|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD
11.36 Billion
|
|
CAGR
(2023-2028)
|
13.26%
|
|
Fastest
Growing Segment
|
Hydroelectric
Power
|
|
Largest
Market
|
Central
Anatolia
|
Market Overview
The
Turkey Renewable Energy Market achieved a value of USD 11.36 Billion in 2022
and is poised for robust growth in the foreseeable future, with an expected
Compound Annual Growth Rate (CAGR) of 13.26% through 2028. Renewable energy
encompasses energy sources that naturally replenish themselves and remain
sustainable over time. Unlike finite fossil fuels, renewable energy derives
from abundant resources such as sunlight, wind, water, and organic matter.
These sources harness the Earth's natural processes, converting them into
usable power without depleting finite reserves or causing lasting environmental
harm.
Solar
energy involves capturing sunlight through photovoltaic cells or solar thermal
systems to generate electricity or heat. Wind energy harnesses the kinetic
energy of moving air via wind turbines, converting it into electrical power.
Hydropower utilizes the gravitational force of flowing water to turn turbines
and produce electricity. Biomass energy derives from organic materials such as
wood, crop residues, and waste, which can be burned or converted into biofuels
for energy production. Geothermal energy taps into the Earth's internal heat,
using steam or hot water from underground to generate power.
Renewable
energy technologies offer a multitude of benefits, including reduced greenhouse
gas emissions, improved air quality, and decreased reliance on fossil fuels. As
technology advances and economies of scale improve, renewable energy is
becoming increasingly affordable and efficient, playing a pivotal role in the
global transition toward a more sustainable and resilient energy future.
Key Market Drivers
Turkey's
proactive efforts to develop its renewable energy market are influenced by a
blend of factors that align with its economic, environmental, and energy
security objectives. Here are some of the principal drivers shaping Turkey's
renewable energy market:
1.
Energy Security and Diversification: Turkey's substantial dependence on
imported fossil fuels has instigated a drive to diversify its energy sources
and reduce reliance on external suppliers. The development of renewable energy
enhances energy security and mitigates supply risks.
2.
Abundant Renewable Resources: Turkey boasts favorable natural conditions for
various renewable energy sources, including solar, wind, hydroelectric, and
geothermal. Its geographical location provides ample opportunities for
harnessing clean energy.
3.
Government Policies and Incentives: The Turkish government has implemented
supportive policies like feed-in tariffs, incentives, and investment guarantees
to encourage private sector participation and attract both domestic and foreign
investments in renewable energy projects.
4.
Renewable Energy Targets: Turkey has set ambitious renewable energy targets to
increase the share of renewables in its energy mix, acting as a driving force
for investment and project development in the renewable sector.
5.
Environmental Concerns and Climate Commitments: Addressing environmental
challenges and aligning with global climate goals motivate Turkey's transition
to renewable energy. Reducing greenhouse gas emissions and minimizing
environmental impact are critical considerations.
6.
Economic Growth and Job Creation: The renewable energy sector contributes to
economic growth by attracting investments, creating jobs, and stimulating local
manufacturing of renewable energy components and equipment.
7.
Rural Electrification and Energy Access: Renewable energy projects, such as
small-scale solar installations and mini-grids, play a role in providing
electricity to remote and rural areas, improving energy access and supporting
socio-economic development.
8.
Foreign Investment and Partnerships: Turkey has attracted foreign investment
and established partnerships with international organizations to accelerate
renewable energy development. These collaborations bring expertise, technology,
and financing to the market.
9.
Energy Market Liberalization: Market reforms and liberalization efforts in
Turkey's energy sector have created opportunities for private sector
participation and competition, facilitating the growth of renewable energy
projects.
10.
Technology Advancements and Cost Reductions: Advances in renewable energy
technologies have led to cost reductions, making renewables more competitive
with conventional energy sources. This encourages project development and
increases overall efficiency.
11.
Infrastructure Development and Modernization: Investments in renewable energy
contribute to modernizing energy infrastructure and enhancing grid stability,
aligning with Turkey's overall development objectives.
12.
Local Content Requirements: To stimulate domestic industry growth, Turkey has
introduced local content requirements for renewable energy projects,
encouraging the manufacturing and deployment of renewable energy technologies
within the country.
Collectively,
these drivers shape Turkey's renewable energy landscape and provide a
compelling business case for the expansion and diversification of its energy
sources.
Supportive
policies and Regulations are Likely to Propel the Market
Turkey
has implemented several supportive policies and regulations to promote the
growth of its renewable energy market. These measures aim to attract
investments, encourage renewable energy deployment, and contribute to the
country's sustainability and energy security goals. Here are some key
supportive policies and regulations in Turkey's renewable energy market:
Feed-in
Tariffs (FiTs) and Renewable Energy Support Mechanism (YEKDEM): Turkey has established FiTs for various
renewable energy sources, guaranteeing fixed prices for electricity generated
from renewables. YEKDEM provides additional incentives by offering a premium on
top of the FiTs for a specified period, enhancing the attractiveness of
renewable energy projects.
