ACWA Power Signs 5 GW Renewable Investment Agreement in Türkiye

ACWA Power has signed Investment Agreement Key Terms (IA Key Terms) with the Ministry of Energy and Natural Resources of the Republic of Türkiye to develop a 5 GW renewable energy program. The first phase comprises 2 GW of solar capacity across two sites in Sivas and Taşeli.

Under the agreement, ACWA Power will develop, finance, construct, commission and operate the facilities. Separate Power Purchase Agreement (PPA) Key Terms have been concluded with Elektrik Üretim Anonim Şirketi (EÜAŞ) for the sale of electricity generated by each plant.

Phase 1: 2 GW Solar Deployment
The initial phase focuses on two large-scale solar plants totaling 2 GW. These projects form part of the broader 5 GW renewable program and are expected to supply fixed-price electricity under long-term offtake arrangements.

Fixed-price structures provide predictability for grid operators and industrial consumers by reducing exposure to fuel price volatility. The solar generation will displace imported fossil fuel-based power, contributing to reduced dependence on global energy markets.

Building on Existing Investment
The program follows ACWA Power’s earlier investment in Türkiye: the 927 MW Kırıkkale independent power plant (IPP), valued at approximately USD 930 million. That project offsets around 1.8 million tons of CO₂ annually.

The new 5 GW renewable program represents a significant expansion of the company’s presence in Türkiye’s power sector and supports national objectives related to energy diversification and decarbonization.

Economic and Energy System Impact
The full 5 GW program is expected to attract up to USD 5 billion in foreign direct investment. Beyond capital inflow, the projects are projected to generate thousands of jobs during construction and create hundreds of high-skilled operational roles. By adding domestically generated renewable capacity, the program supports enhanced energy security and grid resilience.

Localization Strategy
ACWA Power has emphasized localization in its Turkish operations, reporting 100 % local employment at its existing developments in the country. The company’s approach includes collaboration with Turkish engineering, construction and manufacturing partners, supporting domestic industrial participation in large-scale renewable projects.

Through the phased 5 GW rollout, ACWA Power and Türkiye aim to expand renewable generation capacity while strengthening local supply chains and supporting long-term energy transition objectives.