The venture is expected to cost 400 billion euros (US$552 billion) and start providing the first electricity in 10 years, the daily said, quoting executives connected with the project.

Some 20 firms are involved in the consortium, among them Deutsche Bank, insurer Munich Re, Siemens and utilities giant RWE. They plan to meet on July 13 to formalize the plan, the report said.

The project calls for a string of solar plants to be linked together in what the newspaper called one of the biggest privately financed ventures of its kind.

The plants use mirrors to bundle the energy from the sun's rays, heat special oil and use the heat for steam to power turbines, Munich Re executive Torsten Jeworrek told the newspaper.

A special power grid would have to be constructed to transport the energy to Europe. The project could provide for some 15 percent of Europe's energy needs, the report said.