Turkey and Saudi Arabia Sign $2 Billion Solar Energy Investment Deal

Turkey and Saudi Arabia have signed a $2 billion solar energy investment agreement, strengthening bilateral cooperation in renewable energy and marking one of the largest foreign investments in Turkey’s clean energy sector in recent years.

The agreement was signed during Turkish President Recep Tayyip Erdoğan’s official visit to Riyadh, reflecting improving economic and political ties between the two countries.

Agreement Signed at Intergovernmental Level

The deal was formalized through an intergovernmental agreement signed by Turkey’s Minister of Energy and Natural Resources Alparslan Bayraktar and Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman.

Officials stated that the agreement establishes a long-term framework for Saudi investments in Turkey’s renewable energy market, primarily focusing on large-scale solar power projects.

2,000 MW Solar Capacity Planned in First Phase

Under the initial phase of the agreement, two solar power plants with a combined installed capacity of 2,000 megawatts (MW) will be developed in the Turkish provinces of Sivas and Karaman.

The total investment value for this phase is estimated at approximately $2 billion, and the facilities are expected to supply electricity to more than 2 million households once fully operational.

Long-Term Power Purchase Guarantees

Electricity generated by the solar plants will be sold to a state-owned Turkish utility under long-term power purchase agreements (PPAs).
This structure aims to reduce investment risk and provide predictable revenue streams for investors, enhancing the bankability of the projects.

Officials noted that the agreement goes beyond the initial projects and targets up to 5,000 MW of total renewable energy capacity in future phases.

Additional projects may include both solar and wind power investments, depending on feasibility studies and mutual government approvals.

Part of Turkey’s 2035 Energy Strate

Energy Minister Bayraktar emphasized that the investment aligns with Turkey’s broader energy strategy, which aims to increase total installed renewable capacity to 120,000 MW by 2035.

He added that the projects will be financed through international funding sources, ensuring that the investment does not place a burden on Turkey’s public finances.

Strengthening Economic Ties Between Ankara and Riyad

The solar energy deal is seen as a key milestone in the normalization and expansion of economic relations between Turkey and Saudi Arabia, signaling renewed investor confidence and deeper cooperation in strategic sectors such as energy and infrastructure.