Türkiye, Saudi Arabia clinch $2bn clean energy agreement

Agreement signed during President Erdogan’s Riyadh visit will see Saudi firms build large-scale solar and wind projects in Türkiye, targeting 5,000 megawatts of capacity and electricity for more than 2 million households.

By Abdullahi Yusuf

Türkiye and Saudi Arabia have signed a renewable energy investment agreement valued at about $2 billion, marking a significant expansion of bilateral economic cooperation during President Recep Tayyip Erdogan’s official visit to Riyadh.

The intergovernmental agreement, covering large-scale solar and wind power projects, was signed between the governments of Türkiye and Saudi Arabia, Turkish Minister of Energy and Natural Resources Alparslan Bayraktar announced on Tuesday.

Bayraktar, who was part of President Erdogan’s delegation to the Saudi capital, said the deal was concluded during high-level meetings with Saudi officials and reflects growing confidence in Türkiye’s energy sector and investment climate.

“In Riyadh, we signed the Intergovernmental Agreement between the Government of the Republic of Türkiye and the Government of the Kingdom of Saudi Arabia on Renewable Energy Power Plant Projects with my Saudi counterpart,” Bayraktar said.

President Erdogan held talks with Saudi Crown Prince Mohammed bin Salman as part of the visit, which also included Türkiye’s First Lady Emine Erdoğan, Foreign Minister Hakan Fidan, Finance Minister Mehmet Şimşek, Defence Minister Yaşar Güler, and other senior government officials.

Bayraktar said Saudi companies will develop renewable energy facilities in Türkiye with a combined installed capacity of 5,000 megawatts, comprising both solar and wind power projects.

As part of the first phase, solar power plants with a combined capacity of 2,000 megawatts will be constructed in the central Anatolian provinces of Sivas and Karaman.

The energy minister said the solar projects alone would require an investment of approximately $2 billion and are expected to meet the electricity needs of about 2.1 million households.

“These investments, which will be among the most significant examples of direct foreign investment in our energy sector, will be fully financed through external funding,” Bayraktar said, adding that international financial institutions will also provide credit support.

He described the agreement as a major step toward achieving Türkiye’s long-term renewable energy goals, including the target set by President Erdogan to reach 120,000 megawatts of installed solar and wind capacity by 2035.

Under the agreement, Türkiye will purchase electricity generated by the plants for 25 years, with tariffs set at €1.995 per kilowatt-hour for the Karaman facility and €2.3415 per kilowatt-hour for the Sivas plant, Bayraktar said.

The projects are designed to achieve 50 percent localisation, supporting domestic industry and technology transfer. Construction is expected to begin in 2027, with the first phase scheduled for completion by the end of that year. The full project is expected to be finalised between 2028 and 2029.

Bayraktar added that discussions during the Riyadh meetings also explored long-term electricity cooperation, including the possibility of a transmission line and interconnection project linking Saudi Arabia and Türkiye.

President Erdogan’s visit to Saudi Arabia marks the first leg of a broader regional tour. According to Türkiye’s Communications Director Burhanettin Duran, the Turkish leader is scheduled to travel to Cairo on Wednesday at the invitation of Egyptian President Abdel Fattah al-Sisi.

In Egypt, Erdogan and Sisi are expected to co-chair the second meeting of the Türkiye-Egypt High-Level Strategic Cooperation Council, where they will discuss bilateral relations and exchange views on regional and international issues, with particular focus on Palestine, Duran said.

Erdogan is also expected to attend a Türkiye-Egypt Business Forum during the Cairo visit as part of efforts to strengthen economic ties.

The renewable energy agreement with Saudi Arabia underscores Türkiye’s push to expand clean energy capacity while attracting foreign investment, as both countries seek deeper cooperation across strategic sectors.

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