Türkiye and Saudi Arabia have signed a landmark intergovernmental agreement for renewable energy investments worth approximately USD 2 billion, primarily focused on large-scale solar power projects in Türkiye.
The agreement was signed in Riyadh by Türkiye's Minister of Energy and Natural Resources Alparslan Bayraktar, and Saudi Arabia's Minister of Energy, Prince Abdulaziz bin Salman Al Saud. The signing marks a concrete step toward advancing the shared vision of President Recep Tayyip Erdoğan and Saudi Crown Prince Mohammed bin Salman to deepen bilateral trade and investment relations.
Under the terms of the agreement, Saudi companies are expected to develop solar and wind power plants in Türkiye with a total installed capacity of up to 5,000 megawatts (MW). The first phase will involve the construction of solar power plants with a combined capacity of 2,000 MW in the central Anatolian provinces of Sivas and Karaman.
Minister Bayraktar stated that the projects will be fully financed through external funding, with credit support provided by international financial institutions. The Minister also emphasized that the investments represent one of the most significant examples of foreign direct investment in Türkiye's energy sector.
With an estimated investment value of USD 2 billion, the solar power plants are expected to meet the electricity needs of approximately 2.1 million households and contribute directly to Türkiye's long-term renewable energy targets, including the goal of reaching 120,000 MW of installed solar and wind capacity by 2035.
Electricity generated under the project will be purchased for a period of 25 years at a rate of EUR 1.995 per kilowatt-hour for the Karaman plant and EUR 2.3415 per kilowatt-hour for the Sivas plant. The initiative also targets a 50 percent localization rate, supporting domestic industry and supply chains.
Construction is expected to begin in 2027. The first phase is scheduled for completion by the end of that year, while full completion of the projects is planned for 2028 and 2029.
The agreement was signed during President Erdoğan's official visit to Riyadh, where Minister Bayraktar was part of the accompanying delegation.