The World Bank has approved an additional financing package of 400 million euros (around US$464 million) to support the expansion of Türkiye’s renewable energy sector. The funding is part of the bank’s ongoing efforts to help the country strengthen clean energy generation, improve grid reliability, and attract private investment.
The new financing follows the success of an earlier phase approved in 2024, which focused mainly on increasing the use of low-voltage solar energy systems across Türkiye. Under the latest phase, the program will broaden its scope by supporting onshore wind energy projects and advanced utility-scale battery energy storage systems.
Türkiye has set a major of reaching 120 GW of combined wind and solar energy capacity by 2035. The country also plans to significantly expand its battery storage infrastructure to ensure better integration of renewable energy into the national grid. However, many renewable energy developers face difficulties in obtaining long-term financing, as local financial institutions often provide only short-term funding solutions.
To address this challenge, the World Bank will channel the new funding through two leading development banks in the country: the Development and Investment Bank of Türkiye (TKYB) and the Industrial Development Bank of Türkiye (TSKB). These institutions will provide long-term financing support to eligible renewable energy projects.
The funding program will operate under a results-based framework. This means that financial support will be released only after independent experts verify that agreed performance targets and project milestones have been achieved. The approach is designed to ensure transparency, accountability, and effective use of funds.
According to World Bank officials, expanding battery storage and distributed wind power is essential for strengthening and modernizing Türkiye’s electricity network. The additional financing is expected to help ready-to-build clean energy projects move forward by reducing funding barriers.
The program is projected to add approximately 1,579 MW of renewable energy generation capacity and 392 MWh of battery energy storage. In addition, it is expected to mobilize up to US$405 million in private sector investment, further boosting clean energy development in the country.
The World Bank believes that the initiative will improve energy security, increase industrial competitiveness, and create new employment opportunities across the renewable energy sector. The financing package is also part of a broader World Bank commitment of nearly US$3 billion aimed at accelerating clean energy investments across Europe and Central Asia. Türkiye’s progress in solar, wind, and battery storage development is expected to provide valuable lessons for other countries pursuing similar energy transition goals.
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