The energy wars have already started!

According to average estimates, the annual investment required in the clean energy sector in a globalized economy is around $500 trillion.

Türkiye’s geographical location and climate conditions make it highly suitable for setting up wind and solar power plants, known as clean energy. If we can harness this natural advantage through collaboration between the government, private sector, and universities, we could become a major player in the global energy field.

**

Let’s take a look at what we’ve done and are currently doing in the energy sector; Türkiye’s wind turbine manufacturers and over 350 sub-suppliers have created a significant supply chain for the European market. Türkiye aims to invest 5,000 MW in wind energy every year until 2035. If this goal is achieved, the total wind energy capacity will reach 50,000 MW. This would enable Türkiye to increase the share of wind energy in electricity production to 25-30%. The Ministry of Energy and Natural Resources, in collaboration with the World Bank, has started measurement studies for offshore wind farms along the Marmara and Balıkesir coastlines. Türkiye has a total technical offshore wind energy potential of 75 GW in its territorial waters, and much of this capacity is focused on four main regions.

**

There are currently 37 licensed solar panel manufacturers in Türkiye, either completing the entire production process or part of it. However, given the sector’s rapid growth, new investments, and the increase in small-scale producers, it is almost certain that the actual number exceeds 37. Türkiye’s solar panel production capacity has placed the country in 6th place globally and in a leading position in Europe. This success is crucial in showcasing Türkiye’s solar energy potential. The Renewable Energy 2035 Roadmap, announced last month, targets increasing the current installed capacity of solar and wind energy, which is around 30,000 MW, by four times to 120,000 MW by 2035. In this direction, the plan, which also foresees the development of transmission infrastructure, estimates the total required investment at $28 billion.

**

Now, let’s look at Türkiye’s position in the global energy field as of 2024; The World Economic Forum’s Energy Transition Index (ETI) has assessed the energy systems and transition performance of 120 countries. The report notes that Türkiye’s performance in energy transition is close to the average of developing countries. According to the report, 107 of these countries made progress in energy transition over the last decade. European countries are leading the ETI ranking, with Sweden, Denmark, Finland, and Switzerland in the top positions, while Türkiye ranks 59th. Global clean energy investments have increased by 40% since 2020, but this growth has been concentrated in advanced economies and China. In 2023, clean energy investments reached a record level of $1.8 trillion, with more than a third of these investments coming from China. Two countries have particularly stood out in this area. China added as much solar energy capacity in 2023 as the rest of the world did in the previous year. Brazil, on the other hand, succeeded in attracting investment with its long-term plans in hydroelectric and biofuels and its institutional development initiatives.

**

According to the International Energy Agency (IEA) President Fatih Birol, who evaluated the Renewable Energy 2035 Roadmap, Türkiye is one of the leading countries in Europe in this area. The potential is enormous: “Countries are trying to secure an important position in new energy technologies. They can secure this position in two ways. The first is by increasing their own production. This includes clean energy technologies such as solar panels, batteries, and electric vehicles. The second is by preventing cheaper goods from entering their countries through trade rules and taxes. I think both will happen. I believe this could lead to a serious trade war between countries, and the global economy could suffer if not done properly.”