RIYADH: Saudi Arabia’s ACWA Power has solidified its position in China’s renewable energy sector with two major agreements valued at $312 million.

These agreements mark a significant step in the company’s global expansion strategy and underscore its commitment to driving the country’s clean energy transition.

The deals include a 132-megawatt solar photovoltaic portfolio in Guangdong province and a 200-megawatt wind energy project, according to a company statement. Both projects are central to ACWA Power's broader strategy in China, which was launched in 2023 to support the nation’s renewable energy goals.

Marco Arcelli, CEO of ACWA Power, expressed enthusiasm about the developments: “This is a significant milestone for ACWA Power in China, establishing our operational presence in renewable energy and water desalination. We are committed to working alongside our Chinese partners to contribute to the country's clean energy and water transition.”

Arcelli further emphasized the company’s long-term vision: “We are not only investing in renewable energy projects but also in Chinese expertise and building enduring relationships within the country.”

The solar project, ACWA Power’s first collaboration at the asset level with its long-term supply chain partner Sungrow Renewables, will span three separate sites in Guangdong. Additionally, the wind energy agreement, which was signed with Mingyang Smart Energy Group — a leading wind turbine manufacturer — opens the door for joint investments in China’s rapidly expanding wind sector.

ACWA Power’s formal entry into China’s renewable energy market was announced in December 2024, with the company planning to develop projects exceeding 1 gigawatt across multiple provinces.

Mohammad Abunayyan, founder and chairman of ACWA Power’s board of directors, commented: “Our entry into China’s renewable energy market represents a key milestone in our global strategy for a sustainable future. Our growth is not just about adding megawatts; it’s about forging lasting partnerships that accelerate the energy transition and create a cleaner, more prosperous world for future generations.”

These projects are part of an initial phase that will see ACWA Power expand its portfolio to more than 1 gigawatt of capacity in China. This move aligns with the company’s long-term ambition to triple its assets under management to approximately $250 billion globally by 2030.

RIYADH: Lebanon’s economy is expected to start recovering this year following a 10 percent contraction in 2024, as the country returns to fully functioning institutions, according to Moody’s. 

On Jan. 9, the country elected former army commander Joseph Aoun as president, and followed that by appointing Nawaf Salam, chief of the International Court of Justice, as prime minister on Jan. 13. 

Aoun’s election ended a leadership void that had persisted since the previous president’s term expired in October 2022. 

“We estimate an economic contraction of 10 percent in 2024 because of the conflict but expect economic activity to start recovering later this year – assuming a permanent cessation of hostilities,” Moody’s said in a commentary. 

The Middle Eastern country’s return to fully functioning institutions will boost the continued enforcement of the ceasefire with Israel, supported by the monitoring role of the US, France and the UNIFIL, the agency added. 

Lebanon’s recovery requires substantial international support, a fact underscored by an international donor conference held in Paris in October. The conference raised $1 billion in pledges, with $800 million allocated for humanitarian assistance and $200 million earmarked for military support. 

These funds are expected to address the immediate needs of over 1.3 million people displaced during the September-November conflict, as well as the $8.5 billion in economic losses incurred, including $3.4 billion in physical damage to infrastructure, as reported by the World Bank. 

While these pledges offer a lifeline, the disbursement of funds will likely be contingent on the government’s adherence to reform commitments under a forthcoming International Monetary Fund program, Moody’s noted. 

These reforms include comprehensive debt restructuring for the government, the central bank, and commercial banks, aimed at ensuring long-term economic recovery and sustainability. 

“Lebanon’s current C rating reflects our expectation that holders of Lebanese eurobonds will recover less than 35 percent of par following the eventual eurobond restructuring,” the agency added. 
 
According to Moody’s, fiscal and investment activity has been sharply curtailed, undermining long-term growth prospects and the provision of public services. 

Tourism and remittances from Lebanon’s diaspora continue to serve as vital sources of foreign exchange, but they are insufficient to address the structural imbalances in the economy. 

Public debt, estimated at 150 percent of the gross domestic product by the end of 2024, remains one of the highest globally, presenting a formidable challenge to fiscal sustainability, noted Moody’s. 

Aoun’s election has been welcomed by international observers as a turning point for Lebanon, which has been mired in political paralysis, economic collapse, and the aftermath of recent conflicts. 

The new president will lead efforts to form a fully empowered government, replacing the current caretaker administration led by former Prime Minister Najib Mikati “that has been operating with limited powers.” 

Aoun’s leadership of the Lebanese Armed Forces was instrumental in enforcing the November ceasefire between Hezbollah and Israel, according to Moody’s. 

The ceasefire has been critical in creating a stable environment for Lebanon’s recovery. Observers note that the role of the armed forces in securing the truce reflects Aoun’s ability to command respect and cooperation from various stakeholders, a quality deemed vital for navigating Lebanon’s complex political landscape.