Türkiye and Saudi Arabia sign $2 billion renewable energy investment deal

2026-02-03 - 18:55

Türkiye and Saudi Arabia signed a major renewable energy investment agreement on Tuesday worth approximately $2 billion, covering the development of solar and wind power projects in Türkiye. The intergovernmental agreement was signed in Riyadh by Turkish Energy Minister Alparslan Bayraktar and his Saudi counterpart, Prince Abdulaziz bin Salman Al Saud. Project Details and Phases Under the deal, Saudi companies will construct solar and wind power plants with a total capacity of 5,000 megawatts (MW) in Türkiye. The first phase will involve solar power projects with a capacity of 2,000 MW in the Turkish provinces of Sivas and Karaman. Bayraktar noted that the investments will be fully financed through external funding and credit from international financial institutions. Strategic Significance The minister highlighted that the solar plants, representing one of the largest foreign direct investments in Türkiye's energy sector, will meet the electricity needs of around 2.1 million households. The projects are seen as a key step toward President Recep Tayyip Erdoğan’s goal of reaching 120,000 MW of installed solar and wind capacity by 2035. The agreement was signed during Erdoğan’s official visit to Riyadh, underscoring deepening economic cooperation between the two regional powers.