Saudi Arabia Invests $2 Billion in Solar Energy in Türkiye: Massive Power Plants Being Built in Sivas and Karaman
A historic development has occurred for Türkiye's renewable energy sector. During President Recep Tayyip Erdoğan's visit to Riyadh, a $2 billion solar energy investment agreement was signed with Saudi Arabia.
Details of the Agreement
According to the agreement signed between the Minister of Energy and Natural Resources Alparslan Bayraktar and the Saudi Crown Prince Abdulaziz bin Salman Al Saud:
- Sivas and Karaman provinces will host two large solar power plants
- In the first stage 2,000 MW capacity is targeted
- Total 5,000 MW of solar and wind capacity is planned to be reached
- The plants will supply electricity to 2.1 million households .
Funding and Localization
Minister Bayraktar emphasized that this investment is one of the most important foreign direct investments made in Türkiye's energy sector.
- Project with 100% external financing to be carried out
- Loans will be obtained from international financial institutions.
- 50% localization is targeted
Electricity Purchase Prices
Under a 25-year electricity purchase agreement:
- Karaman power plant: 1.99 EUR/kWh
- Sivas power plant: 2.34 EUR/kWh
Project Schedule
- 2027: Groundbreaking
- End of 2027: Completion of the first phase
- 2028-2029: Completion of the project
Türkiye's Renewable Energy Targets
By 2035, Türkiye aims to reach 120,000 MW of installed solar and wind capacity.
Conclusion
This agreement is a significant step that will enhance Türkiye's energy security, accelerate its green transformation, and structurally reduce its dependence on energy imports.
Source: Daily Sabah, Reuters (February 3, 2026)
