Riyadh – (Horn post) Within the framework of strengthening bilateral relations between the Kingdom of Saudi Arabia and the Republic of Türkiye, and enhancing strategic cooperation in the energy sector, the two countries on Monday signed an agreement on renewable energy power plant projects during the official visit of Turkish President Recep Tayyip Erdoğan to the Kingdom.
According to the Saudi Press Agency (SPA), the agreement was signed in Riyadh on 3 February 2026. It was signed on behalf of Saudi Arabia by Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, and on behalf of Türkiye by Minister of Energy and Natural Resources Alparslan Bayraktar.
The agreement aims to expand cooperation between Saudi Arabia and Turkey in the fields of renewable energy and green technologies, while supporting the development and implementation of high-quality projects that contribute to diversifying energy sources, enhancing energy security, and advancing the transition toward a low-carbon economy. The initiative aligns with the national strategies and development priorities of both countries.
Under the agreement, the two sides will develop and implement solar power plant projects in Turkey with a total installed capacity of up to 5,000 megawatts, to be carried out in two phases.
The first phase includes projects with a combined capacity of 2,000 megawatts, comprising two solar power plants to be built in the provinces of Sivas and Karaman. The second phase will add a further 3,000 megawatts, to be developed in accordance with frameworks agreed upon by both parties.
SPA reported that the first-phase projects offer the most competitive electricity sales prices among renewable energy power plants constructed in Turkey. With an estimated investment value of nearly USD 2 billion, the projects are expected to supply electricity to more than two million Turkish households.
Electricity generated by the plants will be purchased by a Turkish state-owned company under a 30-year agreement. The projects will also prioritize the use of local equipment and service providers during implementation, contributing to local industry and job creation.
Both sides emphasized that the agreement represents a significant step toward deepening the investment partnership between Saudi Arabia and Turkey. It reflects mutual trust and a shared commitment to expanding cooperation in strategic projects with sustainable economic and developmental impact, in line with international best practices. The agreement is also expected to contribute to knowledge transfer, capacity building, and mutual benefits for both countries.
Source: Saudi Press Agency (SPA)
Prepared by:
Horn post staff Reporter
