The World Bank has approved $748 million in concessional financing for Türkiye to modernize and expand its electricity transmission infrastructure and enable the integration of renewable energy into the grid, it said in a statement on Monday.
With the latest funding, the amount of resources secured this year, in line with the development goals, reached $7 billion, Treasury and Finance Minister Mehmet Şimşek said on Tuesday.
A package of financing for the Türkiye – Transforming Power Transmission System Project (TPTS) was approved by the World Bank and will be implemented by the Türkiye Electricity Transmission Corporation (TEIAŞ). As part of the project, approximately $748 million in financing will be provided to TEIAŞ, backed by a repayment guarantee from the ministry.
The financing consists of a 625 million euros ($707.9 million) loan from the International Bank for Reconstruction and Development (IBRD), an arm of the World Bank, $38 million loan from the Clean Technology Fund (CTF), and a $2 million CTF grant.
"This major project aims to enable the integration of increased renewable energy capacity into Türkiye’s national power transmission grid, supporting the country’s clean energy transition and climate resilience goals," the bank said.
The initiative is part of Türkiye’s broader efforts to strengthen energy security and reduce reliance on imported fossil fuels by promoting domestic renewable energy production.
The bank added that the project directly supports Türkiye’s renewable energy strategy, which targets 120 gigawatt (GW) of installed wind and solar capacity by 2035, aligning with the government’s net-zero emissions target by 2053.
"Türkiye has set one of the world’s most ambitious renewable energy targets and at the World Bank, we are proud of supporting it. By modernizing the transmission network and scaling up renewables, the country is enhancing its energy security, reducing fossil fuel import dependency, improving its competitiveness, and developing new industries with the potential to create a large number of skilled jobs," said Humberto Lopez, World Bank country director for Türkiye.
"This project will help unlock private investment and support Türkiye’s vision of a modern and competitive energy sector," he added.
The project focuses on three strategic components: upgrading transmission infrastructure, digitalizing the power grid and technical assistance for innovation.
The World Bank also pointed out it is aligned with Türkiye’s 12th National Energy Plan and climate commitments and "is expected to contribute to significant reductions in greenhouse gas emissions and support the creation of thousands of jobs across Türkiye’s renewable energy value chains."
Şimşek welcomed the new agreement, highlighting the productive cooperation between Türkiye and the World Bank, especially in the energy sector.
"This successful partnership will continue in the upcoming period," the minister was quoted by Anadolu Agency (AA) as saying.
"We are continuing our work within the framework of our economic program, which ultimately aims for a sustainable increase in prosperity. In this regard, we are boosting electricity generation from renewable sources. We will continue to resolutely support public investments as part of our goal of reducing dependence on imported energy sources," he added.
"Thanks to the confidence in our economic program, long-term and favorably conditioned external financing from international organizations is increasing," he said separately on X.
