Türkiye’s plan to mobilize about $108 billion for wind, solar and grid infrastructure by 2035 is more than a clean-energy target. It is a test of whether one of the largest emerging-market power systems near Europe can turn policy ambition into bankable projects, industrial localization and lower energy-import exposure for foreign investors.
A $108 Billion Roadmap Moves From Target To Execution
Energy and Natural Resources Minister Alparslan Bayraktar told Anadolu Agency on September 16, 2026 that Türkiye expects to need roughly $80 billion for new generation and $28 billion for transmission infrastructure under its Renewable Energy 2035 Roadmap. The core target is 120 GW of combined wind and solar installed capacity by 2035.
The International Energy Agency, which last updated its policy tracker on June 24, 2026, records the same roadmap as a national policy in force. It says Türkiye plans 120 GW of solar and wind by 2035, 14,700 km of high-voltage direct current lines, about 15,000 km of new alternating-current lines, 40 HVDC converter centers and higher cross-border interconnection capacity.
That grid component is crucial. Türkiye is not merely adding panels and turbines to an existing system. It is trying to redesign the power network around electrification, data-center demand, air-conditioning loads, electric vehicles and industrial decarbonization. Bayraktar said Türkiye’s transmission-line length rose 80 percent to 77,000 km between 2005 and 2025, while transformer capacity increased 226 percent to 236,913 MVA, according to Anadolu.
For investors, the headline number is therefore less important than the sequencing. Generation assets, grid capacity, land access, permitting, domestic-content rules and offtake structures must move together. That is where market entry strategy, incorporation, incentives advisory, legal and tax compliance, government relations and project management become practical prerequisites rather than administrative details.
The Market Has Momentum, But The Buildout Must Accelerate
Türkiye has already built a meaningful renewable base. The Turkish Investment Office’s energy sector profile says the country had about 119.6 GW of total installed electricity capacity by mid-2025, including 22.9 GW of solar, more than 13.5 GW of wind and 32.3 GW of hydropower. It also says renewables accounted for more than 58 percent of installed capacity.
The latest figures suggest rapid growth continued into 2026. Balkan Green Energy News reported in July 2026, citing the Ministry of Energy and Natural Resources, that wind and solar together had reached 42 GW on the grid by May 2026, equal to about one-third of Türkiye’s 125.6 GW total capacity. The same report put solar at 26.9 GW and wind at 15.1 GW.
Solar has been the fastest-moving segment. IEA PVPS says TEİAŞ data show 4,694 MW of new solar capacity commissioned in 2025, with 4,175 MW coming from unlicensed production facilities and 521 MW from licensed plants. That distribution matters for foreign investors because much of the recent solar wave has been driven by self-consumption and industrial users, not only by utility-scale tenders.
Electricity generation data also show why Ankara sees renewables as a macroeconomic tool. Ember’s Türkiye Electricity Review 2026, summarized by the think tank in April 2026, found that wind and solar supplied 22 percent of Türkiye’s electricity in 2025, while coal remained the largest source at 34 percent. Solar generation doubled in two years, from 18.4 TWh in 2023 to 37.3 TWh in 2025, according to Ember’s figures cited by multiple energy outlets.
The gap between today’s approximately 40 GW-plus wind and solar base and the 120 GW target is still large. Achieving the 2035 goal requires annual additions around 7.5 GW to 8 GW, depending on the baseline used. That pace is higher than recent deployment, even after Türkiye’s strong 2025 solar year.
Auctions Are Becoming The Main Investment Gateway
Türkiye’s Renewable Energy Resource Area mechanism, known as YEKA, is now the main route for large-scale foreign participation. The 2026 round illustrates how the state is trying to convert targets into investable capacity.
Enerdata reported on July 16, 2026 that Türkiye launched a 2.4 GW auction package, split into 1.5 GW of onshore wind across seven projects and 900 MW of solar across 14 projects. Applications are due on October 13, 2026. The maximum bid price is set at €0.055 per kWh for both technologies, with floor prices of €0.0325 per kWh for solar and €0.035 per kWh for wind.
The commercial structure is notable. Selected solar developers can sell power on the open market for up to 60 months before entering a 20-year power purchase agreement, while wind projects receive a 72-month market period before the long-term contract begins, according to Enerdata. Balkan Green Energy News reported that the structure includes a one-way contract-for-difference feature and a guaranteed minimum of €47.5 per MWh during the initial market period.
These terms create a financing proposition that is more sophisticated than a simple feed-in tariff. Developers must model merchant-price exposure, Turkish power-market dynamics, currency assumptions, contribution-fee bids, performance guarantees and long-term offtake certainty. For foreign investors, this makes local legal and tax compliance, project finance structuring and market-entry analysis central to bid decisions.
The state is also using auctions to support domestic manufacturing. IEA PVPS says YEKA GES-2025 rules require at least 75 percent local content for solar modules and at least 51 percent for DC cables, mounting structures and inverter equipment. For the 2026 tender, Balkan Green Energy News reported similar requirements, including 75 percent local origin for the total value of solar panels and 51 percent thresholds for key balance-of-system components.
That creates opportunity for equipment makers and engineering firms, but it also raises execution risk. Investors must verify supplier qualifications, customs treatment, local-content certificates, import-export planning and incentive eligibility before pricing bids. Türkiye’s manufacturing base is an advantage, yet foreign sponsors that underestimate localization rules may find themselves exposed after award.
