Turkey and Saudi Arabia Forge $2 Billion Solar Power Partnership: 2 GW Projects Set to Power 2.1 Million Homes

Turkey and Saudi Arabia have strengthened bilateral ties through a major renewable energy initiative, centered on substantial solar power development in Turkey. This collaboration highlights growing focus on sustainable energy solutions amid regional energy security priorities.

Key Details of the Agreement

The intergovernmental pact, initially outlined during President Recep Tayyip Erdoğan’s February 3, 2026 visit to Riyadh, has advanced with detailed investment and power purchase contracts finalized on February 20, 2026, in Istanbul. Saudi Arabia’s prominent energy firm ACWA Power leads execution, partnering with Turkey’s Ministry of Energy and Natural Resources and state-owned Electricity Generation Corporation (EÜAŞ).

The first phase targets 2,000 MW of utility-scale solar photovoltaic capacity:

• 1,000 MW facility in Sivas province (eastern Turkey)
• 1,000 MW facility in Karaman Taşeli region (central Turkey)

Estimated total investment reaches $2 billion, financed partly through international institutions. Construction groundwork begins in 2026, targeting commercial operations from early 2028.

These solar installations will generate sufficient clean electricity to supply approximately 2.1 million households, significantly contributing to Turkey’s domestic power needs while reducing reliance on fossil fuels.

Competitive Pricing and Local Content Requirements

A standout feature includes unprecedented low electricity purchase rates over 25 years (with overall agreements spanning 30 years):

• Sivas project: 2.35 euro cents per kWh
• Karaman Taşeli project: 1.99 euro cents per kWh — marking the lowest solar tariff ever recorded in Turkey

For the initial five years, a YEKA-style support mechanism applies at 4.75 euro cents per kWh, ensuring stability below typical market rates.

Projects mandate at least 50% domestic sourcing for materials and equipment, fostering local manufacturing, job creation, and technology transfer in Turkey’s renewable sector.

Broader Vision: Expanding to 5 GW Renewables

This 2 GW solar rollout forms Phase 1 of a larger commitment. The full framework envisions up to 5,000 MW of combined solar and wind capacity in Turkey, with an additional 3,000 MW in subsequent phases. This aligns with Turkey’s ambitious goal of achieving 120 GW installed solar and wind capacity by 2035, accelerating the shift toward net-zero objectives.

Minister Alparslan Bayraktar described the projects as a milestone in energy diplomacy, emphasizing cost-effective green power and enhanced bilateral cooperation. The initiative not only diversifies energy sources but also positions Turkey as an attractive hub for foreign renewable investments.

This Turkey-Saudi Arabia solar partnership exemplifies how cross-border collaborations can drive large-scale clean energy deployment, delivering economic, environmental, and energy security benefits for both nations.