The world’s biggest solar thermal plant is set to be built in Saudi Arabia. When completed, the facility will have a capacity of 3.8 gigawatts – enough to power more than one million homes. The plant will cover an area of 4,500 hectares (11,120 acres) and will use mirrors to concentrate the sun’s rays onto a central tower.
The heat generated will be used to generate steam, which will in turn drive turbines and generate electricity. Construction is set to begin next year and the plant is expected to be operational by 2023. The project is part of Saudi Arabia’s Vision 2030, which aims to increase the share of renewable energy in the country’s electricity mix from 3% to 27% by 2023.
SoftBank Japan
Japanese tech company SoftBank has announced plans to build a $200 billion solar power project in Saudi Arabia. CEO Masayoshi Son and Saudi Crown Prince Mohammed bin Salman spoke about their plans in New York for the building of the largest solar project in the world and signed a memorandum of understanding. The two leaders said that the project would create jobs, help reduce Saudi Arabia’s dependence on oil, and contribute to the kingdom’s goal of generating 9.5 gigawatts of renewable energy by 2023.
If successful, the project would be a major boost for the global transition to renewable energy. SoftBank has already invested heavily in renewable energy projects around the world, including a $20 billion solar farm in India. The company is clearly betting that the future of energy lies in renewables, and its latest move could help make that future a reality.
The costs
The project, known as the vision fund, is expected to take more than 10 years to complete and the initial investment is $5 billion. The partners are joint investors in the fund and it will provide $1 billion of the initial investment. The other $4 billion will come from loans that will be paid off by revenue generated by selling electricity.
Son believes that the project will be able to fund its own expansion. The estimate for completing the entire project is in the region of $200 billion. If all goes to plan, the first phase of the project will be completed in 2025. This would make it one of the longest and most expensive construction projects in history.
The expectations
The plant is expected to be completed by 2030 and will cost an estimated $200 billion. The plant is expected to generate 200 gigawatts of electricity, which is enough to power more than 30 million homes. The project will create thousands of jobs and help to reduce Saudi Arabia’s dependence on oil. The solar panels will be installed this year and the plant is expected to begin operating by mid-2019.
Current power generation
As the world progresses, so does the technology that we use to generate power. For many years, burning oil has been the primary method of generating power in Saudi Arabia. However, this is starting to change. With the rise in domestic consumption, less oil is available to sell abroad. In addition, Saudi Arabia has signed the Paris Agreement on climate change, and as a country, it is particularly vulnerable to climate change.
In light of these factors, Prince Mohammed has promoted clean energy since the Fukushima nuclear disaster. Solar power is one of the most logical investments that the country can make. Not only is it environmentally friendly, but it is also an abundant resource in Saudi Arabia. With the demand for electricity expected to continue to rise, investing in solar power is an intelligent way to ensure a bright future for Saudi Arabia.
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Benefits
Prince Mohammed bin Salman, the Saudi crown prince, announced a new $200 billion solar power project that he believes will save the kingdom $40 billion in power generation costs and create 100,000 new jobs. The project is the latest in a series of moves by Saudi Arabia to diversify its economy into areas other than oil. High-profile investments have already been made into technology and there are plans for a new $500 billion city. Prince Mohammed has a reputation as a savvy investor.
Saudi Arabia’s sovereign wealth fund spent about $54 billion on investments last year alone. The solar project is likely to be welcomed by environmentalists as well as investors. Solar power is a rapidly growing industry, and the Saudi government has set ambitious targets for increasing the use of renewable energy. If successful, the project could help to reduce Saudi Arabia’s reliance on oil and gas, and position the country as a leader in the global transition to clean energy.
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With SoftBank looking for investments and Saudi Arabia needing energy, this agreement will deepen SoftBank’s ties with the country and help to advance the crown prince in his ambition to diversify the economy.
Saudi Arabia has great sunshine, available land, engineers, and labor, but most of all, the greatest vision. Son told reporters at the briefing in New York that Saudi Arabia has great potential and he is excited to be part of the country’s future. The agreement between SoftBank and Saudi Arabia is a win-win for both sides and will help to boost the economy and create jobs.