In Turkey, a country of nearly 80 million people, demand for electricity has risen about 7 percent annually in recent years, requiring steady efforts to expand the sources of reliable and clean power. Through a series of interlinked measures, starting in the early 2000s, the country has worked to meet this growing demand, while spurring private-sector investment and innovation. And it has turned to the World Bank Group for help throughout. This immersive story shows the World Bank Group’s commitment to Turkey’s energy transformation.
ESMAP has been an integral part of this commitment.
Its support to Turkey in the past decade is summarized in an IMPACT Story which discusses Turkey’s reforms from 2007-2015. Throughout these reforms, the World Bank and ESMAP have acted as trusted partners of Turkish counterparts, helping in a multi-faceted process that has moved Turkey from a country facing structural energy challenges and supply gaps to a global model for other countries. In the process, Turkey has added 31,000 MW in electricity generation capacity without long-term power purchase agreements or sovereign guarantees, more than doubling its capacity since the early 2000s. The country has transitioned to a well-functioning electricity market, with adequate supply to meet the country’s growing needs.
An ESMAP-funded report, Turkey's Energy Transition | Milestones and Challenges, has informed energy reforms and reformers seeking to learn and benefit from Turkey’s experience and contributed to the dialogue on future energy reforms in the country.
To support Turkey’s shift towards renewable energy, ESMAP’s Global Geothermal Development Plan helped leverage a US$350 million project to scale up private sector investment for geothermal development by reducing the risks taken on by investors during early-stage drilling. This would be done through a Risk Sharing Mechanism (RSM) and by providing access to long term financing. Turkish citizens, will benefit from new economic and employment opportunities created and the global community will also benefit from the lessons learned through use of the risk sharing facility in designing similar mechanisms to stimulate geothermal exploration in other markets.