5 Questions: Where Türkiye's Clean Energy Investment Finds Highest Value in 2025?

When we discuss clean energy, the focus quickly shifts from how to finance projects to where those investments can actually go. Türkiye stands out as a market where policy, technology, and growing demand are coming together to create clear opportunities in clean energy. The country has not only met but significantly exceeded its 2025 solar energy targets much earlier than planned, reaching 21.62 GW by March 2025. This fast growth, along with new regulations and a strong local supply chain, makes Türkiye an attractive place for clean energy investments.

1. Where are the primary value opportunities in Türkiye's solar sector for 2025?

Türkiye's solar sector is experiencing remarkable growth, often called its "Golden Era". This rapid expansion is mainly due to unlicensed, self-consumption projects, which make up 90-94% of new capacity additions since July 2022. A key rule change in August 2022 allowed businesses to build solar facilities in different areas from where they use the power. This greatly boosted distributed solar opportunities, and Türkiye now has 22 GW of unlicensed solar capacity.

Additionally, hybrid power plants, which combine multiple energy sources, are a strategic opportunity to use existing grid capacity more efficiently. By late 2023, about 1.9 GW of approved hybrid solar capacity was waiting to be installed. There's also significant potential for floating solar on dammed hydro reservoirs, estimated at over 53 GW.

Looking ahead, storage-integrated solar power (SISP) shows huge potential. Türkiye has a strong pipeline of about 33 GW of pre-licensed wind and solar projects that include storage, with over 14 GW being solar SISP projects as of 2024. This amount is far greater than the National Energy Plan's (NEP) 2030 target of 2.1 GW for battery storage, showing strong investor interest.

2. What emerging value propositions does Türkiye's wind energy sector offer in 2025?

Türkiye's installed wind capacity reached 13.098 GW by the end of March 2025. The country expects to add another 1 GW of wind energy in 2025, bringing the total to 14 GW.

• Onshore Wind continues to be a core part of Türkiye's renewable energy strategy. In February 2025, Türkiye completed five tenders for 1.2 GW in wind energy projects, expected to bring in $1.2 billion in investments. These tenders require at least 55% local content in components, supporting Türkiye's goal of 70-75% localization for renewable components.

• Offshore Wind Development is a significant, yet mostly undeveloped, area for Türkiye, with a total potential of 75 GW. The Ministry of Energy and Natural Resources (MENR) is actively preparing for future development. The first offshore wind tender is expected in late 2026 or early 2027, covering 3 GW across three sites. This effort to collect and analyze data in advance is a key step to reduce risks for future projects.

• Storage-Integrated Wind Projects are becoming increasingly important. Türkiye has set aside 18 GW of wind capacity for these projects by 2030, with a notable 2.5 GW expected to be operational by 2025. After 2026, energy storage systems are expected to be a standard feature in the wind sector, helping to stabilize the grid and make better use of wind energy.

3. How is battery storage unlocking significant investment value in Türkiye's clean energy transition for 2025?

Battery storage is vital for effectively adding variable renewable energy sources and improving grid stability and resilience.

Türkiye has a massive pipeline of about 33 GW of pre-licensed wind and solar projects that include storage, with pre-licensing periods extending until 2030. This figure is significantly higher than the official 2035 target of 7.5 GW for battery storage, showing very strong investor interest. Regulations from 2022 allow these projects to get pre-licenses up to their storage capacity without grid allocation limits, which has clearly boosted investor appetite.

Beyond project deployment, Türkiye is actively developing a local battery manufacturing industry. Pomega Energy Storage Technologies' factory in Ankara, opened in 2023, is Türkiye's first private-sector LFP (lithium iron phosphate) cell factory. Through a partnership with US-based Our Next Energy (ONE), this plant will produce 2 GWh of LFP battery cells for ONE in 2026, growing to 5 GWh in 2027. This partnership helps meet the US Inflation Reduction Act's (IRA) Domestic Content Bonus requirements, positioning Türkiye as a key player in the global battery supply chain.

4. What strategic value does green hydrogen present for long-term investors in Türkiye's 2025 outlook?

Hydrogen energy is increasingly seen as a vital part of the global shift to renewable energy. Türkiye aims for green hydrogen to be a game-changer for sustainability and energy independence, aligning with its ambitious 2053 net-zero carbon emission goals.

Key projects include the "Güney Marmara Hydrogen Coast – HYSouthMarmara Project," which plans to create Türkiye's first hydrogen valley and has received a €7.5 million grant from the European Commission. Also, Tüpraş, Türkiye's largest fuel producer, plans to significantly increase its electrolyzer capacity to 400 MW by 2030 and 1 GW by 2035.

Türkiye has big plans to export excess green hydrogen to Europe, using its location and affordable renewable energy. However, there is currently no full legal framework in Türkiye for regulating hydrogen production, distribution, and safety standards. Establishing a clear regulatory framework, especially one that matches EU rules, is crucial for Turkish hydrogen exports to succeed in global markets.

5. What aspects of Türkiye's investment climate enhance the value potential of clean energy projects in 2025?

Türkiye's proactive approach to energy transition is supported by a favorable investment environment:

• Public Investments: The 2025 Public Investment Program has allocated USD 2.8 billion specifically for the energy sector. These investments support 81 energy projects, including renewables and foundational energy infrastructure, which helps reduce overall risk for private investments.

• Regulatory Reforms: The Ministry of Energy and Natural Resources (MENR) plans to introduce "super permits" in Q1 2025. The goal is to cut the permit process for renewable energy investments from about 48 months to a more efficient 24 months. This directly lowers project development costs and reduces financial risk for investors.

• Localization: Türkiye has built a strong local supply chain, with 75% localization for solar components and over 70% for key wind power equipment. This reduces reliance on imports, mitigates currency risk, and offers incentives for using local components, potentially leading to higher returns.

Seize the Moment

Türkiye's clean energy sector offers a diverse and highly attractive investment landscape. The country's proactive approach, shown by its early achievement of solar targets and ambitious long-term goals, is supported by a dynamic market that quickly responds to new regulations.

Opportunities range from the continued growth of solar (especially self-consumption and storage-integrated projects) to the revitalized wind sector, with significant potential in both onshore expansion and the emerging offshore market. The critical role of battery storage, with a pre-licensed pipeline far exceeding official targets, signals strong and immediate demand for solutions that stabilize the grid and integrate renewables. Additionally, the initial steps in green hydrogen are setting the stage for a strategic long-term play with significant export potential.