100MW Manufacturing Project
Jeddah, Kingdom of Saudi Arabia

Saudi Arabia is poised to become the largest renewable energy market in the Middle East, given the enormous opportunity cost of the Kingdom’s massive subsidized domestic oil consumption. As much as 35% of the oil extracted by Saudi Arabia each year is sold for less than 4 US dollars a barrel to the Saudi Electrical Company and other utilities to produce energy. The government is still finalizing the structure of Saudi’s massive renewables program, expected to be over 1 GW a year. It is already clear that given the Kingdom’s focus on stimulating domestic industry and diversifying the economy, mean local content incentives will be the key driver of market share, as they were in the solar market in South Africa.

With the aim of securing a major competitive advantage through the local content incentives, DT has acquired a state-of-the-art 75 MW Reis Robotics crystalline silicon assembly line and a 20MW EPV Solar amorphous silicon manufacturing line, and have started installation in a factory building in South Jeddah.

The factory building is currently finishing electromechanical upgrades, and the equipment should be ready to begin commercial production in October 2015. These locally produced modules will enable DT to be more competitive and secure a large market share within Saudi Arabia.

Furthermore, this investment in manufacturing is a pilot project to evaluate entering the international module production market. Depending on the market’s appetite, DT will consider expanding upstream in the crystalline silicon value chain to become a vertically integrated solar company. The manufacturing division would aim to achieve a capacity of 500 MW within 3 years, based on a 600 million USD capital investment. At this capacity, DT would achieve economies of scale to become internationally price competitive.

Beyond DT’s regional markets in MENA, the manufactured modules would target the US and European markets, where prices are artificially higher due to anti-dumping tariffs targeting Chinese and Taiwanese manufacturers.

Saudi Arabia is poised to become the largest renewable energy market in the Middle East

The manufacturing division would aim to achieve a capacity of 500 MW within 3 years, based on a 600 million USD capital investment.

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