Energy and Natural Resources Minister Alparslan Bayraktar announced that Türkiye and Saudi Arabia have signed a renewable energy agreement, under which Saudi energy company ACWA Power will construct solar power plants in Sivas and Karaman Taşeli.

The projects, each with a capacity of 1,000 megawatts, represent a total investment of 2,000 megawatts, The Caspian Post reports, citing foreign media.

Speaking at the signing ceremony in Istanbul on Feb. 20, Bayraktar said the deal marks the second major step following an intergovernmental agreement signed in Riyadh and will be among the largest foreign direct investments in Türkiye energy sector. He emphasized that the agreement will also secure electricity purchases at the lowest prices ever recorded in the country.

In Sivas, the agreed sales price is 2.35 euro cents per kilowatt-hour, while in Karaman Taşeli electricity will be purchased at a fixed rate of 1.99 euro cents per kilowatt-hour - the lowest price achieved in Türkiye to date.

“These rates will remain valid for 25 years, with a total purchase period of 30 years,” Bayraktar said. During the first five years, a support mechanism similar to Renewable Energy Resource Area (YEKA) tenders will apply, with incentives set at 4.75 euro cents per kilowatt-hour below the average market price.

The two projects, valued at approximately $2 billion, are expected to meet the electricity needs of 2.1 million households. Bayraktar highlighted that local content would account for at least 50 percent in both projects. Construction will begin this year, with commercial operations scheduled for early 2028.

He added that the second phase of the agreement will include an additional 3,000 megawatts of solar and wind power investments, bringing the total capacity to 5,000 megawatts.