Solar energy in Turkey broke a record last April, reaching an installed capacity of 13.9 gigawatts, an impressive increase of 1.3 gigawatts in just one month, according to the Turkish Electricity Transmission Inc. (TEİAŞ).
Solar Energy in Turkey
Solar energy in Turkey is a renewable energy source that offers features such as no environmental pollution, no production of harmful waste, and ease of installation and use.
Focus on Renewable Energy and Sustainable Growth
In a significant step towards sustainable development, Turkey has surpassed the global average in the use of renewable energy, with 42% of the country’s electricity now coming from renewable sources. This achievement fits with a wider global trend towards increased reliance on clean energy sources.
Turkey’s installed solar capacity exceeded 10 gigawatts in 2023, accounting for more than 10% of the country’s total installed capacity for the first time. The progress made since 2015 has enabled Turkey to strengthen its installed solar energy capacity to globally competitive levels.
Due to Turkey’s solar irradiation and potential for solar power generation, solar energy appears to be the main area of interest for a targeted green transformation in Turkey.
World Bank And Turkey Sign $18 Billion Agreement
On April 11, the World Bank Group’s new Partnership Framework for Turkey will provide $18 billion over the period 2024-2028. The agreement will focus on productivity growth, job creation, and natural disaster assistance to support Turkey’s transition to economic development, whether in the private sector, digitalization, or strategic infrastructure investments such as renewable energy.
An Opportunity For Renewable Energy Investment In Turkey
For foreign investors looking to enter the solar energy sector in Turkey, the Renewable Energy Financing Agreement signed between the World Bank and Turkey offers highly attractive opportunities. Solar Energy in Turkey Here are the key reasons why this agreement is particularly beneficial for foreign investors:
- Market Acceleration: The financing programme aims to accelerate the transition of the decentralized energy market in Turkey, with a particular focus on expanding the decentralized solar energy market. This initiative confirms the government’s favorable regulatory environment for international renewable energy projects.
- Innovative Financing Mechanism: The financing programme, the first of its kind in Turkey, focuses on results and ensures disbursement of World Bank funds based on independently verified results. This mechanism promotes transparency, confidence and efficiency in project implementation, while reducing risks for investors.
- Mobilization of Private Capital: The program is expected to mobilize $259 million in private capital, indicating significant opportunities for foreign investors to participate in Turkey’s renewable energy market alongside international financial institutions. Solar Energy In Turkey
- Ambitious Renewable Energy Targets: Turkey has an ambitious goal to significantly increase its solar energy capacity to 52.9 gigawatts by 2035. Foreign investors can leverage this growing market demand and help reduce CO2 emissions and mitigate the effects of climate change, while generating attractive returns. Solar Energy In Turkey
Turkey and China Sign Landmark Energy Transition Agreement
Turkey is strengthening its position as a pioneer in the renewable energy sector, particularly through major partnerships. On May 21, the Turkish Minister of Energy and Natural Resources, Alparslan Bayraktar, signed a memorandum of understanding with China on cooperation in the field of energy transition. The goal of this partnership is to achieve energy sobriety. The challenge of “zero net emissions” by 2053 highlights the crucial role of renewable energy in Turkey.
In addition, the agreement signed with China includes the establishment of large-scale renewable energy projects, thereby strengthening Turkey’s energy transition roadmap. Chinese energy companies such as SPIC and CATL have shown particular interest in energy investments in Turkey, especially in energy storage projects. Turkey is a pioneer in this field and is investing heavily in technological innovation in renewable energy. Solar Energy In Turkey
1 BILLION FOR RENEWABLE ENERGY DEVELOPMENT IN TURKEY
Following this partnership, Turkey and the World Bank signed a new agreement on May 16, 2024, this time to support renewable energy development projects in Turkey. This program will be used to exploit and expand the potential of solar, hydro, wind, and biomass energy. Two Turkish banks, the Development and Investment Bank of Turkey and the Industrial Development Bank of Turkey, will be responsible for the successful implementation of the agreement.
Bank Loans in Turkey: Vital Support for Sustainable Investments
Even at the national level, Turkey is a proven leader in renewable energy investment. The brand new $285.7 million financing provided by Turk Eximbank in cooperation with renowned international banks such as ING, Standard Chartered and Société Générale is a concrete expression of this. The 10-year loan, guaranteed by the Asian Infrastructure Investment Bank (AIIB), will support renewable energy projects and energy efficiency investments.
