Everything you need to know about the Saudi-SoftBank solar power project

During his US state visit, the Saudi Crown Prince Mohammed bin Salman signed on Tuesday a Memorandum of Understanding with SoftBank CEO Masayoshi Son to create the world’s largest solar power generation company in Saudi Arabia.

Here’s a roundup of the highlights:

In light of this new agreement, a new solar company will be established to start-up two solar plants with a capacity to generate 3 gigawatts and 4.2 gigawatts. The project seeks to develop and produce solar power in Saudi Arabia to generate electricity, therefore reducing reliance on oil.

The Crown Prince and the Softbank CEO said they expect the solar project to have the capacity to produce up to 200 gigawatts by 2030.

In turn, it is expected that this initiative will help boost energy production in Saudi Arabia, which will fuel the kingdom’s role in supplying the world’s oil-reliant markets, especially as demand for oil is steadily increasing as production in some areas is depleted.

The projects are expected to create an estimated 200,000 jobs in Saudi Arabia and increase GDP by $12 billion, as well as save an annual estimated amount of $40 billion.

The construction will begin immediately, meaning electricity generation will start in 2019.