Turkey and Saudi Arabia Sign $2 Billion Saudi Turkey solar agreement
In a landmark move for regional energy cooperation, Turkey and Saudi Arabia have officially signed an intergovernmental agreement to develop major solar power projects in Turkey. The deal, valued at approximately $2 billion, will see Saudi companies build 2 gigawatts (GW) of solar capacity, marking a significant step forward in Turkey’s renewable energy ambitions.
The agreement was signed in Riyadh on February 3, 2026, by Turkish Energy Minister Alparslan Bayraktar and his Saudi counterpart, Abdulaziz bin Salman Al Saud. This collaboration underscores the strengthening economic and diplomatic ties between the two nations.
A Landmark Investment in Turkish Solar: The Saudi Turkey solar agreement
This initial $2 billion investment is the first phase of a broader 5 GW renewable energy framework between the two countries, which will also include wind power projects. The financing is structured through foreign direct investment and international institutions, ensuring that it does not place a burden on Turkey’s public budget.
The core of the agreement involves the construction of two large-scale solar farms:
- A 1 GW plant in TaÅŸeli, Karaman province.
- A 1 GW plant in Sivas province.
Once operational, these two solar power plants are expected to generate enough electricity to power approximately 2.1 million households, significantly contributing to Turkey’s clean energy supply. The project timeline is ambitious, with foundations set to be laid in 2027 and the first phase expected to be completed by the end of that year. The full project is anticipated to be online between 2028 and 2029.
Economic and Strategic Advantages of the Saudi Turkey solar agreement
This agreement is not just about generating clean energy; it also brings substantial economic benefits to Turkey. The deal was secured at record-low electricity rates, with the Karaman plant, for example, locking in a price of 1.995 euro cents per kilowatt-hour under a 25-year purchase guarantee.
Furthermore, the agreement includes a crucial 50% local content requirement. This stipulation will boost Turkey’s domestic manufacturing sector, create local jobs, and foster the development of a local supply chain for renewable energy technologies.
Fueling a Green Future with the Saudi Turkey solar agreement
This collaboration is a cornerstone of Turkey’s long-term energy strategy, which aims to install 120 GW of solar and wind power capacity by 2035. By partnering with Saudi Arabia, a global energy leader, Turkey is accelerating its transition away from fossil fuels and toward a sustainable energy future.
The partnership also opens the door for further collaboration, including the potential for regional grid interconnections. This deal represents more than just an investment; it is a strategic alliance that positions both Turkey and Saudi Arabia at the forefront of the global energy transition, paving the way for a cleaner, more secure energy landscape in the region.
