Oct 31, 2024
Washington, DC –Today, the governing board of the Climate Investment Funds signed off on a landmark $70 million investment plan for Türkiye, set to boost the country’s power transmission system, mobilize an additional $1 billion in climate finance, and help realize one of the most ambitious clean energy scale-ups in the world.
By 2035, the government of Türkiye plans to more than double wind energy and quadruple solar energy capacity, as part of an overall target to hit net zero by 2053. The country has abundant natural resources to meet this goal, having so far tapped just 3% of its total solar and 15% of its total onshore wind energy potential. But effectively absorbing and dispatching these new sources of variable energy at scale requires a smart, flexible, and reliable national grid.
The $70 million injection of concessional finance from the CIF Renewable Energy Integration (REI) investment platform is designed to contribute to the green expansion of Türkiye’s energy system.
Developed in collaboration with the European Bank for Reconstruction & Development (EBRD) and the World Bank Group, the plan is expected to bring in more than fifteen times the initial investment in co-financing. CIF funding will make possible a $790 million project to transform the national power transmission system, by expanding the transmission infrastructure, strengthening connections, and investing in smart-grid upgrades. It will also enable a $330 million investment in a suite of technologies to improve system flexibility, including decentralized electric charging stations, digitalization of the power distribution grid, and a 7,500 MW increase in battery energy capacity.
These improvements should allow Türkiye’s power grid to integrate an additional 60 GW of wind and solar energy capacity by 2035, quadrupling solar photovoltaic capacity from 14 GW to almost 53 GW and more than doubling wind capacity from 12 GW to 29.6 GW. That translates into an estimated 21.6 Mtoe of renewable energy, equivalent to powering approximately 70 million average homes for a year.
Endorsed by the G7 in 2021, REI is the world’s only climate finance program entirely dedicated to clean energy integration. Through highly concessional funding, the program enables countries to build efficient and effective energy systems capable of enabling the large-scale deployment of intermittent energy sources. Ten countries are part of the program, with Brazil, Colombia, Costa Rica, Fiji, Kenya, and Mali’s investment plans endorsed.
Tariye Gbadegesin – CEO, Climate Investment Funds
“Türkiye has the solar and wind resources to execute one of the most ambitious clean energy scale-ups in the world. Our support for the development of a smart, flexible, and responsive national grid will help ready the country for such a rapid increase in intermittent wind and solar power. It’s exactly why the Climate Investment Funds and our multilateral development bank partners established the Renewable Energy Integration (REI) program: to offer catalytic and highly concessional finance that solves system-wide clean energy barriers and opens the way to a greener future.”
Osman Çelik - Deputy Minister, Ministry of Treasury and Finance, Government of Türkiye
“Türkiye’s net zero emissions path towards sustainable future requires commitment to fostering renewable energy. We have dedicated to boost our renewable energy capacity in line with our country’s net zero emission target for 2053 and green development goals. Catalyzing investments in green and clean energy holds great importance for utilizing our country’s potential in renewables. Under the Renewable Energy Integration Program, we remain committed to our strong partnership with the Climate Investment Funds, World Bank Group and EBRD to implement the essential clean energy transformation. This Program provides many opportunities to diversify Türkiye's energy supply resources, foster green technology and competitiveness and thus stimulate our economic growth.”
Nadia Petkova - Managing Director, Impact & Partnerships, European Bank for Reconstruction and Development
“The CIF’s Renewable Energy Integration Program (REI) is a key vehicle to help enhance the flexibility of energy systems for a smooth integration of higher shares of variable and intermittent renewable energy generation into the grid and increase off-grid access to renewable energy. EBRD is looking forward to supporting the implementation of Türkiye’s REI Investment Plan to help the government reach its target to add 60 GW of new wind and solar capacity to the system by 2035.”
Humberto Lopez - Country Director for Türkiye, World Bank and Wiebke Schloemer - Director for Türkiye and Central Asia, IFC
"Supporting Türkiye’s ambitious clean energy scale-up is a critical step towards achieving a sustainable future. This landmark investment plan aligns with the World Bank Group’s commitment to address climate change mitigation and adaptation, energy transition in Türkiye. By enhancing the national power transmission system, and integrating clean and smart technologies, we are not only facilitating the country’s transition to renewable energy but also driving sustainable growth and job creation."
