The World Bank said it has approved additional financing of 400 million euros ($468.4 million) to grow Türkiye’s renewable energy market and expand support for wind energy and commercial-scale battery storage investments.
In the statement made by the bank, it was stated that the scope of the Accelerating Transition to Distributed Energy Program, which was approved in 2024 and built on the success of the first phase, which created a strong momentum in the country’s low-voltage distributed solar energy market, was expanded.
Pointing out that the expanded financing consists of two IBRD loans of 200 million euros provided to the Turkish Development and Investment Bank AŞ (TKYB) and the Turkish Industrial Development Bank AŞ (TSKB) under the guarantee of Türkiye, the statement said: “In the program implemented with a result-oriented financing model, payments are made as the pre-determined targets are achieved and independently verified. With the new phase, the scope of the program includes distributed solar energy investments, as well as onshore wind energy projects and new generation Battery Energy Storage Systems.” “It is being expanded to include (BESS) investments.” The expression was used.
In the statement, it was pointed out that Türkiye has significantly increased its renewable energy targets in the last 10 years, and the most current Renewable Energy Roadmap envisages increasing the total wind and solar installed power to 120 thousand megawatts by 2035 and providing a large increase in battery storage capacity, and the following was noted:
“Despite the strong renewable energy potential and growing commercial and industrial demand in response to the European Union’s Borderline Carbon Adjustment Mechanism (CBAM) coming into force in 2026, access to long-term financing for distributed wind and battery storage investments remains limited. Local commercial banks have difficulty financing these high-capital-intensive investments due to their short-term liability structures.”
In addition, the statement emphasized that the expanded program addresses the methods described as providing long-term financing through development banks in order to resolve the maturity mismatch for these problems, developing market capacity and financial expertise to evaluate the risks related to new network technologies, and activating commercial finance by encouraging private sector investments.
In the statement, it was underlined that the program is expected to increase renewable energy capacity by 1579 megawatts, support 392 megawatt-hours of battery storage capacity, and mobilize private sector financing up to 405 million dollars, thanks to the assumption of early market risks and extension of loan maturities, and the following information was shared:
“The financing for Türkiye is part of the $2.96 billion increase proposed in the total resource framework of the program, allowing for further expansion of renewable energy investments across the region. This regional knowledge sharing is supported through the World Bank’s Europe and Central Asia Energy Information Network (EKN). This platform, which brings together more than 180 energy sector experts from 21 countries, aims to share successful market approaches, regulatory developments and technical solutions developed in countries such as Turkey, thanks to communities of practice established in the fields of renewable energy and energy efficiency, throughout the region.” provides.”
World Bank Turkey Country Director Humberto Lopez, whose views were included in the statement, stated that scaling battery storage and distributed wind investments is the next critical step in preparing Türkiye’s energy network for the future and said, “Closing the commercial financing gap through public development banks will support the competitiveness of the Turkish industry by ensuring that investment-ready projects reach financial closure, strengthen national energy security and create local employment along the renewable energy value chain.” made his assessment.
World Bank Europe and Central Asia Infrastructure Regional Director Charles Cormier said, “Turkey plays a leading role in terms of the ECARES program. Thanks to the successes achieved in the fields of rooftop and commercial-scale solar energy, onshore wind and battery storage, Turkey creates good practice examples and knowledge that can be disseminated throughout the region in terms of modernization of electricity networks, renewable energy integration and strengthening energy security.” he said.
