Turkey and Saudi Arabia Seal $2 Billion Solar Deal To Build 2 GW Clean Energy Capacity

Turkey and Saudi Arabia have taken a major step in strengthening their economic and energy ties with the signing of a $2 billion solar energy agreement. The deal was finalized during Turkish President Recep Tayyip Erdogan’s recent visit to Riyadh and focuses on building 2,000 megawatts of solar power capacity in Turkey’s central Anatolia region. This project represents the first phase of a larger 5,000-megawatt renewable energy roadmap aimed at reshaping Turkey’s energy mix.

The agreement was signed by Turkey’s Energy and Natural Resources Minister Alparslan Bayraktar and Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman Al Saud. The solar projects will be developed mainly in the provinces of Sivas and Karaman. One of the key highlights of the deal is the Taseli solar project in Karaman, which achieved a record-low electricity price of 1.995 euro cents per kilowatt-hour. According to Minister Bayraktar, this is the lowest power price ever recorded in Turkey. He added that the government plans to pass on this cost advantage directly to citizens and consumers through a 25-year electricity purchase agreement.

Once operational, the first phase of the project is expected to generate enough clean energy to supply around 2.1 million households. Officials stated that while Saudi Arabia will provide a significant share of the $2 billion investment, the remaining funds will be raised from international financial institutions. Construction is scheduled to begin in 2027, and the full 2,000 megawatts of capacity is targeted to be operational by 2029.

This partnership supports Turkey’s broader climate and energy targets. The country plans to reach 120,000 megawatts of installed solar and wind capacity by 2035. To meet this goal, Turkey needs to add nearly 8,000 to 9,000 megawatts of renewable energy capacity every year. In addition to large-scale solar plants, future phases of the Turkey–Saudi cooperation could also include energy storage systems and floating solar projects, taking advantage of Turkey’s long coastline and growing demand for flexible power solutions.

Minister Bayraktar noted that using intergovernmental agreements alongside traditional competitive tenders helps Turkey secure large renewable projects at much lower costs and with long-term certainty. As economic ties between Ankara and Riyadh continue to deepen, this solar agreement is seen as a key milestone for Turkey’s energy transition and an important source of foreign direct investment. The remaining phases of the roadmap are expected to be completed by 2028 or 2029, setting a strong example of renewable energy cooperation between the Middle East and Eurasia.