$8.7 billion support pledged for domestic coal until 2030

The report analyzes a Turkish government incentive providing a $75 USD/MWh purchase guarantee for 60% of electricity generated by domestic coal plants until 2030, estimated to cost $8.7 billion. It highlights that this guarantee is 12% higher than recent average market prices and 27% higher than the total costs determined by the Turkish Electricity Transmission Corporation (TEİAŞ). Additionally, these plants continue to receive payments under a capacity mechanism that covers fixed and variable costs regardless of generation.

• The Turkish government has announced a purchase guarantee of $75 USD/MWh for 60% of the electricity generated by domestic coal power plants until 2030, which is estimated to cost $8.7 billion over a four-year implementation period starting in 2026.
• The $75 USD/MWh guarantee represents a 12% increase over the average electricity sales price of the past year and a 34% increase compared to the average Market Clearing Price (MCP) between 2018 and 2025, which was $56 USD/MWh.
• The purchase guarantee is 27% higher than the total cost of approximately $59 USD/MWh determined for domestic coal power plants by the Turkish Electricity Transmission Corporation (TEİAŞ) in August 2025.
• If power plants using imported coal are eligible for the incentive by sourcing just 10% of their annual generation from domestic coal, the total support cost is projected to increase by $1.2 billion to a total of $9.8 billion.
• Domestic coal plants receive additional payments via a capacity mechanism since 2018 to ensure supply security; over the past year, this mechanism paid 7 billion TL ($188 million) to power plants, covering costs even when they are not generating electricity.

APA

Ember (2025). $8.7 billion support pledged for domestic coal until 2030. https://ember-energy.org/chapter/8-7-billion-support-pledged-for-domestic-coal-until-2030/

Chicago

Ember. $8.7 billion support pledged for domestic coal until 2030. 2025. https://ember-energy.org/chapter/8-7-billion-support-pledged-for-domestic-coal-until-2030/.

Wikipedia

{{cite report |author=Ember |title=$8.7 billion support pledged for domestic coal until 2030 |date=21 October 2025 |url=https://ember-energy.org/chapter/8-7-billion-support-pledged-for-domestic-coal-until-2030/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ember2025billion, author = {{Ember}}, title = {{\$8.7 billion support pledged for domestic coal until 2030}}, institution = {Ember}, year = {2025}, month = oct, url = {https://ember-energy.org/chapter/8-7-billion-support-pledged-for-domestic-coal-until-2030/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }