Saudi Arabia and Türkiye on Tuesday signed a pact for 3,000 megawatts of wind power projects in Türkiye, the second phase of a renewable energy programme led by Saudi company ACWA Power, the state-run Anadolu Agency reported, citing Turkish Energy Minister Alparslan Bayraktar.

Source: Turkish Minute / Anadolu Agency

Bayraktar and his Saudi counterpart, Prince Abdulaziz bin Salman, signed a memorandum of understanding on cooperation in electricity projects at the COP31 United Nations climate summit in Antalya, with Turkish President Recep Tayyip Erdoğan in attendance. The planned 3,000 MW is equal to about one-fifth of Türkiye's currently installed wind power capacity, Reuters reported, citing the Turkish energy ministry.

Source: Reuters via OilPrice

"We are deepening our strategic energy cooperation with Saudi Arabia," Bayraktar said.

Solar first, wind second

The first phase covers two solar plants of 1,000 MW each, in Sivas province and the Taşeli area of Karaman province. Turkish officials put their cost at about $2 billion — yaani 200 crore dollars — when further agreements were signed in February. ACWA Power said it would finance, build and operate the solar plants, selling their electricity to EÜAŞ, Türkiye's state electricity generation company, and said the full 5,000 MW programme could bring up to $5 billion in foreign direct investment.

The wind plans include battery storage and high-voltage transmission lines. Bayraktar said these would strengthen the grid and help it manage more renewable electricity, whose output varies with wind and sunlight. The ministry did not disclose the wind farms' locations, cost or construction schedule.

Why Türkiye wants the power

The agreement follows an intergovernmental deal signed in Riyadh on February 3 that entered into force on October 21. Ankara is seeking to expand renewable power to meet rising electricity demand and cut spending on imported fuels: Türkiye's annual energy import bill has averaged $65 billion to $70 billion in recent years, according to Reuters.

Bayraktar last week announced a target of 175 gigawatts of wind and solar capacity by 2040, up from about 44 to 45 gigawatts today, raising an earlier goal of 120 gigawatts by 2035. Reaching the long-term targets will require Türkiye to install an average of about 10 gigawatts of wind and solar capacity a year, as demand grows with electric vehicles, factories and heating systems.

Türkiye has pledged to reach net zero emissions by 2053, but has set no date for ending coal use. Coal still supplies roughly a third of its electricity, and the government plans to continue investing in oil and natural gas. The agreements also follow a thaw in relations between Ankara and Riyadh, which deteriorated after the 2018 killing of Saudi journalist Jamal Khashoggi inside the Saudi Consulate General in Istanbul.