Renewable Energy Agreement Approved Between Turkey and Saudi Arabia
An intergovernmental agreement signed in Riyadh, foreseeing renewable energy cooperation between the two countries, has entered into force.
The intergovernmental agreement envisioning cooperation in the field of renewable energy between the Republic of Turkey and the Kingdom of Saudi Arabia, signed in Riyadh, has been approved by President Recep Tayyip Erdoğan and published in the Official Gazette.
Main Objective of the Agreement
It aims to strengthen cooperation between the two countries in the fields of renewable energy, green technologies, and innovation.
This initiative aims to encourage large-scale projects that will contribute to Turkey's energy supply security and green transition targets.
Phase 1 Solar Energy Projects
In the first stage, under the Phase 1 Projects, two solar power plants with a total capacity of 2,000 megawatts, with 1,000 megawatts each, will be established in Sivas and Taşeli.
Phase 2 Projects and Scope
The agreement also foresees the development of additional renewable energy projects with a total installed capacity of 3,000 megawatts within the scope of Phase 2 Projects.
The sites for the Phase 2 projects, electricity sales tariffs, and other conditions will be determined by the parties at a later date.
Coordination and Project Development
The Ministry of Energy and Natural Resources on behalf of Turkey and the Ministry of Energy on behalf of Saudi Arabia will coordinate the implementation of the agreement.
With the mutual consent of the parties, the developer of the projects will be a Saudi company, and a separate project company will be established in Turkey for each project.
Electricity Purchase Tariffs
For the electricity generated at the plants under Phase 1, a purchase tariff of 47.5 euros per megawatt-hour will be applied for the first 5 years starting from the beginning of commercial operation.
After the fifth year, the tariff will be 23.415 euros per megawatt-hour for the Sivas SPP and 19.950 euros per megawatt-hour for the Taşeli SPP, excluding VAT.
Land Rights and Leases
The land rights required for the projects will be acquired by the Electricity Generation Company and leased to the relevant project companies.