Türkiye is entering a pivotal phase in the development of its energy sector, with strong economic and population growth driving rising electricity demand and increasing the need for investment in infrastructure, flexibility and energy efficiency, according to a new review by the International Energy Agency (IEA).

The IEA’s Türkiye 2026 Energy Policy Review says the country has made significant progress in modernising its energy system, expanding renewable power and strengthening regional energy connections.

These developments provide a strong foundation for meeting future energy needs, improving energy security and supporting Türkiye’s position as an important regional energy hub.

Electricity demand increased by almost 5 per cent annually on average between 2005 and 2024, the fastest rate among IEA Member countries.

Demand is expected to continue rising through 2035, creating pressure for sustained investment across the energy sector while keeping energy affordable and ensuring the resilience of the electricity system.

Renewable energy is already playing a growing role.

 Renewables accounted for 43 per cent of Türkiye’s electricity generation in 2025, while the country’s National Energy Plan targets a 55 per cent share by 2035.

Solar capacity is expected to nearly quadruple between 2024 and 2035, while wind capacity is projected to triple.

Nuclear power is also expected to become part of the electricity mix, helping diversify the country’s energy supply.

The IEA stresses that the rapid growth of renewable generation must be matched by investment in electricity networks, storage and other flexibility resources.

Türkiye is planning a major expansion of its transmission system through 2035, as well as 7.5 GW of additional battery storage capacity.

These investments will be important for integrating increasing amounts of variable renewable electricity while maintaining reliable system operations.

Türkiye’s strategic geographic position also gives it an increasingly important role in regional energy markets.

The country connects Europe with the Middle East and Caspian region and has extensive gas infrastructure linking it to suppliers and neighbouring markets.

The Southern Gas Corridor provides a key connection, while five LNG terminals offer additional supply options and strengthen flexibility in gas imports.

“Türkiye has built strong foundations for the next phase of its energy development, with impressive growth in renewables, major investments in infrastructure and an increasingly important role in regional energy markets,” said IEA Executive Director Fatih Birol. “The task now is to build on this progress. As energy demand continues to grow rapidly, accelerating investment in grids, flexibility and energy efficiency can strengthen Türkiye’s energy security, support its economic competitiveness and reduce its exposure to volatile international fuel prices.”

The review also highlights Türkiye’s efforts to strengthen domestic energy supply. Renewable energy development is being accompanied by investments in nuclear power and increased domestic natural gas production following discoveries in the Black Sea. The Sakarya gas field is expected to reach annual production of 16.5 billion cubic metres at full capacity, equivalent to more than a quarter of Türkiye’s 2024 gas consumption.

Türkiye’s policy framework has also evolved, with the adoption of its first Climate Law in 2025 representing a major milestone.

The law strengthens climate governance and establishes the legal framework for a national emissions trading system.

The IEA says the priority now is to ensure that these policies and plans are translated into effective implementation.

“Energy independence and security of supply form the backbone of Türkiye’s National Energy Strategy,” said Türkiye’s Minister of Energy and Natural Resources Alparslan Bayraktar. “In an era of unprecedented global disruptions, we have strengthened our resilience through historic domestic natural gas and oil discoveries, transformative renewable capacity additions, and massive infrastructure investments. As we build a new electricity-centric energy architecture, we are not only ensuring our national energy security but also positioning Türkiye as a central, reliable energy hub for our region. The IEA’s comprehensive review confirms the strength of our vision, and we look forward to deepening our strategic collaboration as we accelerate our energy transition, enhance market flexibility, and build a sustainable, self-sufficient energy future.”

The IEA identifies several areas where further action could strengthen Türkiye’s energy system.

These include completing energy market reforms, improving electricity system flexibility, developing viable financing frameworks for nuclear power and accelerating energy-efficiency measures.

The agency also calls for a more integrated approach to industrial competitiveness, bringing together energy security, climate objectives and economic priorities.

Overall, the review concludes that Türkiye is well positioned to develop a more secure, resilient and competitive energy system.

 Continued implementation of policies and sustained investment in grids, storage, efficiency and diverse energy sources will be critical to meeting rising demand while reinforcing Türkiye’s growing importance in regional energy markets. -OGN/TradeArabia News Service