The World Bank and Türkiye are in talks to finance around $28 billion plan to transform the country’s energy transmission, Humberto Lopez, the World Bank country director for Türkiye told Anadolu Agency (AA) recently, following the announcement on the expansion of solar and wind capacity in the country.
“What we are discussing with the Ministry of Energy is what can be done to extract or appropriate financing for a plan on transmission that we will need around $28 billion,” Lopez told on the sidelines of the Türkiye Offshore Wind Conference held in Istanbul on Nov. 7-8.
Last month, Energy and Natural Resources Minister Alparslan Bayraktar said that Türkiye aims to increase installed wind and solar capacity to 120 gigawatts (GW) by 2035 and requires a nearly $80 billion investment with an additional $28 billion to develop the necessary energy transmission infrastructure.
Lopez emphasized three points in Türkiye’s energy transmission. “On the one hand, you have energy generation. This is mainly private sector activity. This will require over the coming years around $80 billion. There is a second part, energy transmission. This falls within the public sector. There is a third part, energy distribution. This is also for the private sector.”
The World Bank is already collaborating with the Energy and Natural Resources Ministry on a $750 million project, set to launch next year, aimed at advancing the energy transition, Lopez noted.
“We will come with the second project in a couple of years, with a similar amount for the energy transmission,” he added.
Energy transition plan
Lopez said that the World Bank is currently supporting the government’s energy transition plan, which aims to add 90 gigawatts of renewable energy by 2035, a return of 120 gigawatts. “It will consist of solar, onshore wind and offshore wind. What we are trying to do at this moment is to have a good analysis of the capabilities,” he said on the sidelines of the conference where the World Bank Group, in collaboration with the Energy and Natural Resources, launched a new road map outlining the way forward to establish a successful offshore wind industry in Türkiye.
“What we are looking now is basically what are the economics of offshore wind,” which will depend on several factors, including wind speeds in different regions, potential areas like the Marmara and Black Sea, water depth and protected areas that need to be preserved, he added.
“When you look at all these things, you will have a clear view of the economics of offshore wind and how this is going to enter the mix,” Lopez explained.
When considering renewable energy, he said a diversified mix of solar, onshore and offshore sources is optimal, tailored to each country’s specific potential.
“In Türkiye, you have the ability and the potential for significant generation of onshore wind and solar,” he noted.
Praising Türkiye’s announcement to increase installed wind and solar capacity, Lopez said: “I think that the ministry is taking the right steps in that direction.”
Following the announcement of Türkiye’s energy transition plan at COP28 in Dubai last year, the council is taking concrete steps to implement the plan, including allocating production slots.
“This is going to be critical because it will make very predictable what is coming every year and this will allow us to move in the right direction. I’m pretty sure this will work out,” he added.
