Ankara: Turkish President Recep Tayyip Erdogan has ratified an intergovernmental agreement that outlines a cooperative framework between Turkey and Saudi Arabia to develop renewable energy projects. The Turkish Official Gazette published the agreement on Friday, detailing the collaboration signed in Riyadh on February 3.

According to National Iraqi News Agency, the agreement aims to enhance cooperation in renewable energy, green technologies, and innovation. It seeks to promote large-scale projects contributing to Turkey’s energy security and green transition goals. The first phase involves constructing two solar power plants in Sivas and Karaman provinces, each with a 1,000-megawatt capacity.

The agreement also includes “phase two projects,” which will develop additional renewable energy projects with a total installed capacity of 3,000 megawatts. The terms and locations for these projects will be decided through future agreements between the two nations.

The Turkish Ministry of Energy and Natural Resources and the Saudi Ministry of Energy will oversee the agreement’s implementation. Each investment agreement is valid for 30 years from the plant’s commercial operation start, with a possibility of a two-year extension for decommissioning.

Electricity produced by the phase two plants will adhere to specified regulations, with a purchase tariff of pound 47.5 per megawatt-hour for the first five years. Afterward, the tariff will adjust to pound 23.415 per MWh for the Sivas plant and pound 19.950 per MWh for the Karaman plant.

The agreement becomes effective upon the last notification by either party, confirming the completion of internal procedures. Investment agreements remain active until the agreement’s termination, cancellation, or expiry of 49 years from its enactment.