Historic Energy Agreement with Saudi Arabia

President Recep Tayyip Erdoğan started his two-day official visits to Saudi Arabia and Egypt. Minister of Energy and Natural Resources Alparslan Bayraktar also took part in the delegation accompanying President Erdoğan's visits.

President Erdoğan is in Riyadh

President Erdoğan, who visited Riyadh, the capital of Saudi Arabia today, was welcomed with an official ceremony by the Crown Prince of Saudi Arabia, Mohammed Bin Salman.

Inter-Delegation Meeting

After the bilateral meeting between President Erdoğan and Crown Prince Muhammed Bin Selman, an inter-delegation meeting was held with Minister Bayraktar.

Intergovernmental Agreement

After the meetings, Minister of Energy and Natural Resources Alparslan Bayraktar and Saudi Arabia's Minister of Energy Abdulaziz bin Salman Al-Saud signed the 'Intergovernmental Agreement on Renewable Power Plant Projects' between the Government of the Republic of Türkiye and the Government of the Kingdom of Saudi Arabia at the Ministry of Energy of Saudi Arabia.

New Method

Minister Bayraktar announced the details of the agreement after the signing ceremony. Reminding that Türkiye aims to reach the target of 120 thousand megawatts of installed power in the sun and wind in 2035, Bayraktar stated that they should add 8-9 thousand megawatts of new capacity to the system every year while reaching this power. Pointing out that Re-ZONE / YEKA tenders, power plant investments established for self-consumption purposes and storage energy projects continue in this context, Bayraktar said, "An addition to these, a new method; They were projects where we could take large-scale and much cheaper electricity to our country for a long time through intergovernmental agreements and bilateral agreements."

The Scope Of The Project Is 5 Thousand Megawatts

Stating that there were long negotiations on the agreement, Bayraktar said, "Today, we finally signed our signatures. Essentially, the scope of the project is approximately 5 thousand megawatts. The first part we signed today includes 2 thousand megawatt solar projects. A thousand megawatts of this will take place in Sivas and a thousand megawatts will take place in Karaman Taşeli." said.

Knock-down prices

Emphasizing that the agreement is of historical importance for Türkiye, Bayraktar said, "We buy the electricity produced here, especially for the project in Taşeli, at a price of 1,995 euros/cent per kilowatt. Türkiye will buy electricity at this price for about 25 years. In other words, we will buy electricity at the lowest price we have seen in Türkiye and we will offer it to consumers and citizens in Türkiye." he said. Bayraktar noted that electricity will be purchased for 25 years from the power plant to be built in Sivas over 2,3415 euros/cent.

Approximately $2 Billion Investment

Minister Bayraktar said, "This project in the first phase of 2 thousand megawatts means an investment of approximately 2 billion dollars. This also means that direct external financing comes to our country. Some of this will be provided from the sources here and some from international financial institutions.” said.

It Will Meet The Needs Of 2.1 Million Households

Explaining that they want a localization of 50 percent in the project, Bayraktar said, "After these signatures, we aim to implement a project that can meet the electricity needs of approximately 2.1 million households."

The Foundation of the Project is in 2027

Stating that they will lay the foundation of the project in 2027, Minister Bayraktar said that they aim to complete the first phase towards the end of 2027 and to complete the project completely in 2028 and 2029.