Summary

The Turkish renewable energy market is expected to register a CAGR of around 4.5% during the forecast period. The COVID-19 pandemic affected the renewable energy market of the country negatively by delaying several projects and auctions, including mini renewable energy resource zone (YEKA) auctions for solar photovoltaic systems. The pandemic resulted in the reduced annual additions of solar energy in 2020. Thus, the country is aiming to increase solar PV installation in 2021. The primary driver for the market includes the government initiatives to limit its dependence on fossil fuels and use low-cost and sustainable energy sources. However, the lack of proper grid infrastructure to integrate renewable energy sources is expected to hinder the market growth during the forecast period.

Key Highlights
The hydropower segment accounted for a significant market share in 2020, and it is likely to dominate the market during the forecast period.
In April 2021, the officials of the Offshore Wind Energy Association (DÜRED) stated that the total offshore wind power potential stands at 75 gigawatts (GW) in Turkey. Such a huge potential of offshore wind energy is expected to create significant opportunities for wind farm operators and developers in the near future.
The increasing demand for energy, coupled with supportive government policies, is expected to drive the renewable energy market during the forecast period.


Key Market Trends

Hydropower to Dominate the Market


Turkey is a rich country in terms of hydroelectric resources. Although the current level of installed hydropower capacity is positive, with over 28.5 GW overall, GW from river plants, and 20.5 reservoir dams, there is still an additional economic potential of up to 50 GW.
Hydropower accounted for more than 50% of the total renewable energy installed capacity in Turkey as of 2020.
In February 2021, GE Renewable Energy successfully completed the 500 MW Lower Kaleköy Hydropower at the Lower Kaleköy Dam in Turkey.
The country is developing renewable energy, particularly hydropower, at a considerable pace due to large-scale investments. Thus, the total renewable capacity in Turkey increased to 44.5 GW in 2019 from 31.5 in 2015.
Thus, due to factors, such as efforts to reduce electricity imports and dependence on fossil fuels, the hydropower segment is expected to continue its dominance during the forecast period.


Increasing Energy Demand and Supportive Government Policies to Drive the Market


Energy demand in Turkey is increasing rapidly for the past few years, which led the government to focus on both conventional and renewable energy resources. It is estimated that energy consumption increased at an average rate of around 7.5% every year.
As of 2019, Turkey is dependent on fossil fuels for electricity generation. However, the country increased its renewable energy share to nearly 43% in the country’s energy mix in 2019 in comparison to 32% in 2018.
One of the most important causes of the upward change in the renewable energy market in Turkey is reducing the country’s dependence on foreign resources for energy by decreasing energy imports.
With an increase in energy demand, the government is planning to increase its investment in renewable resources. The country is expected to make an investment of around USD 61 billion by 2023 to mitigate the rising energy demand and expand its existing renewable energy market.


Competitive Landscape

The Turkish renewable energy market is moderately fragmented. Some of the major players operating in the market include IC Ictas Energy Investment Holding, Statkraft AS, Poyry PLC., Sanko Enerji, and JinkoSolar Holding Co. Ltd.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support

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