Saudi Investment To Add 2,000 MW Solar Capacity In Turkey Under New Energy Partnership

Saudi Arabia has committed $2 billion in investment to Turkey’s renewable energy sector, strengthening energy cooperation between the two countries. The agreement was finalized in February 2026 during Turkish President Recep Tayyip Erdoğan’s official visit to Riyadh and marks one of the largest foreign investments in Turkey’s solar power sector to date.

The deal focuses on the construction of two large solar power plants in the central Anatolian provinces of Sivas and Karaman. According to Turkey’s Minister of Energy and Natural Resources, Alparslan Bayraktar, the projects will be developed entirely through foreign direct investment, supported by international financing and credit facilities. This approach ensures that the projects will not place a financial burden on Turkey’s public budget.

Together, the two solar plants will have a total installed capacity of 2,000 megawatts in the first phase. Once they begin operations, they are expected to generate enough electricity to supply power to around 2.1 million households across the country. This will make a meaningful contribution to Turkey’s clean energy supply and help reduce dependence on imported fossil fuels.

Construction of the projects is scheduled to start in 2027. The initial phase is expected to be completed by the end of that year, while full completion of both solar plants is planned for 2029. Under the agreement, the Turkish government has provided long-term electricity purchase guarantees for a period of 25 years. The guaranteed power price is approximately $2.36 per kilowatt-hour for the Karaman plant and around €2.3415 per kilowatt-hour for the Sivas facility, levels considered competitive within the global renewable energy market.

This $2 billion investment represents the first step in a wider renewable energy partnership between Turkey and Saudi Arabia, involving Saudi-based developer ACWA Power. The broader plan could expand total installed capacity to 5,000 megawatts, with overall investments potentially reaching $5 billion in the coming years.

Beyond solar generation, both countries are also discussing cooperation on regional power grid connectivity. Turkish officials believe such collaboration could improve energy security and grid stability across the wider region.

To support its renewable energy expansion, Turkey is also using $748 million in financing from the World Bank to modernize and strengthen its electricity transmission network. These efforts align with Turkey’s long-term goal of reaching 120,000 megawatts of installed solar and wind capacity by 2035, while also deepening economic and strategic ties with Saudi Arabia.