ISTANBUL: Saudi Arabia and Turkiye have signed a major agreement to develop large scale solar power projects, strengthening energy cooperation between the two regional partners.

Under the deal Saudi energy company ACWA Power will construct two solar power plants in the provinces of Sivas and Karaman in central Turkiye. The projects will have a combined capacity of 2,000 megawatts sufficient to supply electricity to more than two million households, officials said.

The signing ceremony took place in Istanbul following a broader $2 billion intergovernmental energy agreement reached during President Recep Tayyip Erdogan’s recent visit to Riyadh.

Turkish Energy Minister Alparslan Bayraktar described the investment as one of the largest in Turkiye’s energy sector highlighting its potential to secure electricity at record low prices.

Bayraktar said Turkiye is undergoing an energy transformation, noting that renewable sources accounted for a significant share of newly installed electricity capacity. The country aims to expand its solar and wind capacity to 120,000 megawatts by 2035 and achieve net zero emissions by 2053.

Despite progress, coal remains a key energy source, prompting officials to emphasise diversification through renewables gas and nuclear power.