Saudi Arabia’s ACWA Power Co. is set to build two large-scale solar plants in Turkey, with a deal expected to be finalized within days. This initiative marks a significant step in ACWA’s plan to invest billions of dollars in the Turkish energy sector.

According to Turkish Energy Minister Alparslan Bayraktar, the contract will involve the development of two 1-gigawatt solar plants located in the Karaman and Sivas provinces. Additionally, discussions are ongoing regarding an extra 3 gigawatts of renewable energy capacity.

Energy has been a primary focus for Turkey in its efforts to attract Gulf investment, aiming to increase its renewable power generation capacity to 120 gigawatts by 2035. However, previous agreements have fallen through due to valuation disagreements.

While Bayraktar did not disclose the exact value of ACWA’s investment, Turkey revealed last year that it was negotiating with the Saudi firm for projects worth $5 billion. Turkish broadcaster CNBC-E first reported on the imminent solar deal.

A spokesperson for ACWA Power stated, “Acwa Power continuously evaluates various markets for potential opportunities, but we do not comment on specific countries or regions.” They added that the company remains focused on its existing markets, operations, and projects.

The solar contract is expected to establish a record-low electricity purchase price for Turkey, according to Bayraktar, although he did not provide further details. The current record stands at $0.0325 per kilowatt-hour.

ACWA, which is 44% owned by Saudi Arabia’s Public Investment Fund, has increased its solar generation capacity over the past year, undertaking projects in Malaysia, Indonesia, and Uzbekistan. The company’s portfolio also features a gas-fired plant in Turkey.