Sign in Subscribe
International cooperation

Japan and Saudi Arabia Strengthen Partnership on Renewable Energy and Transmission Infrastructure

Strategic Insights

— 1 min read

The Japan Bank for International Cooperation (JBIC) has signed a Memorandum of Understanding (MOU) with Saudi Electricity Company (SEC) to deepen their partnership and support Saudi Arabia's national transformation plan, Saudi Vision 2030. The MOU aims to develop solutions for SEC's future projects through investments by Japanese companies, the introduction of Japanese products and technologies, and/or financial support. The partnership is expected to create business opportunities for Japanese companies in Saudi Arabia and third countries.

Key Takeaways:

  • The MOU between JBIC and SEC aims to develop solutions for SEC's future projects, including investments by Japanese companies, introduction of Japanese products and technologies, and/or financial support.
  • The partnership focuses on growing renewable energy, enhancing transmission infrastructure, including interconnection projects, and developing smart cities.
  • JBIC has been supporting SEC's power projects in Saudi Arabia, providing a loan in 2023 to finance the interconnection project that links Saudi Arabia and Egypt.
  • The project aims to support the effective use of electricity, stabilize the power system, and contribute to the growth of renewable energy in both countries.
  • JBIC and SEC have expanded their scope of cooperation to include interconnection projects involving a third country.
  • JBIC's Fourth Medium-term Business Plan, released in June 2021, aims to respond to energy transformation toward a decarbonized society.
  • JBIC's ESG Policy, released in October 2021, commits to pursuing ambitious efforts to reduce operational GHG emissions to net zero by 2030 and achieve net zero emissions of its finance portfolio by 2050.
  • The signing of the MOU aligns with JBIC's Medium-term Business Plan and ESG Policy.

Statistics:

  • JBIC provided a loan to SEC in 2023 to finance the interconnection project between Saudi Arabia and Egypt.
  • The link between Saudi Arabia and Egypt is expected to support the effective use of electricity and stabilize the power system.
  • JBIC aims to reduce its operational GHG emissions to net zero by 2030.
  • JBIC plans to achieve net zero emissions of its finance portfolio by 2050.

Sources:

  • Japan Bank for International Cooperation (JBIC)
  • Saudi Electricity Company (SEC)
  • Islamic Development Bank (IsDB) Group Annual Meetings
  • Saudi Vision 2030

Read more