Intensifying efforts to boost renewable power, Turkey invested some 1 billion euros (around $1.05 billion) in new wind energy capacity throughout 2021, according to a report by Europe’s wind power trade association.

The figure was still lower than the 1.6 billion euros that was invested in 2020 and that made Turkey the fifth biggest wind power investor in Europe.

Last year, around 41 billion euros was invested in the construction of new wind farms in Europe, financing a record 24.6 gigawatts (GW) of new capacity, according to WindEurope’s Financing and Investment Trends – The European Wind Industry in 2021 report.

The amount was 11% less than the 46.6 billion invested in 2020 but still showcased wind energy remains an attractive investment and there is plenty of capital available to finance it.

In a major milestone in its green energy push, Turkey managed to exceed the 10,000 megawatts (MW) wind energy installations threshold last year.

It has thus managed to increase its wind energy capacity tenfold over the last 10 years, having developed a strong wind power supply chain. Wind energy now accounts for at least 10% of Turkey’s power mix, making it the second-biggest source of renewable energy after hydropower.

Some 1,750 MW in wind energy capacity were added throughout 2021, says the Turkish Wind Energy Association (TWEA), the highest annual addition to date. A previous record increase was recorded in 2016 with 1,248 MW.

Wind accounted for half of the overall increase in energy capacity, which surpassed 100,000 MW as of the end of March this year. The share of the renewable energy resources in the total installed capacity has reached more than 50%.

The total wind energy installed capacity reached 10,750 MW by the end of 2021, according to the TWEA.

EU falls short of target

In Europe, the 41 billion euros investment covered 24.6 GW of new capacity: 19.8 GW of onshore wind – a record amount – and 4.8 GW of offshore wind capacity, according to WindEurope's report.

Yet, investments fall well short of the 30 GW a year that is needed between 2021 and 2030 to meet the European Union's 40% renewable energy target.

Installations last year totaled just 11 GW, meaning the rate of installations the EU needs from 2022 to 2030 has risen to 32 GW per year to meet the existing targets.

Investments in new onshore wind projects were worth 24.8 billion euros, the highest amount on record in 2016, the report said. Investments in new offshore wind farms amounted to some 16.6 billion euros.

The U.K. again invested the most in new wind farms, 9.4 billion euros, followed by Germany (8 billion euros) and France (4.6 billion euros).

Among others, Sweden (3.2 billion euros), Finland (2.8 billion euros), Poland (1.6 billion euros) and Lithuania (400 million euros) all saw record amounts being invested in new wind farms. Elsewhere, the 3.2 billion euros investment marked the highest amount for Spain.

The report highlighted that the interest rates remain low for the time being but there has been market turbulence caused by supply chain shortages and high energy prices, resulting in record-high inflation rates as of the last quarter of 2021.

Russia’s invasion of Ukraine has added to the upward pressure on inflation and may weaken growth by disrupting trade, the association says.

Market movements suggest that investors believe that the European Central Bank (ECB) and other central banks will tighten monetary policies more slowly than previously anticipated. But WindEurope sees conditions for financing wind farms remaining favorable in the mid-term.

Wind energy journey

Turkey has seen considerable diversification of its energy mix, in particular through the expansion of renewable generation capacity.

Its wind power capacity grew steadily from just 19 MW in 2000 to 66 MW in 2006 and up to 239 MW in 2007.

Accelerated investments pushed the capacity up to 2,355 MW in 2012, before it hit 4,733 MW in 2015. Some 1,241 MW of wind capacity was commissioned in 2020.

All 10,750 MW installed today are onshore wind but the country has expressed the intention to expand the reach and build offshore farms as well.

In its report in April, the Global Wind Energy Council (GWEC) named Turkey among the four countries with the highest offshore wind energy potential.

Turkey has prioritized the security of its energy supply as one of the central pillars of its energy strategy, leading to efforts to boost investments in the clean energy sector.

Turkey's wind capacity and equipment production has grown to the extent that it now ranks as one of the 10 biggest markets globally.

Growth in this sector has already seen Turkey become the fifth-biggest equipment producer in Europe in 2020. And this growth has also helped Turkey expand its exports to 45 countries.