Eight international financial institutions sign a letter of support

Commenting on the agreement, Minister Bayraktar said, “The agreement we signed covers financing for 2,000 megawatts of the overall 5,000-megawatt package. Together with nine international institutions, we took a step toward securing the financing needed to deliver these projects.”

The agreement for the solar power projects that ACWA will develop in Türkiye was signed on the sidelines of the 31st Conference of the Parties to the United Nations Framework Convention on Climate Change (COP31) in Antalya.

Eight Financial Institutions

Eight development and commercial financial institutions signed a letter of support for the financing of the Sivas and Taşeli solar power projects. The projects form the first phase of the 5 GW renewable energy package previously agreed between Türkiye and Saudi Arabia. The signing took place in the presence of Minister Bayraktar and his Saudi counterpart, Prince Abdulaziz bin Salman Al Saud.

Institutions Confirm Their Support

By signing the letter, the institutions confirmed their support for the two projects, marking a significant step toward arranging financing for both plants. The signatories were the Asian Development Bank (ADB), the Asian Infrastructure Investment Bank (AIIB), Deutsche Investitions- und Entwicklungsgesellschaft (DEG), the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), the Islamic Development Bank (IsDB), Société Générale, and Standard Chartered.

Türkiye Targets 175 GW of Wind and Solar Capacity by 2040

Speaking after the signing ceremony, Minister Bayraktar outlined Türkiye’s renewable energy goals, including its target of reaching 175,000 MW of installed wind and solar capacity by 2040. “To achieve this, we need to bring nearly 9,000 megawatts of new capacity online each year,” he said.

Bayraktar noted that Türkiye holds Renewable Energy Resource Zone (YEKA) auctions to add capacity and had brought 6,000 MW of capacity online over the past two and a half years. “We had also said that we would pursue new renewable energy investments through intergovernmental agreements,” he added.

Financing for the First 2 GW

Bayraktar said that under the agreement between the governments of Türkiye and Saudi Arabia, the two countries aim to develop 5,000 MW of solar and wind power projects, starting with two 1,000 MW projects in Sivas and Karaman.

“The agreement we signed covers financing for 2,000 megawatts of the overall 5,000-megawatt package. Together with nine international institutions, we took a step toward securing the financing needed to deliver these projects,” he said.

Remaining Capacity Could Include Wind and Solar

Addressing the remaining 3,000 MW of the project package, Bayraktar said, “Some of the remaining 3,000 megawatts could come from wind and some from solar. We also aim to include energy storage. If you add, for example, high-voltage transmission lines to carry electricity from Karaman to Istanbul or elsewhere in western Türkiye, the package would be worth $5 billion to $6 billion.”

Each Plant Will Have a Capacity of 1,000 MW

Under the agreement between Türkiye and Saudi Arabia, the two solar photovoltaic (PV) plants in Sivas and Taşeli will each have a capacity of 1,000 MW.

Combined Investment of Approximately €1.6 Billion

ACWA aims to bring both plants into operation in 2029. The projects represent a combined investment of approximately €1.6 billion.

Electricity for 1.3 Million Households

Once operational, the projects are expected to supply electricity to 1.3 million households and avoid approximately 1.65 million tonnes of carbon dioxide emissions annually. They will make a significant contribution to Türkiye’s goal of reaching net-zero emissions by 2053.

Law Approving Ratification of the Agreement Is in Force

The agreement signed by Türkiye and Saudi Arabia on 3 February provides for Saudi companies to develop solar and wind power projects in Türkiye with a total installed capacity of 5,000 MW. The first phase calls for two 1,000 MW solar plants in Sivas and Taşeli (Karaman), with a combined installed capacity of 2,000 MW.

The law approving ratification of the Intergovernmental Agreement between the Government of the Republic of Türkiye and the Government of the Kingdom of Saudi Arabia on Renewable Energy Power Plant Projects was passed by Parliament and entered into force upon publication in the Official Gazette on 27 June.

Editorial note for publication. The source lists eight signatories to the letter of support and quotes Minister Bayraktar referring to nine international institutions. The translation preserves both figures.