Saudi Arabia pledges $2 billion for Turkish solar projects in landmark energy deal

Saudi Arabia is set to invest approximately $2 billion to construct solar power plants in Türkiye, representing the initial phase of a comprehensive renewable energy agreement signed between the two nations.

Under the intergovernmental accord reached in Riyadh on Tuesday, Saudi companies will first develop 2,000 megawatts (MW) of solar energy projects in the Sivas and Karaman provinces. This will be followed by the implementation of an additional 3,000 MW of combined wind and solar capacity at a later stage.

The agreement mandates a 50% localization rate, which is expected to provide a “significant contribution to Türkiye’s electrical equipment and service sectors.”

Energy Minister Alparslan Bayraktar, in a post on X, noted that the projects would utilize external financing, including contributions from international institutions.

Bayraktar stated that Türkiye will purchase electricity from the Sivas project at 2.3415 euro cents per kilowatt-hour (kWh) and from the Karaman project at 1.995 euro cents/kWh for a duration of 25 years. He highlighted these figures as record-low prices for renewable energy in Türkiye.

The deal follows President Recep Tayyip Erdoğan’s high-level meetings in Riyadh.

During his official visit to the Saudi capital, President Erdoğan was received with an official ceremony by Crown Prince Mohammed bin Salman.

31-article joint statement

Following the discussions, Türkiye and Saudi Arabia issued a 31-article joint statement pledging to enhance cooperation across the economic, trade, and investment sectors.

Agreements were also signed in various other fields, including justice, renewable energy, the peaceful use of space, and cooperation in R&D and innovation.

One of the most prominent agreements focused on the energy sector. Energy and Natural Resources Minister Alparslan Bayraktar confirmed the signing of the $2 billion solar energy investment deal with Saudi Arabia.

Türkiye, Saudi Arabia, and Pakistan talks

Speculation surrounding the potential formation of an alliance between Türkiye, Saudi Arabia, and Pakistan was also a point of interest during the meetings. However, neither Riyadh nor Ankara has issued an official statement regarding such an alliance.

A Bloomberg report on Jan. 9 suggested that Türkiye was in talks with the parties to join a trilateral alliance. Foreign Minister Hakan Fidan corroborated this in a statement on Jan. 23, expressing support for the establishment of a comprehensive regional security platform and confirming interest in a trilateral alliance. While acknowledging that discussions were underway, he emphasized that no agreement had yet been signed.

Meanwhile, an AFP report released over the weekend claimed that Ankara would not be included in a defense pact signed between Riyadh and Islamabad in September 2025. Turkish officials have yet to comment on the report, which cited a Saudi official speaking on condition of anonymity.