On February 5, 2026, Saudi Arabia and Türkiye officially launched the first phase of a super large clean energy cooperation project with a total scale of 5 GW. Saudi Arabia committed to invest about 2 billion dollars to build two large photovoltaic power stations in Sivas and Karaman provinces in central Türkiye, with a total installed capacity of 2 GW. This cooperation has not only become an important milestone in the recovery of bilateral relations between the two countries, but also one of the largest foreign direct investment in Türkiye's energy sector in recent years.

The 2GW photovoltaic power station launched this time can meet the daily power demand of about 2.1 million households in Türkiye after completion, and inject stable and clean power supply into Türkiye's power grid. The project execution entity is likely to be led by Saudi Arabia International Power and Water Company (ACWA Power), as a top local energy development enterprise in Saudi Arabia, which will lead the entire process of project development and operation.

In terms of funding model, the project does not solely rely on direct investment from Saudi Arabia, but plans to jointly finance with international financial institutions, adopting a market-oriented business model that meets international standards to ensure the long-term stable progress of the project. The government of Türkiye has also made a key commitment to sign a power purchase and sale agreement (PPA) with the project party for 25 years, in which the implemented power price of Karaman power station is 0.01995 euros per kilowatt hour, and that of Sivas power station is 0.023415 euros per kilowatt hour, providing a stable guarantee for the return on investment.

The current 2GW photovoltaic project is only the beginning of cooperation between the two parties. According to the plan, Saudi Arabia and Türkiye will continue to promote the second phase development of 3GW capacity on the basis of the first phase project, and finally achieve the goal of 5GW clean energy total installed capacity. The subsequent development will also be expanded to the wind power field, forming a comprehensive energy layout with solar wind complementation.

For Türkiye, this project is the key support for its national energy strategy of achieving "120GW of total installed capacity in 2035". Large scale foreign investment and technology introduction will accelerate the green transformation of Türkiye's energy structure, significantly reduce its dependence on imported fossil energy, and improve the national energy independent security level.

For Saudi Arabia, this investment is an important practice of its "2030 Vision" economic transformation, marking the country's transition from a traditional energy exporting country to a global exporter of clean energy capital. Relying on its financial and operational advantages in the energy sector, Saudi Arabia has diversified its national assets and gained value by expanding into high growth overseas new energy markets, seizing the industrial advantage of the global carbon neutrality era.

This cooperation agreement was signed during the visit of President Erdogan of Türkiye to Saudi Arabia. With the high-level intergovernmental agreement as the framework, the mode is in line with Türkiye's nuclear power and other strategic energy projects, which can maximize the policy support and approval facilities of the two countries and clear the obstacles for the implementation of large-scale new energy infrastructure projects.Editor/Bian Wenjun