Turkey's Renewable Energy Boom and Strategic Attractiveness for Green Infrastructure Investments

Turkey's renewable energy sector is undergoing a transformative phase, driven by aggressive policy reforms, abundant natural resources, and a strategic push to diversify its energy mix. For international investors, the country presents a compelling case for green infrastructure investments, particularly in solar, wind, and grid modernization. With a combination of government incentives, international financing, and regional market dynamics, Turkey is positioning itself as a pivotal player in the global clean energy transition.

Policy Momentum: A Framework for Rapid Expansion

Turkey's Renewable Energy Resource Area (YEKA) model remains central to its policy architecture. Introduced in 2016, the YEKA framework has been updated to accelerate project deployment, with 2025 targets of 22.6 GW of solar and 14.8 GW of wind capacity, according to a SolarBeGlobal report. Recent reforms, including the "super permit" initiative, aim to reduce permitting timelines from four years to under two, addressing a major bottleneck in project execution, as noted by an Ember analysis. Additionally, the government has introduced exemptions from transmission fees and battery storage incentives to attract private capital, the Clean Energy Platform reports.

The YEKA model's success, however, has been uneven. While 7.8 GW of capacity has been tendered since 2017, less than a quarter is operational, highlighting the need for continued policy refinement, Eurasia Review reports. To bridge this gap, the government has prioritized local content requirements-75% for solar and 55% for wind projects-to bolster domestic manufacturing. This has spurred growth in local supply chains, with solar component producers increasing from 27 in 2014 to 500 in 2025, Türkiye Today reports.

Resource Potential: A Geographical and Economic Advantage

Turkey's geographical location between 36–42°N latitude provides exceptional solar irradiation levels, making it one of Europe's most viable markets for photovoltaic (PV) energy. By early 2025, solar capacity had already surpassed the government's 2025 target of 19 GW, reaching 20.4 GW, OilPrice reports. Wind energy, with a theoretical potential of 79 GW, has also seen robust growth, with installed capacity hitting 13.04 GW in 2025, Mondaq notes.

The country's 2035 Renewable Energy Roadmap aims to scale solar and wind capacity to 120 GW, supported by hybrid projects and floating solar installations, as outlined by Eurasia Review. This ambition is underpinned by Turkey's role as a regional energy hub, with plans to export surplus renewable energy to neighboring countries such as Greece and Iraq, according to a World Bank press release.

Grid Modernization: Enabling a Resilient Energy Future

Integrating Turkey's rapidly expanding renewable capacity requires significant grid upgrades. The World Bank and Clean Technology Fund have approved a €640 million package for the Transforming Power Transmission System (TPTS) project, which includes modernizing high-voltage substations, deploying smart grid technologies, and introducing High-Voltage Direct Current (HVDC) corridors, as explained in a Clean Energy Platform insight. This initiative aligns with Turkey's goal of achieving 65% renewable energy in its electricity mix by 2035, Türkiye Today reports.

The government has committed $28 billion to grid infrastructure through 2035, with a focus on digitalizing operations and enhancing energy flexibility, the Clean Energy Platform notes. These investments are critical for managing the intermittency of solar and wind power, ensuring grid stability, and reducing reliance on fossil fuel imports.

High-Impact Investment Opportunities

For international investors, Turkey's renewable energy boom offers multiple entry points:
1. Solar and Wind Tenders: In 2025, Turkey plans to tender 2,000 MW of renewable capacity, including 1,150 MW of wind and 850 MW of solar, with projects spread across nine provinces, Türkiye Today reports. The first floating solar plant, a 35 MW project in Manisa, is also set to break ground, Anadolu Agency reports.
2. Grid Modernization Projects: The TPTS project and associated HVDC corridors present opportunities for firms specializing in smart grid technology, battery storage, and digital infrastructure, DevelopmentAid notes.
3. Local Manufacturing Partnerships: Turkey's 75% local content requirement for solar projects creates demand for international firms to collaborate with domestic manufacturers, reducing supply chain risks, as Türkiye Today reports.

Conclusion

Turkey's renewable energy sector is a testament to the power of strategic policy, abundant resources, and international collaboration. While challenges such as grid congestion and local content compliance remain, the government's commitment to reform and infrastructure investment creates a fertile ground for high-impact opportunities. For investors, the window to capitalize on Turkey's green energy transition is narrowing-those who act swiftly will find themselves at the forefront of a regional clean energy revolution.