Türkiye’s energy sector is at a pivotal juncture, shaped by domestic energy and climate ambitions, strong demand growth, structural import dependence and its strategic role as a regional energy corridor. As a major link between Europe, the Middle East and the Caspian region, Türkiye plays an important role in regional energy markets, while managing internal energy system pressures. Strong economic and population growth are driving sustained increases in energy demand, impacting security of supply, affordability and emissions. Türkiye has made progress in modernising its energy infrastructure, strengthening its integration with regional markets and expanding cleaner energy sources such as renewables and nuclear power. However, high reliance on imported fuels and exposure to global energy price volatility remain persistent challenges along with a need for coherent regulatory frameworks.

Türkiye established a comprehensive energy and climate policy framework that aligns a long‑term strategic vision with shorter‑term implementation instruments. The first National Energy Plan (TNEP), developed by the Ministry of Energy and Natural Resources (MENR) and adopted in 2022, set targets for 2020‑2035, incorporating sectoral, demographic and economic projections from other state bodies. The 12th Development Plan (2024-2028), was prepared within the framework of the government’s 2053 vision, and established targets for a five-year implementation period. MENR’s Strategic Plan (2024‑2028), and the Second National Energy Efficiency Action Plan (2024‑2030), provide nearer-term targets, performance measures and delivery mechanisms.

Türkiye’s adoption of its first-ever Climate Law in July 2025 marked a major milestone that strengthens climate governance and creates a framework for carbon pricing. This broad-reaching law translates Türkiye’s international climate commitments and 2053 net zero emissions target into domestic legislation and establishes the legal framework of a national emissions trading system. This new framework and the opportunities for complementary measures elevate the importance of a more integrated approach to industrial competitiveness that promotes policy coherence across Türkiye’s energy security, climate and economic objectives.

Managing rapid demand growth while ensuring affordability and energy system resilience is a central challenge for Türkiye’s energy policy. Energy demand increased steadily over the past decade and is expected to continue rising under the TNEP, requiring sustained investment across the system. For example, a fast-growing economy and population have steadily increased electricity demand at an average annual rate of almost 5% from 2005 to 2024 – the fastest rate of growth in IEA’s membership – and the TNEP forecasts this growth to continue until 2035, albeit at a slower pace, driven primarily by industry and household consumption. Such demand growth amplifies vulnerabilities to external shocks, particularly given Türkiye’s reliance on imported fossil fuels. Continuing existing efforts to ensure transparent, market‑based end‑user pricing, paired with targeted measures for vulnerable consumers, would strengthen incentives for efficiency and investment without undermining social objectives.

The power sector will help determine the pace and scale of Türkiye’s transition and must balance rapid renewables growth with reliable system operation. Ambitious plans to expand wind and solar capacity are central to the TNEP, with renewables expected to supply a growing share of electricity demand. Renewables supplied 43% of electricity generation in 2025, and the TNEP foresees renewable generation rising to 55% of electricity supply by 2035. Nuclear energy is expected to contribute around 10% of capacity once Akkuyu nuclear power plant is fully operational in the coming years, further diversifying the energy mix. Delivering this transformation requires not only adding capacity, but also improving system operations, ensuring reliability and keeping total system costs manageable.

Scaling up variable renewables places growing demands on grid infrastructure, system operations and flexibility. While Türkiye has made significant investments in transmission and distribution networks, its plans for a major expansion of transmission, substations and battery storage capacity by 2035 underscore the scale of the challenge. System flexibility is currently provided mainly by hydropower and thermal generation but rising shares of wind and solar will increase the need for storage, demand‑side response, digital solutions and regional grid interconnections. Clear locational signals, market rules and regulatory frameworks will be essential to mobilise investment in flexibility and grids, encourage consumer engagement in demand-side response and ensure secure system operation.

Nuclear power is intended to be a cornerstone of Türkiye’s future decarbonised electricity system, but delivery depends on robust financing and a credible approach to emerging technologies. Beyond the Akkuyu nuclear power plant, the government is planning to build additional large-scale nuclear power plants, which will require viable financing frameworks and co-ordinated policy action. In parallel, small modular reactors (SMRs) could offer a potential flexible and modular solution for decarbonising hard-to-abate industrial sectors, but clear strategic and regulatory frameworks are needed to enable credible, private-sector-led applications.

