Saudi Arabia, Türkiye sign deal for 5,000 MW ACWA Power build-out

Summary

• Riyadh and Ankara signed an electricity-projects memorandum at COP31 in Antalya, witnessed by President Recep Tayyip Erdoğan.
• It builds on a February 2026 renewable energy agreement that entered into force on October 21, 2026.
• ACWA Power is the designated Saudi investor for 5,000 MW across two phases, deepening Riyadh's stake in Türkiye's grid.

The latest

A memorandum of understanding on cooperation in electricity projects was signed Tuesday between the Saudi and Turkish governments on the sidelines of COP31 in Antalya, according to the Saudi Press Agency. Energy and Industry Minister Prince Abdulaziz bin Salman signed for Riyadh and Energy and Natural Resources Minister Alparslan Bayraktar for Ankara, with President Recep Tayyip Erdoğan present at the ceremony.

Details

• The signatories: Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, who serves as both Minister of Energy and Minister of Industry and Mineral Resources, signed for the Kingdom, while Alparslan Bayraktar signed for Türkiye, according to SPA. The signing coincided with the Saudi minister's participation in the 31st Conference of the Parties to the UN Framework Convention on Climate Change.
• The legal base: The memorandum builds on a bilateral agreement on cooperation in renewable energy signed on February 3, 2026, SPA said. That agreement entered into force on October 21, 2026, meaning the new memorandum follows ratification by less than three weeks rather than opening a fresh negotiating track.
• The headline number: The underlying agreement provides for renewable energy projects with a total installed capacity of 5,000 MWe, split across two phases, according to SPA. ACWA Power is named as the investor company designated by the Kingdom to implement the projects, placing a single Saudi developer at the center of the programme.
• Phase one: The first phase covers 2,000 MWe of renewable capacity, SPA said, adding that progress has been achieved in implementing those projects. No completion date, commissioning timeline or project sites were specified for the phase.
• Phase two: The second phase envisages an additional 3,000 MWe, with efforts toward its realization described as having reached an advanced stage. It is built around wind power plants supported by high-voltage direct current transmission infrastructure and battery energy storage systems, according to SPA.
• The grid angle: The inclusion of HVDC lines and battery storage points beyond generation alone. Long-distance direct current transmission moves bulk power with lower losses, while storage absorbs output from intermittent wind capacity, addressing two constraints that typically limit how much renewable power a national grid can accept.
• Stated impact: The investments are expected to strengthen Türkiye's renewable energy capacity, enhance grid infrastructure and flexibility, and deepen the strategic energy and investment partnership between the two countries, SPA said. The announcement did not attach an investment value to either phase.
• The venue: COP31 is being hosted in Antalya, and the bilateral signing was conducted on the conference sidelines rather than within its formal negotiating sessions. Erdoğan's attendance at the ceremony signals the weight Ankara attaches to the arrangement.

Background

ACWA Power is a Saudi developer of power generation and desalination assets that has expanded across Asia, Africa and Europe. Designation as the Kingdom's investor company in a government-to-government framework gives it a defined implementation role rather than a competitive tender position.

Between the lines

The sequencing is the story. An agreement signed in February took effect in October, and a memorandum followed within weeks, while phase one is already under way and phase two is described as advanced. That pattern suggests the commercial groundwork preceded the diplomatic milestones. Adding HVDC and storage to 3,000 MW of wind extends the Saudi footprint from generating assets into Türkiye's transmission layer.

What's next

Watch for a final investment decision or financing package on the 3,000 MW second phase, disclosure of project sites and capital values, and any commissioning announcement on the 2,000 MW first phase.

Source: Saudi Press Agency (SPA)