Qatar Electricity and Water Company (QEWC) will join hands with Qatar Petroleum (QP) to set up a solar power company with a capacity of 1,000 megawatt, a report said.

The joint venture between the companies will have an initial capital of about QR1.82 billion ($500 million), added the Peninsula Qatar report.

The company has cleared legal hurdles and has been approved by authorities, said a senior official of QEWC, Qatar’s main producer of utilities services.

Managing director of QEWC Fahad Hamad Al Mohanadi said that the project has been decided based on the fact that producing solar power is cheaper than buying gas from international market.

He added that they carried out a detailed study that proved the economic viability of the project, and will soon begin the process of establishing the company.

Following the establishment of the company by a partnership between QEWC (60 per cent) and QP (40 per cent), international firms will be invited to compete for 40 per cent stake in a way followed by QEWC for its past projects, added the report.