Saudi Arabia, Turkey Ink 5 GW Solar Deal for 5 GW Solar Project

Saudi Arabia and Turkey have signed an agreement to jointly develop renewable energy generation projects during the Turkish President’s official visit to the Kingdom.

The pact was signed by Saudi Energy Minister Prince Abdulaziz bin Salman and Turkish Minister of Energy and Natural Resources Alparslan Bayraktar. It seeks to strengthen cooperation in renewable energy and green technologies while supporting high-quality projects to diversify the energy mix.

Under the agreement, solar power plants with a total capacity of up to 5,000 MW will be developed in Turkey in two phases. The first phase will comprise two projects in Sivas and Karaman with a combined capacity of 2,000 MW, followed by an additional 3,000 MW in the second phase under agreed frameworks.

As per local reports, electricity from the first-phase projects is expected to be priced competitively compared with other renewable power plants in Turkey.

The projects, involving investments of about USD 2 billion, are projected to supply electricity to more than two million Turkish households.

Power generated will be purchased by a state-owned Turkish company under a 30-year offtake agreement, with priority given to the use of local equipment and services during project execution.