Saudi energy giant ACWA Power is preparing to make a major investment in Turkey’s renewable energy sector, with plans to develop up to 5 gigawatts of capacity, according to Turkish Energy and Natural Resources Minister Alparslan Bayraktar.
Speaking to Bloomberg, Bayraktar revealed that the initial phase of the project, totaling 2 gigawatts, is set to be signed in the coming days. The investment includes two 1-gigawatt solar power plants to be built in Sivas and the Taşeli region of Karaman, pending final legal procedures.
“This will be the first example of attracting foreign investment through international agreements,” Bayraktar noted. “ACWA already has a natural gas investment in Turkey. Now, they’re returning with a landmark 5-gigawatt renewable energy project—this is a record-breaking direct foreign investment.”
ACWA Power’s first venture in Turkey was the 950 MW Kırıkkale natural gas combined cycle power plant, launched in 2017.
Turkey recently saw solar energy prices drop to as low as 3.25 cents per kilowatt-hour in the YEKA (Renewable Energy Resource Areas) tenders held earlier this year. Minister Bayraktar expects ACWA’s new project to offer record-low tariffs, pushing prices even further down.
Last year, ACWA Power executives had disclosed to Bloomberg that the company was preparing to invest $5 billion in Turkey.
Turkey aims to boost its installed renewable capacity to 120 gigawatts by 2035 through YEKA tenders, self-consumption allocations, and international projects. Bayraktar confirmed that at least 2,000 MW in YEKA tenders will be held annually as part of this goal.
He also highlighted that 2,000 MW of solar and wind YEKA tenders have already been completed in the first two months of 2025. Notable recent foreign investments include a 750 MW YEKA wind project won by Germany’s E.ON in partnership with Sabancı, a 60 MW solar project by China’s Chen Solar, and a 385 MW joint solar venture in Karapınar between UAE-based investors and Turkey’s Kalyon Holding.
Source: Bloomberght/ Prepared by: İlayda Gök