Turkey Wind Energy Market Set to Record Electrifying Growth at CAGR 19.2
Turkey wind energy market is flourishing because of increasing the country’s investments in the expansion of renewable energy capacity and the government’s initiatives to reduce carbon footprint by increasing its focus on the development and adoption of sustainable technologies including wind energy technology.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, expects Turkey wind energy market size to expand at an impressive CAGR of 19.2% during the forecast period between 2022 and 2028. The expansion of Turkey wind energy market is driven by increasing demand for electric power, further decline in the costs of wind power generation and equipment, favorable government policies, and rising demand for renewable energy. The Government of Turkey has introduced new legislation and policy measures in response to the increase in carbon dioxide emissions from the utilities sector. Regulators have also passed supportive laws and policies to promote the advancement of renewable energy technologies, such as wind energy. During the forecast period, the demand for wind energy in Turkey will be driven by expanding infrastructure development. Thus, the development of wind energy in Turkey is being fueled by rising investments in the production of renewable energy as well as government’s initiatives to cut carbon emissions.
Turkey Wind Energy Market – Overview
Turkey has installed 10 GW of wind energy (all of them are onshore), which is a significant achievement for the country. It means that Turkey has increased its wind energy capacity more than 10-fold during the last decade. Turkey's energy mix has diversified significantly during that time, owing primarily to the expansion of renewable generation capacity. Renewables now account for more than 40% of total electricity production in Turkey. Wind energy is the second largest renewable energy source after hydropower, accounting for 10% of Turkey's electricity mix. By 2030, Turkey has plans to add 20 GW of wind energy capacity.
The Turkish government has issued strict regulations and policy measures in response to the rise in carbon dioxide (CO2) emissions from the utilities sector. Additionally, regulators have implemented beneficial policies and programs to encourage the use of clean energy technologies, such as wind energy. Furthermore, rapid industrialization in developing countries, including Turkey, will increase energy demand, improving the outlook for the wind energy market.
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Opportunity: Growing need for sustainable energy sources and wind energy's efficiency
Considering the crisis and rising prices brought on by Russia's invasion of Ukraine, Turkey is trying to expand its capacity for renewable energy to lessen its reliance on energy imports. To that end, it has started major initiatives as well as solar and wind power plant tenders. According to a recent report by the United Nations Development Programme (UNDP) and the International Labour Organization (ILO), Turkey could achieve significant economic benefits by shifting investments from fossil fuels to renewable energy sources, including an increase in GDP of USD 8 billion per year and an 8% reduction in greenhouse gas emissions compared to 2019. The security of Turkey's energy supply is one of the key focus areas of its energy strategy, prompting efforts to increase investments in the clean energy sector, including wind energy.
Challenge: Supply chain disruptions and high energy prices
According to a report by Europe’s wind power trade association, interest rates in Turkey are still low for the time being, but market turbulence caused by supply chain shortages and high energy prices have resulted in record-high inflation rates as of the fourth quarter of 2021. According to the association, Russia's invasion of Ukraine has increased inflationary pressures and may weaken growth by disrupting trade. Investors appear to believe that the European Central Bank (ECB) and other central banks will tighten monetary policies more slowly than previously anticipated, based on market movements. However, it is believed that conditions for financing wind farms would remain favorable during the forecast period.
Impact of COVID-19 on Turkey Wind Energy Market
By delaying several projects and auctions, including mini-auctions for solar photovoltaic systems in the YEKA renewable energy resource zone, the COVID-19 pandemic affected the Turkish renewable energy market. The country's annual solar energy additions decreased because of the pandemic. The government's efforts to use more affordable, sustainable energy sources and fewer fossil fuels are significant market drivers. However, it is expected that during the forecast period, Turkey wind energy market growth may be limited by a lack of sufficient grid infrastructure to incorporate renewable energy sources.
Turkey Wind Energy Market – By Application
Based on application, Turkey wind energy market is categorized into Utilities and Non-Utilities segment. During the forecast period, the utilities segment is expected to continue its dominance in the Turkey wind energy market by application. The non-utilities segment includes both commercial and residential wind energy installations. Non-utilities applications made up a smaller percentage of the market than utilities applications, as wind turbines cannot be installed due to land restrictions. High cost is a key factor that restricts the use of wind turbines in non-utilities projects.
Turkey Wind Energy Market is fiercely competitive with Borusan EnBw, Demirer Energy, Güriş Energy, Polat Energy, The Soma facility, Vestas, Siemens Gamesa Renewable Energy S.A., Axpo, Suzlon Group, and Goldwind. To further enhance their market share, these players are primarily focused on the development of innovative and efficient products, new product releases, mergers and acquisitions, collaborations, partnerships, and joint ventures.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of Turkey Wind Energy Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Turkey Wind Energy Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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