The World Bank has approved an additional 400 million euros in financing to support wind energy and commercial-scale battery storage investments in Turkey. The new resource expands the scope of the program aimed at growing the country’s renewable energy market.
According to the Bank’s statement, the financing consists of two separate IBRD loans of 200 million euros each provided to Türkiye Kalkınma ve Yatırım Bankası AŞ and Türkiye Sınai Kalkınma Bankası AŞ under the guarantee of Turkey. The program is carried out with a results-based financing model, and disbursements are made upon achievement of predetermined targets after independent verification.
Program expands its scope
The Accelerating the Distributed Energy Transition Program, whose first phase was approved in 2024, created strong momentum in the low-voltage distributed solar energy market. With the new phase, the program’s focus expands to include onshore wind energy projects and next-generation Battery Energy Storage Systems alongside distributed solar investments.
The statement recalled that Turkey has significantly raised its renewable energy targets in the last decade. It noted that the latest Renewable Energy Roadmap envisages increasing total wind and solar installed capacity to 120,000 megawatts by 2035 and achieving a major increase in battery storage capacity.
It was stated that the expanded program aims to address the lack of long-term financing through development banks. It was pointed out that local commercial banks struggle to finance these capital-intensive investments due to their short-term liability structures.
Grid, financing and private sector impact
The program is designed to reduce maturity mismatch, enhance market capacity and financial expertise to assess risks related to new grid technologies, and mobilize private sector investments, according to the announcement. Within this framework, it aims to pave the way for investments by assuming early-stage market risks and extending loan maturities.
According to the Bank’s expectations, the program will contribute to adding 1,579 megawatts to renewable energy capacity, supporting 392 megawatt-hours of battery storage capacity, and mobilizing up to 405 million dollars in private sector financing.
The financing for Turkey is presented as part of a proposed increase of 2.96 billion dollars in the overall resource framework. This structure also enables further expansion of renewable energy investments across the region.
The statement added that knowledge sharing through the Europe and Central Asia Energy Knowledge Network accompanies the process. It was noted that the platform, which brings together more than 180 energy sector experts from 21 countries, brings good practices in renewable energy and energy efficiency to the region.
Turkey highlighted as a regional example
World Bank Country Director for Turkey Humberto Lopez said that scaling up battery storage and distributed wind investments is a critical step to prepare Turkey’s energy grid for the future. Lopez stated that closing the commercial financing gap through public development banks will enable investment-ready projects to reach financial close, which in turn will support industrial competitiveness, energy security and local employment.
World Bank Regional Director for Infrastructure in Europe and Central Asia Charles Cormier said that Turkey has taken a pioneering role in the ECARES program. Cormier stated that the results achieved in rooftop and commercial-scale solar energy, onshore wind and battery storage have set an example for the region in electricity grid modernization and renewable energy integration.
