On March 27, Softbank made the new mark in its dealing history in renewable sources of energy with Saudi Arabia to build world’s largest solar park with whopping $200 B deal between two of them.
The project was unveiled by SoftBank Group CEO Masayoshi Son and Saudi Crown Prince Mohammad Bin Salman in New York. To make this project lively & beneficial for the current consumption units, Saudi Arabia’s Public Investment Fund and SoftBank Vision Fund are the ray of hope towards better future. This project will give jobs to more than 100,000 people by reducing the power costs of $40 billion, added by SoftBank CEO. Moreover, it will reach its maximum capacity by 2030 and may cost close to $1 billion per gigawatt.
Along with this solar park, a new battery technology and solar equipment manufacturing will be the key factors that are byproduct of this project, for the project. According to data from the Sovereign Wealth Fund Institute, the Public Investment Fund (PIF) invested the sum of $54 billion last year. With a $45 billion more, it is now largest investor in SoftBank’s Vision Fund. On the contrary, according to the PIF documentation, MoU had been signed for ‘Solar Energy Plan 2030’ which would happen through the Saudi Electricity Company (SEC).
According to the statement, “The development of Saudi Arabia’s solar energy sector is a core objective of Vision 2030, the Kingdom’s blueprint for a modern and diversified economy. Saudi Arabia is targeting 9.5 GW of renewable energy by 2023, to be achieved through projects designed to localize the renewable energy value chain.”
SoftBank is more focused on renewable entities while Saudi Arabian mentality is for other energy revenues than oil production and its management. Efforts from both side will have a unique message in the world which is still stereotype in non-renewable sources.
Whether this MoU and the vision for 2030 come to light is something time will tell, but meanwhile, we do see both the PIF and SoftBank pushing for the biggest solar project in the world.