Breaking Grounds: Türkiye’s €640M Grid Overhaul Powers Up Clean Energy Future
ISTANBUL — In a move set to reshape its energy landscape, Türkiye has launched a €640 million national grid modernization project backed by the World Bank and Clean Technology Fund. The “Transforming Power Transmission System Project (TPTS),” approved in August 2025, is not just a critical investment, it’s a long-overdue answer to the growing pressure on the country’s overloaded electricity grid.
With solar and wind projects stalling due to limited grid capacity, this initiative marks a turning point in Türkiye’s renewable energy rollout.
A Tipping Point for Türkiye’s Clean Energy Transition
The urgency is real. Between early 2024 and mid-2025, more than 65% of new solar applications were rejected — not due to lack of ambition, but because the grid couldn’t handle more power.
Meanwhile, Türkiye has pledged to:
Reach 120 GW of wind and solar capacity by 2035
Achieve a 65% share of renewables in electricity capacity
Meet net-zero emissions by 2053
But these targets are at risk unless grid infrastructure catches up — and fast.
TPTS is the bold intervention the sector has been waiting for.
What the TPTS Project Actually Does?
Under the project, Türkiye will:
Upgrade and expand high-voltage substations and transmission lines nationwide
Deploy smart grid technologies, including SCADA and Energy Management Systems
Pilot the country’s first HVDC corridors for long-distance, high-efficiency power transfer
Strengthen the institutional capabilities of TEİAŞ, the national grid operator
These upgrades will immediately unlock 1.7 GW of renewable capacity, with much more enabled in the long term.
Critically, the project is also designed with flexibility in mind — allowing dynamic adjustments to meet shifting energy demands and tech advancements.
A Vote of Confidence from the World Bank
In supporting this transformation, the World Bank has underscored its confidence in Türkiye’s leadership on clean energy. As Humberto Lopez, World Bank Country Director for Türkiye, puts it:
"Türkiye has set one of the world's most ambitious renewable energy targets and at the World Bank we are proud of supporting it. By modernizing the transmission network and scaling up renewables, the country is enhancing its energy security, reducing fossil fuel import dependency, improving its competitiveness, and developing new industries with the potential to create a large number of skilled jobs."
The message is clear: this project is not just about energy — it’s about economic growth, resilience, and long-term regional positioning.
Market Reaction: A Boost for Investor Confidence
Türkiye’s energy sector has already drawn significant attention, with $100 billion in FDI between 2020 and 2025. The World Bank’s involvement in TPTS sends a strong signal to global investors that Türkiye’s energy transformation is not only serious — it’s strategically supported.
Still, barriers remain. Hybrid solar projects, seen as efficient near-term solutions, continue to face permitting delays. While Türkiye’s regulatory reforms aim to remove roadblocks, swift and consistent execution remains critical.
More Than a Domestic Fix: Türkiye’s Regional Play
The TPTS project also lays the groundwork for Türkiye’s broader geopolitical energy ambitions.
With expanding transmission links to Iraq, Greece, and Iran, and participation in regional initiatives like the Development Road, Türkiye is aligning its internal upgrades with a vision of regional integration, where clean energy flows across borders, not just across provinces.
What This Signals?
This grid modernization project is more than overdue infrastructure. It’s a foundational step that turns Türkiye’s clean energy ambitions into a working system. As implementation begins, the world will be watching how quickly this upgrade can deliver results — in connectivity, investment returns, and real renewable energy generation.
But one thing is already clear: Türkiye is no longer talking about a clean energy future. It’s building it.
