Turkiye and Saudi Arabia sign a major solar power agreement to supply electricity to over two million homes. The deal strengthens energy cooperation and boosts renewable investment between the two regional powers. The project impacts Turkiye’s energy sector and supports its climate goals.
The agreement was signed in Istanbul following high-level talks between both governments. Saudi Arabia will support the construction of large-scale solar plants across central Turkiye.
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The signing ceremony took place at an Ottoman-era palace along the Bosphorus Strait. It followed a $2 billion inter-governmental energy agreement reached earlier this month. Turkish President Recep Tayyip Erdogan visited Riyadh on February 3 to finalize broader cooperation. The project reflects improving ties between Ankara and Riyadh. Relations had deteriorated after the 2018 killing of journalist Jamal Khashoggi in Istanbul.
Under the agreement, Saudi energy firm ACWA Power will construct two solar plants. The facilities will be located in Sivas and Karaman provinces. Combined capacity will reach 2,000 megawatts. Officials said this output can power approximately 2.1 million households. Turkish Energy Minister Alparslan Bayraktar described the investment as historic. He said it ensures the lowest electricity procurement price achieved in Turkiye.
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Moreover, Bayraktar said Turkiye is undergoing an energy transformation. He noted that 62 percent of installed electricity capacity last year came from renewables. Solar and wind capacity has surpassed 40,000 megawatts. By 2035, Turkiye aims to raise that figure to 120,000 megawatts. The country also targets net zero emissions by 2053. However, coal still accounted for 33.6 percent of electricity generation last year.
Meanwhile, officials acknowledged Turkiye’s continued reliance on coal. Bayraktar said coal could first be replaced with natural gas. In the longer term, nuclear energy may serve as an alternative. Turkiye is also preparing to host the United Nations COP31 climate summit later this year. The new solar partnership signals Ankara’s commitment to cleaner and more affordable energy.