Under the terms of the MoU, PIF and SBVF will develop the solar power projects through SEC in 2018.
PIF and SBVF will also create solar energy and energy storage manufacturing facilities in Saudi Arabia. The MoU is subject to due-diligence.
Additionally, the parties will assess the possibility of SoftBank Vision Fund acquiring a significant equity in Saudi Electricity. The Saudi government, however, will retain a controlling stake in Saudi Electricity.
Saudi Electric said: “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.”
The solar projects will contribute to Saudi Arabia’s National Renewable Energy Program, which is a strategic initiative under Vision 2030 and the National Transformation Program (NTP).
Managed by Saudi Arabia's Ministry of Energy, Industry, and Mineral Resources (MEIM), the initiative aims to increase the renewable energy generation capacity to 9.5GW by 2023 under the NTP, and 9.5GW by 2023, towards Vision 2030.
SoftBank Vision Fund, which is supported by Japan’s SoftBank Group and Saudi Arabia’s main sovereign wealth fund, was launched earlier this year.
