Funds sign MoU to develop 3 GW solar-plus-storage projects in Saudi Arabia
In line with Saudi Vision 2030, The Public Investment Fund (PIF) has informed Saudi Electricity Company (SEC) of its intention to partner with SoftBank Vision Fund (SBVF) to create the New Solar Energy Plan 2030 (Plan). As part of this Plan, PIF and SBVF have signed a non-binding memorandum of understanding (MOU) on Monday 23 October 2017 which states only that:
- PIF and SBVF shall, through SEC, develop 3GW solar generation capacity in the Kingdom in 2018;
- The Government of Saudi Arabia will continue to be the controlling shareholder of SEC, and provide it with the same level of support. On that basis, the parties involved will evaluate SBVF taking a significant equity stake in SEC; and
- PIF and SBVF shall create solar energy and energy storage manufacturing facilities and associated employment in the Kingdom of Saudi Arabia.
Established in 1971, the Saudi Arabian Public Investment Fund (PIF) provides financing support for projects of strategic significance to the national economy. Since its inception, the fund has played an important role in the financing of vital projects in the Kingdom, including in the oil refining, fertilizer, petrochemical and electricity sectors.
SoftBank Vision Fund is a venture capital firm specializing in growth capital investments. The firm seeks to invest in the technology sector with a focus on internet-of-things, artificial intelligence (AI), robotics, infrastructure, telecoms, computational biology, cloud technologies and software, consumer internet businesses, bio tech, fintech, and mobile apps.
