Turkey Wind Energy Market
Turkey Wind Energy Market, By Location (Onshore, Offshore); By Application (Utilities, Non-Utilities); By End User (Industrial, Commercial, Residential), Trend Analysis, Competitive Landscape & Forecast, 2022–2028
- Published Date: November 2022
- Report ID: BWC22519
- Available Format: PDF
- Page: 107
Report Overview
Rapidly spurring demand for energy, supportive government policies in the development of sustainable wind energy projects, and an increasing demand for electricity from sustainable energy sources, including wind energy, are expected to boost the growth of Turkey Wind Energy Market at a high growth rate during the forecast period between 2022 and 2028Turkey Wind Energy Market - Industry Trends & Forecast Report, 2028
Turkey wind energy market size is expected to expand at a high CAGR of 19.2% during the forecast period between 2022 and 2028. Major growth factors for Turkey wind energy market include rising power demand for sustainable energy, constant decline in the costs associated with the wind energy generation and equipment, and supportive government policies. The rise in carbon dioxide emissions from the utilities industry has prompted new legislation and policy actions from the Turkey government. In addition, regulators have enacted favorable rules and regulations to encourage the development of sustainable energy technologies, such as wind energy. Growing infrastructure development in developing regions will also drive the demand for wind energy during the forecast period. Thus, increased investments in renewable energy generation, as well as initiatives to reduce carbon emissions, are driving the wind energy market in Turkey.
Turkey Wind Energy Market - Overview
Wind power or wind energy is the use of wind turbines to generate electricity. Wind turbines convert the kinetic energy of the wind into mechanical power, which can then be used for specialized tasks (such as grain grinding or water pumping) or converted into energy by a generator. Wind energy is a popular, renewable energy source that has far fewer environmental consequences than burning fossil fuels. Wind turbines can generate energy for both on-site and off-site use. The energy requirements will determine the size of the turbine.
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 electricity mix has diversified significantly during that time, owing primarily to the expansion of renewable generation capacity. Currently, renewables 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.
Turkey Wind Energy Market
Growth Drivers
Increasing demand for electricity from sustainable energy sources
Turkey is attempting to increase its renewable energy capacity to reduce its reliance on energy imports amid the crisis and rising prices caused by Russia's invasion of Ukraine. To that end, it has launched large-scale projects as well as tenders for solar and wind power plants. 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. One of the main pillars of Turkey's energy strategy is the security of its energy supply, which has prompted the government’s’ efforts to increase investments in its clean energy sector.
Strong domestic supply chain
Turkey's wind industry’s growth depends on the continuously growing, robust domestic supply chain. Many national and international businesses have also established factories in Turkey. According to a recent data, the Turkish wind energy sector employs about 25,000 people directly or indirectly. Leading wind energy companies, such as TPI Composites, Enercon, and GRI Renewables, have production facilities in Turkey. For instance, TPI Composites, a US-based company employing a total of about 4,200 people, manufactures composites used in wind turbine blades at two facilities in the Izmir area, Turkey. They supply their products to wind energy markets in Turkey, Europe, Middle East, and Africa.
Government and business initiatives to cut carbon emissions
Rising carbon dioxide (CO2) emissions from the utilities sector, the Turkish government has issued strict regulations and policy measures. The regulators have additionally introduced beneficial policies and programs to encourage the adoption of clean energy technologies, such as wind energy. Additionally, the rapid industrialization of developing countries, including Turkey, will increase the demand for energy and improve the outlook for the wind energy market.
Restraints
High capital costs
The total cost of a wind energy project is significantly influenced by the production and implementation costs. The price of raw materials, labor, transportation, and manufacturing processes may be included in the cost of production and performance. Wind turbines require significant upfront investments, so it takes a while for a wind energy company to break even. The price of a commercial wind turbine ranges from USD 2.6 million to USD 4 million. Each installed megawatt (MW) of wind power development costs USD 1 million on average. Wind power facilities should be larger than 20 MW to benefit from economies of scale. All these factors may restrain the growth of Turkey wind energy market during the period in analysis.
