Turkey and Saudi Arabia have signed an agreement covering a $2 billion renewable energy investment that will see two large-scale solar power plants built in Turkey, Energy Minister Alparslan Bayraktar said.
Bayraktar signed the intergovernmental deal in Riyadh with Saudi Energy Minister Abdulaziz bin Salman on Tuesday, February 3, during an official visit by Recep Tayyip Erdoğan to the kingdom.
According to Bayraktar, the framework envisions roughly 5,000 megawatts of renewable capacity to be developed by Saudi companies over time, combining solar and wind projects, with an initial first phase focused on 2,000 megawatts of solar generation. The first phase consists of two 1,000-megawatt plants planned for the provinces of Sivas and Karaman.
Bayraktar said the investment would be financed entirely through external sources, including credit support from international financial institutions, and described it as a notable example of direct foreign investment in Turkey’s energy sector. In a post on X, he said the projects would produce electricity at “record-low” prices and that the generation would be put at the service of Turkish consumers.
Separate reporting on the agreement said Turkey would purchase the electricity for 25 years at fixed prices of about 2.3415 euro cents per kilowatt-hour for the Sivas project and 1.995 euro cents per kilowatt-hour for the Karaman project. Bayraktar also said the solar plants are expected to cover the electricity needs of around 2.1 million households.
On timing, Bayraktar said construction is expected to begin in 2027, with the first phase targeted for completion by the end of that year and the broader rollout planned for 2028 and 2029. He also said the projects aim for 50% localisation.
The solar deal was presented as part of a broader push by Ankara and Riyadh to expand trade and investment ties under the direction set by Erdoğan and Mohammed bin Salman. It comes as Turkey pursues a major expansion of renewables over the next decade, with officials saying the country aims to raise installed wind-and-solar capacity to 120,000 megawatts by 2035 and has highlighted regulatory steps intended to accelerate permitting and investment.
