Turkey’s 2035 Renewable Energy Roadmap: An $80 Billion Investment Opportunity
Introduction: One of the World’s Largest Energy Transitions Is Happening in Turkey
In October 2024, Turkey’s Minister of Energy and Natural Resources, Alparslan Bayraktar, unveiled the country’s most ambitious energy strategy to date: the 2035 Renewable Energy Roadmap. The targets are striking — 120 GW of installed renewable capacity by 2035, underpinned by $80 billion in investment. For foreign investors, project developers, and EPC firms, this is a generational opportunity.
Consider the trajectory: in January 2026, Turkey’s solar capacity crossed the 25 GW threshold. In 2014, it stood at just 40 MW. That is a 625-fold increase in twelve years. The country’s Turkey renewable energy investment landscape has been fundamentally transformed — and the next phase of growth will be even larger.
This guide breaks down Turkey’s 2035 targets by sub-sector, maps the opportunity to specific investor profiles, and explains how to position early in one of the world’s fastest-growing clean energy markets.
The Numbers Behind Turkey’s 2035 Renewable Energy Targets
Turkey’s National Energy Plan sets a target that is 45% higher than the previous 82.5 GW goal — a signal of how dramatically the country has revised its ambitions upward.
| Indicator | Current Status (Jan 2026) | 2035 Target |
|---|---|---|
| Total Renewable Capacity | ~55 GW | 120 GW |
| Solar (PV) | 25 GW | 52.9 GW |
| Wind (Onshore + Offshore) | ~14.7 GW | 29.6 GW |
| Battery Storage (BESS) | <1 GW | 7.5 GW |
| Floating Solar | Pilot projects | 53 GW potential |
| Offshore Wind | 0 | Multiple GW (first tender 2026) |
Turkey’s annual electricity demand is growing at 5–6% per year — one of the highest rates among OECD economies, and roughly five times the EU average. Reaching 120 GW by 2035 requires adding an average of 6–7 GW of new renewable capacity per year. The market is not just large — it is actively expanding.
The longer-term target is equally significant: net-zero emissions by 2053, aligned with Turkey’s Paris Agreement commitments. The 2035 roadmap is the first leg of a multi-decade decarbonisation journey.
Sub-Sectors: Where the $80 Billion Will Flow
Solar (PV): The Largest Single Segment at 52.9 GW
Solar represents the biggest share of Turkey’s renewable buildout. From 40 MW in 2014 to 25 GW in 2026, the trajectory is clear — and the remaining gap to the 52.9 GW target means more than 27 GW of additional solar must be installed by 2035. Turkey’s YEKA auction mechanism provides USD-denominated feed-in tariffs for ten years, offering revenue certainty that is rare in comparable emerging markets.
Turkey’s solar irradiance exceeds 2,500 hours per year across much of the country, with the south-eastern regions surpassing 2,700 hours — comparable to the best sites in southern Spain and Greece.
Wind: 29.6 GW Onshore and Offshore Combined
Turkey added 2 GW of onshore wind capacity in 2025 alone. Total installed wind capacity stands at approximately 14.7 GW as of early 2026. The headline event for 2026 is the country’s first offshore wind tender — covering the Marmara, Aegean, and potentially Black Sea coasts. For global developers already active in the North Sea or Baltic markets, Turkey’s offshore market offers familiar technology in a growth-stage regulatory environment.
Battery Energy Storage (BESS): A 33 GW Pre-License Pipeline
Turkey’s 2022 regulatory amendment granted unlimited pre-licensing rights to storage-integrated solar and wind projects. The consequence has been remarkable: as of April 2025, 33 GW of storage-integrated projects sit in Turkey’s pre-license pipeline. Against a 2035 target of 7.5 GW, this gap between pipeline and target is a clear market signal. YEKA projects are now also entitled to paired battery capacity under 2024 rules.
Floating Solar: 53 GW Untapped Potential
A May 2024 regulatory change opened Turkey’s 800+ dam reservoirs and inland lakes to floating solar installations. With 53 GW of identified floating solar potential — one of the largest such figures globally — and the added benefit of hybridisation with existing hydropower infrastructure, this sub-sector is poised for rapid development in the coming years.
Green Hydrogen: Gateway to European Supply Chains
Turkey’s 2023 National Hydrogen Strategy targets 2 GW of electrolyser capacity by 2035 and 70 GW by 2053. Positioned at the intersection of Europe and the Middle East, with direct access to the TANAP and TurkStream pipeline infrastructure, Turkey is emerging as a serious candidate for European green hydrogen import strategies. The EU’s REPowerEU plan calls for importing 10 million tonnes of green hydrogen annually by 2030 — Turkey is well positioned to supply a meaningful share.
Which Investor Profile Fits Which Opportunity?
Turkey’s $80 billion transition is large enough to accommodate multiple investor types. Here is how the opportunity maps to specific profiles:
Independent Power Producers (IPPs): YEKA auctions remain the primary route. The 15–20 year contract structure, USD-based FiT for the first ten years, and minimum purchase guarantees make Turkey competitive with established markets in Southern Europe. Recent YEKA rounds have attracted interest from Acwa Power (Saudi Arabia) and a growing list of Asian developers.
Equipment manufacturers: Turkey’s domestic content requirements — applicable to YEKA projects — create a clear incentive to establish local manufacturing. The Karapınar-Kalyon-Hanwha solar module plant and the Siemens-Türkerler wind turbine facility in İzmir Aliağa are established precedents. Localisation also reduces import costs and qualifies manufacturers for preferential treatment in future tenders.
