Historic Renewable Energy Partnership Forged
In a landmark move to bolster renewable energy infrastructure and deepen economic ties, Turkey and Saudi Arabia signed an intergovernmental agreement on February 3, 2026, for a substantial $2 billion investment in Turkey's solar energy sector. The agreement, finalized during Turkish President Recep Tayyip Erdoğan's official visit to Riyadh, marks one of the largest foreign investments in Turkey's solar power industry to date.
The deal was signed by Turkish Energy Minister Alparslan Bayraktar and his Saudi counterpart, Prince Abdulaziz bin Salman Al Saud, and is set to significantly contribute to Turkey's clean energy goals.
First Phase Targets 2 GW Capacity in Central Anatolia
The initial phase of this ambitious partnership focuses on the construction of two large-scale solar power plants in the central Anatolian provinces of Sivas and Karaman. These facilities are projected to have a combined installed capacity of 2,000 megawatts (2 GW). Once operational, these plants are expected to generate enough electricity to supply approximately 2.1 million households across Turkey.
The projects will be developed entirely through foreign direct investment (FDI), supported by international financing and credit facilities, ensuring no direct financial burden on Turkey's public budget. Saudi-based energy developer ACWA Power is involved in the development.
Long-Term Vision and Economic Benefits
This $2 billion investment represents the first step in a broader renewable energy partnership between Turkey and Saudi Arabia. Officials from both countries have indicated that the collaboration could eventually expand Turkey's installed renewable capacity by up to 5,000 megawatts (5 GW), with total investments potentially reaching $5 billion in the coming years, encompassing both solar and wind projects.
The Turkish government has provided long-term electricity purchase guarantees for a period of 25 years. Energy Minister Bayraktar highlighted that the agreed-upon electricity prices for these projects are among the lowest ever secured in Turkey, with rates of approximately 1.995 euro cents per kilowatt-hour (kWh) for the Karaman plant and €2.3415/kWh for the Sivas facility. Construction is slated to begin in 2027, with the initial phase anticipated for completion by the end of that year, and full completion targeted for 2028-2029. Furthermore, the solar plants in the first phase will incorporate 50% domestic content, fostering local industry growth.
Strategic Alignment for Energy Security
This partnership is seen as a crucial step in strengthening energy cooperation between the two nations, contributing to Turkey's clean energy supply, and reducing its dependence on imported fossil fuels. It aligns with Turkey's long-term goal of reaching 120,000 megawatts of installed solar and wind capacity by 2035, while also deepening economic and strategic ties with Saudi Arabia.
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