In 2011, The United States and Saudi Arabia jointly set up a solar-research station in Al-Uyaynah village. The village, located about 30 miles northwest of Riyadh, had no electric supply at the time. The station is operated by the King Abdulaziz City for Science and Technology. The agency established an experimental assembly line at the site to manufacture solar panels. The equipment on the assembly line was impor.
Saudi Arabia and Japanese tech giant SoftBank have announced a $200 billion solar power project, for completion in 2030, with a capacity of 200 gigawatts.
Saudi Arabia and SoftBank Group Corp. signed a memorandum of understanding to build a $200 billion solar power development that's exponentially larger than any other project.
signed a memorandum of understanding to build a $200 billion solar power development that's exponentially larger than any other project. SoftBank founder Masayoshi Son, known for backing ambitious endeavors with flair, unveiled the project Tuesday in New York at a ceremony with Saudi Crown Prince Mohammed Bin Salman.
The growth of the solar industry is expected to create 100,000 jobs and increase Saudi gross domestic product by $12 billion. It is also expected to save the kingdom $40 billion by obviating the need to burn domestically produced oil to generate power.
At 200 gigawatts, the Softbank project planned for the Saudi desert would be about 100 times larger than the next biggest proposed development and more than double what the global photovoltaic industry supplied last year, according to data compiled by Bloomberg New Energy Finance. “It's a huge step in human history,” Prince Mohammed said.
Saudi Arabia's public investment fund, the sovereign vehicle through which the crown prince is driving the kingdom's economic transformation, and the SoftBank Vision Fund will put up 10-20 per cent equity investment for each solar park. The rest of the funds will be raised through project financing.
Saudi Crown Prince Mohammed bin Salman and Son signed a memorandum of understanding between Saudi Arabia's Public Investment Fund and the SoftBank Vision Fund on Tuesday evening, which kick starts the process of forming a new power generation company. The intention is to complete due diligence on the project by the end of May.
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