Saudi Arabia’s ACWA Power Co. is set to build two large-scale solar plants in Turkey, marking a significant step in its plan to invest $5 billion in the country’s energy sector. The deal is expected to be finalized in the coming days.

Turkish Energy Minister Alparslan Bayraktar announced that ACWA and Turkish officials are in the final stages of a contract for two 1-gigawatt solar plants located in the Karaman and Sivas provinces. In addition to these projects, discussions are ongoing regarding an extra 3 gigawatts of renewable energy capacity.

Turkey has been focusing on attracting Gulf investments in its energy sector, particularly to increase power generation from renewable sources to 120 gigawatts by 2035. However, previous agreements have often collapsed due to disputes over valuations. While Bayraktar did not disclose the exact value of ACWA’s investment, discussions last year indicated that the company was involved in projects worth $5 billion. The news of the impending solar deal was first reported by Turkish broadcaster CNBC-E.

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 emphasized that the company remains focused on its current operations and projects.

Bayraktar mentioned that the solar contract is expected to establish a record-low electricity purchase price for Turkey, although he did not provide further details. The current record for the lowest price stands at $0.0325 per kilowatt-hour. ACWA, which is partially owned by Saudi Arabia’s Public Investment Fund, has been expanding its solar projects in various countries, including Malaysia, Indonesia, and Uzbekistan, alongside its existing gas-fired plant in Turkey.