Renewables save $750 million in electricity subsidies in Türkiye

A report by Ember detailing how record renewable energy generation in Türkiye during the first five months of 2026 led to a significant reduction in government electricity subsidies for households.

• In the first five months of 2026, renewable electricity generation in Türkiye increased by 32% year-on-year to 87 TWh, representing 61% of total electricity generation, the highest share in 26 years.
• Wholesale electricity prices reached historic lows in May 2026, the lowest level since the market's establishment in 2011, driven by renewables reaching a 73% share of generation in that month.
• The decline in wholesale electricity prices reduced the gap between market rates and residential tariffs, resulting in a $746 million reduction in government electricity subsidies for households during the first five months of 2026.
• Total electricity subsidies fell by 43% in the first five months of 2026 compared to 2025, totaling $1.15 billion in real terms. This overall decline of $861 million was influenced by falling wholesale prices and a reduction in the Last Resort Supply Tariff (LRST) threshold, which saved $228 million, though inflation-lagged tariff increases added $113 million back to costs.
• Hydropower was the primary driver of the record renewable share, reaching an all-time high of 46 TWh in the first five months of 2026 due to exceptionally high rainfall. Hydropower accounted for 54% of all renewable electricity generation during this period.
• To mitigate the risk of future droughts increasing electricity prices and subsidies, the report recommends streamlining permitting for rooftop solar (120 GW potential), hybrid solar (8 GW potential), and storage-integrated wind and solar projects (33 GW pipeline).
• For the first time in nearly five years, wholesale electricity prices fell below the high-consumption residential tariff in 2026, after having consistently exceeded regulated rates since June 2021.

APA

Çeliköz, Ç. (2026). Renewables save $750 million in electricity subsidies in Türkiye. Ember. https://ember-energy.org/app/uploads/2026/06/ENG-Renewables-save-750-million-in-electricity-subsidies-in-Turkiye.docx.pdf

Chicago

Çeliköz, Çağlar. Renewables save $750 million in electricity subsidies in Türkiye. Ember, 2026. https://ember-energy.org/app/uploads/2026/06/ENG-Renewables-save-750-million-in-electricity-subsidies-in-Turkiye.docx.pdf.

Wikipedia

{{cite report |last1=Çeliköz |first1=Çağlar |title=Renewables save $750 million in electricity subsidies in Türkiye |publisher=Ember |date=23 June 2026 |url=https://ember-energy.org/app/uploads/2026/06/ENG-Renewables-save-750-million-in-electricity-subsidies-in-Turkiye.docx.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{elikz2026renewables, author = {Çeliköz, Çağlar}, title = {{Renewables save \$750 million in electricity subsidies in Türkiye}}, institution = {Ember}, year = {2026}, month = jun, url = {https://ember-energy.org/app/uploads/2026/06/ENG-Renewables-save-750-million-in-electricity-subsidies-in-Turkiye.docx.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }