Important development for the financing of Sivas and Taşeli Solar Power Projects at COP31... 8 international financial institutions signed a letter of support

An important agreement was signed for the solar power projects to be implemented by the Saudi company ACWA in Turkey on the margins of the 31st Conference of the Parties (COP31) to the UN Framework Convention on Climate Change held in Antalya.

8 development and commercial finance institutions signed a support letter for the financing of the Sivas and Taşeli SPP projects, which constitute the first phase of the 5 GW renewable energy project previously agreed between Turkey and Saudi Arabia. The signatures were made in the presence of Minister Bayraktar and his counterpart Abdulaziz bin Salman Al-Saud.

By signing the letter, these organizations confirmed their support for the two projects and an important step was taken towards arranging the financing of both power plants. Financial institutions that signed the support letter; It consisted of the Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), Deutsche Investitions-und Entwicklungsgesellschaft (DEG), European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC), Islamic Development Bank (IsDB), Société Générale and Standard Chartered.

After the signing ceremony, Minister of Energy and Natural Resources Alparslan Bayraktar made statements regarding the agreement. Stating that Turkey has very important targets in renewable energy, Minister Bayraktar stated that they aim to reach an installed capacity of 175 thousand megawatts in wind and solar in 2040, and added: "For this, we need to realize an additional new capacity of nearly 9 thousand megawatts every year." he said. Reminding that they organized Renewable Energy Resource Areas (YEKA) competitions for new capacities and implemented a capacity of 6 thousand megawatts in the last 2.5 years, Minister Bayraktar said, "In addition, we stated that we would make new renewable investments through intergovernmental agreements."

Minister Bayraktar stated that within the framework of the agreement made between the governments of Turkey and Saudi Arabia, they want to implement a total of 5 thousand megawatts of Solar and Wind Power Plant projects, and in the first phase of this, a thousand megawatts of projects in Sivas and Karaman, and said, "The signed agreement was the financial agreement for the 2 thousand megawatt part of the total 5 thousand megawatt package. We have signed the financing agreement to realize this project together with 9 international organizations." he said.

Speaking about the remaining 3 thousand megawatts of the 5 thousand megawatts project package, Minister Bayraktar said, "Part of the 3 thousand megawatts section can be wind and part of it can be solar. We also aim to add storage to this. For example, when you add the high voltage power lines that will carry electricity from Karaman to Istanbul or to the west, this means a package of 5-6 billion dollars." he said.

Within the framework of the agreement between Türkiye and Saudi Arabia, each of the two solar power plants in Sivas and Taşeli will have a capacity of one thousand MW.

ACWA aims to have both power plants come into operation in 2029, representing a total investment of approximately 1.6 billion euros.

The projects, which will make a significant contribution to Turkey's goal of achieving Net Zero Emissions by 2053, are expected to provide electricity to 1.3 million households and prevent approximately 1.65 million tons of carbon dioxide emissions annually when operational.

The agreement signed between Turkey and Saudi Arabia on February 3 envisaged the development of solar and wind energy projects in Turkey, reaching a total installed power of 5 thousand MW, by Saudi Arabian companies, and the establishment of solar power plants with an installed power of 2 thousand MW, each of which is 1 thousand MW, in Sivas and Karaman (Taşeli). Prepared in this context and passed by the Parliament, the "Law Concerning the Approval of the Intergovernmental Agreement between the Government of the Republic of Turkey and the Government of the Kingdom of Saudi Arabia on Renewable Energy Power Plant Projects" was published in the Official Gazette on June 27 and entered into force.