Yusufeli Dam economic and energy impact

The Yusufeli Dam and Hydroelectric Power Plant (HES) on the Çoruh River in Artvin has become a significant asset for Turkey’s energy and water management. Since beginning electricity production in 2023, the facility has contributed an estimated 15 billion TL to the national economy, with reports indicating an annual economic contribution of approximately 6 billion TL. Since its commissioning, the dam has produced roughly 5.5 billion kWh of energy.

As Turkey’s highest arch dam, standing 275 meters high with a storage capacity of 2.13 billion cubic meters, the project has demonstrated resilience by achieving record electricity production during a 2025 drought. The dam provides a regular water supply to the Artvin, Deriner, Borçka, and Muratlı dams, increasing the annual electricity production of those downstream facilities by approximately 10%. Following its completion in 2022 and transfer to Electricity Generation Inc. (EÜAŞ) in 2023, the dam accounts for roughly 3.5% of Turkey’s hydroelectric capacity.

While the dam is a critical infrastructure asset, reports indicate the project faced a seven-year delay due to legal challenges from the Republican People's Party (CHP) and decisions by the Council of State. This delay is estimated to have cost the national economy approximately 50 billion TL in lost energy production and revenue.

By the end of September 2026, Turkey’s total installed electricity capacity reached 127,355 megawatts. Renewable energy capacity rose to 80,315 megawatts, representing 63.1% of the total installed capacity. During that month, hydraulic power remained the largest contributor to electricity production, providing 8.27 billion kilowatt-hours, or 26% of the monthly total.