Foundations for Sivas and Taşeli Solar Power Plants to Be Laid This Year

A new era in energy has begun between Türkiye and Saudi Arabia. Two agreements, which solidify the total 2,000-megawatt solar power plant projects to be implemented in Sivas and Karaman Taşeli under the intergovernmental agreement reached between the two countries, were signed in Istanbul in the presence of Energy and Natural Resources Minister Alparslan Bayraktar.

Target: 120,000 Megawatts from Solar and Wind
Speaking at the Sivas and Taşeli Solar Power Plant Project Signing Ceremony, Minister Bayraktar stated that Türkiye has achieved a revolution in the field of renewable energy over the past 23 years. Bayraktar noted that they have increased the installed capacity in solar and wind energy, which was almost zero, to over 40,000 megawatts today, adding, “Türkiye will increase its installed capacity in solar and wind energy alone to 120,000 megawatts by 2035.”

2,000 Megawatts of YEKA Every Year
Bayraktar pointed out that they need to build 8,000 to 10,000 megawatts of solar and wind power plants every year, saying, “We will continue to organize at least 2,000 megawatts of YEKA competitions every year.”

Strategic Step
Bayraktar also noted that they have developed projects on a large scale and at much more competitive prices through intergovernmental agreements. Recalling that they signed an Intergovernmental Agreement on Renewable Energy Plant Projects with Saudi Arabia's Energy Minister Abdulaziz bin Salman in Riyadh, Bayraktar said, "This agreement we have made is a very strategic step taken in the field of energy for both countries. Within this framework, Saudi Arabia will build a total of 5,000 megawatts of solar and wind power plants in Turkey."

We Are Getting Started
Stating that they have made this cooperation concrete with the ACWA company, Bayraktar said, "By putting the agreement into practice, we are now getting started, so to speak. ACWA will build 1,000-megawatt solar power plants in Sivas and Karaman Taşeli. An agreement has been reached on a sales price of 2.35 euro cents per kilowatt-hour for electricity in Sivas. In Karaman Taşeli, we will purchase the electricity produced at a fixed rate of 1.99 euro cents per kilowatt-hour, which is the lowest price ever achieved in Türkiye to date."

5-Year Incentive
Explaining that the prices in question will be valid for 25 years, Bayraktar said, "The total purchase period is 30 years. There will be an incentive mechanism for the first 5 years for these power plants to be built, as is the case with YEKA. However, this incentive will be applied at 4.75 euro cents per kilowatt-hour, set below the average market price, instead of the right to sell the generated electricity on the free market."

2 Billion Dollar Investment 
Minister Bayraktar said, “The two 2,000-megawatt projects represent an investment of approximately 2 billion dollars. With the Sivas and Taşeli GES projects, we will meet the electricity needs of a total of 2.1 million households. Another important point here is localization. The localization rate will be at least 50 percent in both Sivas and Taşeli.”

Second Phase: 3,000 Megawatts
Sharing information about the project's construction process, Minister Bayraktar said, "God willing, we will lay the foundations for these projects within this year. At the beginning of 2028, both power plants will start commercial operation and reach full capacity as soon as possible. In the second phase of the total 5,000-megawatt agreement, an additional 3,000-megawatt investment in solar and wind energy power plants will be made. Of course, we can combine these with storage and data centers."

Cooperation and Vision
Minister Bayraktar said, "The cooperation and vision demonstrated by our President and Saudi Arabia's Crown Prince Mohammed bin Salman in making the Sivas and Taşeli projects feasible are truly significant. Their strong determination to advance trade volume and mutual investments between our countries has enabled us to move forward rapidly." He expressed his gratitude to President Erdoğan and Saudi Arabia's Crown Prince bin Salman. 

Two Agreements
During the ceremony, an “investment agreement between the Ministry of Energy and Natural Resources and ACWA” and an “electricity purchase agreement between the General Directorate of Electricity Generation Inc. and ACWA” were signed. The first agreement was signed by Deputy Minister Zafer Demircan and ACWA Vice Chairman and Administrative Director Raad Al Saady, while the second agreement was signed by EÜAŞ General Manager Zafer Benli and ACWA Türkiye-Azerbaijan Country General Manager Mehmet Selim Güven.

Türkiye's Strong Potential
Raad Al-Saady, Vice Chairman of the ACWA Board of Directors, commented on the ceremony: “The signing of the Investment Agreement and the Basic Terms of the Power Purchase Agreement marks a milestone in ACWA's partnership with Türkiye. This step reflects Türkiye's strong potential to become a leader in clean energy and a production hub.” Our 5 GW renewable energy program will also support Türkiye's goals of reducing carbon emissions by 41% by 2030, reaching net zero by 2053, and increasing renewable energy capacity to 120 GW by 2035. Our story in Türkiye, which began with the 927 MW Kırıkkale power plant commissioned in 2017, takes our partnership to a whole new level with this new step.

Signing in Antalya
Following the signing ceremony, Minister of Energy and Natural Resources Bayraktar answered questions from journalists. Bayraktar also spoke about the other 3,000-megawatt projects to be commissioned under the agreement with Saudi Arabia, reminding that Türkiye will host COP31 in Antalya. “Our goal is to finalize the remaining part of this agreement in Antalya if we can conclude our negotiations and to sign the agreements related to those 3,000 megawatts in Antalya.”

We Are Not Giving Up on Localization
Minister Bayraktar reminded that the local content rate in the projects is 50 percent, saying, “Our goal is for 50 percent of the approximately $2 billion investment to be made in Türkiye. In other words, we are not giving up on the local content target, even in a project like this. If we gave up, we might be able to get electricity at much more favorable or cheaper prices.”

New Agreements 
Expressing that both domestic and foreign investors in Türkiye have a great interest in renewable energy, Bayraktar said, “We can continue to make bilateral agreements that we believe can add different value to us. We can do this within this year. We are planning accordingly.”