Chinese inverter manufacturer Sungrow Power Supply Co. has signed an agreement with Saudi holding company Al-Gihaz to establish a large-scale energy storage project with a capacity of up to 7.8 gigawatt-hours.

According to a company statement, the project is expected to be delivered this year and will help enhance the stability of Saudi Arabia’s electricity grid, supporting the kingdom’s Vision 2030 goals, which include ambitious renewable energy targets.

In related news, Bloomberg reported that China’s second-largest wind turbine manufacturer is close to reaching an agreement to develop a new factory in Saudi Arabia to support its goals of increasing renewable energy production. The Saudi Public Investment Fund (PIF), which controls assets worth around $1 trillion, and renewable energy equipment manufacturer Vision Industries are expected to sign an agreement with Envision Energy soon.

The potential deal includes PIF and other partners participating in the construction of a wind turbine manufacturing plant in Saudi Arabia as part of the kingdom’s efforts to localize supply chains in the renewable energy sector.