World Bank approves financing package for renewable projects

ISTANBUL

The World Bank has approved 400 million euros ($468.4 million) in additional financing to help expand Türkiye’s renewable energy market, focusing on wind power and utility-scale battery energy storage projects, the lender has said.

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 euro 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.

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).

The World Bank noted that Türkiye’s latest Renewable Energy Roadmap targets 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 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.

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.