Türkiye plans coal reduction and new energy investment models

Türkiye is planning to reduce the share of coal in its electricity production by 2055 as part of a long-term energy transition and response to rising carbon prices. Energy and Natural Resources Minister Alparslan Bayraktar stated that while the share of coal will decrease, existing thermal power plants will continue to operate until the end of their technical lifespans to ensure supply security and system flexibility.

To manage the social and economic impacts of this transition, the government is implementing a National Just Transition Strategy. This framework covers 17 sectors and 33 themes, focusing on employment, vocational training, and regional development for workers in coal-dependent areas.

To finance the estimated $200 billion in energy investments needed by 2035, Türkiye is promoting a model centered on bilateral Power Purchase Agreements (PPAs). This model allows renewable energy producers to secure long-term contracts with large industrial consumers before plants are even built. This approach facilitates private sector financing and helps industrial companies stabilize electricity costs and meet European Union carbon regulations.