Rönesans Enerji is Empowered by the Wind

Wind Power is Driving Our Growth

Türkiye has significant wind energy potential. However, new investments are shaped by various factors, from financing to technology. Emre Hatem, Board Member of Rönesans Enerji and President of the Energy Group at Rönesans Holding, shared his perspective on the power of wind energy, Türkiye's potential in this field, and emerging investment opportunities.

Türkiye is taking strong steps in its renewable energy transition. As of the end of 2024, 59% of the country's total installed capacity of 116,000 megawatts is generated from renewable sources. With an installed capacity of 13,000 megawatts, wind energy, along with hydroelectric and solar, is one of the critical areas of this transformation. Rönesans Enerji, which has tripled its capacity in the past two years through a partnership with TotalEnergies, continues its growth by focusing on wind energy
 

A History of Wind Energy Investment

Wind power has been used for about 5,000 years through tools such as sailboats and windmills. However, the first commercial turbines emerged in the 1970s in Denmark, which still leads the way in this field. In Türkiye, the first commercial wind turbine was installed in Çeşme in 1998. It was a 1.5-megawatt project consisting of three turbines.

Later that same year, another 7.2-megawatt project was commissioned in Çeşme. Two years later, a 10-megawatt project was launched in Bozcaada. However, following these three projects, no new wind energy investments were made for the next 10 years until 2008.

Wind investments gained momentum after 2008. Between 2008 and 2018, projects with a total capacity of approximately 700 megawatts were commissioned yearly. As a result, Türkiye's installed wind capacity reached 7,000 megawatts in 2018.

The real acceleration came in 2020 and 2021. In just those two years, 3,000 megawatts of wind projects were commissioned. There was a slight slowdown in 2022 and 2023, with a total of 1,200 megawatts added over the two-year period. Last year alone, 800 megawatts were commissioned.

Over the span of 26–27 years, we have reached 12,864 megawatts of installed capacity. This means Türkiye boasts an average of 500 megawatts of new installations annually. 

3.5 Billion USD in Savings

Today, we generate 36–37 billion kilowatt-hours of electricity from wind in Türkiye. This enables us to save approximately 8 billion cubic metres of natural gas annually. Without wind energy investments, we would have invariably built natural gas power plants instead. The annual cost of this alternative strategy would be around USD 3.5 billion.

On the other hand, we also avoid emitting nearly 20 million tonnes of greenhouse gases. Over the past 25 years, a total investment of approximately 20 billion USD has been made in this sector. Currently, the industry generates 2.5–3 billion USD in added value annually.

Electricity generation from wind represents a significant gain. In addition, our country has developed a wind equipment industry. Today, approximately 55–60% of the turbines and their components are produced domestically in Türkiye. There are now 150 companies operating in this field, along with 300–350 subcontractors. The sector employs 25,000 people, generating 2.2 billion USD in revenue and 1.5 billion USD in exports, sending turbine parts to 52 countries. Nearly 5,000 engineers are employed, and Türkiye ranks as Europe's fifth-largest wind equipment manufacturer.

We Gained Momentum Through Partnership

Rönesans Enerji was established in 2007 and commissioned six hydroelectric power plant projects with a total installed capacity of 166 megawatts. The turning point for our company was the partnership with TotalEnergies at the end of 2023. Rönesans Holding sold 50% of Rönesans Enerji to TotalEnergies, marking one of the sector's most significant acquisitions and foreign capital inflows.

The company is now managed under a 50/50 joint structure with shared control. Both companies bring strong competencies to the table. This isn't our first partnership; international partnerships are part of our DNA. In fact, this marks our seventh major partnership.

We quickly embarked on an investment drive with TotalEnergies. Starting at the end of 2023, we initiated 400 million USD worth of investments for six projects with a total installed capacity of 282 megawatts. Three are wind projects in Malatya, Çorum and Sivas; two are hybrid solar projects in Amasya; and one is an acquisition of an operational 88-megawatt project located between İzmir and Manisa. 

Of these 282 megawatts, 137 megawatts are currently operational. When the remaining 140 megawatts are commissioned by the end of 2025, our installed capacity will reach 443 megawatts. In other words, we will have tripled our capacity within 2 years following the Total partnership.

We Will Reach 1,000 Megawatts By 2027

In addition, we are carrying out two projects totalling 52 megawatts to meet the electricity needs of our sister company, Rönesans Gayrimenkul. These projects will supply 65 to 70 per cent of Rönesans Gayrimenkul's electricity demand. We also hold licences for 550 megawatts of capacity, primarily in wind. We have storage-integrated wind projects in Kırklareli and Kırşehir, and another major project is planned in İzmir. With these projects, we aim to reach 1,000 megawatts of installed capacity by 2027, around 800 megawatts of which will be wind.

