The renewable energy agreement between Türkiye and Saudi Arabia was published in the Official Gazette after receiving approval from President Recep Tayyip Erdoğan.
Signed in Riyadh on February 3, the agreement aims to strengthen cooperation between the two countries in renewable energy, green technologies and innovation. The text also provides for the promotion of large-scale projects that will contribute to energy supply security and the green transition.
2,000-megawatt capacity in Sivas and Taşeli
As a first step, one solar power plant will be built in Sivas and another in the Taşeli region of Karaman. Each plant will have an installed capacity of 1,000 megawatts.
In the second phase of the agreement, additional renewable energy projects with a combined installed capacity of 3,000 megawatts will be developed. The locations of the projects, electricity purchase tariffs and other conditions will be determined through subsequent agreements between the parties.
Electricity purchase tariffs set
For the electricity generated at the Sivas and Taşeli solar power plants in the first phase, a purchase tariff of €47.5 per megawatt-hour will apply for the first five years following the start of commercial operation.
After the fifth year, the tariff will be €23.415 per megawatt-hour for the Sivas plant and €19.950 per megawatt-hour for the Taşeli plant.
The Ministry of Energy and Natural Resources will coordinate implementation of the agreement on behalf of Türkiye, while the Saudi Ministry of Energy will coordinate its implementation on behalf of Saudi Arabia.
Conditions for the agreement to take effect
Each investment agreement will remain in force for 30 years from the date the relevant plant begins commercial operation. Once the operating period ends, an additional period of up to two years may be granted to decommission the facility.
The agreement will enter into force on the date of the last notification stating that one of the parties has completed the domestic procedures required under its own law.
The investment agreements will remain valid until whichever occurs first: the date of expiry or termination, or the completion of 49 years from the agreement's entry into force.
