Turkey, Saudi Arabia Sign Major Solar Energy Investment Agreement
“In Riyadh, the capital of Saudi Arabia, we signed the Intergovernmental Agreement between the Government of the Republic of Türkiye and the Government of the Kingdom of Saudi Arabia on Renewable Energy Power Plant Projects with my Saudi counterpart, His Excellency Abdulaziz bin Salman Al Saud,” Energy Minister Alparslan Bayraktar wrote on Türkiye’s social media platform NSosyal.
Under the agreement, Saudi companies are expected to build solar and wind power plants in Türkiye with a combined capacity of 5,000 megawatts (MW). The initial phase will see the construction of solar plants totaling 2,000 MW in the central Anatolian provinces of Sivas and Karaman.
Bayraktar highlighted that the projects, funded entirely through external financing with credit support from international financial institutions, will supply electricity to around 2.1 million households. “We view these investments, which will be among the most significant examples of direct foreign investments in our energy sector, as fully financed through external funding. Credit will also be provided by international financial institutions,” he said.
The minister emphasized the strategic importance of the projects, noting, “These projects, which demonstrate confidence in Türkiye's investment climate and energy sector, constitute one of the most important steps toward the target set by our esteemed President to reach an installed capacity of 120,000 MW in solar and wind power by 2035.”
Electricity generated from the new plants will be purchased for 25 years at a fixed rate of €1.995 ($2.36) per kilowatt-hour for the Karaman facility and €2.3415 per kilowatt-hour for the Sivas plant.
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