Nearly $10 Billion pours into Turkiye’s solar power after regulatory adjustment

A regulatory reform unveiled a year ago fueled a campaign that triggered billions of dollars of investments in Turkiye’s solar energy industry, a senior official said Saturday.

Mustafa Yılmaz, head of the Energy Market Regulatory Authority (EPDK), highlighted that the steps taken toward unlicensed electricity generation have simplified the process for consumers to harness solar energy for self-consumption.

The adjustments in the Unlicensed Electricity Generation Regulation, announced in August 2022, triggered a renewed wave of investment in solar energy,Yılmaz said in a statement.

“Within a year, we encountered an investment appetite and effort beyond our expectations, amounting to nearly $10 billion,” he noted.

“Capacity allocation for unlicensed solar production facilities with a combined capacity exceeding 12,000 megawatts (MW) across more than 14,000 facilities has been accomplished.”

The 2,000 MW that has been put into operation has lifted the total installed capacity of unlicensed electricity generation facilities to 13,500 MW, said the head of the energy watchdog.

The campaign, dubbed “produce where you want, consume where you want,” enables consumers who are unable to find space for unlicensed solar production facilities in areas with dense urban development or industrial zones to establish facilities across the country.

The adjustment allows consumers to sell surplus energy back to the grid, generating additional income, Yılmaz said.

About 55% of Turkiye’s installed capacity today is composed of renewable energy sources, Energy and Natural Resources Minister Alparslan Bayraktar said last month. This makes Turkiye rank 12th in the world and fifth in Europe.

The National Energy Plan, announced last February, envisages this share to reach 65% by 2035.

To achieve this, Turkiye plans to put into operation each year for the next 12 years 3,000 MW of solar energy, 1,500 MW of wind energy and a total of 5,000 MW of offshore wind energy, according to Bayraktar.

Turkiye’s total installed power capacity stood at 104,348 MW as of the end of March, with solar power accounting for some 9,820 MW, according to Energy and Natural Resources Ministry data.


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