Turkey reaches 55% rate of domestic geothermal power equipment

Turkey, which is fourth in the world in geothermal power capacity, increased its localization rate to 55%. Domestic companies manufacture generators, power electronics, turbines and other main components.

In addition to being a top-tier market in hydropower, wind and photovoltaics, Turkey hosts geothermal power capacity equivalent to the European Union and Iceland combined. It reached 1.73 GW, which was 1.5% of the country’s 116 GW last year, according to Deputy Minister of Energy and Natural Resources Abdullah Tancan.

Geothermal power plants accounted for 3.2% of electricity output in Turkey last year, providing 11.2 TWh out of 350 TWh, he added at the opening of the two-day Turkey Geothermal Congress. The event was organized by the Geothermal Power Plant Investors Association (JESDER).

Turkey is committed to the security of energy supply, reducing external dependency in the sector and reaching its net zero emissions target in 2053, the deputy minister pointed out. The national energy and mining policy relies on the localization of resources and technology alongside market predictability, he explained.

Manufacturing facilities for geothermal power equipment employ 50,000 people

Government support enabled the establishment of 50 component makers and 350 subsuppliers in the geothermal power segment in Turkey, Tancan said. They employ 50,000 people altogether, he added.

The localization rate has reached approximately 55%, the top official revealed. Parts such as generators, power electronics, turbines, exhaust lubrication and speed control systems and steam injectors are now produced domestically, he stressed.

Tancan noted that Turkey expects electricity demand to grow 3.5% per year until 2035, reaching 510 TWh.

On a global scale, the country trails only the United States, Indonesia and the Philippines. Nevertheless, after several years of rapid growth, it only added 120 MW in geothermal power capacity since 2020. Chairman of JESDER Ufuk Şentürk said the potential is 5 GW. There is much more available for geothermal-heated greenhouses and other uses.

Geothermal power projects benefit from the Renewable Energy Resources Support Mechanism (YEKDEM). Turkish investors in the segment are also active abroad.

The International Energy Agency has estimated that geothermal power could meet up to 15% of global electricity demand growth until 2050.