The World Bank has approved 400 million euros (nearly $464 million) in additional financing to help expand Türkiye's renewable energy market, focusing on wind power and utility-scale battery energy storage projects.
The financing expands the Accelerating the Market Transition for Distributed Energy Program, building on the success of its first phase, approved in 2024, which helped accelerate the deployment of low-voltage distributed solar energy systems across the country.
The new package consists of two 200 million euros International Bank for Reconstruction and Development (IBRD) loans provided to the Development and Investment Bank of Türkiye (TKYB) and the Industrial Development Bank of Türkiye (TSKB) under a results-based financing framework, in which disbursements are tied to independently verified performance targets.
With the additional funding, the program's scope will be broadened beyond distributed solar projects to include onshore wind developments and next-generation Battery Energy Storage Systems (BESS).
Türkiye aims to reach 120 gigawatts of combined wind and solar capacity by 2035, alongside a significant expansion of battery storage capacity.
However, access to long-term financing for distributed wind and storage projects remains limited, partly due to local banks' short-term funding structures, the World Bank said on Monday.
The program aims to address these financing constraints by providing longer-term funding through development banks, strengthening market expertise in emerging grid technologies and mobilizing private sector investment.
"Scaling up battery storage and distributed wind is the next critical step to future-proof Türkiye's energy grid," said Humberto Lopez, World Bank country director for Türkiye.
"By using public development banks to bridge the commercial financing gap, this program enables ready-to-build projects to reach financial close, which will support the competitiveness of Turkish industries, enhance national energy security, and create local jobs across the renewable energy value chain," Lopez added.
According to the World Bank, the expanded program is expected to support 1,579 megawatts of additional renewable energy capacity, 392 megawatt-hours of battery storage and mobilize up to $405 million in private financing.
The Türkiye package forms part of a proposed $2.96 billion increase in the World Bank's regional renewable energy financing framework, designed to accelerate clean energy investments across Europe and Central Asia.
"Türkiye is acting as a trailblazer for the broader ECARES (Europe and Central Asia Renewable Energy Scale-Up) program," said Charles Cormier, World Bank regional director for infrastructure for Europe and Central Asia.
"By successfully pioneering commercial rooftop and utility-scale solar, onshore wind and battery storage, Türkiye is establishing the best practices and knowledge that can be replicated to modernize grid infrastructure, integrate renewables and enhance energy security across the entire region," Cormier added.