Türkiye’s plan to invest $28 billion in electricity transmission by 2035 is no longer just an energy-sector upgrade. It is becoming one of the country’s defining foreign direct investment tests, because the grid will determine whether Ankara can convert its 120 GW wind and solar target into bankable projects, industrial competitiveness and lower exposure to imported fossil fuels.
Ankara’s Grid Bet Moves To The Center Of Energy Policy
Energy and Natural Resources Minister Alparslan Bayraktar told Anadolu Agency on September 16, 2026 that Türkiye expects about $108 billion of power-sector investment by 2035, split between roughly $80 billion for generation and $28 billion for transmission infrastructure. The headline number matters because transmission is the hard infrastructure behind Türkiye’s Renewable Energy 2035 Roadmap, which targets 120 GW of installed wind and solar capacity.
The minister said Türkiye’s transmission network has already expanded sharply between 2005 and 2025. According to Anadolu’s report, total transmission line length rose 80 percent to 77,000 kilometers, TEİAŞ substations increased from 512 to 824, and transformer capacity rose 226 percent to 236,913 MVA. The Turkish Electricity Transmission Corporation, TEİAŞ, currently reports 77,525 kilometers of transmission lines and 824 high-voltage substations on its own electricity transmission statistics page, with installed capacity at 126.5 GW as of July 2026.
The next phase is more complex. Bayraktar said Türkiye plans to build high-voltage direct current corridors totaling around 9,580 kilometers with 28 GW of capacity, alongside 15,000 kilometers of new alternating-current transmission lines. The International Energy Agency policy database, summarizing the 2024 roadmap, describes a broader green transmission plan of 14,700 kilometers of HVDC lines with 40 GW of capacity, around 15,000 kilometers of AC lines and 40 HVDC converter centers. The difference appears to reflect either updated phasing or different definitions of the corridor program, but the investment signal is clear: grid construction is now central to Türkiye’s clean-energy industrial strategy.
Why Transmission Has Become The Binding Constraint
Türkiye’s electricity demand is rising for structural reasons. Bayraktar cited artificial intelligence, data centers, electric vehicles and air conditioning as sources of higher electricity use. That is consistent with the broader global pattern, but Türkiye’s case is sharpened by industrial growth, urbanization and the government’s ambition to raise electrification to 35 percent by 2035.
The Investment Office of the Presidency of Türkiye reports that Türkiye generated about 343 TWh of electricity in 2024 and had approximately 119.6 GW of installed capacity by mid-2025. It also says renewables accounted for more than 58 percent of installed capacity, including 22.9 GW of solar, more than 13.5 GW of wind, 32.3 GW of hydropower and about 1.7 GW of geothermal.
Capacity, however, is not the same as usable energy delivered to consumers. Wind and solar projects are often located far from major demand centers, while industrial consumption is concentrated around Marmara, the Aegean, Central Anatolia and export-oriented manufacturing clusters. Without sufficient transmission, new renewable plants face curtailment, delayed grid connection, weaker project economics and higher financing costs.
That is why the grid plan has direct FDI implications. A foreign solar developer, turbine supplier, cable manufacturer, battery investor or data-center operator must evaluate not only market demand, but also grid connection rights, TEİAŞ planning, land access, permitting, incentive eligibility and import rules for equipment. In practice, this makes market entry strategy, legal and tax compliance, government relations and project management part of the investment case rather than administrative afterthoughts.
The Renewable Target Is Pulling In Foreign Capital
The transmission announcement comes as Türkiye is already testing investor appetite through auctions and bilateral investment agreements. The Renewable Energy Resources Area mechanism, known as YEKA, remains the country’s main tool for allocating large-scale wind and solar capacity. Balkan Green Energy News reported that the roadmap includes annual renewable capacity additions of around 7.5 GW to 8 GW, a scale that would require sustained private capital and equipment supply.
The same outlet reported that Türkiye had 12.4 GW of wind and 18.7 GW of solar installed at the time of the roadmap presentation in October 2024, while the 2035 target was raised to 120 GW, including 5 GW of offshore wind. It also cited ministry figures showing 69.6 GW of solar and wind projects under development, including 33.9 GW combined with storage.
Foreign investors are already moving. In February 2026, PV Magazine reported that Saudi Arabia’s ACWA Power would develop two 1 GW solar plants in Türkiye as part of a wider 5 GW renewable agreement. ACWA’s own company statement said the program could bring up to $5 billion in foreign direct investment and support Türkiye’s 120 GW renewables goal.
The grid is what turns these headline deals into operating assets. For investors, the opportunity is broader than owning generation. It includes HVDC equipment, substations, transformers, grid software, SCADA systems, energy storage, EPC contracting, operation and maintenance, power electronics, cable logistics and import-export facilitation for specialized components. It also creates room for expo and trade-fair representation, because procurement in this sector is relationship-heavy and often depends on visibility with state entities, EPCs, distributors and industrial buyers.
Multilateral Finance Is De-Risking The Grid Buildout
A notable development is the World Bank’s role. In August 2025, the World Bank approved financing for the Türkiye Transforming Power Transmission System Project, including a EUR 625 million IBRD loan, a EUR 32.798 million Clean Technology Fund loan and a $2 million CTF grant. The bank said the project would help integrate renewable energy into the national transmission grid and directly enable 1.7 GW of renewable capacity.