Rönesans Enerji currently operates 30 turbines in İzmir and Sivas, with 20 more under construction. By the end of  this year, we will be operating a total of 50 turbines.

The first wind project in Türkiye was built in Çeşme, İzmir. At the time, each turbine had a capacity of 500 kilowatts, just 0.5 megawatts. Today, the turbines we install are 7 megawatts, 14 times greater in capacity. The early turbines in Bozcaada stood at 45 metres, whereas the ones we install today reach 115 metres. A 7-megawatt turbine generates approximately 20 to 22 million kilowatt-hours of electricity annually, meeting the needs of 5,000 people annually.

New Technologies in Wind Energy

Alongside larger and more efficient turbines, new types of turbines are now being discussed. Horizontal-axis turbines are being tested, and offshore wind turbines with dual rotors have recently begun operating in China.

Offshore wind farms generally use two types of systems: fixed-bottom turbines, which are anchored directly to the seabed, and floating turbines, typically used in deeper waters, which sit on buoyant platforms held in place by cables. While floating systems can be repositioned if needed, fixed-bottom solutions are more commonly used due to their lower cost.

Artificial intelligence is also being used in wind farms. We are currently working on systems that uses AI to prevent malfunctions.

When is Offshore Wind Expected to Start?

There are currently no offshore wind projects in Türkiye, but four sites have been designated for future development. Three are located in the Sea of Marmara, off the coasts of Bandırma, Karabiga and Gelibolu, and one is planned for the Aegean Sea, off the coast of Bozcaada.

The advantage of the Marmara region is that there's no risk of conflict with other nations. However, since it's an inland sea, wind speeds over water are similar to those on land. Offshore turbines generally have a capacity of 20–25 megawatts, and the required safety measures and manufacturing increase investment costs. Therefore, it might be more feasible to build onshore.

That said, Bozcaada has exceptional wind potential, and the Ministry has made it a key area of focus. There are talks that a tender for an offshore wind project may take place by the end of this year. We currently have no project there, but we will definitely be interested if a tender is announced.

Our Dutch subsidiary, Ballast Nedam, which is wholly owned by Rönesans Holding, has extensive experience in this field. TotalEnergies also has operational offshore wind projects in the United States, South Korea and the United Kingdom. So, I can confidently state that we are well-positioned and ambitious regarding offshore wind.

New Investments

Türkiye's wind energy targets are continually being revised upward. According to the National Energy Plan, the target for 2035 was originally 30,000 megawatts, but by the end of last year, this was revised to 43,000 megawatts. Currently, we are at 13,000 megawatts.

The 10-year target is 30,000 megawatts of new capacity, representing around 4 billion USD in investment, or about 3,000 megawatts of new capacity per year. On top of that, we can add annual targets of 6,000 megawatts for solar photovoltaic (PV) plants. Aligned with Türkiye's 2053 net zero target, we believe Rönesans Enerji will be one of the key players.

According to our new business plan, we will invest at least 2,000 megawatts over the next five years, primarily focusing on wind energy. This will place us on the path to becoming one of the top three energy companies in Türkiye.

Our key focus areas are, first, integrated wind projects with storage, followed by hybrid solar systems, and third, distributed generation projects, which we believe hold significant potential. 

The Border Carbon Adjustment will come into effect in 2026. Turkish companies exporting to the EU must reduce emissions or face additional taxes. As a result, many industrial players are now considering investing in self-sufficient electricity generation. However, it would be more effective for these investments to be undertaken by the energy sector rather than by industrial players. That's why we developed a model called the "build-operate-income and power supply agreement," under which we take on the entire investment required to meet the consumer's electricity needs, including project development, construction financing, capital investment, commissioning and operation.

The electricity is then supplied to the consumer. Consumers lower their greenhouse gas emissions, use green electricity, avoid certain taxes, and benefit from discounted rates.

We have begun applying this model with Rönesans Gayrimenkul. We are working to ensure that Rönesans Holding's construction sites are powered 100% by green sources. Beyond that, we aim to serve many other holdings and companies.

Energy Storage is a Necessity

Storing surplus energy during peak production hours and selling it during shortages could generate significant returns. However, regulations in this area have not yet been finalised. Once the legislation is complete, the technical operation of batteries, the relevant markets, and the revenue mechanisms will all become clear.

For example, under ancillary services agreements, you can lease your battery remotely to the system operator (TEİAŞ), who uses it to manage real-time frequency changes. In return, you are paid.

We aim to be one of the first companies to enter this field. We already hold a preliminary licence for a storage-integrated wind project that includes a 300-megawatt wind power plant along with a battery system capable of storing 300 megawatt-hours of electricity. 

We are currently discussing potential investments in integrated energy systems. Our first project will be located in Kırşehir, consisting of a 50-megawatt wind power plant and a 50-megawatt-hour battery system. We aim to make the investment decision and launch our first energy storage project within the first half of this year.

