Turkey has invested heavily in its renewable energy sector in recent years, and the country’s green energy capacity has increased faster than anticipated, which has strengthened its energy security and helped it rely less on energy imports. The government has invested heavily in diversifying the energy mix since the early 2000s, far ahead of several other countries in the region. It aims to achieve net zero emissions by 2053, with a strong focus on establishing energy independence to reduce reliance on other countries for its energy. 

According to the International Energy Agency (IEA), Turkey has introduced energy policies aimed at modernisation, liberalisation, and increased domestic production capacity, as it has sought to diversify its energy mix over the last decade. The country’s renewable electricity generation has tripled in the last 10 years, and the government is currently pursuing Turkey’s first nuclear power facility. 

In January, the think tank Ember Energy reported that Turkey’s solar energy capacity had doubled in the previous two and a half years to exceed the government’s 2025 target. New installations for self-consumption have driven 94 percent of the growth since July 2022, increasing from 9.7 GW to over 19 GW by the end of 2024. Solar power now contributes roughly 6 percent of Turkey’s total electricity supply. 

The accelerated deployment of solar capacity has helped save significant spending on imports. According to Ember, between July 2022 and December 2024, the combined solar and wind energy output helped prevent $15 billion in natural gas imports and helped to boost the country’s energy independence, as well as reduce reliance on fossil fuels. Turkey’s project pipeline of 33 GW in pre-licensed storage-integrated solar and wind projects, far exceeds the government’s 2030 target of 2.1 GW, showing great promise for sustained sectoral growth. The think tank suggests that Turkey could use rooftop, hybrid, floating and storage-integrated solar potential to continue with its solar power momentum.

By the end of August, Turkey’s installed renewable energy capacity climbed to 74 GW, with electricity generation from domestic resources reached 85 GW, according to data from the Energy and Natural Resources Ministry. The country’s total installed electricity capacity was almost 120.8 GW, with hydropower plants dominating the energy mix and contributing almost 27 percent of the total. Natural gas contributes around 25 GW, or 25 percent of the total, while solar power contributed 24 GW, wind capacity stood at almost 14 GW and domestic coal provided for 11 GW. Turkey continues to import over 10 GW of coal, 2.3 GW of electricity from biomass and 1.7 GW from geothermal plants.

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Current projections suggest that Turkey could meet its additional electricity capacity needs through the development of 8 GW of hybrid solar power projects integrated into existing hydropower and wind power plants. The National Energy Plan forecasts that Turkey’s electricity demand will reach 455 terawatt-hours in 2030 and 510 terawatt-hours in 2035. The growth is expected to require an additional 17 GW of capacity by 2030 and 27 GW by 2035.

Turkey’s wind energy sector is gradually expanding, with around $1.3 billion in investment in the industry last year, supporting 1.3 GW of wind power installations. The Turkish Wind Energy Association expects this figure to increase to $1.5 billion in 2025 with 1.5 GW of new capacity. This follows the inauguration of several new wind farms in May, which have spurred greater investor interest in the market. 

In the coming years, Turkey is expected to develop its hydrogen and electric vehicle (EV) markets as it builds upon its energy diversification success. The EU recently announced a $3.22 million technical assistance project to help Turkey accelerate the development of its green and low-carbon sector in collaboration with state energy firm BOTAS (Turkish Petroleum Pipeline Corporation). The programme “Boosting Green and Low-Carbon Hydrogen in Türkiye” is aimed at reinforcing institutional capabilities and expanding sector-wide expertise across the country.

Turkey’s EV industry has grown significantly this year to overtake Belgium as the fourth-largest selling passenger battery electric vehicle (BEV) market in Europe. EV sales in Turkey more than tripled in June, to 25,646 units, up from only 8,032 units in June 2024, according to Turkey’s Automotive Distributors’ and Mobility Association. The market has expanded rapidly in recent years, largely thanks to the government’s special consumption tax. ÖTV. The special tax rates were rolled out alongside the launch of local BEV startup Togg’s first car, the T10X crossover, in 2023, and have also encouraged other EV makers to enter the market. For example, in July 2024, China’s biggest EV maker, BYD, signed a $1 billion deal to establish a manufacturing plant in Turkey.

Turkey’s renewable energy market is going from strength to strength thanks to favourable government policies, support from Europe, and higher levels of private investment. As it continues to expand its solar and wind energy sectors, it will also focus on developing its low-carbon hydrogen industry and encouraging the production and uptake of EVs across the country. 

By Felicity Bradstock for Oilprice.com

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