Photo: Alparslan Bayraktar / X
Following prolonged talks, Saudi Arabia signed an agreement for its companies to build solar power plants totaling 2 GW in two provinces in Turkey. It is part of a bilateral deal for 5 GW of photovoltaics and wind power.
Minister of Energy and Natural Resources of Turkey Alparslan Bayraktar and Saudi Minister of Energy Abdulaziz bin Salman Al Saud signed an intergovernmental agreement for renewable electricity plants. The aim is to build solar and wind power plants of 5 GW overall in Turkey with Saudi Arabian companies, Bayraktar pointed out.
In the first stage, two solar power plants of 1 GW each would be installed in Taşeli in Karaman province, and in Sivas provinces, he revealed.
Bilaterals are new model for large-scale electricity production projects
The tenders under state support mechanism Renewable Energy Zones (REZ or YEKA) are continuing, together with investments in power plants for self-consumption and energy storage projects, Bayraktar underscored. The new model for large-scale projects are intergovernmental agreements and bilateral agreements, he explained. Through them, Turkey can obtain electricity at much lower prices for a long time, the minister said in Riyadh, where the marathon negotiations were completed.
He recalled that his country aims to triple the combined wind and PV capacity by 2035, to 120 GW.
“All of these investments, which we see as one of the most important examples of foreign direct investments for our energy sector, will be made through external financing. Loans will also be provided by international financial institutions,” Bayraktar stated.
Cheapest electricity so far, under 25-year contracts
Electricity will be purchased for 25 years, from the power plant in Karaman, at 1,995 euro cents per kilowatt-hour (EUR 19.95 per MWh), the minister asserted. Electricity from the other PV behemoth would be 2,3415 euro cents per kilowatt-hour. Both are the lowest among all renewable electricity plants in Turkey, Bayraktar stressed.
“In addition, the power plants will make a significant contribution to the electrical equipment and service sectors of our country with their 50% locality rate,” he added. The first two solar power plants, in an investment of approximately USD 2 billion, will meet the electricity needs of 2.1 million households, the minister said.
According to Bayraktar, foundations will be laid in 2027, and the entire project will be completed in 2028 and 2029.
He earlier said that Turkey was negotiating with the Saudi partly state-owned utility ACWA.
The country hosted 25.1 GW of solar power at the end of last year, and 14.8 GW in wind power plants, out of 122.5 GW in total.
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