As reports of progress in talks towards normalization between Israel and Saudi Arabia continue to emerge, an Israeli company, SolarEdge, has taken a significant step by establishing a local presence within the kingdom. SolarEdge, a leading supplier of inverters for solar panels, announced on Monday that it is forming a new company in Riyadh, the capital of Saudi Arabia.
The newly established company will provide solar energy systems, storage solutions, and energy management services to organizations and businesses in the country. Additionally, it will offer planning services for solar sites and consultation on electricity transmission matters. This venture is made possible through a collaboration with Ajlan & Bros, a major Saudi holding company with dominant interests in diverse industries, including energy, health, tourism, textiles, technology, and real estate.
Israel's ๐ฎ๐ฑ SolarEdge Technologies @SolarEdgePV has signed a joint venture agreement in Riyadh, Saudi Arabia ๐ธ๐ฆ with Ajlan & Bros Holding @AjlanBrosGroup. It will support the deployment of smart renewable energy solutions across the kingdom, in-line with #MBS' Saudi Vision 2030.โฆ pic.twitter.com/gNjNHuOPAY
โ Avi Kaner ุงุจุฑุงููู ืืื (@AviKaner) July 31, 2023
Despite being the world's largest oil exporter, Saudi Arabia, like several other Middle Eastern nations, is increasingly directing its efforts toward diversifying its energy and economic landscape. In 2016, the country unveiled its Saudi Vision 2030 plan, which includes the goal of achieving about half of its energy consumption from renewable sources by 2030. Although the country enjoys favorable conditions for solar electricity generation, it is currently ranked 48th globally in terms of solar electricity output, as per research firm GlobalData.
Zvi Lando, CEO of SolarEdge, expressed pride in partnering with Ajlan & Bros to support Saudi Arabia's journey toward achieving Vision 2030. He emphasized the importance of the joint venture in facilitating a swift transition from polluting fuels to clean solar energy, aligning with the country's aspirations in the renewable energy sector.
Israelโs SolarEdge agrees to a joint venture with a Saudi Arabian firm to deploy renewable energy in the kingdom, a rare collaboration between the two countries https://t.co/EckQYjHP5D
โ Bloomberg Middle East (@middleeast) July 31, 2023
SolarEdge's core expertise lies in providing power converters and electronic components that optimize electricity production from solar panels, making it a leading player in the industry. In 2022, the company recorded impressive revenues of $3.1 billion, reflecting a remarkable 58% increase compared to the previous year. It is publicly traded on Nasdaq with a current market value of $13.5 billion. SolarEdge's headquarters are located in Herzliya, and recently, it inaugurated a state-of-the-art production facility in Tziporit, named "Sela 2," in honor of the company's late founder, Guy Sela.
The move by SolarEdge to establish a local company in Saudi Arabia represents a notable milestone in the realm of renewable energy collaboration between the two nations. As Saudi Arabia accelerates its efforts to embrace cleaner energy sources, this partnership is poised to contribute significantly to the realization of the country's ambitious renewable energy goals outlined in Saudi Vision 2030.
