TURKISH OFFSHORE WIND: CURRENT STATUS AND OUTLOOK

Murat Durak, PhD

Chairperson, Turkish Offshore Wind Energy Association (DURED) 

murat.durak@dured.org

www.linkedin.com/company/dured-towea/

1. Introduction 

Turkiye current total installed capacity is approx. 112 GW of which wind power has a share of 10%. Wind installed capacity has reached approximately 13 MW at the end of January 2025. In terms of onshore wind power, it is a mature market and many experienced contactors can be found within Turkiye for transport, installation, civil scope, etc. The local production of wind turbine components is promoted through the provision of a surplus additional feed-in rate for the wind farm operator. Turbine manufacturers without local manufacturing must overcome this disadvantage with price discounts on the turbine price. The Ministry of Energy and Natural Resources has published the National Energy Plan of Turkiye covering the period 2020-2035. In the scenario prepared by the Ministry, in the period 2020 – 2035, primary energy consumption will reach 205.3 Mtep (Million tons of oil equivalent), electricity consumption will reach 510.4 TWh (Terawatt Hours), while the electricity installed capacity will reach 189.7 GW in total. Offshore wind target is 5 GW till 2035. World Bank report concluded that Turkiye has nearly 75 gigawatts (GW) of technical potential for offshore wind. The report detailed Turkiye’s technical potential for offshore wind. The most attractive areas for offshore wind lie in the northwest in the Aegean Sea where wind speeds rise to 9 meters per second (m/s) the report said. The “Offshore Wind Energy Turkey Roadmap” Report, in which Turkey’s offshore wind energy potential is analyzed and the road map to be followed for the development of this field is stated, was shared with the sector by Turkish Offshore Wind Energy Association (DURED). Moreover, the “Offshore Wind Energy Sector Inventory” Report, which involves all stakeholders of offshore wind energy in Türkiye, was also presented. 

Recently, in October 2024, the Minister of Energy and Natural Resources, Dr. Alparslan Bayraktar, presented the 2035 Renewable Energy Road Map (“Road Map”), introducing significant updates to Türkiye’s renewable energy objectives in the National Energy Plan. As highlighted in the presentation, Türkiye’s installed renewable energy capacity reached 67.4 GW as of September 2024, representing 59% of the total installed electrical energy capacity. The primary objective of the Road Map is to increase the installed capacity of solar and wind energy from the current 31.1 GW to 120 GW, which marks a substantial 45% increase over the previous target of 82.5 GW set in the National Energy Plan.

There are numerous studies related to offshore wind power potential of the country. Amongst, World Bank Group report mentioning that Turkiye has nearly 75 gigawatts (GW) of technical potential for offshore wind. The report also detailed Turkiye’s technical potential for offshore wind. “The most attractive areas for offshore wind lie in the northwest in the Aegean Sea where wind speeds rise to 9 meters per second (m/s),” the report said.

The Road Map was followed by the Ministry’s publication of its 2024-2028 Strategic Plan (“Plan”), which outlines several objectives as part of the new policy framework. The foremost objective reiterates the Ministry’s commitment to ensuring sustainable energy security. To achieve this, the Plan aims to increase the installed electricity capacity to accommodate the rising demand, enhance grid flexibility for the integration of additional renewable energy sources, and foster greater international investment collaboration within the domestic energy sector. Importantly, a key focus of the Plan is the transition to a net-zero carbon energy framework. To this end, the Ministry projects that the share of renewable energy in total electricity production will rise from 45% in 2024 to 50% by 2028. The REZ tender model and similar initiatives are anticipated to play a significant role in achieving this target, with the Plan specifically highlighting the implementation of innovative renewable energy projects, including offshore wind farms and floating solar power plants. The Plan also highlights the importance of revising and updating the regulatory framework to support the clean energy transition. It is further projected that, by 2028, new regulations will be implemented to improve investment climate and simplify approval and permit procedures within the energy sector. Taken together, these objectives align with the Ministry’s recent initiatives for advancing the future of the renewable energy sector.

Turkiye wants to add offshore wind to its energy mix in the coming years, and based on this aim, the country plans open tenders for Offshore Wind projects in 2025.

2. Outlook for Offshore Wind Power Market in Turkiye

Based on Turkiye’s success in onshore wind, the Turkish Government announced plans in early 2018 to expand into offshore wind which is postponed. Offshore wind is experiencing global and increasing pressure to deliver energy at lower and lower costs. At the same time, the countries where the wind farms are being installed are increasingly aiming to profit from the manufacturing and installation of the wind farms, as well as the lower energy cost. In 2022, it is expected that 1500 MW capacity tender to be announced by Energy Ministry.

National Energy Plan of Turkiye

The Ministry of Energy and Natural Resources has published the National Energy Plan of Turkiye covering the period 2020-2035. In the scenario prepared by the Ministry, in the period 2020 – 2035, primary energy consumption will reach 205.3 Mtep (Million tons of oil equivalent), electricity consumption will reach 510.4 TWh (Terawatt Hours), while the electricity installed capacity will reach 189.7 GW in total.

Installed power planning in the field of energy for 2035

Wind energy: 24.6 GW onshore + 5 GW offshore total 29.6 GW

Solar energy: 52.9 GW

Hydroelectric power: 35.1 GW

Other renewable energy: 5.1 GW

Nuclear power: 7.2 GW

Conventional sources: 59.8 GW

Electrolyzer capacity: 5 GW

3. Power Purchase Tariff for Offshore Wind

The Turkish Republic Presidency has published a decree (Decree no. 7189) dated May 1, 2023 and announced new 10-year feed-in tariffs and 5-year domestic production incentives for renewable power projects commissioned between 1 July 2021 and 31 December 2030 under the new renewable energy support mechanism (YEKDEM). The feed-in tariff levels are determined in Turkish lira and will be subject to a quarterly escalation mechanism, based on the producer price index, consumer price index, US dollars purchase rates and euro purchase rates; FiTs in US dollars will be subject to a cap.

