The $5bn Alliance: ACWA Power Expands Saudi Arabia’s Energy Footprint in Türkiye

As COP31 explores ways to increase electricity’s share in global energy consumption, Saudi Arabia and Türkiye took a further step toward bolstering their clean energy cooperation.

Through a new agreement, Riyadh and Ankara will develop renewable energy projects, driven by Saudi giant ACWA Power, accelerating Saudi Vision 2030 and Türkiye’s 2035 energy transition goals.

Saudi-Turkish Clean Energy Deal

Driving the News: The governments of Saudi Arabia and Türkiye signed a memorandum of understanding (MoU) on Cooperation in Electricity Projects, on the sidelines of the 31^st Conference of the Parties to the United Nations Framework Convention on Climate Change (COP31), currently taking place in Antalya.

The Big Picture: The agreement was signed in the presence of Turkish President Recep Tayyip Erdogan. Saudi Energy and Industry Minister Prince Abdulaziz bin Salman represented the Kingdom, while Minister of Energy and Natural Resources Alparslan Bayraktar represented Türkiye.

Why It Matters: The MoU bolsters Saudi-Turkish strategic energy and investment partnership, enhancing Türkiye’s renewable energy capacity and grid infrastructure, while expanding Saudi Arabia’s economic footprint through ACWA Power.

A Closer Look: Technical Breakdown

The Backstory: According to the Saudi Press Agency (SPA), the MoU builds on a Saudi-Turkish agreement signed in early February 2026 on Cooperation in the Field of Renewable Energy. This agreement came into effect on October 21, 2026.

State of Play: Through two phases, the agreement focuses on developing five renewable energy projects in Türkiye with a total installed capacity of 5,000 MWe (Megawatts Electric). Saudi giant ACWA Power is responsible for the implementation of these projects.

• Phase 1: Involves the development of 2,000 MWe of solar capacity across two plants in Sivas and Karaman. ACWA Power handles the development, financing, constructing, commissioning, and operating of both facilities.
• Phase 2: Involves the addition of 3,000 MWe of renewable energy capacity by developing wind power plants, supported by high-voltage direct current (HVDC) transmission infrastructure and battery energy storage systems.

In His Words: “Through these investments, which will expand our renewable energy capacity while strengthening our grid infrastructure and enhancing system flexibility, we are deepening our strategic energy cooperation with Saudi Arabia. We will continue turning confidence in Türkiye’s energy transition and investment climate into concrete projects.” – Alparslan Bayraktar, Turkish Minister of Energy and Natural Resources.

Clean Energy Cooperation: The Mutual Benefits

Between the Lines: Saudi-Turkish collaboration on clean energy carries benefits for both countries, accelerating their green transformation long-term targets.

What the program offers:

• Predictable Energy Pricing: Delivers fixed-price electricity, providing predictability for grid planning and industrial investment.
• Enhanced Energy Independence: Displaces imported fossil fuels with domestic clean power, reducing Türkiye’s exposure to volatile global energy markets.
• Lower Long-Term Power Costs: Offers a direct pathway to reducing power costs over the long term.
• Significant Foreign Investment: Attracts up to $5 billion in foreign direct investment (FDI).
• Job Creation: Creates thousands of jobs during development, alongside hundreds of high-skilled positions during ongoing operations.

What He Said: “The 5 GW renewable energy program will support Türkiye’s climate ambitions by reducing emissions by 41% by 2030, achieving net zero by 2053, and scaling renewable capacity to 120 GW by 2035. Building on our long-standing presence, including the 927 MW Kırıkkale power plant commissioned in 2017, this step elevates our partnership to a new level.” – Raad Al Saady, Vice Chairman and Managing Director of ACWA.

Driving Future Visions

The Context: Cooperation on renewable energy bridges Saudi Vision 2030 with Türkiye’s 2035 target.

For Saudi Vision 2030:

• Exporting green technology, clean hydrogen capabilities, and utility management expertise.
• Solidifying Saudi Arabia’s position as a global leader across all energy sectors, including oil and gas, solar, wind, and hydrogen.

For Türkiye’s 2035 Target:

• Expanding existing wind capacity by nearly 25%.
• Supporting Türkiye’s roadmap of reaching 120,000 MW of combined solar and wind capacity by 2035.

Catch Up Quick: Türkiye expects electricity demand to reach 510.5 TWh by 2035, accounting for 35% of total energy demand.

ACWA Power: Saudi Clean Energy Champion

Zoom In: ACWA Power is the largest private water desalination company in the world, a leader in energy transition and a pioneer in the utilization of green hydrogen. It maintains active operations across 16 countries spanning the Middle East, Africa, Central Asia, and Southeast Asia.

By the Numbers:

• $126.6 billion: Value of assets under management (AUM).
• 98.0 GW: Total power generation capacity.
• 9.7 million m³: Daily desalinated water production.
• 4,000+: Total workforce across global operations.
• ~60%: Local hires supporting regional development.

The Bottom Line: The Saudi-Turkish 5,000 MWe agreement bridges Saudi clean energy capital and expertise with Türkiye’s growing demand, establishing a new model for cross-border infrastructure and grid integration in the region.