ACWA Signs Agreement with Türkiye to Develop 5 GW Renewable Energy Programme

ACWA Power has signed Investment Agreement Key Terms (IA Key Terms) with the Ministry of Energy and Natural Resources of the Republic of Türkiye to develop 5 GW of renewable energy projects in the country.

The programme will begin with Phase 1 developments comprising 2 GW of solar capacity across two plants located in Sivas and Taşeli. Under the agreement, ACWA Power will be responsible for developing, financing, constructing, commissioning and operating both facilities.

In parallel, Power Purchase Agreement Key Terms (PPA Key Terms) have been concluded with Elektrik Üretim Anonim Şirketi (EÜAŞ) for the sale of electricity generated from each plant.

The 5 GW programme builds on ACWA Power’s first investment in Türkiye, the 927 MW Kırıkkale Independent Power Plant (IPP), valued at USD 930 million, which offsets approximately 1.8 million tonnes of CO₂ annually and has been operational since 2017.

Raad Al Saady, Vice Chairman and Managing Director of ACWA Power, said the signing of the IA and PPA Key Terms marks a significant milestone in the company’s partnership with Türkiye. He noted that the programme will contribute to Türkiye’s climate goals, including reducing emissions by 41% by 2030, achieving net-zero emissions by 2053 and expanding renewable capacity to 120 GW by 2035.

According to the company, the 5 GW renewable energy programme will deliver fixed-price electricity, supporting grid planning and industrial investment. By replacing imported fossil fuels with domestically generated clean power, the initiative is expected to enhance energy security, reduce exposure to global energy price volatility and lower long-term electricity costs.

The project is also projected to attract up to USD 5 billion in foreign direct investment and generate thousands of jobs during construction, along with hundreds of skilled positions during operations.

ACWA Power highlighted localisation as a strategic priority, noting that it has achieved 100% local employment at its existing developments in Türkiye, reflecting its commitment to leveraging the country’s engineering, construction and manufacturing capabilities.