$2 Billion Energy Deal Between Turkey and Saudi Arabia: 2,000 Megawatt Investment

Giant 2,000 Megawatt Investment The Ministry of Energy and Natural Resources and Saudi Arabia's state-owned energy company, Acwa Power, have signed a strategic agreement to implement one of the largest foreign direct investments in Turkey's energy sector.
Under the approximately $2 billion project, solar power plants (SPP) with a total capacity of 2,000 megawatts will be constructed in the provinces of Sivas and Karaman.
Groundbreaking is expected within this year, with the facilities planned to be fully operational by the beginning of 2028.
This investment is considered a significant part of Turkey's strategy to increase its renewable energy capacity.
Record Low Prices and Purchase Guarantees The agreement ensures one of the lowest-cost electricity purchases in Turkey's history.
According to the terms, a purchase guarantee of 4.75 Euro cents/kWh will be applied for the electricity produced.
This pricing will remain valid for 25 years, while the total purchase guarantee period is set at 30 years.
The agreement also includes the following conditions: A 50% local content requirement for the equipment used in the projects.
The investor will have the right to sell on the free market during the first five years of operation.
Opportunities for integration with energy storage systems and data centers will be evaluated.
Targeting 5,000 Megawatts of Installed Capacity Energy and Natural Resources Minister Alparslan Bayraktar stated during the signing ceremony that the scope of the cooperation would expand.
Bayraktar noted that the second phase of the agreement involves an additional 3,000 megawatts of solar and wind energy investments, bringing the total capacity to 5,000 megawatts.
"With the Sivas and Taşeli solar projects, we will meet the electricity needs of a total of 2.1 million households.
These projects are a critical step toward our 2035 goal of 120,000 megawatts of renewable energy," said Minister Bayraktar.