Türkiye's hydropower generation has reached record highs this year, helping the country avoid nearly $5 billion in energy imports by displacing natural gas in electricity generation, according to a top industry representative.
The strong hydropower output was helped by favorable rainfall, snowpack and groundwater conditions following a drought last year, said Elvan Tuğsuz Güven, chair of the Hydroelectric Power Plants Industrialists Association (HESIAD).
Hydroelectric power plants account for 32,314 megawatts of Türkiye's 125,800-megawatt total installed power capacity and generated 33.8% of the country's electricity in the first half of the year.
Güven said hydropower generation has made a significant contribution not only to Türkiye's electricity system but also to its external trade balance.
"During the first six months, when energy and oil crises dominated the agenda, hydropower created tremendous value for Türkiye. We estimate that the electricity generated displaced roughly $5 billion worth of natural gas imports," she told Anadolu Agency (AA).
Türkiye has invested heavily in hydropower over the past two decades, with the country's existing installed capacity representing an estimated $80 billion in investments, Güven said.
These investments have helped Türkiye rank among the world's top 10 countries and second in Europe in terms of hydropower capacity.
Güven said record hydropower generation helped cushion the impact of higher oil, natural gas and liquefied natural gas (LNG) prices during the Iran war.
However, while favorable water conditions led to record electricity production this year, the positive picture has not been reflected in revenues, she said.
Hydroelectric power plants continue to face financial sustainability challenges because of low electricity market prices despite higher output, she added.
Renewables are a key part of Türkiye's broader push to diversify energy supply, reduce its heavy import dependence and strengthen long-term energy security.
Major pumped-storage hydropower potential
Government data shows Türkiye has more than 13 gigawatts of pumped-storage hydropower (PSH) potential ready for investment, which Güven says could provide a major boost to grid flexibility and energy security as solar and wind capacity expands.
But, she added, stronger regulatory and financial support is needed to unlock investment.
Güven noted that although support for PSH projects exists under the Renewable Energy Resources Support Mechanism (YEKDEM), the necessary secondary legislation has yet to be finalized.
"Funding has already been allocated within the renewable energy support mechanism for PSH projects. There is also a price support mechanism," she said.
"However, because the secondary legislation and implementing regulations have not yet been completed, and because the support level currently determined is insufficient to make these projects financially viable under project-finance models, investment progress has been slower than expected," Güven added.
PSH boosts grid flexibility
Güven said around 99% of global electricity storage capacity is provided by PSH plants, adding that countries with abundant hydropower resources continue to combine renewable energy investments with such facilities.
She said closed-loop systems allow water to be pumped back into an upper reservoir during periods of low electricity demand and reused to generate power when demand rises.
This makes pumped-storage plants increasingly important for grid flexibility as solar and wind capacity expands, she added.
Referring to the Energy and Natural Resources Ministry's previously announced target of 2 gigawatts of PSH capacity, Güven expressed hope that investment decisions would soon be taken.
"We hope investment decisions will be taken in 2026 and 2027 so PSH plants can begin contributing to energy supply security as soon as possible," she said.
Low daytime prices create storage opportunity
Güven said Türkiye's installed solar capacity had reached around 24 gigawatts, creating opportunities for PSH plants to store electricity during periods of low daytime prices and generate power when demand rises.
Such systems could improve grid flexibility while supporting the greater integration of renewable energy, she said.
Güven also called for greater use of digitalization and artificial intelligence to maximize the efficient use of water resources for electricity generation.
"New technologies and digital solutions, including artificial intelligence, must be used much more extensively to ensure that water allocated for energy production is utilized more effectively and efficiently," she said.
Güven said hydropower plants have an operational life span of 80 to 100 years, adding that the rehabilitation of existing facilities, adoption of advanced technologies and expansion of hybrid power plant applications would further strengthen Türkiye's energy security.
She described hydropower as the "insurance policy" and "backbone" of solar and wind power, stressing that greater grid flexibility would be crucial to achieving the country's 2035 and 2053 energy targets.