LONDON

Due to the rapid decline in electricity generation costs in recent years, solar energy has become the cheapest source of electricity in Türkiye.

According to a new analysis by the international energy think tank Ember, the cost to install wind power plants has fallen by 40 percent, while the cost to install solar power plants has plunged by 77 percent.

This decline in installation costs also reduces the lifetime production costs of power plants. In this context, the decline in power plant installation costs has reduced the cost of producing electricity from solar energy by 69 percent, establishing solar energy as Türkiye’s cheapest source of electricity production.

The production cost of a new solar power plant in Türkiye is estimated at $43 per megawatt-hour.

Ember’s analysis, on the other hand, noted that the recent decision in Türkiye guaranteed a purchase price of $75 per megawatt-hour for domestic coal-fired power plants. This price is 12 percent higher than the average electricity sales price of domestic coal-fired power plants over the past year and 36 percent higher than their average production costs.

According to the analysis, this incentive for domestic coal plants would cost $8.7 billion over four years. If the current resources were instead allocated to modernizing the grid and removing bureaucratic barriers to solar power plants, Türkiye could reach its 120-gigawatt renewable energy target by 2035.

One of Türkiye’s most significant potentials is its 120 GW rooftop solar power systems, according to the report.  

“Due to the increasing demand for cooling in recent years, partly driven by climate change, consumption rises by an average of 770 MWh for every 1 degree Celsius increase in temperature. Solar energy can meet 21 percent of consumption during peak cooling demand hours,” the report read.

It also suggested installing solar power plants alongside dammed hydroelectric power plants.

“Dammed hydroelectric power plants naturally store water, allowing flexible generation depending on the needs of the grid,” the report said.

“By installing solar power plants alongside dammed hydroelectric power plants, daytime electricity demand can be met through solar generation, while the hydroelectric power plants can help maintain system balance during potential load drops.”

Ember energy analyst and report author Çağlar Çeliköz stated that redirecting coal subsidies to grid modernization would accelerate progress toward the 2035 targets by increasing the connection capacity of wind and solar power plants.

Çeliköz assessed that Türkiye has made significant progress in solar energy but still needs to take serious steps to utilize its potential fully.