The Saudi Public Investment Fund signed a memorandum of understanding with Japan’s Softbank Group to create the 2030 Solar Plan. That will be the world’s largest 200 GW project with a cost of $ 200 billion by 2030.
The President of the Public Investment Fund, Prince Mohammed Bin Salman Al Saud, and Mr. Masayoshi Son, Chairman of Vision Fund at Softbank, signed the memorandum.
Under the agreement, a first solar power plant will be set up to launch two projects with a capacity of 3 gigawatts and another 4.2 gigawatts in 2019. In addition, the MOU includes the design and manufacturing of solar panels in Saudi Arabia.
This agreement follows the previous agreement signed in the “Future Investment Initiative”, last October 2017.
The agreement includes the completion of feasibility studies between the two parties on this project by May 2018. The agreement also states that the two parties are committed to exploring the manufacture and development of solar storage systems in Saudi Arabia and the establishment of specialized companies for research and development in the production of solar panels in commercial quantities in Saudi Arabia to allow the marketing of the panels in the domestic and global markets.
This could contribute to the creation of 200 thousand jobs in Saudi Arabia, increase the Saudi domestic income by $ 12 billion and save about $ 40 billion annually.
The raw materials in the project, “silica”, will be given free of charge. Raw material supply chains are available in the Kingdom, giving them a competitive advantage. In addition, gas discoveries in Saudi Arabia will add value to silica smelting as well.
