Turkey and Saudi Arabia have announced ambitious plans to cooperate on renewable energy as both countries move to deploy large volumes of clean power. Saudi Arabia has already invested heavily in Turkey's solar sector and intends to deepen the energy partnership between the two countries, while Turkey continues to expand its oil and gas production and discuss potential new energy routes linking the Middle East and Europe. The partnership fits within Saudi Arabia's broader effort to channel capital into regional clean energy projects as it works to diversify its oil-dependent economy.

Turkey and Saudi Arabia have signed an agreement to add a further 3 GW of renewable energy capacity in Turkey, bringing the country's total planned capacity to 5 GW, Natural Resources Minister Alparslan Bayraktar announced in August. Bayraktar emphasized that Turkey has "almost accomplished a century's worth of work" under President Recep Tayyip Erdogan's leadership, with major progress in renewable energy.

Turkey has "quadrupled its installed electricity capacity, from 32,000 megawatts to 126,000 megawatts," said Bayraktar, adding that the country commissioned around 95 GW of new capacity over the past 24 years. Turkey now ranks third in Europe for installed electricity capacity and consumption, behind France and Germany.

Oil production has tripled, natural gas output has risen ninefold, and mineral exports have increased tenfold, according to Bayraktar. The surge in energy production across both fossil fuels and renewables underpins Turkey's goal of self-sufficiency, supported by ambitious energy targets the government has set for the next decade. Domestic natural gas production in the Black Sea is set to double in 2026 and quadruple by 2028. Reducing reliance on imported fuel has long been a policy priority for Ankara, which imports much of the energy it consumes.

Bayraktar views the ongoing crisis in the Middle East as an opportunity for Turkey to establish itself as a major energy hub between the Middle East and Europe, as countries seek to diversify energy routes to ensure their energy security. Accelerating the development of alternative new energy corridors could help the Middle East prepare for potential future geopolitical challenges, he suggested.

In February, Saudi Arabia announced plans to invest $2 billion in the construction of two solar farms in Turkey with a combined capacity of 2 GW, following the signing of an agreement between Bayraktar and his Saudi counterpart, Prince Abdulaziz bin Salman. The two plants are expected to meet the electricity needs of 2.1 million households once operational. Under the deal, Saudi companies will build a solar power plant in the eastern province of Sivas and another in the central province of Karaman.

"We view these investments as one of the most important examples of direct foreign investment in our energy sector, and they will be financed entirely through external financing. Credit will also be provided by international financial institutions," Bayraktar said.

Hydropower remains Turkey's largest renewable electricity source, contributing around 17 percent of total electricity in 2025, while wind and solar account for around 22 percent. Turkey has a total of 42 GW of wind and solar power capacity. However, the country still relies heavily on coal, which supplied around 34 percent of Turkey's electricity last year. Turkey is the largest coal producer in Europe, although its coal power is expected to peak soon as the government prioritizes greater energy diversification. The country imports around two-thirds of its coal generation.

Turkey's power sector emissions have nearly doubled over the last 20 years, driven by rising fossil fuel electricity production to meet growing demand. The expansion of renewable capacity has helped limit that increase. Solar power generation doubled between 2023 and 2025, though it still contributes just 10.5 percent of electricity generation. The government aims for 47 percent of Turkey's electricity to come from renewable sources by the end of the decade.

In July, Turkey's Ministry of Energy and Natural Resources launched solar and wind power auctions totaling 2.4 GW. Of this, 1.5 GW is available across seven wind power projects — six located between Istanbul and Izmir, plus one in Sivas in central Turkey. The solar auctions total 900 MW across 14 areas in nine provinces. Bids for the 2026 round must be submitted by October 13.

Bayraktar stressed that the government aims to offer at least 2 GW of wind and solar capacity through auctions each year and vowed that Turkey would reach its 2035 target of 120 GW of combined grid capacity earlier than planned. He also said he expects solar to become the country's largest electricity source by the end of the year.

Turkey intends to deliver its ambitious energy expansion plans by working closely with international investors and neighboring countries to accelerate development. The government expects Turkey to become a major energy hub between the Middle East and Europe in the coming decades, attracting significant international investment as countries diversify their energy routes to secure their energy supplies.

Source: OilPrice.com