Saudi energy giant ACWA Power has acquired a 1.25 GW wind power asset package through its Chinese subsidiary, a transaction that covers both operational and ongoing projects, unveiling the strategic veil of cross-border energy capital's exploration of the Chinese wind power market.

Balancing Risk and Return Technique

This acquisition includes one 250 MW operational wind farm and four 1000 MW under construction projects. Operating assets provide stable cash flow, while ongoing projects lock in future returns, making it a classic risk hedging model in the energy investment field. The undisclosed amount and equity ratio of the transaction are both part of a business strategy and reflect a shift in China's wind power asset valuation towards considering the full lifecycle cost of electricity per kilowatt hour.

Clear Path to Deeply Cultivate China

ACWA Power's deployment in China is divided into three stages: collaborating with local leaders to test the waters in 2024; By 2025, establish an innovation center in Shanghai and build a hub connecting technology and the industrial chain; By the end of 2025, a large-scale acquisition will be launched, aiming to invest 3 billion US dollars and install 20 gigawatts by 2030. The essence of its expansion is the strategic synergy between Saudi Arabia's "2030 Vision" and China's "dual carbon" goals.

New paradigm of energy cooperation between China and Saudi Arabia

ACWA Power builds its core competitiveness through global project management experience, low-cost financing capabilities, and expertise in technology integration. It has built a two-way bridge between Chinese manufacturing and the Middle East market, applying Chinese photovoltaic modules to projects in the Middle East and feeding back China's wind power operation experience overseas. This model provides a sample for China Saudi Arabia energy cooperation, and also promotes China to upgrade from an exporter of new energy technologies to a co creator.

Currently, the Chinese wind power market is transitioning from the "Three Norths" to the central and southeastern regions, and from onshore to offshore, with industry valuations returning to rationality. The entry of ACWA Power not only recognizes the long-term value of China's wind power assets, but also heralds the reshaping of the global energy capital flow pattern.Editor/Bian Wenjun