Energy Security Is The Macro Driver
Türkiye’s renewable push is partly a climate policy, but it is also a balance-of-payments policy. The country remains structurally exposed to imported oil, gas and coal.
Anadolu reported in September 2025 that Türkiye’s energy import bill was projected at $64 billion for 2025, down from $65.6 billion in 2024 under the government’s medium-term program. Separately, Asian Power, citing Ember’s June 2026 analysis, said Türkiye meets about two-thirds of its energy demand through imported fossil fuels, with import dependence of 95 percent for natural gas, 83 percent for crude oil and 60 percent for coal. Ember also estimated Türkiye paid $47 billion for net energy imports in 2025.
The sensitivity to external shocks is clear. Asian Power reported that a Gulf-related price shock in 2026 could add about $14 billion to Türkiye’s energy import bill, including $7.7 billion in crude oil costs and $6.4 billion in gas costs. For policymakers, every additional gigawatt of domestic wind and solar reduces some exposure to imported fuels, even if it does not eliminate the need for gas, coal, hydro, nuclear or storage.
This is also why Ankara is pursuing an “all-of-the-above” strategy. Türkiye continues to develop the Sakarya gas field in the Black Sea, expand LNG and storage infrastructure, and support its first nuclear plant at Akkuyu. The Investment Office says Sakarya production is expected to exceed 20 million cubic meters per day in 2026 with the Osman Gazi platform and reach around 40 million cubic meters per day by 2028 with a second platform.
For foreign investors, this mixed strategy is not necessarily contradictory. It signals that renewable assets will be inserted into a diversified energy-security architecture, not a single-technology transition. Investors must therefore understand power-market reform, grid dispatch, gas-price pass-through, carbon policy and industrial demand together.
Storage, Grids And Permits Will Decide Bankability
Battery storage is becoming an important differentiator. The Turkish Investment Office says about 33 GW of battery-integrated wind and solar projects are in the pre-license phase, one of Europe’s largest storage-backed pipelines. The Guardian reported in April 2026, citing Ember, that Türkiye had approved more than 33 GW of battery capacity since 2022, compared with 12 GW to 13 GW in Germany and Italy.
The same Guardian report quoted Ember analyst Ufuk Alparslan as saying Türkiye’s policy choices had created a “massive investment signal” for battery storage, while also warning of hurdles including permit bottlenecks and reliance on spot-market prices. That warning is important. Pre-licenses are not commissioned assets. Storage economics depend on market design, ancillary-service revenues, grid codes, import duties, battery technology risk and financing tenors.
Permitting is another constraint. The 2035 roadmap aims to shorten renewable project approval times, and Bayraktar has repeatedly emphasized faster procedures. Yet investors still face environmental impact assessment, zoning, land title, expropriation, grid-connection, EMRA licensing, construction permits, occupational safety, tax registration and municipal coordination.
This is where project management and government relations have a concrete role. A foreign developer entering a YEKA round or acquiring a project company needs a permit map, a stakeholder map and a critical-path schedule before capital is committed. Incorporation and corporate structuring also matter because renewable generation is generally carried through a Turkish project company that holds licenses, land rights and grid agreements.
Türkiye’s FDI Regime Is Open, But Sector Execution Is Technical
Türkiye’s general investment framework remains relatively open. ICLG notes that Foreign Direct Investment Law No. 4875, enacted in 2003, is based on equal treatment and a notification system rather than a broad approval system. However, it also notes that regulated and strategic sectors, including energy, may require sector-specific approvals.
White & Case reported in March 2026 that Türkiye’s FDI inflows rose 45.5 percent year over year to $11.4 billion in 2025, based on Investment Office statistics, and that the 2024 to 2028 FDI strategy prioritizes digital transformation, green technologies and global value-chain integration.
That policy alignment is positive for energy investors, but not sufficient on its own. Renewable projects are capital-intensive, permit-heavy and politically visible. A sponsor may need to decide whether to enter through a greenfield project, a YEKA bid, a storage-integrated project, a self-consumption PPA for an industrial client, an equipment-manufacturing investment, or an acquisition of a local developer.
Each route has different advisory needs. Market entry strategy defines the route. Incorporation and corporate structuring set up the project vehicle. Investment incentives work identifies regional, strategic and green-transition support. Legal and tax compliance manages EMRA, VAT, customs, withholding, transfer pricing and reporting. Government relations supports engagement with ministries, municipalities, TEİAŞ and EMRA. Expo representation and import-export facilitation matter for equipment makers looking to build supplier channels. Project management keeps land, grid, procurement and construction milestones aligned.
What This Means for Foreign Investors
Türkiye’s $108 billion plan creates a broad opportunity set, but it is not a simple “build renewables” story. The investable market will be shaped by auction rules, local-content obligations, storage integration, grid capacity, land access, financing costs and the pace of regulatory execution.
Foreign investors should begin with route selection: utility-scale YEKA bids, self-consumption solar, storage-backed hybrid projects, manufacturing, EPC services, grid equipment or acquisition of existing developers. They then need a bankability review covering offtake terms, currency exposure, incentives, permitting timelines and local supplier compliance.
The practical work is granular. It includes forming or acquiring the Turkish project company, mapping licenses and land rights, validating domestic-content certificates, assessing tax and customs treatment, coordinating with public authorities, structuring imports and local procurement, and managing construction execution on the ground. For an FDI advisory firm such as fdiconsultancy.com, those service areas are where policy ambition becomes an executable investment plan.