absorbing the renewable energy agenda into its orbit, with state-backed
institutions positioning themselves carefully around various parts of the
value chain to take advantage of the large number of projects set to take
place as part of the energy transition.
better qualify it to take advantage of opportunities globally. This approach
is not new, and many of the largest contenders in international renewable
energy tenders are state-owned or state-backed companies; EDF, Engie,
Enel, Masdar, and others.
The second and more prominent element of this constituency is the
PIF itself. Through its investment in ACWA Power and its more broad
interest in the renewable energy space through its partnership with
SoftBank, the PIF is also positioning itself to take advantage of—and
simultaneously drive forward—the energy transition set to take place in
the Kingdom. The pace with which this transition takes place, and the
degree to which the PIF is able to leverage these opportunities to tackle
others in future developing markets, is now undoubtedly a priority for
the PIF. The PIF-SoftBank partnership is also set to include manufacturing and energy storage plans, ensuring that many of the opportunities
made available by the energy transition strategy will be within its grasp.
In a similar vein, SABIC—the state-owned petrochemical giant—recently
announced the launch of a JV with the SCHMID Group to manufacture vanadium redox flow batteries in the Kingdom. All these plans also
broadly fit into Vision 2030 plans to encourage local manufacturing.
And as observers will note from recent political developments, the
PIF is closely linked to the current leadership of the Kingdom, with its
managing director having assumed the position of Chairman of Aramco
months before the 2020 IPO. This alignment of interests in the political
economy of the state likely bodes well for the progress of Saudi Arabia’s
renewables plans.
This arrangement mirrors a somewhat similar one that had taken shape
in the UAE between 2014 and 2018, as Masdar—a company owned by
Abu Dhabi’s Mubadala—began to accumulate a solar energy portfolio by
winning tenders in Dubai, and using this experience to compete globally. 39 This strategy extended in to the commercial and industrial space as
well, as Mubadala invested in Enviromena, a solar project developer that
has since become a regional leader.
The late rentier state, characterized by state capitalist tendencies, is now
absorbing the renewable energy agenda into its orbit, with state-backed
institutions positioning themselves carefully around various parts of the
value chain to take advantage of the large number of projects set to take
place as part of the energy transition.