“Free electricity!”, Softbank’s Masayoshi Son enticed the gathering yesterday at Re-Invest in Greater Noida. He said that he would offer free electricity from solar power plants after completion of a 25 year power purchase agreement (PPA) to member nations of the International Solar Alliance.
Son elaborated that solar plants have a potential life of up to 80 years and he would recoup his investment during the PPA duration, after which he would ‘give-back’ free clean electricity to the world.
While this may appear as a defining moment to those who are new to solar, a 25 year PPA followed by free-hold of the solar plant by the power purchaser is standard fare as far as solar contracts go. We at Sunkalp Energy appreciate Son’s marketing genius in highlighting this nuance of solar contracts to pique interest in the industry.
In 2015, Softbank had declared that it would invest up to $20 bn USD in partnership with Foxconn Technology and Bharati Enterprises in the Indian Solar industry.
Masayoshi Son’s speech is a part of the ISA’s first general assembly, where there was a focus on expanding the membership of the organization to make all UN members eligible. This would help the induction of countries such as Italy, Spain, Germany and Nepal which have shown interest in the alliance.