Turkey's Renewable Energy Capacity Reaches 62.5%
Renewable sources now account for 62.5% of Turkey’s total installed electricity capacity, reaching 77,114 megawatts. The Ministry of Energy and Natural Resources attributes the growth to a national strategy focused on energy security and price stability, creating opportunities for startups in grid modernization and energy storage.
- Hydropower constitutes the largest share of Turkey's renewable capacity at 32,324 MW, followed by solar at 25,827 MW and wind at 14,862 MW as of January 2026. The country also utilizes geothermal and biomass, with installed capacities of 1,759 MW and 2,341 MW, respectively. - Turkey's National Energy Plan outlines ambitious targets for 2035, aiming to increase installed solar capacity to 52.9 GW and wind capacity to 29.6 GW. This is part of a broader goal to have renewables account for 64.7% of total installed capacity by that year. - The government actively promotes renewable energy investments through the Renewable Energy Resource Area (YEKA) auction model, which offers long-term power purchase guarantees. In early 2025, tenders for 800 MW of solar and 1.2 GW of wind capacity were held, with plans to auction at least 2 GW annually. - Grid integration and capacity constraints are significant challenges for the rapidly growing renewable sector. To address this, Turkey has a $10 billion grid investment plan to be implemented by 2030 and is promoting the development of hybrid power plants that combine different renewable sources without requiring new grid investments. - Venture capital firms like ERIH Ventures and investment funds such as the First Renewable Energy VCIF are actively investing in Turkish clean technology and renewable energy projects. ERIH Ventures' Sustainable Energy Technologies Fund focuses on seed and startup capital for areas including smart grids, power storage, and energy efficiency. - The Renewable Energy Sources Support Mechanism (YEKDEM) has been a key policy driver, offering a 10-year feed-in tariff for renewable energy projects, which proved highly profitable for early investors and significantly boosted capacity between 2016 and 2019. - Turkey ranks 5th in Europe and 11th globally for installed renewable energy capacity. The country's geothermal resources are particularly noteworthy, ranking first in Europe. - To encourage the adoption of electric vehicles and sustainable transport, the government has introduced tax reductions for TOGG, a domestic electric vehicle manufacturer. This aligns with the broader strategy of reducing reliance on fossil fuels and meeting the net-zero emission target by 2053.
