Saudi Arabia to build 2 GW of solar power in Turkey within 5 GW deal
After extended negotiations, Saudi Arabia has signed an agreement enabling its companies to develop solar power plants totaling 2 GW across two provinces in Turkey. The move forms part of a broader bilateral framework covering 5 GW of photovoltaic and wind capacity.
Turkey’s Minister of Energy and Natural Resources, Alparslan Bayraktar, and Saudi Arabia’s Minister of Energy, Abdulaziz bin Salman Al Saud, signed an intergovernmental agreement focused on renewable electricity generation. Bayraktar said the objective is to deliver a combined 5 GW of solar and wind power plants in Turkey with Saudi Arabian companies.
In the first phase, two 1 GW solar projects are planned: one in Taşeli in Karaman province and another in Sivas province, Bayraktar said.
Bilateral agreements positioned as a new model for large-scale projects
Bayraktar noted that tenders under Turkey’s state-backed Renewable Energy Zones mechanism (REZ/YEKA) are continuing, alongside investments in self-consumption power plants and energy storage projects. He described intergovernmental and bilateral agreements as a new model for delivering large-scale electricity generation projects, adding that such structures can secure electricity at significantly lower prices over long periods. He made the remarks in Riyadh, where the negotiations were concluded.
Bayraktar reiterated Turkey’s target to triple its combined wind and solar PV capacity to 120 GW by 2035.
He also said the investments—described as a major example of foreign direct investment in Turkey’s energy sector—would be financed externally, with loans expected from international financial institutions.
25-year offtake terms and pricing
Bayraktar stated that electricity from the Karaman solar plant would be purchased for 25 years at 1.995 euro cents per kilowatt-hour (EUR 19.95 per MWh), while power from the Sivas project would be priced at 2.3415 euro cents per kilowatt-hour. He said both levels are the lowest among Turkey’s renewable electricity plants.
He added that the projects are expected to support Turkey’s electrical equipment and services sectors through a 50% locality rate. Bayraktar estimated the first two solar power plants will require around USD 2 billion in investment and will cover the electricity needs of 2.1 million households.
According to Bayraktar, foundations are scheduled to be laid in 2027, with overall completion targeted across 2028 and 2029.
Bayraktar previously said Turkey had been in talks with Saudi partly state-owned utility ACWA.
Turkey had 25.1 GW of solar capacity and 14.8 GW of wind capacity at the end of last year, within a total installed power capacity of 122.5 GW. Bayraktar also said last week that 3.5 GW of self-consumption capacity would be allocated this year, prioritising local authorities, public institutions, and strategic and export-oriented sectors.