Coal remains prominent in the energy mix, raising long-term economic and environmental challenges that point to the need for a just and orderly transition. In 2024, coal supplied one-quarter of total energy supply and generated more than one-third of electricity. Türkiye consumed around 120 million tonnes (Mt) of coal in 2025, making it the largest coal consumer in Europe. Although it has declined over the past decade, Türkiye’s carbon intensity of power generation remains among the highest in IEA’s membership. While coal plants contribute to adequacy and price stability, continued reliance on coal risks higher emissions, exposure to future carbon pricing and growing fiscal costs through support mechanisms such as capacity payments. Establishing a policy framework to ensure an orderly, well planned coal transition would help manage these risks, support affected communities and redirect resources toward cleaner alternatives.

Energy efficiency is one of Türkiye’s most cost-effective levers to reduce import dependence, improve affordability and strengthen competitiveness. Türkiye’s policy push began with the Energy Efficiency Law in 2007 and has expanded through successive strategies, including the Energy Efficiency 2030 Strategy and the second action plan for 2024-2030, which is supported by substantial investment intentions. A range of initiatives has been introduced, such as measures to promote building retrofits, industrial process optimisation and efficient appliances. Nevertheless, Türkiye’s full energy efficiency potential remains untapped. Barriers such as limited access to finance, the need for improved implementation, and insufficient public awareness persist. Strengthening monitoring mechanisms, enhancing capacity-building efforts, and fostering public-private partnerships are critical next steps to accelerate progress and maximise impact.

Buildings policy sits at the intersection of affordability, energy security and resilience, and requires a step change in renovation delivery and finance. The expansion of the building stock is a key driver of rising energy demand and emissions in the sector. Moreover, Türkiye is highly prone to earthquakes, and although resilience efforts have accelerated, the building stock needs further strengthening. Energy efficiency upgrades can offer financial returns that help improve the bankability of retrofit projects. Combining energy efficiency with seismic upgrades can reduce costs. Prioritising residential renovations through scalable financing solutions, while integrating seismic resilience upgrades, can lower household bills, manage system demand growth and strengthen resilience, provided that programmes are designed to reach vulnerable households effectively.

Decarbonising heat requires a clearer “heat market” pathway that leverages Türkiye’s geothermal strengths and enables investable local delivery models. Türkiye is assessing the role of district heating as a solution for decarbonising space heating, the largest energy end use in residential buildings, and existing geothermal-based systems, which are presently concentrated in resource rich regions, suggest scope to expand low-emissions heat where it is cost effective. Moreover, the requirement for buildings above a certain size to source 10% of their energy consumption from renewable energy could be fulfilled through the direct use of geothermal heat. Nonetheless, Türkiye is still at the early stages of legislation and policies dedicated to district heating.

The transport sector accounts for a significant and growing share of energy demand and emissions in Türkiye, requiring stronger policy action to diversify fuels, improve efficiency and shift towards lower-emission modes of transport. In 2023, the transport sector accounted for around 30% of total final energy consumption and one-quarter of energy‑related emissions, with road transport overwhelmingly dominant and almost entirely dependent on oil products. Despite relatively low car ownership compared with European peers, rapid growth in vehicle stock and travel demand is driving increased fuel consumption and emissions. Under the Energy Efficiency Strategy 2024-2030 and other policies, Türkiye introduced a range of measures to address this challenge, including support for electric vehicles, expansion of charging infrastructure and policies to promote public transport and modal shift towards rail and maritime transport.

Ensuring Türkiye’s industrial competitiveness in a carbon-constrained global economy will depend on combining efficiency delivery, carbon pricing and integrated infrastructure planning. Organised industrial zones can act as practical “one-stop shops” to scale energy efficiency in less energy intensive industries that often lack capacity to participate in programmes independently, while strengthening access to finance and implementation support. At the same time, an emissions trading system focused on large energy consumers – complemented by a carbon tax or charge for firms outside the Emissions Trading System (ETS) – can support emissions reductions and alignment with external market pressures, especially if revenue recycling and infrastructure planning (electricity, gas, hydrogen and CO2 networks) are integrated into a coherent competitiveness strategy.

Türkiye’s efforts to modernise its energy sector, meet climate commitments, and improve efficiency are commendable, yet require sustained momentum and coherent action. The recommendations in this report offer a roadmap for policy makers and stakeholders to navigate the complexities of the transition, capitalise on emerging opportunities, and deliver a secure, sustainable and inclusive energy future for Türkiye. Looking ahead, success will depend on the alignment of strategic objectives, robust governance, and active engagement across all segments of society. By embracing innovation, fostering collaboration, and prioritising long-term resilience, Türkiye can position itself as a regional leader in a secure global energy transition.