The project would be initiated by Canada at Cholistan, a large desert in eastern province of Punjab, where sunlight would used via installation of solar energy panels.
Chief Minister Shahbaz Sharif, addressing the signing ceremony, says that the project would be finished in two phases.
The phases include installation of 200 Mega Watt panels in first one and 300 MW in second phase.
The CM has also given a ray of hope to people saying that Punjab government is also planning a 1000 MW power generation project.