We anticipate substantial growth in storage-integrated projects in Türkiye. Currently, large-scale energy storage capacity in Türkiye is nearly non-existent. The national target is to reach 7,500 megawatt-hours of battery capacity by 2035.

Emerging Investment Areas

 Green hydrogen production is currently a costly investment, but as costs decrease over time, we intend to enter this area as well. Hydrogen produced from water using wind and solar energy can be used directly or converted into ammonia, then stored and transported to other locations. We believe such projects may become feasible in Türkiye within the next four to five years.

Additionally, we may see carbon capture and storage projects in the future. TotalEnergies, along with two partners, recently launched the world's first commercial carbon capture and storage project. Carbon dioxide from a factory in the Netherlands is captured, liquefied, transported by ship to a terminal, and then piped 100 kilometres offshore to be stored in geological formations 2,600 metres beneath the seabed.

Why Wind Energy?

• Hydroelectric Power Plants (HPPs): Over the past 20 years, Türkiye has invested in 20,000 megawatts of hydroelectric capacity. We currently operate six HPPs. However, the potential for further growth is now limited, as the most viable and cost-effective locations have already been utilised
• Solar PV Plants: Türkiye had no installed solar capacity just eleven years ago. Today, that figure has reached 20,000 megawatts. The fastest growth has occurred in the distributed generation segment, particularly in rooftop solar projects. The average size of a solar PV project in Türkiye is relatively small, around 0.7 megawatts. One of the biggest challenges in this field may be overproduction. If we continue to commission 3,000 to 4,000 megawatts of new projects annually, we may face a surplus during daylight hours, which could lead to lower prices within five to six years. While solar energy has a very low environmental impact, it requires significant land use. Between 1.2 and 1.5 hectares of land may be needed for each megawatt of installed capacity.
• Wind Power Plants (WPPs): Unlike solar, wind energy can also be generated at night. It also has lower annual production fluctuations. For example, while hydroelectric power plants can experience up to 50% fluctuations, wind projects typically vary by only 10–15%. Wind energy costs are declining, and access to international financing is increasing.

By 2028, we’ll be one of the top three players

“The largest player in the sector currently has an installed capacity of around 3,800 to 4,000 megawatts. In terms of portfolio size, we are still smaller. However, with the support of our two strong partners and our upcoming projects, we are moving steadily toward our goal of becoming one of the top three green energy companies in Türkiye by 2028.”

Our green finance framework will be our constitution”

• International reporting We have a comprehensive sustainability policy and strategy in place under the umbrella of Rönesans Holding. For the first time, we will report to the Carbon Disclosure Project (CDP).
• Sustainable Eurobond We issued a 350 million USD sustainable Eurobond and reached an agreement with investors on how the proceeds would be used.
• Becoming our constitution As a first, we published a Green Finance Framework voluntarily, despite there being no legal obligation. This will serve as our constitution. We have outlined the environmental and social criteria for financing our projects, and these principles have become binding for us.
• Target As a group, we aim to become net carbon neutral by 2040. We have also set an interim target for 2030: a 55% reduction compared to 2022. We are working intensively to achieve this goal.

“Türkiye spends approximately 70 billion USD on energy imports. If we, as a country, channel our resources into this field, we can achieve full energy independence, shifting from a net importer to a net exporter and ultimately eliminating our current account deficit.”

AI’s Three Main Contributions

• Fault detection It can predict when a blade is likely to malfunction or break.
• Optimisation It maximises output by adjusting blade angles according to wind conditions.
• Forecasting As a licensed energy company, we are required to submit hourly production forecasts for the following day. Thanks to more accurate predictions enabled by AI, we avoid imbalance penalties, which helps reduce our costs

Key Statistics in Renewable Energy

• 116,000 megawatts Türkiye’s total installed capacity stands at 116,000 megawatts. Of this, 13,000 megawatts comes from wind, 20,000 megawatts from solar, and 32,000 megawatts from hydroelectric sources. As a result, the share of green energy has reached 59%.

Wind Power Gains Momentum

• 350 billion Türkiye’s annual electricity generation (in kilowatt-hours).
• 11% Wind accounts for 11% of Türkiye’s total electricity generation. The global average stands at around 8%, while Denmark, the world leader in wind energy, reaches 58%.
• 25,000 Around 55% to 60% of the wind turbine components used in Türkiye are domestically manufactured. These companies generate 2.2 billion USD in revenue and export goods worth 1.5 billion USD.

10 Years from Now

• 18% Türkiye’s electricity consumption is expected to reach 500 billion kilowatt-hours by 2035, with wind power projected to account for 17% to 18%, which is in line with the current EU average.
• 5,000 A 7-megawatt turbine can meet the annual electricity needs of 5,000 people.