Türkiye’s plan to invest $28 billion in electricity transmission by 2035 is more than a utility upgrade. It is a test of whether one of Europe’s largest emerging power markets can turn renewable energy targets into bankable projects, while giving foreign manufacturers, infrastructure investors and energy technology suppliers enough grid certainty to commit capital.
A Grid Plan Built Around 120 GW Of Wind And Solar
Energy and Natural Resources Minister Alparslan Bayraktar told Anadolu Agency, in remarks reported by Hürriyet Daily News, that Türkiye plans $28 billion of transmission investment by 2035 to meet rising demand and connect new generation capacity. The same roadmap envisages about $80 billion in power generation investment, taking the total power and grid requirement to roughly $108 billion.
According to Anadolu Agency, Türkiye’s transmission network expanded from 43,000 kilometers in 2005 to 77,000 kilometers in 2025. TEİAŞ substations rose from 512 to 824, while transmission transformers increased from 1,096 to 2,215. Bayraktar said transformer capacity climbed 226 percent to 236,913 MVA.
The new phase is more technically ambitious. Bayraktar said Türkiye plans roughly 9,580 kilometers of high-voltage direct current corridors with 28 GW of capacity, plus 15,000 kilometers of new alternating-current transmission lines. The International Energy Agency’s policy tracker for Türkiye’s Renewable Energy 2035 Roadmap records the same $28 billion grid investment estimate, tied to the goal of 120 GW of combined wind and solar capacity by 2035.
For foreign investors, the key point is that Türkiye is no longer presenting renewables as a generation-only opportunity. Grid connection, flexibility, storage, digital control systems and regional transmission corridors are becoming central investment variables. Market entry strategies must therefore evaluate not only project economics, but also connection capacity, permitting sequence, local content rules and the evolving role of TEİAŞ.
Demand Growth Is Changing The Investment Case
Türkiye’s grid push reflects structural demand growth. Bayraktar cited artificial intelligence, data centers, electric vehicles and air conditioning as new sources of electricity demand. The International Energy Agency has separately warned that global data center electricity demand is rising quickly, although industry, electrification, EVs and cooling remain larger drivers of overall power demand growth.
The Presidency’s Invest in Türkiye office says Türkiye generated about 343 TWh of electricity in 2024 and had roughly 119.6 GW of installed capacity by mid-2025. It ranks Türkiye sixth in Europe by installed electricity capacity and third in energy consumption across Europe and the wider region. The same official source lists mid-2025 capacity at 22.9 GW of solar, more than 13.5 GW of wind and 32.3 GW of hydropower, with renewables accounting for more than 58 percent of installed capacity.
Yet installed capacity does not automatically translate into deliverable electricity where and when investors need it. Industrial zones in western Türkiye, new data center loads, ports, logistics hubs and export-oriented manufacturing clusters all require reliable delivery, not just national capacity statistics. That is where transmission becomes a competitiveness issue.
For a foreign manufacturer considering Türkiye as a regional production base, grid reliability affects site selection, power procurement, carbon reporting and operating cost projections. For developers of wind, solar, storage or equipment manufacturing, it affects where to incorporate local entities, how to structure joint ventures and which incentives can be realistically secured. These are precisely the points where market entry, incorporation, investment incentives, legal and tax compliance, government relations and project management work become intertwined rather than sequential.
Renewables, Storage And Auctions Create A Deeper FDI Pipeline
The grid announcement builds on a broader acceleration in Türkiye’s renewable energy framework. In 2024, the government launched its 2035 roadmap, targeting a quadrupling of wind and solar capacity. In 2026, Balkan Green Energy News reported that Türkiye’s 2026 wind and solar auction round would offer 2.4 GW of connection capacity, including 1.5 GW for wind and 900 MW for solar. Bayraktar said Türkiye planned at least 2 GW of wind and photovoltaic tenders every year.
The auction design is important for foreign investors because it combines energy pricing, connection rights and industrial policy. Balkan Green Energy News reported that the 2026 round included floor prices of EUR 32.5 per MWh for solar and EUR 35 per MWh for wind, with contracts moving into a 20-year support scheme after an initial free-market sales period. It also noted domestic content thresholds, including Turkish-origin requirements for solar panels, cables, support structures, trackers and inverters, and a points-based domestic content system for wind equipment.
This creates opportunities for equipment suppliers, engineering firms, storage integrators and international developers, but it also raises execution risk. A bid cannot be evaluated on tariff assumptions alone. Investors need legal due diligence on tender documents, tax modeling for local procurement, import-export planning for components, and government relations work to navigate ministries, regulators, municipalities and land authorities.
