The world’s largest private water desalination company, Acwa, which apparently also happens to be the leader in energy transition as well as the first mover into green hydrogen, has inked an Investment Agreement Key Terms – IA Key Terms with the Ministry of Energy and Natural Resources of the Republic of Türkiye so as to develop 5 GW of renewable energy projects that start with Phase 1 developments in terms of the 2 GW of solar capacity in two plants, which are Sivas and Taşeli.
As per the Investment Agreement Key Terms, Acwa is going to develop, construct, finance, and commission as well as operate both the facilities. Interestingly, a separate Power Purchase Agreement Key Terms – PPA Key Terms has just been concluded with Elektrik Üretim Anonim Şirketi – EÜAŞ pertaining to the sale of electrical energy that is generated via each plant. The development of the program follows the first investment by Acwa in the country, which is the 927 MW Kırıkkale IPP project that is valued around US$930 million and which offsets almost 1.8 million tons of CO2 per year.
The Vice Chairman and Managing Director of Acwa, Raad Al Saady, said that “the signing of the IA and PPA key terms marks a pivotal moment in Acwa’s partnership with Türkiye, reflecting the country’s strong potential as a clean energy leader and manufacturing powerhouse. The 5 GW renewable energy program will support Türkiye’s climate ambitions by reducing emissions by 41% by 2030, achieving net zero by 2053, and scaling renewable capacity to 120 GW by 2035. Building on our long-standing presence, including the 927 MW Kırıkkale power plant commissioned in 2017, this step elevates our partnership to a new level.”
Program Effect
It is well to be noted that the 5 GW renewable energy program is going to deliver fixed-price electricity, offering predictability when it comes to grid planning along with industrial investment. Displacing the imported fossil fuels with domestically generated clean power is going to prominently decrease the exposure of Türkiye’s
to quite susceptible global energy markets, thereby offering the country a direct pathway as far as enhanced energy independence and decreased long-term power costs are concerned.
The economic benefits of the program go well beyond almost US$5 billion in terms of foreign direct investment – FDI and thousands of jobs are going to be created, with many high-skilled positions to follow throughout the operational period.
Localization along with Collaboration
The existing progress of Acwa in Türkiye showcases a deep appreciation when it comes to Turkish engineering, manufacturing capacity, and construction. Localization has indeed been quite a strategic priority, and Acwa has, as a matter of fact, already attained 100% local employment across its Türkiye developments.
