Energy

Türkiye Seeks $200 Billion Global Investment for Energy Transition

June 25, 2026

Türkiye is actively courting international investors in London, seeking approximately $200 billion in energy investments by 2035 to fuel its ambitious energy transition and meet burgeoning demand. This significant outreach, highlighted by a “Türkiye Clean Energy Transition Investment Forum” held in London on June 24, 2026, underscores the nation’s commitment to diversifying its energy mix, enhancing energy security, and positioning itself as a key player in the global green economy. The move signals a strategic pivot towards attracting foreign direct investment (FDI) into renewable energy, grid infrastructure, and emerging technologies like green hydrogen, presenting substantial opportunities for international corporations and financiers.

Türkiye’s Ambitious Energy Transition Targets

Türkiye’s energy strategy is driven by a dual imperative: to meet a rapidly increasing domestic energy demand and to reduce its heavy reliance on imported fossil fuels. President Recep Tayyip Erdoğan emphasized in June 2026 that eliminating foreign dependency in energy through a “more local and more renewables strategy” is a top priority. The country’s electricity consumption increased by 2.1 percent year-on-year in 2025 and is projected to rise by 50 percent by 2035.

To address this, Türkiye has set ambitious targets for its energy transformation:

  • Renewable Energy Capacity: The nation aims to increase its combined wind and solar capacity to 120 gigawatts (GW) by 2035, a substantial jump from its current installed capacity of approximately 34.2 GW for solar and 15.8 GW for wind as of mid-2026. This implies adding at least 2,000 MW of wind and solar capacity annually.
  • Clean Generation Share: Türkiye targets a 55% clean generation share by 2035, up from 45% in 2024.
  • Nuclear Power: The Akkuyu Nuclear Power Plant, with a 4.8 GW capacity, is under construction and expected to begin production in late 2026. Türkiye also plans two additional nuclear investments, aiming for 20 GW from conventional plants and 50 GW through small modular reactors.
  • Grid Modernization: Energy and Natural Resources Minister Alparslan Bayraktar stated that about $80 billion of the total $200 billion investment sought by 2035 will be directed towards transmission, distribution, and grid infrastructure. BloombergNEF estimates that Türkiye needs to invest approximately $30 billion in transmission infrastructure between 2026 and 2035, requiring a nearly fivefold increase in annual investment from current levels.

As of April 2026, Türkiye’s total installed electricity capacity reached approximately 125 GW, with renewables exceeding one-fifth of total generation. Wind and solar made up 22% of Türkiye’s electricity generation in 2025. The European Bank for Reconstruction and Development (EBRD) reported that 66% of its €2.7 billion investment in Türkiye in 2025 supported the country’s green economy transition, with a particular focus on decarbonization and renewables.

Key Investment Areas and Incentives

Türkiye’s government is actively creating a supportive environment for foreign investment in its energy transition. The 2025 Investment Environment Improvement Council (YOIKK) Action Plan outlines legal and structural reforms, including a strong focus on green energy.

Key investment areas include:

  • Wind and Solar Auctions: Regular annual tenders, such as the early 2025 auction that awarded 2,000 MW of capacity, provide predictable opportunities for investors.
  • Hybrid Projects with Storage: Around 33 GW of wind and solar projects integrated with battery storage are in the pre-license phase, offering a substantial development pipeline. BloombergNEF forecasts battery storage capacity to grow from almost zero today to 8GW/24GWh by 2035.
  • Green Hydrogen: Türkiye’s 2023 Hydrogen Technologies Strategy and Roadmap aims to position the country as a global leader in green hydrogen production and innovation. Targets include 2 GW electrolyzer capacity by 2030, 5 GW by 2035, and 70 GW by 2053. The Ministry of Industry and Technology is set to publish a national hydrogen strategy to guide legislation and infrastructure.
  • Energy Efficiency and Industrial Decarbonization: The government is supporting the industrial shift towards renewable energy and has prepared “low carbon roadmaps” for energy-intensive sectors like iron and steel, aluminum, fertilizer, and cement, which are subject to the EU’s Carbon Border Adjustment Mechanism (CBAM).
  • Domestic Manufacturing: Türkiye is increasingly leveraging industrial policy to expand its role in global clean-technology supply chains, becoming a manufacturing hub for wind and solar components.

Türkiye offers a comprehensive suite of investment incentives:

  • Project-Based Incentive System: For large-scale projects, especially those reducing import dependency or involving high technology, customized packages including tax exemptions, cash grants, energy subsidies, and personnel support are available. The “HIT-30” program, a $30 billion high-technology investment initiative, targets sectors like EV batteries, semiconductors, solar panels, and wind turbines, requiring a minimum investment of 2 billion TL.
  • Priority Investments System: Investments in renewable energy manufacturing (solar, wind), data centers, and defense automatically qualify for enhanced incentives, often equivalent to those offered in less developed regions.
  • Feed-in Tariffs: A 10-year USD-based Feed-in Tariff ensures stable and predictable cash flows for renewable investors.
  • Tax and Customs Exemptions: Customs duty exemptions on imported machinery and equipment and VAT exemptions on domestic and imported capital goods are standard benefits across various programs.
  • Streamlined Processes: Legal reforms adopted in 2025, known as the “super permit,” aim to reduce permitting timelines for wind and solar projects significantly, from four years to 18 months for wind and from two years to 18 months for solar.

