$8.7 billion support pledged for domestic coal until 2030

The Turkish government has announced a purchase guarantee of $75 USD/MWh for 60% of electricity generated by domestic coal power plants until 2030, an incentive estimated to cost $8.7 billion. This guarantee is 12% higher than the average electricity sales price over the past year and 27% higher than the total costs determined by the Turkish Electricity Transmission Corporation (TEİAŞ). These payments will exist alongside an existing capacity mechanism that compensates plants for fixed and variable costs even when they are not generating electricity.

• The government has established a purchase guarantee of $75 USD/MWh for 60% of the electricity generated by domestic coal power plants until 2030. This incentive is estimated to cost $8.7 billion over a four-year implementation period starting in 2026. If plants using imported coal that source only 10% of their annual generation from domestic coal are included, the total support cost is expected to rise by $1.2 billion to $9.8 billion.
• The $75 USD/MWh purchase guarantee represents a significant increase over previous and current pricing benchmarks. It is 12% higher than the average electricity sales price over the past year and 34% higher than the average Market Clearing Price (MCP) of $56 USD/MWh recorded between 2018 and 2025 (excluding the period of capped sales prices from April 2022 to September 2023).
• The new purchase guarantee exceeds the total costs determined by the Turkish Electricity Transmission Corporation (TEİAŞ). Based on August 2025 data, the total cost for domestic coal power plants is approximately $59 USD/MWh, making the $75 USD/MWh guarantee 27% higher than TEİAŞ's determined costs.
• Since 2018, domestic coal power plants have been supported by a capacity mechanism that ensures supply security by covering fixed and variable costs. Under this mechanism, plants are compensated for the difference between total costs and the MCP even if they are not generating electricity. In the past year, this mechanism resulted in payments of 7 billion TL ($188 million). The 2022 National Energy Plan projects this capacity mechanism will continue until 2035.

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} }