Turkey and ACWA Power to Finalise 3 GW Renewable and Storage Phase at COP31

Türkiye and Saudi Arabia-based ACWA Power are set to formalise the second phase of their 5 GW renewable energy collaboration during the UN climate summit COP31, scheduled to be held in Antalya later this year.

ACWA Power Chairman Mohammad Abunayyan said the upcoming agreement will cover the remaining 3 GW of capacity under a government-to-government framework between the two countries. The development follows the recent signing of the first phase involving 2 GW of solar projects in Türkiye’s central provinces of Sivas and Karaman.

Speaking during the signing ceremony in Istanbul for the Sivas and Taşeli solar power plants, Abunayyan stated that the next phase will include a combination of solar, wind, and energy storage. The company is also assessing the integration of storage into the initial 2 GW solar portfolio.

First Phase Timeline and Project Execution

The first phase is part of a broader 5 GW cooperation framework announced during Turkish President Recep Tayyip Erdoğan’s visit to Saudi Arabia on 3 February.

Construction of the initial solar projects is expected to begin next year once permits and environmental approvals are secured. The first electricity from the 2 GW portfolio is targeted for early 2028, with full generation anticipated within the same year.

COP31 to Highlight Bilateral Energy Cooperation

COP31 will take place from 9 to 20 November in Antalya, with a leaders’ summit expected in Istanbul. The conference is likely to bring together nearly 200 countries to focus on implementing the Paris Agreement, including emissions reduction targets, climate adaptation, climate finance, and carbon market frameworks.

Abunayyan indicated that the signing of the next phase at COP31 would demonstrate the growing clean energy partnership between Türkiye and Saudi Arabia and showcase tangible project implementation.

Aligned with Türkiye’s Renewable Capacity Goals

According to ACWA Power, the first projects are expected to deliver highly competitive electricity tariffs while prioritising local content and the participation of Turkish contractors.

Türkiye has set a target to expand its combined solar and wind capacity to approximately 120 GW by 2035. Achieving this goal would require the addition of about 80 GW of new capacity, implying annual installations of roughly 9 GW.

The ACWA partnership is positioned as an early contribution toward this broader expansion strategy.

Investment Structure and Financing Outlook

Total investment under the 5 GW framework is estimated at USD 4–5 billion. The projects are expected to be financed through a project finance structure combining developer equity with international debt, with financial close targeted around 2027.

Abunayyan noted that multiple financial institutions are expected to support the initiative, supported by improving economic conditions and credit outlook in Türkiye.

Expansion into Storage, Hydrogen and Desalination

Beyond solar and wind deployment, ACWA Power is exploring additional opportunities in Türkiye, including green hydrogen and desalination.

The company sees low-cost renewable generation combined with storage and hydrogen production as central to long-term decarbonisation, indicating that future collaboration could extend beyond power generation into broader clean energy value chains.