WASHINGTON, June 15, 2026 - The World Bank approved €400 million (US$468.4 million equivalent) in additional financing to scale up Türkiye's distributed renewable energy market, expanding support for distributed wind power and commercial-scale battery storage.
The financing comprises two €200 million IBRD loans to the Development and Investment Bank of Türkiye A.Ş. (TKYB) and the Industrial Development Bank of Türkiye A.Ş. (TSKB), guaranteed by the Republic of Türkiye.
This investment expands the Accelerating the Market Transition for Distributed Energy Program, building on the strong progress of the initial phase, which was approved in 2024 and is successfully catalyzing the country's low-voltage distributed solar market. Operating as a results-based financing program-where funds are disbursed after pre-agreed targets are achieved and independently verified-this new phase broadens the scope to include onshore wind generation projects alongside new types of distributed solar and Battery Energy Storage Systems (BESS) investments.
Türkiye has significantly increased its renewable energy ambitions within the past decade. The government's latest Renewable Energy Roadmap aims to reach 120 gigawatts (GW) of combined wind and solar capacity by 2035, alongside a massive expansion in battery storage.
Despite the strong renewable energy potential and a growing demand from commercial and industrial sectors responding to the 2026 EU Carbon Border Adjustment Mechanism (CBAM), long-term financing for distributed wind and battery storage remains constrained. Domestic commercial banks, limited by short-term liability profiles, face challenges in funding these capital-intensive investments.
The expanded program addresses these barriers by:
- Providing long-term financing through development banks to bridge the maturity gap.
- Building market capacity and financial expertise to assess and manage the risks of new grid technologies.
- Catalyzing private sector participation to unlock commercial investments.
"Scaling up battery storage and distributed wind is the next critical step to future-proof Türkiye's energy grid," said Humberto Lopez, World Bank Country Director for Türkiye. "By using public development banks to bridge the commercial financing gap, this program enables ready-to-build projects to reach financial close, which will support the competitiveness of Turkish industries, enhance national energy security, and create local jobs across the renewable energy value chain."
By absorbing early market risks and extending loan maturities, the expanded program expects to deliver the following results:
- 1,579 megawatts (MW) of renewable energy capacity enabled, up from 963 MW
- 392 megawatt-hours (MWh) of battery storage capacity supported
- Up to US$405 million in private capital mobilized
The additional financing is part of the broader Europe and Central Asia Renewable Energy Scale-up (ECARES) Program, a World Bank regional initiative designed to increase renewable energy capacity across participating countries. The financing for Türkiye is part of a proposed $2.96 billion increase in the ECARES program envelope, enabling further expansion of renewable energy investments across Europe and Central Asia.
"Türkiye is acting as a trailblazer for the broader ECARES program," said Charles Cormier, World Bank Regional Director for Infrastructure for Europe and Central Asia. "By successfully pioneering commercial rooftop and utility-scale solar, onshore wind, and battery storage, Türkiye is establishing best practices and knowledge that can be replicated to modernize grid infrastructure, integrate renewables and enhance energy security across the entire region."
This regional replication is facilitated through the World Bank's Europe and Central Asia Energy Knowledge Network (EKN), which connects over 180 energy sector professionals from 21 countries. Through active Communities of Practice focused on renewable energy and energy efficiency, the EKN ensures that successful market strategies, regulatory updates, and technical solutions pioneered in countries like Türkiye are shared across borders. This structured knowledge exchange directly informs the design of subsequent ECARES operations, advancing energy security, affordability, and resilience throughout the region.