Overall, Turkish companies in the sector are making a difference and strengthening their global competitiveness and expertise. Further funding is expected to ensure sustained growth in sustainable investment in Turkey. Solar Energy In Turkey
Turkey Has Significant Solar Energy Potential
The estimated potential corresponds to a capacity of 380 billion kWh or 87.5 million tons of oil equivalent (TOE). These estimates include 26.5 TOE suitable for thermal applications and 8.75 TOE optimal for electricity generation. Solar energy production is most favorable in the southeastern region of Anatolia. With its ideal temperate climate, high altitude and minimal atmospheric protection, Anatolia is the best region to invest in solar energy in Turkey due to its abundant solar radiation. Solar Energy In Turkey
Investing in Solar Energy in Turkey: The Potential of Floating Solar Power Plants
Turkey is deploying floating solar power plants on a massive scale to harness its extensive network of dams and reservoirs. There are currently 944 dams in operation, representing a reservoir area of 5,300 square kilometers. This extensive network is not intended for drinking water supply, but Turkey estimates that by installing floating solar power plants on 10% of this area, at least 25% of the country’s energy needs could be met. This initiative is encouraged and regulated by recent legislation that facilitates renewable energy production in aquatic areas without requiring zoning plans.
Floating solar power plants (SPPs) offer several advantages over land-based installations. The plants benefit from natural cooling from the water beneath the panels, increasing energy efficiency by 10%. In addition, floating solar power plants allow for the use of unused reservoir surfaces, thereby integrating them into the economy.
Floating solar power plants can be installed on all reservoirs except those dedicated to drinking water. By using only 10% of these areas, energy production could reach 79.5 billion kilowatt hours per year, with an installed capacity of 53,000 megawatts. Solar Energy In Turkey
The largest solar field in Europe: Leading Solar Energy in Turkey
Turkey is a European leader in solar and energy infrastructure. For example, the YEKA-1 solar power plant in Kalyon Karapınar represents a monumental achievement in renewable energy and is considered the largest of its kind in Europe. With an impressive capacity of 1 GW, this solar power plant covers an area of 20 million square meters. Solar Energy In Turkey
There are two main categories of solar power technologies:
- Photovoltaic technologies, photovoltaic solar energy systems, directly convert sunlight into electricity.
- Concentrated Solar Power (CSP) technologies, where heat is extracted from solar energy and can be used either directly or to generate electricity.
With abundant sunshine and cutting-edge innovations in solar technologies, Turkey is ready to harness the full potential of solar energy to promote energy security and environmental sustainability. In essence, investing in the renewable energy sector in Turkey is fully in sync with the perspectives of the European “Green Deal” and the Turkish “Green Action Plan”. Solar Energy In Turkey
Ambitious Vision of Turkey: Accelerating Green Transition by 2035
The projections for 2035 presented by the authorities in Turkey’s National Energy Plan represent an interesting opportunity for investors looking to capitalize on the country’s booming renewable energy sector. Here’s why:
- Focus on solar and wind energy: With the planned share of solar and wind power in installed renewable energy capacity expected to reach approximately 67%, and their combined share in total installed capacity expected to reach approximately 44%, Turkey is demonstrating a clear commitment to harnessing these abundant and sustainable energy sources.
- Increasing the share of renewable energy: The gradual increase in the share of renewable energy sources in electricity generation, from 40% in 2023 to 55% by the end of 2035, signals a significant shift towards cleaner and more sustainable methods of electricity generation.
- Battery storage expansion: The planned increase in the total installed capacity of battery storage systems, expected to reach 7.5 GW by 2035, underscores the growing importance of improving the flexibility and reliability of the energy system. Battery storage systems play a crucial role in mitigating the problems associated with the intermittency of renewable energy sources, thus ensuring security of supply. Solar Energy in Turkey
FINANCING RENEWABLE ENERGY PROJECTS IN TURKEY
In December 2023, Turkey launched its first-ever green venture capital fund, aiming to achieve its goal of net zero emissions by 2053. To support this Turkish Green Fund, the Industrial Development Bank of Turkey has secured a $155 million loan from the World Bank. The fund will finance green technology companies, stimulate investment in green solutions and diversify the financial sector. Solar Energy in Turkey
This vibrancy in the field of renewable energy places Turkey at the forefront of the world stage. By forging international partnerships and attracting foreign investment, Turkey is confirming its commitment to becoming a pillar of the global energy transition. The country is preparing to play a central role in the fight against climate change thanks to its innovation in green technologies, while stimulating its economy and creating jobs in the renewable energy sector. Solar Energy In Turkey
To invest in solar energy in Turkey, contact us now and take advantage of the opportunities in this rapidly growing sector. Solar Energy in Turkey
Sources: Ekononim, Dünya, La Gazette du Caucase, Pwc. Solar Energy in Turkey
