Saudi Arabia and Türkiye Forge $2 Billion Solar Partnership to Boost Renewable Energy Capacity
Riyadh, Türkiye – – Saudi Arabia and Türkiye have formalized a landmark agreement to develop 5 gigawatts (GW) of solar power capacity across Türkiye, marking a significant step forward in regional clean energy collaboration. The $2 billion deal, signed today, aims to bolster both nations’ renewable energy strategies and enhance energy security.
The agreement outlines a two-phase approach to developing large-scale solar power plant projects. Phase One will see a $2 billion investment from Saudi Arabia directed towards the construction of two solar power facilities in Sivas and Karaman, collectively generating 2 GW of electricity. A further 3 GW of capacity will be developed in Phase Two, with the specific frameworks for this expansion currently being established by both parties.
The electricity generated from these projects will be purchased by a Turkish state-owned company over a 30-year period, providing a stable revenue stream and long-term energy supply. The initiative also prioritizes the utilization of local equipment and service providers, aiming to stimulate economic growth and strengthen domestic supply chains within Türkiye.
This partnership arrives as Türkiye accelerates its transition to renewable energy sources. In 2024, the country unveiled a roadmap targeting a quadrupling of its wind and solar capacity to 120 GW by 2050. As of the end of 2024, Türkiye’s installed solar capacity exceeded 13 GW, representing 12 percent of the nation’s total installed capacity, alongside 12 GW of installed wind capacity, accounting for 11 percent.
The Saudi-Türkiye agreement is expected to significantly contribute to these ambitious goals. Once fully operational, the 5 GW of solar capacity is projected to generate enough electricity to power more than 2 million households. Experts note that projects of this scale are crucial for reducing carbon emissions and lessening reliance on fossil fuels.
Beyond the direct benefits of clean energy generation, the deal reflects a growing trend of cross-border renewable investments. This collaborative model combines international capital and expertise to accelerate the deployment of clean power in rapidly growing electricity markets. For Saudi Arabia, the investment aligns with its broader strategy to diversify its energy portfolio globally. For Türkiye, it supports national objectives to expand renewable capacity, stabilize electricity prices, and reduce dependence on imported energy sources.
The agreement, which was established during the official visit of President Recep Tayyip Erdoğan to the Kingdom, is anticipated to have a substantial economic and industrial impact. The development and operation of the solar projects are expected to create jobs across various sectors, including engineering, construction, and ongoing maintenance, while also fostering technology transfer and strengthening local industries.
The renewable energy agreement is expected to further strengthen investment flows and support long-term sustainable economic development in both countries, positioning Saudi Arabia and Türkiye as strategic partners in the global energy transition. The deal highlights the accelerating momentum of renewable energy deployment across the Middle East and Eurasia, as countries increasingly pursue decarbonization alongside energy security.
