Prepared jointly by the Presidential Investment and Finance Office and APLUS Energy Consulting, the Energy Sector Report 2026 outlined the steps Türkiye aims to take in the energy sector by 2035 and its investment needs.
According to the report, which includes projections from the Ministry of Energy and Natural Resources, Türkiye aims to raise its total installed wind and solar capacity to 120 gigawatts by 2035. Reaching this target will require adding 8 to 9 gigawatts of new capacity each year.
Energy transition requires $200 billion in financing
The report estimates that total financing needs for the energy transition, including nuclear power, stand at around $200 billion. Approximately $80 billion of this amount is expected to cover investments to increase system flexibility, modernize the grid, and develop transmission, distribution and grid infrastructure.
Grid modernization, system flexibility and financing needs were identified as key factors in reaching the 2035 targets. The scale of investment was assessed as creating opportunities for international investors in various areas of the energy sector.
Electric vehicles and storage investments come to the fore
The study examined new investment areas, including battery storage and electric-vehicle charging infrastructure, alongside conventional power generation. Projections based on data from the Energy Market Regulatory Authority indicate that the number of electric vehicles in Türkiye could reach 7 million by 2035 under the high-growth scenario.
Renewable energy investments integrated with battery storage and the Renewable Energy Resource Area DÜRES-2026 process, described as Türkiye’s first offshore wind energy initiative, were among the investment opportunities highlighted in the report.
Seven technology areas assessed from an investor perspective
The report examined seven main technology areas separately: wind, solar, battery storage, hydropower, geothermal, biomass and green hydrogen. For each area, it assessed current market conditions, investment opportunities, factors affecting revenue structures and the key risks investors should consider.
The first section examined the development of Türkiye’s electricity market, its current market structure, the balance between supply and demand, changes in electricity demand and installed capacity, the generation structure and market operations. It also reviewed recent regulatory changes and the medium- and long-term outlook for electricity demand.
The second section focused on renewable energy and battery-storage investments. The development of wind and solar energy was assessed within the framework of the Renewable Energy Resources Support Mechanism, the YEKA model, unlicensed and hybrid projects, storage investments and regulations supporting domestic production.
Market regulations and risks examined
The report also addressed changes in market design, imbalance costs, ancillary services, the carbon market, nuclear power, electric vehicles and charging infrastructure, and bilateral electricity purchase agreements as issues that could affect investment decisions.
The day-ahead market’s maximum price limit, updated in April 2026; the hourly netting system for unlicensed generation, which entered into force in May 2026; developments concerning the national carbon market; and bilateral electricity purchase agreements were assessed in terms of investment returns and risks.
Ahmet Burak Dağlıoğlu, president of the Presidential Investment and Finance Office, said energy security had gained importance for economic growth and resilience. Dağlıoğlu said that increasing renewable energy capacity, modernizing the grid, improving energy efficiency, developing storage and expanding domestic production capacity offered opportunities for investors.
Dağlıoğlu said the roadmap implemented in line with the 2053 Net Zero Emissions target aims to bring international capital, advanced technologies and strategic partnerships into Türkiye’s energy transition. The report is intended to serve as a comprehensive reference for domestic and international investors by presenting the energy ecosystem and investment opportunities in an integrated manner.
