JEDDAH: Saudi energy giant ACWA Power has signed key investment and implementation agreements with the Ministry of Energy and Natural Resources to develop up to 5 gigawatts (GW) of renewable energy capacity in Türkiye.
The program will initially roll out 2GW of solar power capacity through two large-scale plants to be constructed in Sivas and Taşeli. Under the agreement, ACWA Power will develop, finance, construct, commission and operate both facilities.
The initiative builds on the company’s existing footprint in Türkiye, including the 927-megawatt Kırıkkale Independent Power Plant, a $930 million investment that offsets approximately 1.8 million tonnes of carbon dioxide emissions annually.
A separate power purchase agreement (PPA) has also been finalized with Elektrik Üretim Anonim Şirketi for the sale of electricity generated by the new facilities.
Türkiye has set an ambitious target of expanding its combined solar and wind energy capacity to 120GW by 2035, backed by an estimated $80 billion in investments. Recent renewable energy projects in the country have already helped prevent 12.5 million tonnes of CO₂ emissions while reducing dependence on imported natural gas.
Commenting on the development, Raad Al-Saady, Vice Chairman and Managing Director of ACWA Power, described the signing of the implementation agreement and PPA key terms as a pivotal step in strengthening the company’s partnership with Türkiye.
“Building on our long-standing presence, including the 927MW Kırıkkale Power Plant commissioned in 2017, this step elevates our partnership to a new level,” he said, adding that Türkiye holds strong potential as a clean energy leader and manufacturing hub.
According to the company, the 5GW renewable energy program will supply electricity at fixed prices, improving predictability for grid planning and supporting long-term industrial growth. By replacing imported fossil fuels with domestically generated clean energy, the project is expected to enhance energy security, shield the country from global market volatility and reduce long-term power costs.
The total foreign direct investment under the program could reach up to $5 billion, generating thousands of jobs during the construction phase and hundreds of skilled positions during operations. ACWA Power further noted that localization remains a strategic priority, with 100 percent local employment already achieved across its existing projects in Türkiye.
Story by Arab News
