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Türkiye, Saudi Arabia Forge USD2B Solar Energy Agreement
(MENAFN) Türkiye and Saudi Arabia formalized a landmark energy investment pact Tuesday valued at approximately $2 billion, targeting solar power infrastructure development across Turkish territory, the nation's energy minister revealed.
"In Riyadh, the capital of Saudi Arabia, we signed the Intergovernmental Agreement between the Government of the Republic of Türkiye and the Government of the Kingdom of Saudi Arabia on Renewable Energy Power Plant Projects with my Saudi counterpart, His Excellency Abdulaziz bin Salman Al Saud," Alparslan Bayraktar announced on Turkish social media platform NSosyal.
The bilateral accord envisions Saudi enterprises constructing solar and wind energy facilities totaling 5,000 megawatts (MW) of generating capacity throughout Turkey, Bayraktar confirmed.
Initial deployment will focus on solar installations with 2,000 MW combined capacity in the central Anatolian provinces of Sivas and Karaman, marking the agreement's opening phase.
"We view these investments, which will be among the most significant examples of direct foreign investments in our energy sector, as fully financed through external funding. Credit will also be provided by international financial institutions," he stated.
The solar facilities, requiring roughly $2 billion in capital expenditure, will generate sufficient electricity to power 2.1 million Turkish households, Bayraktar explained.
"These projects, which demonstrate confidence in Türkiye's investment climate and energy sector, constitute one of the most important steps toward the target set by our esteemed President to reach an installed capacity of 120,000 MW in solar and wind power by 2035," Bayraktar emphasized.
Power purchase agreements spanning 25 years will guarantee €1.995 ($2.36) per kilowatt-hour for electricity from the Karaman installation and €2.3415 per kilowatt-hour from the Sivas facility.
Bayraktar indicated authorities are pursuing 50% domestic content requirements throughout project execution.
"In this way, we aim to realize a project large enough to meet the electricity needs of approximately 2.1 million households after these signatures are put on the agreement. We will hopefully lay the foundation in 2027, and we aim to complete the first phase towards the end of 2027 and the entire project in 2028 and 2029."
Bayraktar further disclosed discussions encompassing initiatives to deepen bilateral electricity cooperation, adding: "In particular, regarding the electricity transmission line from Saudi Arabia to Türkiye, and the interconnection, our colleagues will hopefully come back here and start working again. That is also a project of such magnitude and importance that it can affect our entire region."
Bayraktar accompanied Turkish President Recep Tayyip Erdogan's delegation during Tuesday's Riyadh visit.
"In Riyadh, the capital of Saudi Arabia, we signed the Intergovernmental Agreement between the Government of the Republic of Türkiye and the Government of the Kingdom of Saudi Arabia on Renewable Energy Power Plant Projects with my Saudi counterpart, His Excellency Abdulaziz bin Salman Al Saud," Alparslan Bayraktar announced on Turkish social media platform NSosyal.
The bilateral accord envisions Saudi enterprises constructing solar and wind energy facilities totaling 5,000 megawatts (MW) of generating capacity throughout Turkey, Bayraktar confirmed.
Initial deployment will focus on solar installations with 2,000 MW combined capacity in the central Anatolian provinces of Sivas and Karaman, marking the agreement's opening phase.
"We view these investments, which will be among the most significant examples of direct foreign investments in our energy sector, as fully financed through external funding. Credit will also be provided by international financial institutions," he stated.
The solar facilities, requiring roughly $2 billion in capital expenditure, will generate sufficient electricity to power 2.1 million Turkish households, Bayraktar explained.
"These projects, which demonstrate confidence in Türkiye's investment climate and energy sector, constitute one of the most important steps toward the target set by our esteemed President to reach an installed capacity of 120,000 MW in solar and wind power by 2035," Bayraktar emphasized.
Power purchase agreements spanning 25 years will guarantee €1.995 ($2.36) per kilowatt-hour for electricity from the Karaman installation and €2.3415 per kilowatt-hour from the Sivas facility.
Bayraktar indicated authorities are pursuing 50% domestic content requirements throughout project execution.
"In this way, we aim to realize a project large enough to meet the electricity needs of approximately 2.1 million households after these signatures are put on the agreement. We will hopefully lay the foundation in 2027, and we aim to complete the first phase towards the end of 2027 and the entire project in 2028 and 2029."
Bayraktar further disclosed discussions encompassing initiatives to deepen bilateral electricity cooperation, adding: "In particular, regarding the electricity transmission line from Saudi Arabia to Türkiye, and the interconnection, our colleagues will hopefully come back here and start working again. That is also a project of such magnitude and importance that it can affect our entire region."
Bayraktar accompanied Turkish President Recep Tayyip Erdogan's delegation during Tuesday's Riyadh visit.
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