Report Overview

Rapidly spurring demand for energy, supportive government policies in the development of sustainable wind energy projects, and an increasing demand for electricity from sustainable energy sources, including wind energy, are expected to boost the growth of Turkey Wind Energy Market at a high growth rate during the forecast period between 2022 and 2028

Turkey Wind Energy Market - Industry Trends & Forecast Report, 2028

Turkey wind energy market size is expected to expand at a high CAGR of 19.2% during the forecast period between 2022 and 2028. Major growth factors for Turkey wind energy market include rising power demand for sustainable energy, constant decline in the costs associated with the wind energy generation and equipment, and supportive government policies. The rise in carbon dioxide emissions from the utilities industry has prompted new legislation and policy actions from the Turkey government. In addition, regulators have enacted favorable rules and regulations to encourage the development of sustainable energy technologies, such as wind energy. Growing infrastructure development in developing regions will also drive the demand for wind energy during the forecast period. Thus, increased investments in renewable energy generation, as well as initiatives to reduce carbon emissions, are driving the wind energy market in Turkey.

Turkey Wind Energy Market - Overview

Wind power or wind energy is the use of wind turbines to generate electricity. Wind turbines convert the kinetic energy of the wind into mechanical power, which can then be used for specialized tasks (such as grain grinding or water pumping) or converted into energy by a generator. Wind energy is a popular, renewable energy source that has far fewer environmental consequences than burning fossil fuels. Wind turbines can generate energy for both on-site and off-site use. The energy requirements will determine the size of the turbine.

Turkey has installed 10 GW of wind energy (all of them are onshore), which is a significant achievement for the country. It means that Turkey has increased its wind energy capacity more than 10-fold during the last decade. Turkey's electricity mix has diversified significantly during that time, owing primarily to the expansion of renewable generation capacity. Currently, renewables account for more than 40% of total electricity production in Turkey. Wind energy is the second largest renewable energy source after hydropower, accounting for 10% of Turkey's electricity mix. By 2030, Turkey has plans to add 20 GW of wind energy capacity.

The Turkish government has issued strict regulations and policy measures in response to the rise in carbon dioxide (CO2) emissions from the utilities sector. Additionally, regulators have implemented beneficial policies and programs to encourage the use of clean energy technologies, such as wind energy. Furthermore, rapid industrialization in developing countries, including Turkey, will increase energy demand, improving the outlook for the wind energy market.

Turkey Wind Energy Market  

Growth Drivers

Increasing demand for electricity from sustainable energy sources

Turkey is attempting to increase its renewable energy capacity to reduce its reliance on energy imports amid the crisis and rising prices caused by Russia's invasion of Ukraine. To that end, it has launched large-scale projects as well as tenders for solar and wind power plants. According to a recent report by the United Nations Development Programme (UNDP) and the International Labour Organization (ILO), Turkey could achieve significant economic benefits by shifting investments from fossil fuels to renewable energy sources, including an increase in GDP of USD 8 billion per year and an 8% reduction in greenhouse gas emissions compared to 2019. One of the main pillars of Turkey's energy strategy is the security of its energy supply, which has prompted the government’s’ efforts to increase investments in its clean energy sector.

Strong domestic supply chain

Turkey's wind industry’s growth depends on the continuously growing, robust domestic supply chain. Many national and international businesses have also established factories in Turkey. According to a recent data, the Turkish wind energy sector employs about 25,000 people directly or indirectly. Leading wind energy companies, such as TPI Composites, Enercon, and GRI Renewables, have production facilities in Turkey. For instance, TPI Composites, a US-based company employing a total of about 4,200 people, manufactures composites used in wind turbine blades at two facilities in the Izmir area, Turkey. They supply their products to wind energy markets in Turkey, Europe, Middle East, and Africa.

Government and business initiatives to cut carbon emissions

Rising carbon dioxide (CO2) emissions from the utilities sector, the Turkish government has issued strict regulations and policy measures. The regulators have additionally introduced beneficial policies and programs to encourage the adoption of clean energy technologies, such as wind energy. Additionally, the rapid industrialization of developing countries, including Turkey, will increase the demand for energy and improve the outlook for the wind energy market.

