Saudi group Acwa Power and Türkiye are preparing to sign the second phase of a 5-gigawatt (GW) renewable energy cooperation deal at the COP31 climate summit in Antalya. The new stage will cover the remaining 3 GW of renewable and storage capacity, following this week’s agreement covering 2 GW of solar projects in the Turkish provinces of Sivas and Karaman. Acwa Power chairman Mohammad Abunayyan told Anadolu Agency that the new phase would combine solar, wind and storage. The company is also considering adding storage capacity to the 2-GW solar projects already signed.
A 5-GW framework launched in February
The 5-GW framework was agreed during Turkish President Recep Tayyip Erdogan’s visit to Saudi Arabia on February 3. According to Abunayyan, construction on the 2 GW of solar capacity is expected to begin next year, once permits and environmental approvals are secured. The first installations are targeted to come online in early 2028, with full production expected the same year. This acceleration in solar capacity additions echoes other recent projects, such as the Foxton solar farm in New Zealand or the 120-MW solar plant launched by Scatec in Tunisia, illustrating the global growth of large-scale solar power.
COP31 and Türkiye’s 120-GW target
COP31 will be held from November 9 to 20 in Antalya, with a leaders’ summit expected in Istanbul. Nearly 200 countries are anticipated to attend the climate talks, which will focus on implementing the Paris Agreement, including emissions reduction targets, adaptation, climate finance and carbon market mechanisms. According to Abunayyan, the first projects will deliver the most competitive electricity prices in Türkiye while incorporating local content and Turkish contractors. He described Türkiye’s renewable strategy as “ambitious,” pointing to the national goal of adding 80 GW of renewable capacity by 2035.
Türkiye aims to raise its total installed solar and wind capacity to 120 GW by 2035, implying the addition of roughly 80 GW compared with current levels. To reach that target, the country would need to install about 9 GW of new capacity each year. Total investment under the 5-GW framework is expected to reach $4-5 billion, according to Abunayyan, who said the cooperation would strengthen economic ties between the two countries.
Financing and diversification into hydrogen
The projects will follow a project finance structure combining equity and international debt, Abunayyan said, citing the involvement of multiple financial institutions as well as improved economic conditions and credit ratings in Türkiye. Financial close is targeted for 2027. Beyond solar and wind, Acwa Power is also exploring opportunities in green hydrogen and desalination in Türkiye. According to Abunayyan, combining renewables, storage and hydrogen will be central to long-term decarbonization.