EİGM January Electricity Investments: Installed Capacity, Wind and Solar Power Readings

At first glance, monthly investment data in the electricity market may seem like nothing more than a list of new power plants. However, this list provides a brief yet valuable snapshot of the market, revealing where investment appetite is shifting, the growth rates of licensed and unlicensed generation, and how the installed capacity mix is changing. The General Directorate of Energy Affairs’ Summary Report on Turkey’s Electricity Investments for January 2026 provides a wealth of data on licensed new capacity, unlicensed production capacity, and the distribution of total installed capacity as of January. This assessment was prepared as of April 18, 2026.

The report states that a licensed power plant with an installed capacity of 192 MW began operations in January 2026; together with the 24,029 MW of capacity covered by the unlicensed power generation regulation, the total installed capacity reached 123,284 MW (EİGM, January 2026 Summary Report). Considering that the total installed capacity in Turkey was 116,516 MW during the same period last year, the annual growth rate as of the end of January is reported as 5.81% (EİGM, January 2026 Summary Report).

Licensed Capacity Coming Online in January

According to the EİGM report, the total additional installed capacity of licensed power plants commissioned between January 1, 2026, and January 31, 2026, is 192 MW (EİGM, January 2026 Summary Report). Of this capacity, 107.29 MW comes from wind, 70 MW from solar, 8.50 MW from thermal, and 5.80 MW from biomass and geothermal sources (EİGM, January 2026 Summary Report).

It is noteworthy that wind accounts for 56% and solar for 36.54% of this breakdown (EİGM, January 2026 Summary Report). While this breakdown, observed in January—the first month of the year—is not sufficient on its own to draw definitive conclusions about the year as a whole, wind and solar continue to feature prominently in the investment pipeline. While the share of wind power was much more dominant among licensed power plants that came online in January of the previous year, the commissioning of 70 MW of solar power in January 2026 creates a more balanced monthly picture in terms of source diversity.

The report’s list of facilities also supports this picture. In January, geothermal investments in Denizli, RES investments in provinces such as İzmir, Eskişehir, Çanakkale, Karaman, Balıkesir, and Aydın, GES investments in Ağrı and Mardin, industrial waste investments in Adana, and biomass investments along the Istanbul/Konya corridor were listed (EİGM, January 2026 Summary Report). This geographic distribution suggests that wind and solar investments should no longer be tracked within limited regional clusters but rather across a broader investment map.

Comparison with January 2025

The total installed capacity of licensed power plants that began operations in January 2025 was reported as 181 MW; 172.62 MW of this capacity comes from wind power (EİGM, January 2026 Summary Report). In January 2026, the total additional capacity reached 192 MW, with the RES share declining to 107.29 MW while solar power (GES) entered the picture with 70 MW (EİGM, January 2026 Summary Report).

This comparison is not, on its own, sufficient to draw major conclusions on an annual basis; however, it is significant in terms of solar energy becoming more prominent in the monthly investment mix. While nearly all new licensed capacity in January 2025 came from wind power, wind and solar power together accounted for the majority in January 2026. This necessitates that investors pay closer attention to source-based differences in their planning for permits, grid connections, and financing.

While land acquisition, site surveys, turbine procurement, access roads, and environmental processes are key considerations in wind projects, land/rooftop rights, grid connection capacity, panel procurement, shading, zoning, and the approval timeline are more prominent issues in solar projects. Although these projects are grouped under the same “renewable energy investment” label, they differ significantly from one another in terms of legal documentation and implementation risks.

The Dominance of Solar Power in the Unregulated Market

According to the report, the total capacity under the Regulation on Unlicensed Electricity Generation in the Electricity Market is 24,029 MW (EİGM, January 2026 Summary Report). Of this capacity, 23,287.13 MW comes from solar power plants; thus, solar energy accounts for 96.91% of the unlicensed generation capacity (EİGM, January 2026 Summary Report).

With this ratio, license-free production has effectively evolved into a solar-focused investment model in Turkey. Self-consumption needs, rooftop and ground-mounted applications, the quest to balance electricity costs at industrial facilities, and discussions regarding grid connection capacity continue to be key factors in this sector. However, such a high concentration of license-free production also amplifies legal issues such as grid connection capacity, net metering, connection to consumption facilities, letters of invitation, guarantees, and project transfers.

When it comes to unlicensed solar power plant investments, investors often focus on production feasibility. In practice, however, a significant portion of disputes arise from connection assessments, correspondence with distribution companies, the project approval process, relationships with consumption facilities, land use rights, zoning and building permits, equipment supply contracts, or the EPC contractor’s time-bound commitments. The figures from the Energy Market Regulatory Authority (EMRA) underscore the need for legal preparation to be conducted with the same level of seriousness given the scale of this sector.

