Turkey's Solar Capacity Surpasses 25 GW

- This growth is part of Turkey's ambitious National Energy Plan, which aims to increase combined solar and wind capacity to 120,000 MW by 2035 to enhance energy security and reduce dependence on imported fossil fuels. The country's total installed electricity capacity reached 123,284 MW by the end of January 2026, with solar and wind accounting for about one-third of that total. - The ACWA Power deal is a significant step, with the first phase involving 2 GW of solar capacity across two plants in Sivas and Taşeli. This 5 GW program is expected to attract up to $5 billion in foreign direct investment and will deliver fixed-price electricity, which helps in grid planning and industrial investment. - Turkey’s wind power capacity is also seeing substantial growth, reaching 15,934 MW by January 2026 after a record increase of 2,141 MW in the previous year. The government's strategy includes adding 2,000 to 2,500 MW of new wind capacity annually through 2035. - To support this renewable energy expansion, Turkey plans to invest $28 billion in upgrading its electricity grid. This includes expanding the AC transmission system and establishing a new DC transmission grid to increase power export capacity from 2.3 GW to 6.75 GW by 2035. - The country is fostering a domestic manufacturing base for renewable energy components to support its goals. Turkey has approximately 70 solar panel factories with a combined annual production capacity of 50,000 MW, which is ten times the current domestic demand. Additionally, incentives are provided for using locally produced components, such as an extra 3.5 cents per kWh for domestically made PV cells. - The levelized cost of electricity from new solar plants in Turkey has fallen to approximately $43 per MWh, making it the country's cheapest source of electricity. This is significantly lower than the government-guaranteed price for domestic coal plants, which is set at $75/MWh. - The push for renewables is also creating opportunities for Turkish climatetech startups. Companies like smartPulse, which offers an AI-based energy management platform, and Batron Enerji, which focuses on energy storage systems, are part of a growing ecosystem of over 38 renewable energy tech companies in the country. The Global Cleantech Innovation Programme (GCIP) in Turkey further supports SMEs and startups in fields like renewable energy and energy efficiency. - This expansion of renewable energy is crucial for Turkey's energy security, as the country imports approximately 75% of its primary energy needs. In 2022, Turkey's energy import bill was $97 billion. By increasing domestic clean power generation, Turkey aims to reduce its exposure to volatile global energy prices.