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Turkiye to resume renewable energy auctions to boost investment in green energy sector

October 9, 2024 at 6:26 pm

Turkish Minister of Energy and Natural Resources Alparslan Bayraktar speaks during the rally in Zonguldak, Turkiye on February 10, 2024 [Emin Sansar/Anadolu via Getty Images]

Turkiye has announced the resumption of its renewable energy auctions as part of a broader strategy to attract new investments and expand its clean energy capacity. The Turkish Ministry of Energy and Natural Resources confirmed that a series of auctions will be held in the coming months, aimed at accelerating the country’s transition to renewable energy sources, including solar, wind and biomass.

The auctions, set to launch in early 2025, will focus on developing large-scale renewable energy projects with the goal of meeting Turkiye’s growing energy demands while reducing its reliance on fossil fuels. The initiative also aligns with Turkiye’s long-term commitment to combat climate change by reaching its target of generating 65 per cent of its electricity from renewable sources by 2030.

Attracting domestic and foreign investors

Energy Minister, Alparslan Bayraktar, highlighted the significance of these auctions for both the economy and the environment. “We are committed to building a greener and more sustainable future for Turkiye,” Bayraktar said during a press conference in Ankara. “These auctions will not only reduce our carbon emissions but also attract significant domestic and international investments, creating jobs and fostering technological advancements.”

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The auctions are expected to attract a wide range of participants, including Turkish companies and foreign investors looking to capitalise on Turkiye’s abundant natural resources and strategic location. The country’s renewable energy potential, particularly in solar and wind power, has drawn considerable interest from global energy firms in recent years.

The upcoming auctions will feature a mix of large and small projects, providing opportunities for both established energy companies and new market entrants. The government is also considering offering favourable financing options and streamlined approval processes to ensure swift development of the projects.

In addition to solar and wind, the auctions will place a renewed focus on offshore wind energy, with several coastal regions identified as potential sites for large-scale wind farms. Turkiye’s rich offshore wind potential is seen as a key asset in helping the country diversify its renewable energy portfolio.

The move to resume renewable energy auctions comes at a critical time as Turkiye seeks to enhance its energy security and reduce its dependence on imported fossil fuels, particularly natural gas. The transition to renewables is expected to lower energy costs over time and provide greater stability in the country’s energy markets.

The Turkish government has already made significant strides in renewable energy development, with renewable sources accounting for over 50 per cent of Turkiye’s electricity generation in 2023. The new auctions aim to build on this momentum by scaling up the capacity of renewable projects across the country.

The auctions are also expected to contribute to Turkiye’s broader green energy goals under its updated National Energy Plan, which includes plans to increase the capacity of installed solar power to 20 gigawatts (GW) and wind power to 25 GW by 2035.

Industry stakeholders and environmental groups have welcomed the announcement, noting that the resumption of auctions will help Turkiye reach its ambitious energy targets. “This is an important step toward positioning Turkiye as a regional leader in renewable energy,” said Hakan Yildiz, CEO of a leading Turkish solar energy firm. “With the right incentives, Turkiye can continue to attract major investments in the green energy sector.”

International energy investors have also shown keen interest in participating in the auctions, citing Turkiye’s strategic location between Europe and Asia as a key factor for investment. The Turkish energy market, with its growing demand and favourable regulatory environment, offers a prime opportunity for investors seeking long-term returns in the renewable energy space.

As Turkiye moves forward with its renewable energy transition, the upcoming auctions are set to play a vital role in reshaping the country’s energy landscape, driving sustainable economic growth, and strengthening its position in the global clean energy market.

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