Energy Investment in Turkey
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 Time for Energy Investment in Turkey

Energy investment is one of the major growing fields in Turkey. Turkey is the fastest growing energy markets in Asia and Europe with its outstanding economic growth for over ten years. As we discussed earlier on our blog Turkey’s inspiring growing performance and fundamental reforms and improvements implemented over 15 years have landed it on the radar of many foreign investors pursuing energy investment opportunities in Turkey.

There are several fundamental factors resulted in growing demand in energy investment in Turkey. The first one is the privatization program implemented by the Turkish government for over ten years. This program has given the country’s energy sector a highly competitive ground and a totally new perspective for growth in the energy investment field. The other main factors are as follows: economic growth, young population and demographic trends, increasing income per capita, and urbanization policies.

The Energy Sector in Turkey by 2023


The figure compares installed capacity and generation development between 2002 and 2017 (Source:

Dedicated to expanding its energy sector, Turkey is aimed to invest more than 140 billion euros in energy investment by 2025. That makes the country one of the top European countries, according to Daily Sabah. According to a report on energy investment by Institute of Energy for South East Europe (IENE), Turkey is the pioneer in the region in terms of energy investment and demand for energy. The report, on the other hand, postulated that more than 140 billion euros will be invested in the energy sector in Turkey as of 2025.

Incentives for Energy Investment in Turkey

In order to accomplish the projected goal, Turkey also provides some incentives for the private sector in the energy investment field. These incentives include feed-in-tariffs, license privileges, and exemption. Moreover, it provides purchasing guarantee. Since 2002, Turkey has made substantial improvements in the provision of energy. The country has adopted the new horizon projecting participation of private entities rather than centralization. Hence, the new perspective has led to a more dynamic and competitive energy market in Turkey.

According to the official sources, the private sector has increased its share in the electric power generation from %32 in 2002 to %75 in 2017. Likewise, Turkey took a fundamental step to create a more competitive energy market. The country founded an energy stock company named Energy Exchange Istanbul (EXIST). This, on the other hand, contributes to attracting more energy investment to the country. The main area of responsibility for EXIST is to manage and operate energy markets, power, and gas supplies.

Besides all these essential factors, Turkey with its huge domestic market is a haven for foreign investors in the energy field. Moreover, the geo-strategic location of the country makes Turkey a strategic location between Europe and Asia, among plenty of energy suppliers and consumers. Therefore, this exclusive feature of the country makes Turkey as a regional and international energy hub. 

Furthermore, Turkey has important leverage over the energy sector. The existing and projected oil/natural gas pipelines and potential hydrocarbon reserves in the country strengthen Turkey’s hand over other parties.


Projected energy investment in Turkey until 2023 (Source:

All above-mentioned dynamics made Turkey’s energy sector is one of the most attractive energy investment destinations in the region.  

Why Invest in Energy Sector in Turkey?

According to an official report titled Why Invest in Turkish Energy Sector, the overall energy investments required to meet Turkey’s predictable energy demand by 2023 is projected to be more than 100 billion dollars, more than twofold the total amount invested over 10 years.

Consequently, it is worth to make an investment in the energy sector in Turkey.

However, do not forget that it is a complicated process and requires professional support. In order to make the process easier, we strongly advise getting a legal consultant from consultancy law firms.

From the least simple to most complex, Kose Law Group’squalified attorneys and experts handle all legal matters and follow foreign energy investment procedures in Turkey for individual and companies.

Should you have questions or inquiries regarding energy investment opportunities or other legal matters in Turkey, do not hesitate to contact us!   

We’ll keep posting about updates on foreign direct investment and energy investment opportunities in Turkey. Follow us on our website and blog.


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