Renewable
Portfolio Standard (RPS) and Renewable Energy Quotas: The RPS requires electricity suppliers
to include a certain percentage of renewable energy in their total energy
supply. This policy stimulates demand for renewable energy and drives the
development of new projects.
Licensing
and Permitting Simplification: Efforts
have been made to streamline the licensing and permitting process for renewable
energy projects, reducing administrative burdens and facilitating project
development.
Incentives
for Local Manufacturing and Content: The
government offers incentives and support for the local production of renewable
energy components, encouraging the growth of domestic manufacturing and supply
chains.
Grid
Connection Priority and Guarantees: Renewables
are given priority in grid connection, ensuring that generated electricity can
be efficiently integrated into the power grid. Guarantees are provided to
project developers to enhance project bankability.
Long-Term
Power Purchase Agreements (PPAs): The
government facilitates long-term PPAs with guaranteed electricity purchase
prices, enhancing revenue predictability for renewable energy projects.
Tax
Exemptions and Incentives: Tax
incentives, exemptions, and reductions are offered to renewable energy projects
to improve their financial viability and attractiveness to investors.
Capacity
Increase Auctions: Turkey
has conducted capacity increase auctions to allocate additional capacity for
renewable energy projects, enabling further growth and investment in the
sector.
Renewable
Energy Resource Zones (YEKA): YEKA
tenders designate specific areas for renewable energy projects, streamlining
the development process and ensuring efficient land use.
Energy
Efficiency and Conservation Measures: Policies
promoting energy efficiency and conservation complement the growth of renewable
energy by reducing overall energy demand and enhancing the effectiveness of
clean energy sources.
Investment
Guarantees and Dispute Resolution: The
government provides investment guarantees and mechanisms for dispute resolution
to protect the interests of renewable energy investors.
Support
for Research and Development: Initiatives
to support research and development in renewable energy technologies encourage
innovation and the adoption of advanced solutions.
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Key Market
Challenges
The
renewable energy market in Turkey faces several challenges that can impact its
growth and development. These challenges reflect a combination of technical,
economic, regulatory, and market-related factors. Here are some of the key
challenges faced by the renewable energy market in Turkey:
Grid
Integration and Infrastructure: Integrating
intermittent renewable energy sources, such as solar and wind, into the
existing grid can be complex. Upgrading and expanding grid infrastructure to
accommodate variable power generation and ensure grid stability is a challenge.
Permitting
and Bureaucratic Processes: Lengthy
and complex permitting and administrative procedures can delay project
development and increase costs for renewable energy projects.
Licensing
and Land Availability: Securing
licenses and permits for renewable energy projects, including land use
approvals, can be time-consuming and challenging, particularly for large-scale
projects.
Financing
and Investment: Attracting
sufficient and affordable financing for renewable energy projects remains a
challenge, especially for smaller developers or projects located in
less-developed regions.
Bankability
and Project Viability: Ensuring
project bankability and financial viability is essential to attract
investments. Investors may be cautious about political and regulatory risks.
Market
and Price Uncertainty: Changes
in energy policies, regulations, and market conditions can introduce
uncertainties for investors, affecting project planning and profitability.
Technological
and Technical Expertise: Developing
and maintaining the technical expertise required for renewable energy projects
can be a challenge, particularly for emerging technologies or innovative
solutions.
Access
to Information and Data: Reliable
and up-to-date data on renewable energy resources, such as solar and wind
potential, is crucial for project planning and decision-making.
Dependency
on Imported Equipment: Turkey's
domestic manufacturing capacity for renewable energy components and equipment
is still developing, leading to a reliance on imported technology.
Competitive
Pricing with Fossil Fuels: Achieving
cost competitiveness with conventional fossil fuel-based energy sources can be
challenging, especially in regions with abundant and cheap fossil fuels.
Local
Opposition and NIMBYism: Some
renewable energy projects face opposition from local communities due to
concerns about visual impacts, noise, and land use changes.
Environmental
Considerations: Balancing
renewable energy development with environmental conservation and wildlife
protection is important to ensure responsible and sustainable growth.
Transparency
and Corruption: Ensuring
transparent and corruption-free processes in project development, permitting,
and regulatory approvals is critical for investor confidence.
Market
Design and Regulatory Framework: The
design of energy markets and regulatory frameworks may need adjustments to
fully accommodate renewable energy integration and provide fair market
conditions.
