Türkiye and Saudi Arabia are preparing to deepen their energy cooperation with the signing of the second phase of a major 5-gigawatt renewable energy agreement. The next phase is expected to be finalized during the COP31 UN climate summit in Antalya later this year, signaling both countries’ commitment to expanding clean energy investments.
The announcement comes shortly after a signing ceremony in Istanbul for solar power plants in the Sivas and Karaman provinces. These projects mark the start of what is expected to be a multi-billion-dollar partnership between the two nations. The broader framework was established following Turkish President Recep Tayyip Erdoğan’s recent visit to Saudi Arabia, where both governments agreed to strengthen collaboration in the energy sector.
According to Mohammad Abunayyan, Chairman of ACWA Power, the second phase will add 3 gigawatts to the overall 5-gigawatt plan. While the first phase mainly focuses on solar power, the upcoming stage will introduce a more balanced energy mix. In addition to solar projects, it will include wind energy and advanced battery storage systems to improve grid stability and reliability.
Construction of the initial 2-gigawatt solar capacity is expected to begin in 2025. The partners aim to start delivering electricity by early 2028. Abunayyan described the development as a fast-track initiative designed to provide competitively priced electricity in the region. He also highlighted the importance of involving Turkish contractors and local suppliers, which is expected to create jobs and support the domestic economy.
The total investment for the entire 5-gigawatt framework is estimated to range between $4 billion and $5 billion. Funding will be arranged through a mix of equity contributions and international loans. Financial institutions are expected to support the projects, encouraged by Türkiye’s improving economic outlook and credit profile.
Beyond wind and solar energy, ACWA Power is also exploring opportunities in green hydrogen production and desalination projects in Türkiye. These areas are seen as future growth segments as countries work toward reducing carbon emissions and ensuring long-term energy security.
The partnership aligns with Türkiye’s national target of increasing its renewable energy capacity to 120 gigawatts by 2035, including the addition of 80 gigawatts of new capacity. By signing the second phase at COP31, both governments aim to show progress from climate pledges to real-world implementation. Officials believe the agreement will not only support Türkiye’s decarbonization plans but also strengthen economic and diplomatic relations between Ankara and Riyadh.
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