Impact of COVID–19 on Turkey Wind Energy Market
The COVID-19 pandemic adversely affected the Turkey renewable energy market, including 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 pandemic caused Turkey's annual solar energy additions to decline. The Turkey government's initiatives to reduce its reliance on fossil fuels and use affordable and sustainable energy sources are major market drivers. Nevertheless, during the anticipated period, market growth is anticipated to be constrained by a lack of adequate grid infrastructure to integrate renewable energy sources.
Turkey Wind Energy Market
Segmental Coverage
Turkey Wind Energy Market - By Location
By location, Turkey wind energy market is divided into Onshore and Offshore. In 2021, the onshore segment dominated the market. The Onshore wind power has emerged as the most popular renewable energy source across regions due to its lower cost than offshore wind power, ease of installation, and reduction in Greenhouse Gases (GHG). All 10 GW of wind energy that Turkey has installed so far is onshore. However, the country focus on its potential for developing offshore wind as well. The Izmir Development Agency, in its roadmap published to support offshore wind development, estimates Turkey's total offshore wind potential at 70 GW. As a result, in the coming year, Turkey offshore wind energy segment is also expected to grow at a significant rate.
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 crucial factor that may limit the use of wind turbines in non-utilities projects.
Turkey Wind Energy Market - By End User
By end user, Turkey wind energy market is segmented into Industrial, Commercial, and Residential segments. Due to an increase in the demand for renewable energy sources, the industrial end-user segment is expected to hold the highest market share in Turkey wind energy market. In remote and rural areas without access to the grid, wind power is in high demand. However, as wind energy depends so heavily on government incentive programs, both the price and demand are very unstable in the residential segment.
Competitive Landscape
Turkey wind energy market is fiercely competitive. Prominent players in the market include 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.
Recent Developments
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In October 2022 - Enerjisa Uretim, a joint venture between E.ON and Sabanci Holding, partnered with ENERCON, a Germany-based wind turbine manufacturer, to install the 1-GW YEKA RES 2 onshore wind energy project in Turkey.
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In August 2022 - Dost Enerji, a Turkey-based renewable energy company, acquired Işıklar Wind Energy Project from Renewable Energy Systems (RES), a UK-based company, for a consideration of about EUR 50 million.
Scope of the Report
Attributes |
Details |
Years Considered |
Historical Data – 2018–2021 |
Base Year – 2021 |
|
Estimated Year – 2022 |
|
Forecast – 2022–2028 |
|
Facts Covered |
Revenue in USD Million |
Market Coverage |
Turkey |
Product/ Service Segmentation |
Location, Application, End User |
Key Players |
Borusan EnBw, Demirer Energy, Güriş Energy, Polat Energy, The Soma facility, Vestas, Siemens Gamesa Renewable Energy S.A., Axpo, Suzlon Group, Goldwind |
By Location
-
Onshore
-
Offshore
By Application
-
Utilities
-
Non-Utilities
By End User
-
Industrial
-
Commercial
-
Residential
- Research Framework
- Research Objective
- Product Overview
- Market Segmentation
- Executive Summary
- Turkey Wind Energy Market Insights
- Industry Value Chain Analysis
- DROC Analysis
- Growth Drivers
- Increasing energy demand and supportive government policies
- Surge in demand for electricity from renewable power sources
- Restraints
- High capital costs and logistic issues
- Low cost of generating electricity from convention fossil fuel sources
- Opportunity
- Government and business initiatives to cut carbon emissions
- Floating foundation wind farms
- Challenges
- Negative impact of Covid-19
- Lack of technical knowledge required for the development of wind energy
- Climatic challenges during operations of wind farm
- Growth Drivers
- Technology Advancements/Recent Developments
- Regulatory Framework
- Porter’s Five Forces Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of New Entrants
- Threat of Substitutes
- Intensity of Rivalry
- Turkey Wind Energy Market Overview
- Market Size & Forecast by Value & Volume, 2018–2028
- By Value (USD Million)
- By Volume (MW)
- Market Share & Forecast
- By Location
- Onshore
- Offshore
- By Application
- Utilities
- Non-Utilities
- By End User
- Industrial
- Commercial
- Residential
- By Location
- Market Size & Forecast by Value & Volume, 2018–2028
- Competitive Landscape
- List of Key Players and Their Offerings
- Market Share Analysis, 2021
- Competitive Benchmarking, By Operating Parameters
- Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
- Impact of Covid-19 on Turkey Wind Energy Market
- Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, SWOT Analysis, and Strategic Outlook)
- Borusan EnBw
- Demirer Energy
- Güriş Energy
- Polat Energy
- The Soma facility
- Vestas
- Siemens Gamesa Renewable Energy S.A.