Humberto Lopez, the World Bank Country Director for Türkiye, said the project would enhance energy security, reduce fossil-fuel import dependency, improve competitiveness and develop new industries with skilled jobs. The World Bank also said the project includes new high-voltage substations, modernization of existing assets, transmission lines, underground cables, SCADA and Energy Management System upgrades, and technical assistance for Türkiye’s first HVDC corridors.
For foreign investors, multilateral participation changes the risk profile. It does not remove project risk, but it can improve procurement transparency, strengthen environmental and social standards, and create a more familiar framework for international lenders. Companies entering Türkiye’s grid ecosystem will still need local incorporation, tax structuring, Turkish tender documentation, employment compliance, customs planning and sector-specific permits. But World Bank-backed grid modernization creates a reference point for international standards and may encourage other lenders to participate in later phases.
Regulation, Carbon Policy And Industrial Competitiveness
The transmission plan also intersects with Türkiye’s climate and export policy. On July 2, 2025, Türkiye’s parliament adopted the country’s first Climate Law, which entered into force after publication in the Official Gazette on July 9, according to the International Carbon Action Partnership. ICAP said the law establishes the legal basis for a national emissions trading system and creates a Carbon Market Board chaired by the environment minister.
ICAP also reported that Energy Exchange Istanbul, EPİAŞ, will operate the secondary market for allowances and manage the registry. The pilot phase is expected to begin in 2026, with secondary legislation and planning tools due by the end of 2027. For manufacturers, this matters because electricity sourcing, carbon accounting and renewable procurement will increasingly affect competitiveness, especially for exporters exposed to the European Union’s Carbon Border Adjustment Mechanism.
Grid investment therefore supports more than generation targets. It strengthens Türkiye’s ability to supply lower-carbon electricity to steel, cement, automotive, machinery, chemicals, textiles and data-intensive industries. International companies considering Turkish production sites will need to assess whether renewable power access is credible at the specific location, not just at the national level. That is a market entry and site-selection question, but also a compliance question, because carbon reporting and electricity sourcing claims will need documentation.
Investment incentives may become more strategic as well. Türkiye already uses renewable support mechanisms, auctions, storage-linked pre-licensing and industrial support programs. The Investment Office describes regular annual tenders, hybrid renewables with storage and a 33 GW battery-integrated project pipeline as key investment areas. Foreign investors will need to map which incentives apply to generation, storage, equipment manufacturing, R&D, regional investment zones and organized industrial zones.
Execution Risks Remain Material
The opportunity is large, but investors should not mistake targets for execution. Türkiye’s power market has deep private-sector participation, but renewable projects can still face land acquisition issues, environmental approvals, grid connection timing, local-content expectations, currency exposure, financing costs and changes in market rules. Grid construction itself requires rights of way, public procurement discipline, equipment availability and coordination between TEİAŞ, regulators, municipalities, ministries and project sponsors.
The supply chain is another risk. HVDC systems, transformers, high-voltage cables and power electronics are in global demand as Europe, the Gulf, China, India and the United States all expand grids. Türkiye has domestic manufacturing capacity in wind components, cables, electrical equipment and solar modules, but large-scale grid modernization will still require imported technology and careful customs planning. Import-export facilitation, supplier due diligence and tax treatment of cross-border equipment flows can materially affect project timelines.
Permitting reform will be decisive. Balkan Green Energy News reported that Bayraktar has sought to cut renewable project permitting from around four years to two years or less. If that is achieved consistently, Türkiye’s investability improves. If permitting remains uneven across provinces and agencies, investors may price in delays or favor partnerships with established local players.
This is where government relations and project management become practical investment tools. A foreign developer or equipment supplier needs to understand which institution controls which approval, how tender rules interact with corporate structure, whether a local subsidiary or joint venture is preferable, and how to sequence land, grid, environmental, tax and financing workstreams. The grid plan rewards investors that treat execution as a local operating discipline.
What This Means For Foreign Investors
Türkiye’s $28 billion transmission target should be read as an opening of the energy infrastructure value chain, not only as a public utility spending plan. The main opportunities are in renewable generation, HVDC and AC transmission equipment, substations, digital grid systems, storage, EPC services, industrial renewable supply, and equipment manufacturing tied to Türkiye’s export base.
For foreign investors, the advisory steps are concrete. Market entry analysis must identify where grid capacity, demand growth and incentives overlap. Incorporation and corporate structuring must fit tender participation, financing and tax needs. Investment incentives work should determine whether projects qualify for renewable, regional, R&D, storage or manufacturing support. Legal and tax compliance must cover licensing, emissions rules, public procurement, employment, customs and carbon reporting. Government relations matter because the sector is institutionally dense, involving TEİAŞ, EMRA, ministries, municipalities and state-linked offtakers. Expo representation and import-export facilitation can help technology providers reach buyers and move specialized equipment efficiently. Project management is essential once capital is committed, because delays in land, grid, permits or procurement can reshape returns.
The investment thesis is strong but conditional. Türkiye has demand growth, renewable resources, industrial depth and a strategic reason to reduce fossil-fuel import exposure. The $28 billion grid buildout is the infrastructure bridge between those advantages and actual operating assets. Foreign investors that understand the regulatory map, local execution environment and financing logic will be better positioned than those treating the announcement as a simple capacity headline.