Bahrain-based First Energy Bank envisages to set up USD 1 billion polysilicon facility in Saudi Arabia with a local cooperator in order to cater to increasing regional investments in solar power. Polysilicon is utilized in the production of solar panels. Kuwait is exploring options to commence a tender competition in the upcoming year for a solar energy facility that it hopes will one day offer 5% of its energy requirements, and Saudi Arabia projects to establish a 2 mega watt solar power facility at its King Abdullah University of Science and Technology (KAUST).

In a declaration, functionaries of bank said that the project will entail an investment of around USD 1 billion, and will be funded through a 40% equity stake and 60% debt.

The project has inked an off-take pact with U. S.-based Vinmar International covering most of the plant's production capacity of 7,500 tons per annum. Production is slated to commence in 2013.

First Energy is partnering in the project with Saudi industrial group Project Management and Development Co.