4. MetOcean and Wind Measurement Site Investigation in Türkiye 

The Ministry of Energy and Natural Resources (MENR) has received a grant from the European Union toward the cost of the EU Instrument for Pre-Accession (IPA) Energy Sector Program Phase IV Project, and intends to apply part of the proceeds for Consulting Services. The Consulting Services (“the Services”) include the conduction of meteorological and oceanographic analysis and measurements at specific offshore sites to be selected by MENR. The studies include: 

1. Analysis, measurement and survey activities informed through the application of meteorological and oceanographic measurement systems, 

2. Acquirement of high-quality and reliable meteorological and oceanographic data, 

3. Preparation of meteorological and oceanographic measurement system application and data analysis reports, 

4. Preparation of geological, geophysical and geotechnical seabed survey reports and assessment of all survey outputs, and other relevant activities. (Geological, geophysical and geotechnical measurements will be carried out under a separate contract while the data obtained from the relevant measurements will be assessed under this assignment.) 

IPA Sites selected in Marmara Sea. 

3 companies already did bid for the MetOcean Tender and the process is pending.

5. Environment and Social Commitment Plan for Offshore Wind Support Project

The Republic of Türkiye (the Recipient) will implement the EU Instrument for Pre-Accession (IPA) Energy Sector Program Phase IV– Offshore Wind Support Project (the Project), through the Ministry of Energy and Natural Resources (MENR). The International Bank for Reconstruction and Development (the Bank), acting as administrator of the European Union Instrument for Pre-Accession Trust Fund, has agreed to provide financing for the Project, as set out in the referred agreement. The Recipient through MENR shall ensure that the Project is carried out in accordance with the Environmental and Social Standards (ESSs) and this Environmental and Social Commitment Plan (ESCP), in a manner acceptable to the Bank. The ESCP is a part of the Grant Agreement. Without limitation to the foregoing, this ESCP sets out material measures and actions that the Recipient shall carry out or cause to be carried out, including, as applicable, the timeframes of the actions and measures, institutional, staffing, training, monitoring and reporting arrangements, and grievance management. The ESCP also sets out the environmental and social (E&S) instruments that shall be adopted and implemented under the Project, all of which shall be subject to prior consultation and disclosure, consistent with the ESSs, and in form and substance, and in a manner acceptable to the Bank. Once adopted, said E&S instruments may be revised from time to time with prior written agreement by the Bank. As agreed by the Bank and the Recipient, through MENR, this ESCP shall be revised from time to time if necessary, during Project implementation, to reflect adaptive management of Project changes and unforeseen circumstances or in response to Project performance. In such circumstances, the Recipient, through the MENR, and the Bank agree to update the ESCP to reflect these changes through an exchange of letters signed between the Bank and the Recipient, through MENR. The Recipient, through MENR shall promptly disclose the updated ESCP. This has been already awarded by RPS Global Inc.

6. RERA Offshore Wind Project Sites

Within the scope of the Renewable Energy Resource Zone (REZ) Regulation; Ministry of Energy and Natural Resources announced four Offshore WPP Candidate REZ. 

7. Complementing Updated Objectives: “Super Permit”

The updated objectives have prompted discussions on legislative reforms aimed at reducing administrative burdens on investors and project developers, thereby accelerating the development of renewable energy projects. To ensure an expedited procedure, a scheme called “super permit” for renewable energy projects has been proposed by the Ministry to facilitate investment by reducing the approval period of renewable energy projects from an often burdensome 48 months to two years or less.

In this framework, the Ministry has proposed reforms to simplify administrative procedures, including expediting Technical Interaction Analyses to 4-5 months, concluding expropriation permits within 6-9 months, streamlining forest permits to 4-6 months, and finalizing zoning and licensing procedures within approximately 3 months. Perhaps most notably, the Ministry envisages the process for Environmental Impact Assessment (“EIA”) —a vital measure to ensure that all potential adverse environmental impacts of a planned project are identified in advance and that necessary measures are taken—to be completed within 3 to 6 months, with other permit applications potentially being conducted simultaneously with the EIA process. These proposed incentives, designed to attract investors and position Türkiye as a global competitor in the renewable energy sector, have sparked concerns among NGOs, who warn that such rapid advancements may come at the cost of the country’s environmental values.

8. Conclusion

With growing global efforts to combat climate change and enhance energy security, renewable energy projects are experiencing substantial growth. In this context, Türkiye has recently indicated its commitment to advancing its renewable energy policy with the 2035 Renewable Energy Road Map and the 2024-2028 Strategic Plan. The updated objectives are expected to be supported by legislative reforms like the ‘super permit’, introducing new incentives that simplify administrative procedures and project development. However, the anticipated growth in renewable energy projects may bring with it the risk of disputes. As Türkiye is becoming an increasingly attractive hub for investments in renewable energy projects, investors should be mindful of common technical and legal challenges inherent to these projects, and strategically review risk allocation in contractual agreements to mitigate potential disputes, dispute resolution mechanisms and overall investment protection as well as political risk insurance.

References:

Turkish Offshore Wind Energy Association, Denizüstü Rüzgar Enerjisi Derneği (DÜRED).

Turkish National Energy Plan, 2023.

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