Türkiye has signed an energy investment agreement worth around $2 billion with Saudi Arabia covering large-scale solar power projects, Turkish energy minister has announced.
"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," Energy and Natural Resources Minister Alparslan Bayraktar said.
Bayraktar added that Saudi companies will construct solar and wind power plants in Türkiye with a total installed capacity of 5,000 megawatts.
As the first phase of the investment, solar power plant projects with a combined capacity of 2,000 megawatts will be implemented in the central Anatolian provinces of Sivas and Karaman.
"We view these investments, which will be among the most significant examples of direct foreign investment in our energy sector, as fully financed through external funding," Bayraktar said, adding that credit will also be provided by international financial institutions.
He said the solar power plants, to be built with an investment of approximately $2 billion, will meet the electricity needs of around 2.1 million households.
"These projects, which demonstrate confidence in Türkiye’s investment climate and energy sector, constitute one of the most important steps towards the target set by our president to reach an installed capacity of 120,000 megawatts in solar and wind power by 2035," Bayraktar said.
Electricity purchases will be made for 25 years at a rate of €1.995 per kilowatt-hour from the plant to be built in Karaman and €2.3415 per kilowatt-hour from the plant to be built in Sivas, according to the minister.
Bayraktar said the projects aim for 50 percent localisation and that construction is expected to begin in 2027.
The first phase is planned to be completed by the end of 2027, with the entire project finalised in 2028 and 2029.
He added that discussions also covered longer-term cooperation in electricity, including a potential transmission line and interconnection project between Saudi Arabia and Türkiye.
Bayraktar was part of the delegation accompanying Recep Tayyip Erdogan during his visit to Riyadh on Tuesday.
