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Türkiye secured a major financing agreement with the World Bank on Monday to overhaul its electricity transmission infrastructure, as the country prepares for a threefold increase in power demand by 2050.
Energy and Natural Resources Minister Alparslan Bayraktar announced the $750 million credit agreement with Turkish Electricity Transmission Corporation (TEIAS) during the 11th Energy Efficiency Forum and Fair at Istanbul Congress Center.
"We just signed a $750 million credit agreement between the World Bank and TEIAS," Bayraktar told reporters after the signing ceremony. "There is significant interest from the World Bank and international financial institutions in Türkiye's energy infrastructure, particularly electricity and natural gas infrastructure."
The minister highlighted Türkiye's strategic position and ambitious renewable energy targets as key factors attracting international investment. President Recep Tayyip Erdogan announced last year in Baku that Türkiye aims to achieve 120,000 megawatts of installed wind and solar capacity by 2035, requiring 8,000 to 10,000 megawatts of new power plants annually.
Türkiye has committed $28 billion in electricity transmission infrastructure investments through 2035, announced last year. These infrastructure projects have drawn considerable attention from international financial institutions across Asia and the West, according to Bayraktar.
The "Transmission System Transformation Project" will focus on three main components: strengthening the transmission network, digitalizing grid operations and management, and providing technical assistance and capacity building for TEIAS.
Türkiye's power demand is projected to triple by the 2050s, driven by the expanding electric vehicle market, artificial intelligence applications, data centers, and increased air conditioning use. This surge necessitates substantial infrastructure development from generation to transmission and distribution.
"We need to provide our energy sector with very strong infrastructure from production to transmission and distribution," Bayraktar said. "For this, we will implement models that bring external financing."
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The minister emphasized that Türkiye's energy infrastructure, particularly transmission projects, requires long-term financing arrangements spanning 20-30 years with external funding sources.
TEIAS General Manager Orhan Kaldirim and World Bank Türkiye Director Humberto Lopez signed the agreement in the presence of Minister Bayraktar.
Discussions between TEIAS and the World Bank for additional credit agreements are ongoing, officials confirmed.
The signing took place during Türkiye's largest energy efficiency gathering, where Bayraktar also toured the exhibition area showcasing the latest developments in energy technology and efficiency solutions.
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