Saudi Arabia has committed $2 billion to build two large-scale solar power plants in Turkey with a combined capacity of 2,000 megawatts, marking one of the biggest cross-border renewable energy investments announced between the two countries. The plan was confirmed by Turkey’s energy minister following high-level talks in Riyadh, underlining Ankara’s push to accelerate clean power deployment while drawing in long-term foreign capital.

The agreement was signed during a visit by Recep Tayyip Erdogan to Saudi Arabia, where Turkey’s Energy Minister Alparslan Bayraktar and his Saudi counterpart Prince Abdulaziz bin Salman formalised cooperation on renewable power plant projects. Bayraktar said the projects would be fully financed by Saudi investment and developed in line with Turkey’s regulatory framework for electricity generation.

The planned capacity of 2,000 MW is significant in Turkey’s energy mix, equivalent to powering more than two million households at peak output, depending on grid conditions. Officials in Ankara have indicated that the solar farms will be utility-scale facilities, connected directly to the national transmission system, and designed to support grid stability during periods of high demand. Final site selection is expected to focus on regions with high solar irradiation and existing grid access to minimise development timelines.

For Saudi Arabia, the investment reflects a broader strategy of expanding renewable energy portfolios beyond domestic borders while deploying capital through state-backed vehicles and energy firms. Riyadh has outlined ambitious clean energy targets under its long-term economic diversification agenda, and overseas projects are increasingly seen as a way to gain scale, technology exposure and stable returns. Investing in Turkey also offers geographic diversification and access to a fast-growing power market positioned between Europe, Asia and the Middle East.

Turkey, for its part, has been steadily increasing installed renewable capacity as it seeks to curb dependence on imported fossil fuels, which weigh heavily on the current account balance. Solar power has emerged as one of the fastest-growing segments, supported by declining panel costs, grid upgrades and revised market mechanisms that encourage private and foreign investment. Government data show that installed solar capacity has multiplied over the past decade, with further growth expected as electrification expands across industry and transport.

Energy cooperation between Ankara and Riyadh has gained momentum after a period of cautious engagement, with both sides signalling interest in pragmatic economic ties. The solar deal builds on discussions around hydrocarbons, petrochemicals and energy security, but shifts the focus firmly towards low-carbon infrastructure. Analysts say the size of the commitment suggests confidence in Turkey’s regulatory environment, despite periodic currency volatility and inflationary pressures.

Market participants also note that large-scale foreign-funded projects can ease financing constraints faced by domestic developers, especially as global interest rates remain elevated. By relying on external capital, Turkey can add capacity without placing additional strain on public finances, while still advancing climate and energy transition goals. Grid integration, land acquisition and permitting will be key execution challenges, though officials say existing frameworks are designed to handle projects of this scale.

Beyond electricity generation, the agreement is expected to deepen technical cooperation, including potential knowledge transfer on grid management, storage integration and project finance structures. Saudi firms have expanded expertise in utility-scale renewables through rapid domestic build-outs, while Turkish contractors bring experience in engineering and regional construction. The combination could shorten delivery schedules and set a template for further joint ventures.

The announcement comes as countries across the region race to secure clean energy capacity to meet rising demand and climate commitments. Solar power, with its speed of deployment and cost profile, has become central to national strategies. By committing funds to Turkey, Saudi Arabia positions itself as a regional investor in energy transition assets, while Turkey strengthens its role as a hub for renewable generation.