In a move that is bound to get more countries to sign up for the International Solar Alliance (ISA), the CEO of Softbank, Masayoshi Son, has pledged to provide free solar energy to India and other members of alliance in 25 years. Son’s remarks came on 3 October at a renewable energy conference in India’s National Capital Region.
Softbank’s contracts to supply energy to ISA countries via a power purchasing agreement expire in 2043, hence the 25-year deadline. Son explained that while the lifespan of solar power projects extends to 80 years, they begin operating at a 85% of their original capacity after the first five years.
Hence, the bulk of earnings come in the first 25 years, after which it would become feasible to provide electricity at dramatically reduced rates since Softbank would have recouped its investment. In addition, producing solar power in India is a lot cheaper than in other countries. Read More