This opportunity entails setting up a manufacturing/ assembly plant for the production of solar CSP pumps. Saudi Arabia plans to significantly increase capacity of energy production from renewable sources. The government is strongly committed to unlocking the renewable energy sector, through increasing capacity and localization requirements. Current localization requirements stand at 30%, while future localization plans are set between 40% and 60%.
Today, energy generation from renewable sources is almost negligible; however, Saudi Arabia has set a renewables target of 27.3 GW by 2024 and 58.7 GW by 2030.
KSA solar CSP pumps market is forecasted to grow from almost negligible in 2019 to reach USD 5 million by 2030. This amounts to an estimated 2019-2030 cumulative forecast of USD 60 million. With forecasted market growth, multiple opportunities exist to localize the solar CSP pump production value chain. The main focus of this opportunity is on manufacturing and assembly of solar CSP pumps
- Manufacturing: pattern making process, sand core making process, cast iron melting in furnace, casting process, mold breaking, sand blasting raw casting, grinding and mining, CNC machining of other pump components
- Assembly: final assembly, seal assembly
- Testing: dimension inspection, aquifer test, constant-rate test, step-drawdown test, recover tests
- Investment size: To be determined by the investor
- Location: To be determined by the investor
- Timeline: Open to starting the project as soon as possible
Model: Opportunity to consider different operating models
- Pure private sector model
- Joint venture with the government