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Saudi Arabia-based energy company Acwa Power has signed agreements with Türkiye’s Energy and Natural Resources Ministry and state-owned Electricity Generation Corporation (EUAS) to develop renewable energy projects with a total capacity of 5 gigawatts (GW), backed by approximately $5 billion in foreign direct investment.
The investment program aims to help Türkiye expand its renewable energy capacity and contribute to its long-term goal of reaching 120 GW of renewable power capacity by 2035, while supporting efforts to reduce carbon emissions and energy imports, according to a statement from the ministry.
The announcement follows an earlier intergovernmental agreement between Türkiye and Saudi Arabia to expand cooperation on solar energy development.
The agreements were formalized during a signing ceremony attended by Energy and Natural Resources Minister Alparslan Bayraktar on Friday. They include key terms for an investment agreement covering project development and a separate power purchase agreement with EUAS for electricity generated by the new facilities.
The program’s initial phase will involve the construction of two solar power plants in Sivas and the Taseli region with a combined capacity of 2 GW. Acwa Power will oversee all stages of the projects, including development, financing, construction, commissioning, and operations.
According to Bayraktar, the first two projects represent around $2 billion in investment and are expected to supply electricity to approximately 2.1 million households once operational. He said the projects would include at least 50% local content and that construction is expected to begin this year, with commercial operations planned for early 2028.
The second phase of the broader 5 GW program will include an additional 3 GW of solar and wind energy investments, with potential integration of energy storage systems and data centers.
Acwa Power previously invested approximately $930 million in the 927 megawatt Kirikkale power plant, which entered operation in 2017.
Raad Al-Saady, vice chairman of Acwa Power, said the agreement marked "a milestone in Acwa’s partnership with Türkiye" and supports the country’s plans to reduce emissions by 41% by 2030 and expand renewable capacity in the coming decade.
The program is also expected to generate thousands of jobs during construction and operation phases, while supporting local engineering, manufacturing, and construction sectors through localization requirements.
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