Geothermal Investments Expected to Regain Momentum in Türkiye

2025 marked a year of renewed investment in geothermal energy in Türkiye, which accounts for 1758 MW of the country’s installed electricity capacity. According to data from the Turkish Electricity Transmission Corporation (TE?A?), 67 MW of geothermal power plants operating as base load were commissioned this year, while investor companies have a project portfolio of around 300 MW currently under development. Evaluating the sector’s development trajectory in 2025, Ali Kindap, Chairman of the Geothermal Energy Association (Jeotermal Enerji Dernegi / JED) Board of Directors, stated that Türkiye has the potential to become a world leader in all areas of geothermal energy use. The December 31, 2030 deadline should be extended to 2040.

Kindap pointed out that investments in areas such as energy production, geothermal greenhouses, residential heating, thermal tourism, drying facilities, fishing, and mining provide long-term benefits to Türkiye in terms of environmental and economic sustainability, and said, “Even though we use only a very low percentage, 11 percent, of our discovered geothermal potential, we are the 4th country in the world and the leading country in Europe .“ Reminding that investments that will enable Türkiye to reach its target of 3000 MW of geothermal power generation capacity in 2030 must be commissioned by December 31, 2030, in order to be included in the Renewable Energy Support Mechanism, Kindap stated that as a sector, they are requesting that this period be extended until 2040. Kindap stated, “Investors who want to invest in geothermal energy can complete the stages of licensing, permits, authorization, land acquisition, environmental impact assessment, drilling, determination of resource efficiency, construction of the power plant, and commissioning in at least five years. We know that many investor companies want to invest in geothermal energy today. However, the possibility of not being able to commission their investments by December 30, 2030, is a concern for investors. According to current legislation, it will not be technically possible for many investors who decide to invest in geothermal energy today to be included in the Renewable Energy Support Mechanism (YEKDEM).

The world’s newest and most environmentally friendly power plants are in Türkiye Noting that geothermal energy is the most important alternative for Türkiye’s energy independence as well as its need for domestic, clean and sustainable energy in a base load position, Kindap made the following assessment: “In energy-focused policy recommendations from institutions such as the International Energy Agency (IEA) and the Council of Europe, geothermal energy is given a very important role. Many European countries are focusing on geothermal energy as a key investment option, particularly to reduce their dependence on Russian natural gas for residential heating.” Replacing natural gas with geothermal energy for heating and cooling is essential for our country’s ‘Net Zero’ climate target by 2053. Our sector is potentially ready for this. However, we want this major energy transformation to be included in the government’s strategic plans. International energy agencies predict that the installed geothermal power capacity worldwide, currently approaching 20,000 MW, will increase fivefold to 100,000 MW by 2050. Given all this data, it is impossible for Türkiye, a geothermal paradise with over 1,500 natural outlets, to turn its back on this resource. Our geothermal power plants, equipped with the world’s newest and most advanced technologies, will continue to create value for our country with their environmentally friendly production processes. We are carefully monitoring the environmentally focused criticisms directed at our sector, many of which are based on a lack of information. We are working to ensure that all our citizens are aware that geothermal energy is an environmentally friendly and nature-friendly energy source.”

Strategically important for food supply security Kindap, reminding that geothermal energy has strategic importance for agricultural production and food supply security as well as energy production, underlined that they support the Ministry of Agriculture and Forestry’s efforts to integrate Organized Agricultural Zones (OIZs) with geothermal resources.Providing information that 15 of the 61 OIZs projected in 42 provinces to date have been integrated with geothermal energy, Kindap emphasized that the OIZ to be established in Gönen will be the world’s largest project in this field.

Thermal tourism potential is far below expectations Kindap stated that Türkiye is far behind its potential in the field of thermal tourism, saying, “With the 18 thermal hotels preparing to open in 2026 and beyond, the number of thermal beds in our country will reach 8,738. However, we should never consider this level sufficient. While it is clear that Japan, the 10th largest producer of geothermal energy in the world and with significantly fewer resources than Türkiye, generates over $20 billion in revenue from thermal health tourism, we should also set a target of at least $20 billion in revenue.”