Wind Energy Investments Boosted in Turkey
Anticipated investments in wind electricity to surpass $1.5 billion in 2023
Investment in wind power is on the rise in Turkey, with expectations of surpassing $1.5 billion this year, according to Ibrahim Erden, president of the Turkish Wind Energy Association (TÜREB).
Wind energy investments accelerated in 2024, reaching 1,300 megawatts in installed capacity and approximately $1.3 billion, Erden noted. This growth took wind energy's share of the country's total electricity generation to 11.3 percent in 2024 and renewables' share in electricity production to 42 percent.
Erden mentioned that licenses are being secured for storage-integrated projects and the rapid commissioning of legacy projects from the Renewable Energy Resource Areas (YEKA) is beginning. These projects are anticipated to contribute significantly to this year's investment, projected to reach over 1,500 megawatts and surpass $1.5 billion.
Future investments will also focus on electricity storage systems in conjunction with wind power plants, Erden explained. As projects in the storage sector progress, it is hoped that investments will materialize.
In the coming years, wind energy investments are predicted to grow by 300-400 megawatts annually, reaching approximately 3,500 megawatts by 2028-2029, according to Erden. Foreign investors have shown interest in wind energy and storage projects, particularly in YEKA auctions, with Middle Eastern and Chinese investors actively participating in these auctions.
The upcoming YEKA auctions will be announced in June, earlier than previously, and investors will be given more time to prepare, according to Erden. This advance notice is expected to attract even more foreign investor participation. However, foreign investor interest in local storage project markets has been slowed by inflation and issues related to accessing financing.
For the next two to three years, as storage systems with a minimum capacity of 5 to 10 gigawatts come online, Turkey's electricity grid will gain substantial resilience and flexibility, Erinç Kısa, Vice President for Investor Relations at TÜREB, added.
Turkey aims to achieve 120,000 megawatts of renewable energy capacity by 2035, with a substantial portion expected from wind energy. This includes plans to establish 5,000 megawatts of offshore wind capacity by 2035, attracting employment opportunities for 50,000 people and a local content rate over 70 percent in wind turbines.
The government has implemented policies to streamline the permitting process for renewable energy projects, reducing the time from 48 months to 18 months, which is anticipated to encourage further foreign investment in the sector.
The increase in wind energy investments in Turkey is expected to surpass $1.5 billion this year, with a significant portion coming from storage-integrated projects and the commissioning of legacy projects from the Rennewable Energy Resource Areas (YEKA).
In the future, foreign investors may show interest in wind energy and storage projects in Turkey, particularly in YEKA auctions, as the government streamlines the permitting process to encourage foreign investment.
