Acwa signs solar projects deal with Türkiye Energy Ministry

Saudi Arabia’s utility Acwa has signed a comprehensive power purchase agreement (PPA) with Turkey’s Ministry of Energy and Natural Resources to develop solar power plants with multi-billion-dollar investments.

Alparslan Bayraktar, Minister of Energy and Natural Resources, said on X that the first phase covers two solar plants with a combined capacity of 2,000 megawatts (MW) in the provinces of Sivas and Karaman, with investment of around $2 billion.

The projects will supply electricity to about 2.1 million households.

In Sivas, the agreed tariff stands at €0.0235 per kilowatt-hour, while in Karaman the ministry secured a fixed rate of €0.0199 per kilowatt-hour—the lowest price recorded in Turkey. The tariffs will be valid for 25 years.

Bayraktar said the ministry aims to lay the groundwork for the projects this year, requiring 50% local content. Operations are targeted for 2028, with full capacity to be reached as soon as possible.

Under the second phase, totaling 5,000 MW, Turkey plans to expand cooperation with additional solar and wind investments of 3,000 MW.

Construction on the first phase is expected to begin in the first or second quarter of 2027, with power supply scheduled to start by mid-2028.

Acwa aims to sign an agreement on the second phase of its renewable investments in Türkiye before November.

A state-owned Turkish company will purchase the power generated by the plants for 30 years. The projects will also maximize the use of locally sourced equipment and services.