Foreign investors are explicitly allowed to invest in the energy sector without nationality-based restrictions, enjoying equal treatment with domestic investors under Foreign Direct Investment Law No. 4875.

While Türkiye presents a compelling case for energy transition investments, foreign investors must navigate a dynamic regulatory and economic environment. The market is managed by the Energy Market Regulatory Authority (EPDK), which oversees licensing, tariff approval, and market rules across electricity, natural gas, and renewable energy sectors.

Challenges include:

  • Regulatory Changes: Frequent updates to regulations can create uncertainty. Staying abreast of these changes is crucial for compliance.
  • Bureaucratic Processes: Obtaining necessary licenses and navigating extensive documentation can be time-consuming. The 2025 Action Plan includes creating a single-window investment platform to simplify transactions.
  • Financing and Currency Volatility: Despite strong momentum, financing remains a significant barrier. Currency volatility and elevated inflation have complicated investment decisions and increased financing costs for clean-energy projects. The Central Bank of the Republic of Türkiye (CBRT) held its policy rate at 37 percent in March and April 2026 amidst efforts to manage inflation.
  • Grid Capacity: Substantial investment, estimated at an additional $28 billion, is needed to expand Türkiye’s electricity grid to meet its 2035 goals, requiring external financing.
  • Climate Policy Credibility: While Türkiye has a net-zero target for 2053 and passed a Climate Law in July 2025, some experts, like those from Climate Action Tracker, express concerns about the lack of a clearly defined decarbonization pathway and continued investments in fossil fuels.

For foreign investors, understanding the intricacies of Türkiye’s legal and regulatory framework is paramount. Services such as Market Entry Strategy are vital to assess the specific opportunities within the energy sector, considering the various sub-sectors like wind, solar, green hydrogen, and energy storage, and aligning with the government’s strategic priorities. Company Incorporation and Corporate Structuring become essential to establish a legal presence, choosing the most advantageous structure to leverage incentives and manage liabilities.

Identifying and securing the right Investment Incentives is a complex process, given the multi-layered system based on region and sector, including the specialized HIT-30 program and project-based supports. Expert guidance is crucial to navigate these programs effectively. Furthermore, ensuring Legal and Tax Compliance is critical, as frequent regulatory updates, licensing regimes, and evolving technical standards necessitate careful planning and due diligence. This extends to environmental compliance, which is increasingly important for energy projects.

Government Relations and Regulatory Liaison are indispensable for navigating the bureaucratic processes, expediting permitting, and staying informed about policy changes. For companies looking to contribute to the domestic manufacturing value chain or export clean energy technologies, Import-Export Facilitation services would be key. Finally, for on-the-ground execution of large-scale energy projects, Project Management expertise is crucial to overcome logistical challenges and ensure timely completion.

What This Means for Foreign Investors

Türkiye’s proactive engagement with global investors in London signals a serious commitment to its energy transition, presenting a significant window of opportunity for foreign direct investment. The country’s ambitious targets for renewable energy, coupled with substantial investment needs in grid infrastructure and emerging technologies like green hydrogen, create a fertile ground for international capital and expertise.

For foreign investors considering Türkiye’s energy sector, several strategic considerations emerge. Firstly, a thorough Market Entry Strategy is essential to identify the most promising segments, whether it is participating in wind and solar auctions, developing battery storage solutions, or investing in the nascent green hydrogen ecosystem. Understanding the nuances of the “super permit” reform and other regulatory streamlining efforts will be critical.

Secondly, navigating the complex web of Investment Incentives requires expert guidance. Programs like HIT-30 and the Project-Based Incentive System offer lucrative benefits, but their application and negotiation demand a deep understanding of local policy. Investors must ensure their projects align with national priorities such as reducing import dependency and fostering high-technology production.

Thirdly, establishing a robust legal and operational framework through precise Company Incorporation and Corporate Structuring is fundamental. This includes understanding the requirements for foreign ownership, joint ventures, and special purpose vehicles for energy projects. Given the dynamic regulatory environment, continuous Legal and Tax Compliance is non-negotiable, requiring ongoing monitoring of EPDK regulations and environmental standards.

Finally, effective Government Relations and Regulatory Liaison will be paramount to mitigate bureaucratic hurdles and ensure smooth project development. This includes engaging with ministries and regulatory bodies to expedite licensing and approvals. For projects involving the supply chain, such as manufacturing wind turbine components or solar cells, Import-Export Facilitation will be crucial. Ultimately, successful execution of these capital-intensive projects will hinge on strong Project Management capabilities, ensuring that investments translate into operational assets that contribute to Türkiye’s energy future.

Sources