One step closer to net-zero 2035

Engagements at COP29 Baku has once again shown that it is important that we keep our transition targets smart meaning practical, flexible, rational and responsive. Türkiye has set its new targets in solar and wind power at 120GW by 2035 as part of a rearrangement of policy in line with our vision to creating spaces for sustainable, efficient and market friendly energy policies. Considering the target of tripling renewable energy capacity by 2030 at COP28, Türkiye aims to quadrupling Turkish renewable energy capacity. COP plays an important role in voicing a collective intention to reach net-zero targets for all participants. Indeed, increased cooperation and foreign investments will pave the way for achieving this strategic goal.

Nuclear energy will play a crucial complementary role to renewables by providing carbon free baseload electricity unlike the current baseload generators of coal and gas powerplants. Last year, at COP28 in Dubai, the United States led 25 countries in signing the ‘Declaration to Triple Nuclear Energy,’ this year, at COP29 in Baku, Türkiye joined these nations, bringing the total number of signatory countries to 31. The declaration will also support advancements in technology, capacity building, and financing opportunities. As a newcomer in the nuclear energy program, it is without doubt that nuclear energy will play an important role in our energy transition with a target of 10% of our energy demand in 2030.

With an array of mechanism to reach our 2035 net-zero targets, our policies are not limited to nuclear and renewables, considering the challenges of an ever-growing energy demand. Our RE-Zone (YEKA) policies, nuclear energy program, critical minerals and mining program as well as our continuous infrastructure investment is laid out in a smooth and timely manner. According to the International Renewable Energy Agency (IRENA) data, our country ranks 5th in Europe and 11th in the world with its total installed renewable energy capacity. Our target is to enter the top three in Europe and the top nine in the world in 2025. Our efforts to reduce the energy import bill however, is not limited to renewable energy, our striving hydrocarbon development program also means that our carbon reduction targets are ambitious, and our policies are met. Between 2005 and 2024, through an increase in renewable capacity from 13GW in 2005 to 67.5GW in 2024, Türkiye has avoided 892 million tons of CO2 emissions.

An important boost to our solar and wind target comes with our recent announcements for annual RE-Zone tenders, to meet a total of 35GW in electricity generation. The first round of tenders will take place late January 2025. Türkiye forecasts a 54% growth in electricity demand over the next decade and this growth must be met through policies supporting a carbon neutral economy as set out in our recent 2035 Renewable Energy Roadmap.

The steady arrival of renewable capacities into our grid will move the marker up for installed renewables capacity by 2035 to meet the targets of our national energy mix/portfolio. By 2035 we plan additional AC lines, bringing our interconnection capacity to 6,750 MW in exports and 6,600 MW in imports, stretching 90,500 kilometers across the country complemented by a 40GW HVDC corridor.

This progress paves way for better conditions for the Turkish energy market. The contract terms for the RE-Zone auctions are redesigned to international investment standards and the offtake regime ensures healthy project returns while providing affordable electricity to Turkish consumers. Additional adjustment means that we have introduced several new rules to the bid; such as the bids taking place in the Dollar currency and the right to international arbitration. Additionally, the costs and fees will be smoother, and a faster entrance into the private sector will be possible with a Market Clearing Price (MCP) for both WPP 2024 and SPP 2024.

Türkiye’s position in global supply chains are continuing to grow and we are committed to turn net-zero into a wave of opportunities in an inclusive manner for the environment, for the people, for companies seeking cleaner energy solutions and for the wider energy ecosystem of our region. We design each program to suit a win-win situation for all stakeholders with the aim to also facilitate Türkiye’s mark both in regional and global scale.

We are determined to make the Century of Türkiye the Century of Clean Energy Investment.