(Bloomberg) -- Turkey plans to offer at least 2,000MW of new renewable energy capacity each year until 2035 in a bid to accelerate investment in the sector, according to officials with knowledge of the matter.
The Ministry of Energy will resume auctions next year for specially designated areas known by their Turkish acronym YEKA, the people said, requesting anonymity because the plans aren’t yet public.
The ministry is also working on ways to encourage companies that already have licenses to build wind and solar plants but haven’t yet used them to do so, they added. The ministry declined to comment.
Capacity that’s been allocated but left unused is a problem because it limits the opportunity for new investors to enter the market, said Ufuk Alparslan, regional lead at energy research firm Ember.
“Because of limited grid capacities, some auctions have turned into a race to win. As a result, some projects haven’t even entered the construction phase.”
Turkey aims to add an average 3.1GW of solar capacity and 1.4GW of wind each year, according to its 2022-2035 National Energy Plan.
The UAE committed a provisional $30 billion of energy investments in the country in July 2023 but is yet to announce a firm deal.
--With assistance from Ercan Ersoy.
©2024 Bloomberg L.P.
