Türkiye and Saudi Arabia on Friday signed a deal that covers construction of solar power plants capable of powering more than two million homes, in a project that aims to deepen energy cooperation between the key regional players.
The signing ceremony in Istanbul followed a $2-billion intergovernmental energy agreement between the two countries during a visit by President Recep Tayyip Erdoğan to Riyadh on Feb. 3.
Türkiye is preparing to host the United Nations' COP31 climate summit on its Mediterranean coast later this year, with Australia leading the negotiations.
Ties between Türkiye and Saudi Arabia have steadily improved in recent years. The two countries now cooperate on a range of diplomatic issues, including support for Gaza and backing Syria's new government following the ouster of longtime dictator Bashar Assad in late 2024.
Under the agreement signed between Türkiye's Energy and Natural Resources Ministry and Saudi firm Acwa, two solar power plants will be built in the provinces of Sivas and Karaman in central Türkiye, with a combined capacity of 2,000 megawatts – enough to meet the electricity needs of 2.1 million households, officials said.
The ceremony also saw signing of a power purchase agreement between Turkish Electricity Generation Corporation (EÜAŞ) and Acwa.
Energy and Natural Resources Minister Alparslan Bayraktar hailed the project as "one of the largest domestic and foreign investments ever made in our energy sector."
Bayraktar said Türkiye "will also secure electricity procurement at the lowest price ever achieved in our country."
"Another important aspect here is localization. The localization rate will be at least 50% in both Sivas and Taşeli," the minister added.
He noted that international financial institutions had shown interest in financing the project, citing the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation.
The foundations for the projects will be laid within this year, said Bayraktar. "By early 2028, both power plants will enter commercial operation and reach full capacity as soon as possible," he added.
According to Bayraktar, the second phase of the total 5,000-megawatt agreement will include an additional 3,000 megawatts of solar and wind energy power plant investments.
Türkiye is undergoing an energy "revolution," Bayraktar said, adding that 62% of installed electricity capacity last year came from renewable sources.
"We have increased our installed capacity in solar and wind energy from almost zero to over 40,000 megawatts today. We consistently emphasise that our country has much greater potential in renewable energy," he told the ceremony.
By 2035, Türkiye aims at increasing its installed capacity in solar and wind to 120,000 megawatts.
Ankara is also targeting net zero emissions by 2053.
Bayraktar said Türkiye aims at cheaper energy and reducing reliance on energy imports.
