ACWA Power, Turkey to Seal 3GW Phase-2 Renewables Deal

Saudi Arabia’s ACWA Power and Turkey are set to sign the second phase of a 5GW renewable energy cooperation agreement at the UN climate summit COP31 in Antalya later this year, according to the  ACWA Power Chairman Mohammad Abunayyan.

The new phase will cover the remaining 3GW of capacity under a government-to-government framework between the two countries, following this week’s signing of the first 2GW of solar projects in the central Turkish provinces of Sivas and Karaman.

“We are going to sign 3GW in renewable and storage by COP31,” Abunayyan said, adding that the next phase will combine solar, wind and energy storage. He noted that storage integration is also being considered for the initial 2GW solar projects.

The first phase forms part of a broader 5-GW framework agreed during Turkish President Recep Tayyip Erdogan’s visit to Saudi Arabia on February 3. Construction of the initial 2 GW is expected to begin next year after permits and environmental approvals, with the first electricity targeted for early 2028 and full generation achieved within the same year.

Abunayyan described the projects as 'fast-track' and said they would deliver highly competitive electricity prices while incorporating local content and Turkish contractors.

COP31, scheduled for November 9–20, will be held in Antalya, with a leaders’ summit expected in Istanbul. Nearly 200 countries are expected to participate, with talks focusing on emissions reductions, adaptation, climate finance and carbon market mechanisms.

Turkey aims to raise its total installed solar and wind capacity to 120GW by 2035, implying the addition of about 80GW from current levels, or roughly 9 GW per year. Abunayyan said the ACWA projects would mark an early step toward that target.

The total investment under the 5GW framework is expected to reach USD 4–5 billion. The projects will be financed through a project-finance structure combining equity and international debt, with financial close targeted for 2027.

Beyond solar and wind, ACWA Power is also exploring opportunities in green hydrogen and desalination in Turkey, as part of longer-term decarbonisation efforts.