The Saudi Arabian government has signed a Memorandum of Understanding (MoU) with the Softbank to set up a new solar power project with a total expected capacity of 200 GW by 2030. Aiming at promoting the creation of a domestic solar equipment manufacturing industry in the country, the project will be divided into several phases.
Two solar plant projects with respective capacities of 3,000 MW and 4,200 MW will be launched by 2019. Feasibility studies on this project are expected to be completed by May 2018. Softbank Vision Fund will provide US$1bn of the total US$5bn required. The agreement also states that the two parties will also explore options to manufacture and develop solar storage systems in Saudi Arabia.
This move fits in the framework of Saudi Arabia's Vision 2030 programme, by which the country aims at producing 10% of its power from renewables by 2023. In 2016, a target of 9.5 GW by 2030 was introduced as part of the Vision 2030 reform plan with an intermediary objective of 3.5 GW in 2020.