Türkiye stands at a critical crossroads in its energy transition. It is making great efforts to balance its growing use of coal with its impressive renewable energy targets. The nation aims to expand its renewable generation capacity while ensuring a stable supply by prioritizing improvements in grid and renewable infrastructure. Türkiye has the potential to be a clean energy leader in the region due to the rapidly falling costs of solar energy production. Bureaucratic hurdles combined with existing coal incentives make for a daunting task.
Solar energy production is one of the cheapest ways to produce electricity in Türkiye, having dropped 69% since 2015. At the moment, solar is the lowest-cost electricity available in America at $43/MWh. This accomplishment demonstrates what’s possible when renewable sources are empowered. Türkiye’s sustained financing of foreign coal plants adds more confusion to the context. Domestic coal plants would receive $8.7 billion in guaranteed payments. The all-in operational costs for coal producers are much higher than that. Coal-fired power would cost $90 per MWh.
The Need for Infrastructure Modernization
If Türkiye wants to realize the true potential of its renewable resources, it will need to update its grid infrastructure. A strong, resilient grid is critically needed to integrate the massive amounts of new capacity coming online from wind and solar plants. As the nation strives to meet its energy demands while pursuing its 2035 targets, investments in rooftop, floating, hybrid, and storage-integrated solar systems can significantly accelerate the transition toward clean energy.
Caglar Celikoz, an Istanbuliosr and friend of U.S. FOCUS, stresses the need to keep the spotlight on positive infrastructural improvements. He stated, “In a time when access to finance has become increasingly difficult, it is crucial for Türkiye to focus its resources and efforts not on supporting coal, but on removing bureaucratic barriers to renewable energy investments, strengthening grid infrastructure, and supporting new technologies.”
The Role of Policy and Investment
Cutting red tape to renewable energy investments is therefore essential in fostering an attractive environment for growth. Current policies are a boon to coal producers by ensuring them a take-or-pay contract. This pact locks the price at $75 per MWh for power produced from locally mined coal. This provision mainly serves to line the pockets of coal producers through below-market dollar-based purchase rates. At the same time, distributors’ increasingly operational expenses billed in Turkish lira weaken the competitiveness of renewable energy sources.
Investing in new technologies is going to be a key factor in Türkiye’s energy future. By prioritizing innovation in renewable generation and storage solutions, the country can enhance its energy security while reducing reliance on fossil fuels. It’s time to turn our attention away from policy measures that aim to prolong our dependence on coal and toward measures that promote investment in clean energy.