President Recep Tayyip Erdoğan approved an intergovernmental agreement providing for the development of renewable energy projects between Türkiye and Saudi Arabia. The agreement was published in the Official Gazette.
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 green transition goals.
Two solar power plants to be built in the first phase
As part of the first phase of the agreement, two solar power plants will be built in Sivas and the Taşeli region of Karaman. Each plant will have an installed capacity of 1,000 megawatts.
In the second phase, additional renewable energy projects with a combined installed capacity of 3,000 megawatts will be developed. The locations of these projects, electricity sales tariffs and other terms will be determined through agreements to be concluded later by the parties.
Implementation and tariffs
The Ministry of Energy and Natural Resources will coordinate implementation of the agreement on behalf of Türkiye, while the Saudi Ministry of Energy will do so on behalf of Saudi Arabia.
Each investment agreement will remain in force for 30 years from the date the plant begins commercial operation. After the operating period ends, an additional period of up to two years may be granted for the facility's decommissioning.
Electricity generated at the Sivas and Taşeli solar power plants in the first phase will be subject to a purchase tariff of 47.5 euros per megawatt-hour for the first five years following the start of commercial operations.
After the fifth year, the tariff will be 23.415 euros per megawatt-hour for the Sivas plant and 19.950 euros per megawatt-hour for the Taşeli plant.
Term of validity
The agreement will enter into force on the date of the last notification by which one of the parties informs the other that it has completed the domestic procedures required for entry into force under its own law.
The investment agreements will remain valid until whichever occurs first: the date of their expiry or termination, or the completion of 49 years from the agreement's entry into force.