Total Installed Capacity Breakdown

As of January 31, 2026, the total installed capacity of electricity generation facilities in Turkey was reported to be 123,284 MW (EİGM, January 2026 Summary Report). In terms of source distribution, thermal capacity accounted for 46,391.63 MW (37.63%); hydroelectric power (HES) for 32,324.35 MW (26.22%); solar power (GES) for 25,826.66 MW (20.95%); wind power at 14,862.28 MW (12.06%); and biomass and geothermal at 3,878.95 MW (3.15%) (EİGM, January 2026 Summary Report).

This breakdown requires two distinct interpretations. The first is that thermal power remains the largest source group. The second is that the share of solar power within total installed capacity has now exceeded 20%. With this share, solar power has moved beyond being merely a cost-management tool for unlicensed generation or industrial facilities within Turkey’s electricity system and has gained significant weight in overall system planning.

However, installed capacity is not the same as actual generation. The generation profile of solar and wind power plants, as well as their impact on resource variability and hourly price formation, differs from that of thermal and hydroelectric power plants. Therefore, an increase in installed capacity cannot be fully understood unless it is considered in conjunction with grid flexibility, storage, demand-side participation, and market design.

What Does Installed Capacity Data Tell Us—and What Doesn’t It?

Installed capacity represents the capacity inventory of the power system; however, it does not, on its own, provide definitive insights into generation, costs, availability, or market value. For example, although the share of solar power plants in total installed capacity has risen to 20.95%, solar generation is concentrated during specific hours of the day and exhibits seasonal variations (EİGM, January 2026 Summary Report). Although hydroelectric capacity appears high, hydrological conditions may limit production. Thermal capacity, on the other hand, must be evaluated separately in terms of fuel prices, environmental obligations, and availability.

Therefore, to interpret the report correctly, one must consider the installed capacity table in conjunction with the generation profile, hourly prices, demand for consumption, and grid constraints. In a market like Turkey’s, where demand is growing and renewable capacity is expanding rapidly, an increase in installed capacity is a positive indicator; however, if interconnection capacity and system flexibility do not keep pace, the actual value of the investment may be limited.

From a legal perspective, this distinction is also reflected in the contract texts. In EPC contracts, provisions regarding performance guarantees, the date of acceptance, liquidated damages, and force majeure; in financing agreements, technical completion conditions; in land agreements, the duration and transfer of usage rights; and in interconnection agreements, capacity and restriction clauses must be examined separately.

What It Means for Investors

Data from January 2026 indicates that wind and solar energy continue to gain momentum in energy investments, yet thermal sources still account for a significant share of the overall system. This transitional period presents both opportunities and areas requiring caution for investors. In GES and RES projects, grid connection capacity, permitting timelines, and supply chain planning; in thermal power plants, environmental obligations, emission costs, and fuel supply; and in HES projects, hydrological risks and water usage regulations are becoming increasingly critical factors.

In this context, it is inadvisable to limit the investment feasibility study solely to the internal rate of return calculation, panel or turbine prices, and expected production forecasts. Land rights, interconnection agreements, provisions regarding licensed or unlicensed production, EPC contracts, letters of credit, financing terms, insurance coverage, and administrative appeal procedures must all be considered together within the same file.

Regulatory and Dispute Aspects

As electricity investments in Turkey grow, the nature of market challenges is also changing. While obtaining a production license was once the most visible hurdle for investors, today factors such as grid connection capacity, storage requirements, environmental permits, zoning compliance, agricultural land use, acceptance procedures, the provisional acceptance schedule, and supply chain-related delays can be equally critical for investors.

The EİGM’s January report should therefore not be viewed merely as a statistical document. The 192 MW of licensed new capacity and the 24,029 MW of unlicensed generation capacity serve as a reminder of just how dependent electricity investments in Turkey are on administrative processes. The fact that a project is technically feasible does not mean it will proceed without legal or commercial complications.

Reading from the Perspective of Industrial Companies

The fact that solar power plants have become virtually the sole determinant of unlicensed generation capacity also indicates that industrial companies continue to seek ways to manage their electricity costs. GES investments for self-consumption can provide companies with significant cost control, particularly during periods when electricity price predictability decreases. However, these investments must be carefully structured with regard to grid connection, net metering regulations, distribution fees, terms of the call letter, and installed capacity limits.

The most common mistake made by industrial companies is treating energy investments solely as technical procurement projects. In reality, a solar power plant investment also involves land/roof usage rights, insurance, financing, procurement, maintenance, guarantees, and administrative permit applications. The capacity figures in the EİGM report serve as a reminder that this sector now occupies a more significant place on company balance sheets.

Result

The January 2026 report provides a snapshot of a small-scale but significant market. New licensed capacity is dominated by wind and solar, while unlicensed production consists almost entirely of solar; however, thermal sources still account for the largest share of total installed capacity. In this regard, the Turkish electricity market is in a transition phase: while new capacity is growing with a focus on renewables, the system’s security and price stability still rely on a diversified portfolio.

To access the original report: You can download the PDF version of the "Turkey Electricity Investments: January 2026 Summary Report, " published by the General Directorate of Energy Affairs, here.