Turkey, ACWA sign 2GW solar project deal in Istanbul

Turkey, ACWA sign 2GW solar project deal in Istanbul

Turkey, ACWA Sign 2 GW Solar Project Deal in Istanbul

Turkey and Saudi Arabia's ACWA Power have finalized agreements for a 2 GW solar energy project in Istanbul, marking a significant step in the nations' renewable energy collaboration. The deal, announced in February 2026, includes power purchase agreements and investments in solar infrastructure, aligning with a broader 5 GW bilateral agreement for solar and wind energy projects in Turkey.

Under the agreements, two solar plants—each with 1 GW capacity—will be constructed in Karaman's Taşeli region and Sivas province. The projects, estimated to cost $2 billion, are expected to meet the electricity needs of approximately 2.1 million households. Electricity generated will be purchased under 25-year contracts at rates of 1,995 euro cents per kilowatt-hour (EUR 19.95 per MWh) for Karaman and 2,3415 euro cents per kilowatt-hour for Sivas— both representing the lowest prices for renewable energy in Turkey.

The projects will leverage international financing, including loans from global financial institutions, and are projected to achieve a 50% localization rate, supporting domestic electrical equipment and service sectors. Construction is slated to begin in 2027, with completion expected by 2028–2029.

This initiative is part of a larger 5 GW renewable energy partnership between Turkey and Saudi Arabia, signed in 2025, which also includes wind power projects. Turkish Energy Minister Alparslan Bayraktar emphasized that such bilateral agreements enable long-term access to low-cost electricity while advancing Turkey's goal to triple its wind and solar capacity to 120 GW by 2035.

ACWA Power, a key player in Saudi Arabia's renewable energy sector, has been instrumental in negotiating the deal, reflecting the growing role of international collaboration in Turkey's energy transition. With 25.1 GW of solar and 14.8 GW of wind capacity already operational as of 2025, Turkey continues to prioritize renewable energy expansion amid rising domestic demand and global climate commitments.

(https://balkangreenenergynews.com/saudi-arabia-to-build-2-gw-of-solar-power-in-turkey-within-5-gw-deal/): Source: Balkan Green Energy News
(https://www.facebook.com/YeniSafakEnglish/posts/t%C3%BCrkiye-and-saudi-arabia-signed-a-government-to-government-agreement-on-tuesday-/919905283759626/): Source: Facebook Post by Yeni Şafak English