The global energy sector is undergoing a significant transformation, driven primarily by its responsibility for nearly three-quarters of global greenhouse gas emissions, as well as the urgent need to mitigate climate change. As energy demand increases, the sector’s role in reducing emissions becomes increasingly crucial.

Recent disruptions to the global energy supply chain, triggered by the COVID-19 pandemic and exacerbated by the Russian-Ukrainian conflict, have intensified the current global energy crisis. To guarantee energy security, many countries are setting more ambitious and more concrete objectives to accelerate the energy transition.

Türkiye did constant progress in the global energy transition. Technological advances in renewable energy and falling costs have increased investments in this sector. Alongside renewable energy, investments in energy efficiency are also growing. In fast-growing economies like Turkey, the growing demand for energy poses a challenge. However, implementing energy efficiency measures in various sectors can help limit the growth in energy demand, even as the economy grows. This development also encourages the manufacturing of products with higher added value and less energy consumption.

Since 2020, Turkey has seen a greater reduction in its energy intensity compared to the global average. The 1st National Action Plan for Energy Efficiency (2017-2023) aimed to reduce energy intensity by 20% compared to 2011 levels, and these objectives were successfully achieved. The 2nd National Action Plan for Energy Efficiency, launched in early 2024 (2024-2030), aims to reduce overall energy intensity by 15% by 2030, compared to 2023 levels, with a planned investment of 20 billion dollars.

Investments in renewable energy

Technological advancements have made renewable energy, particularly wind and solar power, the cheapest sources of energy, thereby boosting investment in these areas in Türkiye. As of July 2024, Turkey’s total installed capacity reached 113 GW, of which 58% came from renewable sources. Between August 2023 and July 2024, renewable energy accounted for approximately 46% of Turkey’s total electricity generation. The installed capacities of solar and wind power reached 17.5 GW and 12 GW respectively.

The rapid growth of wind and solar power was largely driven by the first Renewable Energy Resources Support Mechanism (YEKDEM), which provided incentives when technology costs were still high. Additional support for local production has enabled Turkey to manufacture most of the components for solar and wind power plants at home.

According to the National Energy Plan released in January 2023, Turkey aims to reach 83 GW of solar and wind power capacity (53 GW of solar power and 30 GW of wind power) by 2035. In the “Statement Sheet road for renewable energies 2035” recently announced by the ministry. of Energy and Natural Resources, these objectives were increased by 50%, targeting 120 GW of installed wind and solar energy capacity. This involves quadrupling existing wind and solar capacity and would require the installation of around 9 GW per year by 2035. To achieve these goals, it will be important to quickly implement the 70 GW of wind and solar capacity currently in place. investment phase, to ensure a predictable and transparent market, and guarantee the planned investment of 108 billion dollars.

Since 2017, six YEKA (Renewable Energy Resource Areas) competitions – three for solar and three for wind – have created a pipeline of renewable energy projects of 5,850 MW. However, only 20% of this capacity is completed and operational, consisting of solar projects. To accelerate the integration of projects, it is important to analyze the technical, financial and administrative barriers encountered by investors and to develop relevant solutions. It is clear that the 2035 Renewable Energy Roadmap includes regulatory improvements to address this issue. Incorporating additional criteria into YEKA auctions, such as evaluating the technical and financial capabilities of bidders alongside bid prices, could also accelerate project implementation.

Network investments

Investing in grid modernization is crucial to meeting wind and solar energy goals because these sources have varying production profiles. Their safe integration into the power grid requires increased network flexibility and digitalization. Turkey has announced plans for $28 billion in grid investments, presenting a long-term approach to energy security through infrastructure planning. These efforts are essential to achieving both net zero emissions and energy security.

According to recent studies, achieving the necessary transition in Turkey’s power sector will require an average annual investment of $15 billion until 2053. Most of this funding is allocated to the construction of new power plants, with the remainder earmarked for investments in the grid and energy storage. Improving the investment environment through increased market predictability, streamlined permitting processes and alternative financing mechanisms will be key to securing the required financing. In light of recent targets announced by the Ministry of Energy and Natural Resources, efforts aim to facilitate permitting processes and accelerate permitting procedures to support a higher level of new renewable capacity installations .

Expanding investments in renewable energy and networks offers many economic and energy security benefits in addition to reducing emissions from the power sector. As a sustainable and domestically sourced energy option, renewable energy can improve Turkey’s energy security while reducing costs through reduced energy imports. The economic benefits of wind and solar energy are particularly evident on days when their production leads to lower prices in the Turkish electricity market. Additionally, thanks to incentives for local production, many components of these factories are now manufactured in Türkiye, contributing to employment and industrial growth.

For Turkey, a developing economy with a growing population and rising income levels, the energy transition presents an opportunity to achieve both sustainable development and net zero emissions goals. In line with Turkey’s development plans, the success of this transition will depend on the implementation of comprehensive policies encompassing all sectors of the economy. The development of short, medium and long-term roadmaps supported by robust legal frameworks is essential to achieve these objectives.

In this regard, Turkey’s steps towards energy transition are essential not only to ensure energy security, but also to achieve Turkey’s net zero emissions target by 2053.

The Sabah Daily News Bulletin

Keep up to date with what’s happening in Türkiye, its region and the world.

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