Saudi Arabia and Turkey have solidified a landmark energy partnership as the Kingdom prepares to invest $2 billion into massive solar infrastructure projects. The Kingdom will construct two major solar power plants in the heart of Turkey, Turkish Energy Minister Alparslan Bayraktar announced on Tuesday, following high-level discussions between the two nations. These initial projects will generate a combined capacity of 2,000 megawatts across the Sivas and Karaman provinces in central Anatolia.
Timeline for Completion
Engineers expect to break ground on the massive solar sites in early 2027 to meet urgent regional energy demands. Consequently, the first phase should reach completion by late 2027 while the entire project concludes by 2029. This ambitious schedule highlights the efficiency and scale of the bilateral cooperation between Riyadh and Ankara.
The agreement establishes a 25-year electricity purchase framework at competitive rates to ensure long-term stability for the regional grid. Specifically, the Karaman plant will provide power at €1.995 per kilowatt-hour, whereas the Sivas facility will charge €2.3415.
“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,” the state-run Anadolu news agency quoted Minister Bayraktar. He further noted that international financial institutions will provide additional credit to support the robust financial framework.
Powering Millions of Homes
These two solar facilities will eventually supply clean electricity to approximately 2.1 million Turkish households once they are fully operational. Furthermore, the collaboration builds upon previous discussions with Saudi Arabia’s ACWA Power regarding a massive 5-gigawatt solar generation target.
“The project is of such magnitude and importance that it can affect our entire region,” Bayraktar stated regarding the potential impact. Turkish Vice President Cevdet Yilmaz previously estimated that ACWA Power’s total investments in the country could reach $5 billion.
Beyond solar generation, the two nations are currently discussing the possibility of direct power grid connectivity to enhance energy security. Meanwhile, Ankara recently secured $748 million from the World Bank to modernize its existing transmission infrastructure for renewable energy projects. This comprehensive approach ensures that the Turkish grid can effectively integrate the massive influx of Saudi-backed solar power.