Technology providers: BESS integration systems, Energy Management Systems (EMS), digital grid management, and offshore engineering platforms. As the market matures, demand for sophisticated operational technology will accelerate.
Financiers and funds: Green bonds, project finance structures, and co-investment alongside IFC, EBRD, EIB, and Islamic Development Bank. Turkey’s investment-grade project pipeline, combined with multilateral support, makes the risk-return profile increasingly attractive to institutional capital.
Grid Modernisation: A Parallel Investment Opportunity
Reaching 120 GW of renewable capacity requires not just generation assets but a substantially upgraded transmission network. Turkey’s infrastructure plan includes:
- 14,700 km of new HVDC transmission lines
- 40 GW of additional transmission capacity
- 15,000 km of AC grid expansion
For EPC contractors, engineering consultancies, and grid equipment suppliers, this represents a directly addressable market running in parallel with the renewable generation buildout.
Honest Risk Assessment: What Investors Need to Know
Turkey’s renewable energy market is not without risk. Currency volatility is the most frequently cited concern among international investors. However, YEKA’s USD-denominated tariff structure provides a direct hedge for generation revenue. Payments are received in Turkish lira at the prevailing exchange rate, which introduces some residual exposure, but the USD benchmark significantly mitigates long-term risk.
Regulatory stability is another common question. Turkey has maintained a broadly consistent, pro-FDI framework in the energy sector for over two decades. The introduction of the “super permit” — reducing project licensing timelines from four years to under two — represents a structural improvement in the investment environment, not a temporary measure.
On the positive side, Turkey offers distinct structural advantages that few comparable markets can match:
- Energy demand growing at 5–6% annually, creating genuine long-term offtake
- USD-denominated tariff as natural hedge for generation revenue
- Competitive construction and labour costs relative to Southern Europe
- Access to MIGA (member since 1987), DFC, and UKEF political risk insurance
- Local content requirements that reduce supply chain exposure over time
How Intercon Positions Foreign Investors in Turkey’s $80 Billion Market
Succeeding in Turkey’s renewable energy market requires more than financial capacity. It demands local knowledge, regulatory relationships, and on-the-ground execution capability. Intercon Energy sits at that intersection — with a London office serving European and Gulf investors, and an Istanbul-Ataşehir headquarters embedded in Turkey’s regulatory and commercial ecosystem.
Our services for investors entering Turkey’s 2035 transition:
- Market entry strategy: Identifying the right sub-sector, the right project structure, and the right entry timing for your investor profile.
- Sub-sector selection analysis: Risk-return analysis across solar, wind, BESS, floating solar, and green hydrogen — matched to your fund mandate or development pipeline.
- Project pipeline access: Intercon maintains a portfolio of licensed and pre-licensed projects available for partnership or acquisition.
- Local partner matchmaking: In Turkey, the right local partner is not optional — it is decisive. We have spent decades building the relationships that make projects happen.
Our reference base — including BURULAŞ, İSTAÇ, Global Holding-Trend Enerji, TEİAŞ, and TEMSAN — reflects the full breadth of Turkey’s energy market, from public infrastructure to large-scale private generation.
Frequently Asked Questions
Is Turkey’s 120 GW renewable energy target achievable?
Turkey’s solar sector grew 625-fold between 2014 and 2026. With active YEKA tender pipelines, a proven FiT mechanism, and growing international developer interest, the 120 GW target is ambitious but credible. Both IEA and IRENA country analyses acknowledge Turkey’s strong renewable trajectory. The critical enabler will be grid infrastructure investment running alongside generation capacity.
Can foreign companies participate directly in Turkish renewable energy tenders?
Yes. Turkey’s legal framework is open to foreign investment, including full foreign ownership of energy companies. Foreign firms can participate in YEKA auctions, obtain EPDK licences, and hold land-use rights. Some tender rounds include domestic content requirements, which is why local partnership strategy is an important consideration from the outset.
Where does the $80 billion investment figure come from?
The figure was cited in AGBI (Arabian Gulf Business Intelligence) reporting based on statements from Turkey’s Ministry of Energy and Natural Resources, as of January 2026. It represents the estimated total capital requirement — across generation assets, grid infrastructure, and storage — to deliver the 2035 National Energy Plan.
How does USD-denominated FiT work in practice?
Under YEKA agreements, the tariff is benchmarked in USD but paid in Turkish lira at the prevailing exchange rate on the payment date. This structure provides meaningful protection against lira depreciation over the contract term, though it does not eliminate currency risk entirely. Investors can further hedge through MIGA political risk insurance, DFC financing structures, or natural hedging via USD-denominated project debt.
Which sub-sector offers the fastest route to positive cash flow?
For established developers, land-based solar (GES) under a YEKA agreement currently offers the most predictable and fastest path to commissioning and cash flow, given the mature regulatory framework and proven construction supply chain. BESS projects are increasingly viable as the regulatory framework matures, while floating solar and offshore wind are earlier-stage opportunities with higher upside for early movers.
Enter Turkey’s Renewable Market at the Right Moment
Turkey’s 2035 renewable energy roadmap represents a once-in-a-generation repositioning of one of Europe’s most dynamic energy markets. The window for early positioning — before YEKA pipelines fill, before preferred sites are allocated, and before the local partner ecosystem consolidates around established international names — is open now.
Intercon Energy connects international investors, developers, and technology firms to Turkey’s renewable energy opportunity. From initial market assessment and project sourcing to regulatory navigation and consortium structuring, we provide end-to-end support for the full investment lifecycle.
Get in touch today → intercon-tr.com | London: 16 Upper Woburn Place, WC1H 0AF | Istanbul: Ataşehir
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