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Sweden to Türkiye: A Renewable Energy Project Siting Guide

A Swedish investor's guide to siting solar and wind projects in Türkiye: grid capacity, land status, licensing, and due diligence essentials.

July 11, 2024·5 min read
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SERenewable Energy Licensing

Sweden's renewable energy sector, long defined by domestic wind and hydro leadership, is increasingly looking outward for development opportunities where land availability, grid capacity, and irradiance or wind resources align more favorably than at home. Türkiye has emerged as a recurring destination for Swedish developers, engineering firms, and institutional investors evaluating solar, wind, and hybrid storage projects. For those unfamiliar with the Turkish regulatory and physical landscape, site selection is the single decision that most determines a project's eventual return.

Why Türkiye Attracts Nordic Renewable Capital

Türkiye offers a combination that is difficult to replicate within the EU: strong solar irradiance across the Anatolian plateau and southeastern regions, consistent wind corridors along the Aegean and Marmara coastlines, an electricity market with structural demand growth, and a licensing regime that has matured considerably over the past decade. Swedish firms bring technical depth in turbine engineering, grid balancing, and cold-climate-tested components that translate well to Turkish conditions, while local partners bring permitting knowledge and land access that foreign entrants rarely have on their own.

Site Selection: The Technical Fundamentals

Resource quality : Before any land discussion begins, independent meteorological and irradiance data spanning at least twelve months, ideally longer, should be commissioned rather than relying on developer-supplied figures. Türkiye's State Meteorological Service and several private measurement firms provide bankable data sets that lenders will require regardless.

Grid connection capacity : Türkiye's transmission operator, TEİAŞ, publishes connection capacity maps by substation. A technically excellent site with no available grid capacity within economic transmission distance is not a viable site. Connection queue position and substation congestion should be verified directly with TEİAŞ before land is optioned, not after.

Zoning and land status : Turkish land carries designations, agricultural, forestry, treasury-owned, or private, that each involve different conversion procedures. Agricultural land requires a change-of-use approval from the Ministry of Agriculture and Forestry, which can take considerably longer than the energy licensing process itself. Forest land conversions involve a separate and often lengthier track. Confirming land status through the title registry (Tapu) and local municipality before signing any land agreement avoids months of delay discovered too late.

Environmental and social impact : An Environmental Impact Assessment, or a formal exemption from one, is required for most utility-scale projects. Migratory bird corridors, protected habitats, and proximity to residential areas are common grounds for objection and litigation, particularly for wind projects along the Aegean coast where opposition groups have successfully delayed several developments in recent years.

Licensing Pathway

Türkiye's Energy Market Regulatory Authority (EPDK) issues generation licenses, and unlicensed generation is available for smaller-scale projects under defined capacity thresholds. YEKA (Renewable Energy Resource Area) tenders, run periodically by the Ministry of Energy, allocate large-scale sites through competitive auction and have historically drawn foreign consortium participation. Swedish developers considering the YEKA route should budget significant lead time for technical qualification requirements, which typically favor bidders with prior utility-scale delivery experience.

Structuring the Investment

Most Swedish entrants structure Turkish renewable projects through a locally incorporated project company, often in partnership with a Turkish developer holding the land relationships and permitting track record. This structure also simplifies power purchase agreement negotiations, whether with private offtakers under bilateral PPAs or through the state-backed YEKDEM support mechanism for qualifying technologies.

Currency exposure deserves early attention. Construction costs are frequently denominated partly in euros or dollars for imported components, while revenue may be in Turkish lira depending on the offtake structure, creating a mismatch that should be modeled explicitly rather than assumed away.

Due Diligence Before Land Commitment

A disciplined siting process moves in this order: resource data, grid capacity confirmation, land status verification, environmental screening, then land agreement. Reversing this sequence, common among first-time entrants eager to secure land, is the most frequent cause of stalled projects and sunk costs. Engaging Turkish legal and technical advisors before committing to a site, rather than after, remains the most reliable way to protect capital during the siting phase.

For Swedish developers willing to apply the same rigor to Turkish siting that they would to a Nordic project, Türkiye's renewable energy pipeline offers scale and resource quality that few European markets can currently match.

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