Segmental Insights
Solar Energy Insights
The Solar Energy
segment established its dominance in the renewables energy market in 2022 and
is projected to maintain the position throughout the forecast period. Turkey
has experienced substantial growth in solar capacity over the years.
Large-scale solar power plants, as well as smaller rooftop installations, have
contributed to the expansion of solar energy generation. Turkey has implemented
feed-in tariffs (FiTs) and premium incentives for solar energy projects, making
them financially attractive to investors. These incentives provide stable
revenue streams and encourage project development. The Turkish government has
used competitive tender and auction mechanisms to allocate solar energy
projects, ensuring transparent and cost-effective project development. Challenges
related to grid integration and stability have been addressed through
regulatory measures, ensuring that solar power can be efficiently integrated
into the electricity grid. Efforts to raise public awareness and educate
consumers about the benefits of solar energy have contributed to its increased
adoption.
Residential Insights
The residential
segment established its dominance in the renewable energy market in 2022 and is
projected to maintain during the upcoming years. The
residential sector in Turkey holds significant potential for rooftop solar
installations. Homes and buildings can leverage their available rooftop space
to generate electricity from solar panels. Net metering allows residential
consumers to install solar panels and feed excess electricity back into the
grid, receiving credits for the surplus energy. This arrangement helps offset
electricity bills and incentivizes homeowners to adopt solar energy. The
potential for energy cost savings is a primary driver for residential solar
adoption. By generating their electricity, homeowners can reduce their reliance
on grid power and lower their electricity bills over time. Increasing
environmental awareness and concerns about climate change motivate homeowners
to seek cleaner energy alternatives, such as solar power, to reduce their
carbon footprint.
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Regional Insights
Central
Anatolia is the most promising region for renewable energy development in
Turkey. The region has abundant solar and wind resources, and the government
has identified it as a priority region for renewable energy development. Also, Aegean
Region holds the second-largest market share in renewable energy. The Aegean
Region is a promising region for renewable energy development. The region has
good solar and wind resources, and it is also home to a number of geothermal
power plants.
Recent Developments
- In
July 2022, the European
Bank for Reconstruction and Development (EBRD) announced that it was investing USD
109 million in a renewable energy fund in Turkey. The fund will invest in
solar and wind power projects in Turkey.
- In
June 2022, the
International Finance Corporation (IFC), a member of the World Bank Group,
announced that it was investing USD 54.56 million in a renewable energy fund in
Turkey. The fund will invest in solar and wind power projects in Turkey.
- In
May 2022, the Turkish
government announced that it was awarding contracts worth USD 1.09 billion for
solar and wind power projects. These projects will be developed by a
consortium of companies, including Engie, Siemens Gamesa, and ACWA Power.
- In
April 2022, the Turkish
government announced that it was setting up a USD 5.46 billion fund to invest
in renewable energy projects. This fund will be managed by the Turkish
Sovereign Wealth Fund.
Key Market Players
- IC Ictas Energy
Investment Holding
- Statkraft Enerji
A.Ş
- Poyry PLC
- Sanko Energy
Group
- Axpo Turkey
Enerji A.Ş.
- STEAG Solar
Energy Solutions
- Kalyon Holding
- Enerjisa Enerji
A.Ş
- GAMA Enerji
|
By Type
|
By End Use
|
By Region
|
- Hydroelectric Power
- Wind Power
- Bioenergy
- Solar Energy
- Geothermal Energy
|
- Residential
- Commercial
- Industrial
- Others
|
- Marmara Region
- Central Anatolia
- Aegean Region
- Mediterranean Region
- Black Sea Region
- South-Eastern Anatolia Region
- Eastern Anatolia Region
|
Report
Scope:
In
this report, Turkey Renewable Energy Market has been segmented into the following
categories, in addition to the industry trends which have also been detailed
below:
- Turkey Renewable
Energy Market, By Type:
§ Hydroelectric Power
§ Wind Power
§ Bioenergy
§ Solar Energy
§ Geothermal Energy
- Turkey Renewable
Energy Market, By End
Use:
§ Residential
§ Commercial
§ Industrial
§ Others
- Turkey Renewable
Energy Market, By Region:
§ Marmara Region
§ Central Anatolia
§ Aegean Region
§ Mediterranean Region
§ Black Sea Region
§ South-Eastern Anatolia Region
§ Eastern Anatolia Region
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies present in the Turkey Renewable Energy Market.
Available
Customizations:
Tech
Sci Research offers customizations according to a company's specific needs. The
following customization options are available for the report:
Company
Information
Detailed
analysis and profiling of additional market players (up to five).
Turkey Renewable Energy Market is an upcoming report to be released soon. If
you wish an early delivery of this report or want to confirm the date of
release, please contact us at [email protected]