ACWA Power to build 2 GW of solar in Türkiye

<p class="p1"><span class="s1">Saudi Arabian energy giant ACWA Power will build two 1 GW solar power plants in Türkiye as part of a wider investment agreement covering 5 GW of new renewables capacity in the country.</span></p><p>Riyadh-based energy company <a href="https://www.pv-magazine.com/2025/08/22/acwa-power-commissions-2-79-gw-of-solar-in-saudi-arabia/" rel="noopener" target="_blank">ACWA Power</a> has entered into an investment agreement with <a href="https://www.pv-magazine.com/region/turkey/" rel="noopener" target="_blank">Türkiye</a>’s Ministry of Energy and Natural Resources to develop 5 GW of renewable energy projects in the country.</p>
<p><span style="font-weight: 400;">Under the terms of the agreement, ACWA will develop, finance, construct, commission and operate new projects, beginning with two 1 GW solar projects, one in the Karaman province and one in the Sivas province.</span></p>
<p><span style="font-weight: 400;">ACWA Power has also secured key terms covering a power purchase agreement with state-owned utility EÜAŞ for the sale of electricity generated from each plant.</span></p>
<p><span style="font-weight: 400;">Türkiye’s Minister of Energy and Natural Resources, Alparslan Bayraktar, revealed that the Sivas project has an agreed fixed rate of €0.0235 ($0.028)/kWh, while the Karaman project was agreed at €0.0199/kWh, the lowest price achieved in Türkiye to date.</span></p>
<p><span style="font-weight: 400;">The fixed rates will begin after five years of operation and will be valid for a 25-year period. For the first five years, the plants will benefit from an incentive mechanism offering a fixed price of €0.0475/kWh, which Bayraktar said is below the average market price.</span></p>
<p><span style="font-weight: 400;">The minister added that the two projects will meet the electricity needs of a total of 2.1 million households. Each project is expected to break ground this year, Bayraktar added, and be operational by early 2028.</span></p>
<p><span style="font-weight: 400;">The second phase of Acwa’s agreement will develop a further 3 GW of renewables across solar and wind power plants. The program is expected to bring up to $5 billion in foreign direct investment across both phases and create thousands of jobs, according to a statement from Acwa. </span></p>
<p><span style="font-weight: 400;">Türkiye installed </span><a href="https://www.pv-magazine.com/2026/01/07/turkiye-installs-4-7-gw-of-solar-in-2025/" rel="noopener" target="_blank"><span style="font-weight: 400;">4.7 GW</span></a><span style="font-weight: 400;"> of solar last year, taking cumulative capacity to near 25 GW.</span></p>
<p><span style="font-weight: 400;">The country has set a target of deploying 120 GW of renewables by 2035. It is also working towards reducing emissions by 41% by 2030 and achieving net zero by 2053.</span></p>