Turkey's Clean Energy Surge Threatens Gas Market Strategies
Ankara, Wednesday, 9 July 2025.
Turkey’s clean power advancements challenge gas and LNG exporters’ growth plans. Solar power surpassed gas-fired electricity in June 2025, with nuclear plants set to impact the energy mix soon.
Solar Power Outstrips Gas
In June 2025, Turkey achieved a significant milestone as its solar-powered electricity supplies surpassed those from gas-fired plants for the first time. This shift highlights the country’s aggressive push towards clean energy, which has been gaining momentum over the past decade due to substantial investments and government initiatives. This development challenges the role of natural gas in Turkey’s energy mix and poses new hurdles for exporters banking on Turkish demand [1].
Nuclear and Battery Storage on the Horizon
In addition to solar power, Turkey is on the verge of integrating nuclear energy into its grid. The Akkuyu Nuclear Power Plant’s first reactor is expected to commence operations within a few months of July 2025, which will further decrease reliance on gas-fired electricity generation. Furthermore, Turkey plans to implement 80 gigawatt-hours of battery storage by 2030, providing a sustainable and stable backup to its energy system and reducing the necessity for gas peaking plants [1][2].
Economic Growth and Energy Demand Dynamics
Between 2019 and 2024, Turkey’s economy expanded at an impressive average annual rate of 4.7%, significantly outpacing both the Eurozone and global growth rates. Concurrently, Turkey’s electricity demand surged by 14%, contrasting with a 5% contraction across the European Union during the same period. This robust growth, coupled with the expanding renewable energy sector, suggests a shift in the country’s energy strategy from traditional gas reliance to a diverse, sustainable mix [1][3].
Implications for Gas Exporters
The decreasing role of natural gas in Turkey’s energy portfolio poses potential risks for gas exporters. Historically, Turkey, with its burgeoning economy and increasing energy demands, has been a crucial target market for natural gas exporters. However, the rapid expansion in clean energy sources, particularly solar and soon nuclear, is reshaping expectations. Exporters may need to adjust their strategies to accommodate Turkey’s fast-evolving energy landscape, which might involve exploring partnerships or promoting greener gas solutions [1][4].