Strategic partnership towards a green future
In a historic move reflecting the deepening ties between Riyadh and Ankara, the Kingdom of Saudi Arabia and the Republic of Turkey signed a strategic agreement to develop and implement renewable energy power plant projects. The agreement was signed during the official visit of Turkish President Recep Tayyip Erdoğan to the Kingdom, marking the culmination of a new phase of economic and political cooperation between the two regional powers.
The agreement was signed on behalf of the Saudi side by His Royal Highness Prince Abdulaziz bin Salman bin Abdulaziz, Minister of Energy, and on behalf of the Turkish side by His Excellency the Minister of Energy and Natural Resources, Alparslan Bayraktar, in the presence of the leaders of the two countries, indicating the great importance that both parties attach to this ambitious project.
General context: Vision 2030 and Turkish energy security
This agreement comes as part of Saudi Arabia's ongoing efforts to achieve the goals of Vision 2030, which aims to diversify national income sources and reduce dependence on oil. The Kingdom's investments in the clean energy sector, both domestically and internationally, are a cornerstone of this vision, alongside its pioneering initiatives such as "Green Saudi Arabia," through which it commits to playing an active role in combating climate change. This project represents an export of Saudi expertise and capital to a promising sector, further solidifying the Kingdom's position as a global player in the energy sector in all its forms.
For its part, Turkey, as one of the region's major economies, seeks to enhance its energy security and reduce its fossil fuel import bill. Solar and wind power are among the key resources Ankara is focusing on to diversify its energy mix and achieve its climate goals, as Turkey possesses enormous natural potential that qualifies it to become a regional hub for renewable energy.
Details of the agreement and its economic impact
The agreement aims to develop and implement solar power plant projects in Turkey with a total capacity of up to 5,000 megawatts. The project will be implemented in two phases. The first phase includes the construction of two projects in the cities of Sivas and Karaman with a combined capacity of 2,000 megawatts and an estimated investment of approximately US$2 billion. These plants are expected to provide more than two million Turkish households with clean electricity at highly competitive prices.
A Turkish state-owned company will purchase the generated electricity for 30 years, providing long-term investment stability for the project. The agreement also stipulates maximizing the use of Turkish local content in equipment and services, contributing to the support of local industry and the creation of new jobs.
Strategic importance and regional influence
The importance of this agreement extends beyond economic and environmental aspects, encompassing the strengthening of the strategic partnership between the Kingdom and Turkey. It reflects mutual trust and a shared commitment to expanding cooperation on major projects with sustainable developmental impact. Regionally, this collaboration presents a successful model for partnerships among countries in the region to address shared challenges, such as energy security and climate change, and contributes to stability and development in the Middle East.