Storage is another strategic layer. Invest in Türkiye says around 33 GW of battery-integrated wind and solar projects were in pre-licensing as of mid-2025. In April 2026, The Guardian, citing Ember, reported that Türkiye had approved more than 33 GW of battery storage capacity since 2022, ahead of individual EU member states such as Germany and Italy. The same report noted that Türkiye still relied heavily on coal in 2025, underscoring that storage and grid investment are not just clean-energy add-ons, but tools for system balancing and fuel import reduction.
Financing The Grid Will Require More Than Public Spending
The financing structure remains one of the most important unresolved questions. TEİAŞ will be central to execution, but the scale of the program suggests a mix of public investment, international financial institution funding, private capital, supplier financing and technology partnerships.
The World Bank has already moved in this direction. In August 2025, the World Bank approved a package for the Türkiye Transforming Power Transmission System Project, including a EUR 625 million IBRD loan, a $38 million Clean Technology Fund loan and a $2 million CTF grant. The Bank said the project would help integrate increased renewable capacity into Türkiye’s grid, finance substations, transmission lines and underground cables, modernize SCADA and energy management systems, and support early HVDC corridor work.
World Bank Country Director Humberto Lopez said the project would support energy security, reduce fossil fuel import dependency, improve competitiveness and develop new industries. Task Team Leader Yeşim Akcollu described the project as a grid modernization effort that would make the system greener, more resilient and more digital.
That language matters for FDI. Multilateral involvement can improve investor confidence by bringing procurement standards, environmental and social safeguards, technical assistance and longer tenor finance. But it can also raise compliance requirements. Foreign contractors and investors must be ready for procurement documentation, anti-corruption obligations, environmental permitting, labor compliance, tax registration and local partnership structures that satisfy both Turkish authorities and international lenders.
At the Istanbul Climate Finance Summit in September 2026, Bloomberg HT reported Bayraktar as saying that Türkiye’s energy infrastructure would need at least $80 billion in investment by 2035 and that public finance alone would not be sufficient. His call for affordable, long-term climate finance signals that Türkiye wants to position grid modernization as an international capital market opportunity, not only a domestic utility obligation.
The Carbon And Export Dimension
Grid modernization is also linked to Türkiye’s export competitiveness. Many foreign investors assess Türkiye as a production base for the EU market. That makes electricity carbon intensity, renewable sourcing and emissions documentation commercially relevant.
Türkiye adopted its first Climate Law in July 2025, creating the legal basis for a national emissions trading system. The International Carbon Action Partnership said the law established the framework for carbon pricing, climate governance and finance mechanisms. In August 2026, ICAP reported that Türkiye published secondary regulations for the national ETS, covering governance, allocation, registries and market stability.
This intersects with the EU Carbon Border Adjustment Mechanism, which entered its definitive phase on January 1, 2026. Turkish steel, cement, aluminum, fertilizer, electricity and hydrogen exporters face stronger incentives to document embedded emissions and secure lower-carbon power. Renewable electricity access, credible power purchase agreements and reliable certificates are becoming part of legal and tax compliance, not merely sustainability reporting.
For investors, the grid plan therefore has a dual meaning. It expands the addressable market for renewable generation and grid technologies. It also supports the decarbonization of Turkish industrial production, which can preserve access to European supply chains. Market entry decisions in manufacturing, chemicals, metals, automotive components or data infrastructure should now include an energy and carbon workstream from the start.
What This Means For Foreign Investors
Türkiye’s $28 billion transmission plan strengthens the investment case for renewables, storage, grid equipment, HVDC technology, digital grid systems and energy-intensive manufacturing. But it also raises the bar for execution. Foreign investors will need to understand where grid capacity is actually available, how connection rights are allocated, which auctions or incentives fit their business model, and how local content, procurement, tax and permitting rules affect returns.
An FDI advisory firm such as fdiconsultancy.com becomes relevant at the practical level. Market entry analysis must identify regions where power access, labor, logistics and incentives align. Company incorporation and corporate structuring must reflect tender eligibility, joint venture needs and financing requirements. Investment incentives work must map national, regional and sector-specific support. Legal and tax compliance must cover licensing, procurement, employment, carbon rules and import-export obligations. Government relations matter because grid, land, environment and energy approvals involve multiple public bodies. Expo and trade-fair representation can help foreign technology providers meet Turkish utilities, developers and industrial buyers. Project management is needed because grid-linked energy investments often succeed or fail on local execution.
The headline number is large, but the investment opportunity is not automatic. Türkiye is creating a more ambitious power market architecture. Foreign capital can participate, provided it treats the grid not as background infrastructure, but as the central commercial, regulatory and operational issue in the next phase of Türkiye’s energy transition.