Türkiye and Saudi Arabia Deepen Energy Cooperation
Türkiye and Saudi Arabia have taken significant steps to strengthen their partnership in the energy sector. Two vital intergovernmental agreements, paving the way for the construction of 2,000 megawatts (MW) of solar power plants in Sivas and Karaman Taşeli, were formalised at a signing ceremony in Istanbul, attended by Türkiye’s Minister of Energy and Natural Resources, Alparslan Bayraktar.
Major Expansion in Renewable Energy
Ambitious Targets for 2035
Speaking at the ceremony, Minister Bayraktar highlighted Türkiye’s rapid progress in renewable energy over the past 23 years. He noted that the country’s installed capacity for solar and wind energy has surpassed 40,000 MW, with a goal to increase this figure to 120,000 MW by 2035.
Annual Investments and Competitive Projects
Bayraktar emphasised the need to commission 8,000 to 10,000 MW of new solar and wind projects annually and confirmed that at least 2,000 MW will be allocated each year through the YEKA (Renewable Energy Resource Areas) auctions. The intergovernmental agreements are designed to enable large-scale projects at highly competitive prices, bolstering Türkiye’s renewable energy ambitions.
Details of the Sivas and Taşeli Projects
Strategic Partnerships and Pricing
The agreements were realised in cooperation with the Saudi energy company ACWA. The projects will see the construction of two solar power plants, each with a capacity of 1,000 MW. In Sivas, the agreed electricity sale price is 2.35 euro cents per kilowatt-hour (kWh), while in Taşeli, it is set at a record-low 1.99 euro cents per kWh for Turkey. These rates will be valid for 25 years, with a total purchase period of 30 years. The plants will also benefit from a five-year incentive mechanism, with a fixed price of 4.75 euro cents per kWh for the initial period.
Economic and Local Impact
The combined investment for the two projects is estimated at 2 billion US dollars. Once operational, they will supply electricity to approximately 2.1 million households. Both plants will maintain a minimum local content rate of 50 percent, supporting domestic industry and employment.
Future Phases and Broader Vision
Expansion and International Collaboration
Minister Bayraktar outlined plans for a second phase, which will involve an additional 3,000 MW of solar and wind energy investments. These future projects are expected to further strengthen Türkiye’s renewable energy infrastructure and may integrate with energy storage and data centre initiatives.
Support from Leadership and Investors
The realisation of these projects has been supported by the cooperation and vision of President Recep Tayyip Erdoğan and Saudi Crown Prince Mohammed bin Salman. ACWA Vice Chairman Raad Al-Saady described the agreements as a milestone in ACWA’s partnership with Türkiye, reinforcing the country’s ambitions to become a clean energy leader and production hub.
Ongoing Negotiations and Local Commitment
Minister Bayraktar also mentioned that discussions are underway to finalise the remaining 3,000 MW of projects, with the aim of signing further agreements during the upcoming COP31 summit in Antalya. He reiterated Türkiye’s commitment to at least 50 percent local content in these investments and indicated openness to further bilateral deals in renewable energy throughout the year.
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