Saudi Arabia and Türkiye signed an agreement on renewable energy power plant projects, reinforcing strategic cooperation in the energy sector.

The agreement aims to enhance cooperation between the two countries in the fields of renewable energy and green technologies, and to support the development and implementation of high-quality projects that contribute to diversifying the energy mix, strengthening energy security, and advancing the transition towards a low-carbon economy, in line with the priorities and strategies of both countries, reported SPA.

The agreement includes the development and implementation of solar power plant projects in Türkiye with a total installed capacity of up to 5,000 MW, to be implemented in two phases:

Phase One, with a capacity of 2,000 MW, comprising two solar power projects located in Sivas and Karaman.

Phase Two, with an additional capacity of 3,000 MW, to be developed in accordance with the frameworks agreed upon by both parties.

The Phase One Projects provide the most competitive electricity sales price among renewable energy power plants built in Türkiye.

Moreover, the plants that constitute an investment amount of nearly $2 billion will supply electricity to over two million Turkish households.

The generated electricity will be purchased by a Turkish state-owned company for thirty years and during the realization of the projects the use of local equipment and service providers will be maximised.