Saudi Capital to Fund 2 GW Solar Capacity in Turkey Under 5 GW Renewables Plan

Saudi Arabia has committed around USD 2 billion to develop two large-scale solar power plants in Turkey, marking a major step in deepening renewable energy cooperation between the two countries.

The projects will form the first phase of a broader clean energy partnership targeting up to 5 GW of combined solar and wind capacity with Saudi participation.

Intergovernmental Agreement Signed in Riyadh

Turkey and Saudi Arabia have signed an intergovernmental agreement covering renewable energy projects to be developed in Turkey with Saudi companies, Turkish Energy and Natural Resources Minister Alparslan Bayraktar said on Tuesday. The agreement was signed in Riyadh and sets the framework for large-scale solar and wind investments.

According to Bayraktar, the overall plan envisages the development of 5 GW of renewable energy capacity, combining both solar and wind power, as part of Turkey’s long-term energy transition strategy.

First Phase: 2 GW of Solar in Central Turkey

As a first stage, Turkey will implement 2 GW of solar photovoltaic capacity in central Turkey, with projects planned in the provinces of Sivas and Karaman, while the second one will add a further 3,000 MW under agreed frameworks. Bayraktar said the projects will be financed entirely through external funding, with loans provided by international financial institutions.

The electricity generated from the Karaman solar plant will be purchased under a 25-year power purchase agreement. Bayraktar noted that the tariffs for these projects represent the lowest electricity sales prices achieved so far for renewable energy plants in Turkey.

Investment Scale and Local Content

The two solar projects together represent an investment of approximately USD 2 billion and are expected to meet the electricity needs of around 2.1 million households. The developments will also include a local content requirement of 50 percent, supporting Turkey’s domestic electrical equipment manufacturing and energy services sectors.

Bayraktar described the projects as among the most significant examples of foreign direct investment in Turkey’s energy sector.

Strategic Importance for Turkey’s 2035 Targets

The agreement is seen as a key step toward Turkey’s goal of reaching 120 GW of installed solar and wind capacity by 2035. Energy cooperation between Ankara and Riyadh has gained momentum after a period of cautious engagement, with both sides increasingly signalling interest in pragmatic economic ties.

While earlier discussions between the two countries focused on hydrocarbons, petrochemicals and energy security, the latest deal shifts the emphasis firmly toward low-carbon infrastructure and large-scale renewable energy development.