- Axpo
- Suzlon Group
- Goldwind
- Other Prominent Players
- Key Strategic Recommendations
- Research Methodology
- Qualitative Research
- Primary & Secondary Research
- Quantitative Research
- Market Breakdown & Data Triangulation
- Secondary Research
- Primary Research
- Breakdown of Primary Research Respondents, By Region
- Assumptions & Limitations
- Qualitative Research
*Financial information in case of non-listed companies will be provided as per availability
**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable
List of Figures
Figure 1 Turkey Wind Energy Market Segmentation
Figure 2 Turkey Wind Energy Market Value Chain Analysis
Figure 3 Company Market Share Analysis, 2021
Figure 4 Turkey Wind Energy Market Size, By Value (USD Million), 2018–2028
Figure 5 Turkey Wind Energy Market Size, By Volume (MW), 2018–2028
Figure 6 Turkey Wind Energy Market Share, By Location, By Value, 2018–2028
Figure 7 Turkey Wind Energy Market Share, By Location, By Volume, 2018–2028
Figure 8 Turkey Wind Energy Market Share, By Application, By Value, 2018–2028
Figure 9 Turkey Wind Energy Market Share, By Application, By Volume, 2018–2028
Figure 10 Turkey Wind Energy Market Share, By End User, By Value, 2018–2028
Figure 11 Turkey Wind Energy Market Share, By End User, By Volume, 2018–2028
List of Tables
Table 1 Turkey Wind Energy Market Size, By Location, By Value, 2018–2028
Table 2 Turkey Wind Energy Market Size, By Location, By Volume, 2018–2028
Table 3 Turkey Wind Energy Market Size, By Application, By Value, 2018–2028
Table 4 Turkey Wind Energy Market Size, By Application, By Volume, 2018–2028
Table 5 Turkey Wind Energy Market Size, By End User, By Value, 2018–2028
Table 6 Turkey Wind Energy Market Size, By End User, By Volume, 2018–2028
Table 7 Borusan EnBw Company Overview
Table 8 Borusan EnBw Financial Overview
Table 9 Demirer Energy Company Overview
Table 10 Demirer Energy Financial Overview
Table 11 Güriş Energy Company Overview
Table 12 Güriş Energy Financial Overview
Table 13 Polat Energy Company Overview
Table 14 Polat Energy Financial Overview
Table 15 The Soma facility Company Overview
Table 16 The Soma facility Financial Overview
Table 17 Vestas Company Overview
Table 18 Vestas Financial Overview
Table 19 Siemens Gamesa Renewable Energy S.A. Company Overview
Table 20 Siemens Gamesa Renewable Energy S.A. Financial Overview
Table 21 Axpo Company Overview
Table 22 Axpo Financial Overview
Table 23 Suzlon Group Company Overview
Table 24 Suzlon Group Financial Overview
Table 25 Goldwind Company Overview
Table 26 Goldwind Financial Overview
Market Segmentation
By Location
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Onshore
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Offshore
By Application
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Utilities
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Non-Utilities
By End User
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Industrial
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Commercial
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Residential
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