World Bank Finances Major Project to Modernize Türkiye’s Power Grid
WASHINGTON, August 4, 2025—In a significant move to bolster Türkiye’s renewable energy capabilities, the World Bank has approved a new financial package for the Türkiye – Transforming Power Transmission System Project (TPTS). This package includes a EUR 625 million (approximately US$ 707.9 million) loan from the International Bank for Reconstruction and Development (IBRD), coupled with a EUR 32.798 million (about US$ 38 million) loan and a US$ 2 million grant from the Clean Technology Fund (CTF). The initiative aims to integrate renewable energy sources into the national grid, paving the way for a more sustainable and resilient energy future in Türkiye.
This endeavor forms part of Phase 7 of the expansive Renewable Energy Scale-Up in Europe and Central Asia (ECARES) Program. It is designed to modernize Türkiye’s power infrastructure, making it ready to handle large-scale solar and wind energy production. The project aligns with Türkiye’s Energy Transition – Renewable Energy 2035 (RE 2035) strategy, which aims to achieve 120 GW of wind and solar power by 2035, contributing to the government’s net-zero emissions target by 2053.
“Türkiye has set one of the world’s most ambitious renewable energy targets and at the World Bank we are proud of supporting it. By modernizing the transmission network and scaling up renewables, the country is enhancing its energy security, reducing fossil fuel import dependency, improving its competitiveness, and developing new industries with the potential to create a large number of skilled jobs,” said Humberto Lopez, World Bank Country Director for Türkiye. “This project will help unlock private investment and support Türkiye’s vision of a modern and competitive energy sector.”
Key Components of the Project
- Upgrading Transmission Infrastructure: The project will fund the construction of new high-voltage substations and the modernization of existing ones. Expansion of transmission lines and underground cables will facilitate the integration of 1.7 GW of renewable energy and enhance grid reliability.
- Digitalizing the Power Grid: Advanced digital technologies will be introduced to Türkiye’s Supervisory Control and Data Acquisition (SCADA)/Energy Management System (EMS), improving the management of variable renewable energy sources.
- Technical Assistance for Innovation: Support will be provided for Türkiye’s inaugural High-Voltage Direct Current (HVDC) corridors and for bolstering the institutional capacity of Türkiye Electricity Transmission Corporation (TEİAŞ), the project’s implementing body.
“This project is not just about building infrastructure; it is about enabling Türkiye’s power grid to become greener, resilient and more digital. By supporting TEİAŞ with both investments and technical assistance, we are helping unlock Türkiye’s renewable energy potential while enhancing the reliability of electricity supply for businesses and households,” stated Yeşim Akcollu, the World Bank Task Team Leader for the project.
In line with Türkiye’s 12th National Energy Plan and climate commitments, the project is anticipated to significantly reduce greenhouse gas emissions and create numerous jobs within the renewable energy sector across the country.
The World Bank and Clean Technology Fund continue to demonstrate their commitment to advancing Türkiye’s clean energy transition and supporting its sustainable development objectives.
The ECARES Program (Renewable Energy Scale-Up in Europe and Central Asia) is a multiphase programmatic approach led by the World Bank. It aims to accelerate renewable energy deployment in the region through policy reforms, infrastructure investments, and institutional strengthening, enhancing energy security, reducing greenhouse gas emissions, and encouraging private sector involvement in the clean energy transition.
Original Story at www.worldbank.org