SoftBank, Saudi Arabia to build $200-bn solar project

Saudi Arabia and SoftBank Group Corp have joined hands to build the world's largest solar project worth $200 billion in the kingdom that could generate 200 gigawatts by 2030.

The deal was signed in presence of Saudi Crown Prince Mohammed bin Salman who is on a US visit. The project will be part of the SoftBank Vision Fund, which was set up in 2016, and has invested in many projects in the US, India and Europe.

Speaking at the launch in New York, SoftBank founder Masayoshi Son said the project will help Saudi Arabia to get rid off its dependence on oil for electricity and create 100,000 job opportunities. The country can shave off $40 billion power bills, he said as quoted by Bloomberg.

The deal is a step towards achieving the Crown Prince's ambition to diversify Saudi Arabia's economy. "It's a great step and is bold, risky. We have great sunshine, land and great engineers and labour," Prince Mohammed told reporters in New York, as quoted by Bloomberg.

The project cost will be around $200 billion. For the first phase which aims to produce 7.2 gigawatts, $5 billion will be provided. SoftBank's Vision Fund will give $1 billion for the first phase.

SoftBank's Son added that the electricity produced in the first phase will be sold and that would help financers to earn money for the forthcoming stages. Initially, the solar panels will be imported. A factory unit is being planned in the kingdom to manufacture the panels locally.

Saudi Arabia and other Gulf countries have been experimenting with ways to cut their energy bills, pollution and also find ways to earn money away from oil.
The Kingdom has set a target of 9.5 gigawatts of renewable energy by 2023.