Restraints

High capital costs

The total cost of a wind energy project is significantly influenced by the production and implementation costs. The price of raw materials, labor, transportation, and manufacturing processes may be included in the cost of production and performance. Wind turbines require significant upfront investments, so it takes a while for a wind energy company to break even. The price of a commercial wind turbine ranges from USD 2.6 million to USD 4 million. Each installed megawatt (MW) of wind power development costs USD 1 million on average. Wind power facilities should be larger than 20 MW to benefit from economies of scale. All these factors may restrain the growth of Turkey wind energy market during the period in analysis.

Impact of COVID–19 on Turkey Wind Energy Market  

The COVID-19 pandemic adversely affected the Turkey renewable energy market, including Turkey wind energy market, by delaying several projects and auctions, including mini-auctions for solar photovoltaic systems in the YEKA renewable energy resource zone. The pandemic caused Turkey's annual solar energy additions to decline. The Turkey government's initiatives to reduce its reliance on fossil fuels and use affordable and sustainable energy sources are major market drivers. Nevertheless, during the anticipated period, market growth is anticipated to be constrained by a lack of adequate grid infrastructure to integrate renewable energy sources.

Turkey Wind Energy Market  

Segmental Coverage

Turkey Wind Energy Market - By Location

By location, Turkey wind energy market is divided into Onshore and Offshore. In 2021, the onshore segment dominated the market. The Onshore wind power has emerged as the most popular renewable energy source across regions due to its lower cost than offshore wind power, ease of installation, and reduction in Greenhouse Gases (GHG). All 10 GW of wind energy that Turkey has installed so far is onshore. However, the country focus on its potential for developing offshore wind as well. The Izmir Development Agency, in its roadmap published to support offshore wind development, estimates Turkey's total offshore wind potential at 70 GW. As a result, in the coming year, Turkey offshore wind energy segment is also expected to grow at a significant rate.

Turkey Wind Energy Market - By Application  

Based on application, Turkey wind energy market is categorized into Utilities and Non-Utilities segment. During the forecast period, the utilities segment is expected to continue its dominance in the Turkey wind energy market by application. The non-utilities segment includes both commercial and residential wind energy installations. Non-utilities applications made up a smaller percentage of the market than utilities applications, as wind turbines cannot be installed due to land restrictions. High cost is a crucial factor that may limit the use of wind turbines in non-utilities projects.

Turkey Wind Energy Market - By End User

By end user, Turkey wind energy market is segmented into Industrial, Commercial, and Residential segments. Due to an increase in the demand for renewable energy sources, the industrial end-user segment is expected to hold the highest market share in Turkey wind energy market. In remote and rural areas without access to the grid, wind power is in high demand. However, as wind energy depends so heavily on government incentive programs, both the price and demand are very unstable in the residential segment.

Competitive Landscape

Turkey wind energy market is fiercely competitive. Prominent players in the market include Borusan EnBw, Demirer Energy, Güriş Energy, Polat Energy, The Soma facility, Vestas, Siemens Gamesa Renewable Energy S.A., Axpo, Suzlon Group, and Goldwind. To further enhance their market share, these players are primarily focused on the development of innovative and efficient products, new product releases, mergers and acquisitions, collaborations, partnerships, and joint ventures.

Recent Developments

• In October 2022 - Enerjisa Uretim, a joint venture between E.ON and Sabanci Holding, partnered with ENERCON, a Germany-based wind turbine manufacturer, to install the 1-GW YEKA RES 2 onshore wind energy project in Turkey.

• In August 2022 - Dost Enerji, a Turkey-based renewable energy company, acquired Işıklar Wind Energy Project from Renewable Energy Systems (RES), a UK-based company, for a consideration of about EUR 50 million.

Scope of the Report

By Location

• Onshore

• Offshore

By Application

• Utilities

• Non-Utilities

By End User

• Industrial

• Commercial

• Residential