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Tripling renewables investment to reach climate goal

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New report confirms global investment rise in 2013-2018, but calls for considerable mobilisation of capital to recover from COVID-19 and build a climate-safe world.

Global renewable energy investment increased between 2013 and 2018, reaching its peak at USD 351 billion in 2017, according to a new report by the International Renewable Energy Agency (IRENA) and Climate Policy Initiative (CPI).” The 2020 edition of Global Landscape of Renewable Energy Finance highlights however, that while a cumulative USD 1.8 trillion were invested during the five-year period, the amount falls short to achieve the global climate commitments.

Renewable energy investment slightly declined in 2018, with modest growth through 2019. Although this was largely due to the decreasing costs of renewables, the total installed capacity continued to grow. The current level of investment is still insufficient however to keep the rise in global temperatures within the 1.5°C objective by mid-century. To achieve this climate goal, investment in diverse renewables technologies must almost triple annually to USD 800 billion by 2050. 

Ambitious commitments from governments are needed, backed by supporting measures such as moving subsidies away from fossil fuels. Further investments are also needed in system integration and enabling technologies that increase system flexibility such as batteries and energy storage. To that end, policies that enable the integration of new renewables capacity additions into the energy systems are needed, leading to their decarbonisation and bringing wide socio-economic benefits.

“The investment trend in renewable energy before COVID-19 was a positive one,” said Francesco La Camera, IRENA’s Director-General. “But COVID-19 has shown us that much more effort is urgently needed to put us on a climate compatible pathway and help us recover better with a sustainable, resilient economy. Decision makers must design systemic approaches to policies that encourage and speed up the flow of investment into renewables, and away from fossil fuels, and doing so enable economic growth, social resilience and welfare.”

IRENA’s post-COVID agenda showed that average annual investments of USD 2 trillion in renewables and other energy transition-related technologies in the 2021-2023-recovery phase could create 5.5 million additional jobs in the sector. An additional 19 million energy transition-related jobs would be created by 2030, following average annual investments of USD 4.5 trillion up to 2030.

The majority of these investments could come from private sources, if government funds are used strategically to nudge investment decisions and financing in the right direction. The capital is available, with a push from the governments to mobilise it. Public funds are able to leverage private investments by a factor of 3 to 4 if used strategically to steer investments toward clean energy solutions and away from fossil fuels. Greater participation of institutional investors – which hold about USD 87 trillion in assets – will help to reach the scale of global investment needed. To this end, it is key to promote the use of capital market solutions, such as green bonds, that address the needs of these investors. The potential role of institutional investors for the global energy transition is further explored in IRENA’s report, Mobilising Institutional Capital for Renewable Energy, published this month.

“There is a very clear need for a rapid increase of investment in renewable energy coupled with a significant reduction and redirection of investment away from fossil fuel energy,” said Dr Barbara BuchnerCPI’s Global Managing Director. “We call for more effort and coordination among policy makers, public and private finance institutions, energy and non-energy producing corporations, and institutional investors to speed up the global energy transition. This action is fundamental to a more sustainable and resilient future.“ 

This year’s joint report analyses for the first time financial commitments to off-grid renewables technologies in developing markets, as they can bring the world closer to achieving Sustainable Development Goal 7 on universal access to affordable, reliable, sustainable and modern energy by 2030. Providing cost-effective energy solutions, off-grid renewables are essential in a time when energy access is crucial to power healthcare facilities, save lives and create jobs. While investments in off-grid renewables solutions kept growing, reaching an all-time-high USD 460 million in 2019, additional capital must be unlocked especially for income-generating activities and productive uses to improve the livelihoods and resilience of billions of women and men globally and to promote socio-economic benefits. 

Looking ahead, policy makers need to signal long-term political commitment and enhance partnerships with the private sector to boost investors confidence and attract additional private capital in the sector. To that effect, the report laid out five specific recommendations that policy makers should implement to engage private sector actors, including institutional investors, capital market players and non-energy producing companies, in the collective path to green recovery and climate objectives.

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Two experienced figures in wind energy join forces for a strategic collaboration

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Two experienced professionals in Türkiye’s wind energy sector are taking their long-standing relationship to the next level through a strategic collaboration. Alper Kalaycı, Co-Founder of EnconIQ Energy Consultancy Ltd., and Levent İshak, Co-Founder of Lewind Energy Consultancy Ltd., will collaborate to develop new projects and improve the performance of existing wind power plants.

Kalaycı and İshak, whose friendship dates back to their studies at Dokuz Eylül University’s Department of Mechanical Engineering in 1991, are carrying nearly 35 years of shared experience into this new partnership. Both have been actively involved in the wind energy sector since 1998 and aim to further leverage their accumulated expertise through this collaboration.

By combining their complementary capabilities, the two will work together on both the development of new investments and the enhancement of operational efficiency in existing wind power plants.

Türkiye’s targets provide momentum for the sector

Commenting on the collaboration, Alper Kalaycı highlighted Türkiye’s energy transition:

“In line with our country’s 2035 targets, we need to increase our current wind installed capacity by approximately three times. This clearly demonstrates the strong growth potential of our sector. In the coming period, significant opportunities are expected both in new investments and in local manufacturing. With this collaboration, we aim to make more effective use of these opportunities.”

Operation and maintenance play a critical role

Levent İshak emphasized the importance of the operational phase:

“One of the most significant cost components in wind energy projects is operation and maintenance. Structuring these processes correctly from the outset, designing contracts accordingly, properly identifying risks, and managing them effectively are of great importance. Ensuring that this structure is implemented correctly during operation is critical for long-term performance. With this collaboration, we aim to create value both in structuring long-term contracts for new projects and in improving the performance of existing power plants.”

Complementary expertise, shared vision

The collaboration brings together Alper Kalaycı’s experience in manufacturing, localization, and project development with Levent İshak’s expertise in turbine supply, maintenance, service, and operations, aiming to create a strong synergy within the sector.

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ENERCON and POLAT Enerji strengthen their long-standing partnership

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ENERCON will supply wind turbine technology for another major project in Türkiye. For the “Balıkesir 1” wind farm in the northwest of the country, operator Polat Enerji has ordered 23 wind turbines of ENERCON’s new flagship model, the E-175 EP5 E2. The supply contract was signed on 27 April in Istanbul. With a total capacity of 161 MW, the wind farm is part of the YEKA 5 tender, for which Polat Enerji recently received the award from the Turkish Ministry of Energy.

“We have enjoyed a long-standing and close cooperation with Polat Enerji in the expansion of wind energy in Türkiye,” said Udo Bauer, CEO of ENERCON. “With ‘Balıkesir 1’, we will have jointly realised more than 1 gigawatt of installed capacity in Türkiye. We intend to continue this partnership for the energy transition together in the future. We are very pleased to implement the ‘Balıkesir 1’ project together using our new E-175 EP5 E2 turbine model.”

“Our journey began a quarter-century ago with an early and firm belief in Türkiye’s renewable energy potential,” said Evren Güvenç, CEO of Polat Enerji. “Today, Polat Enerji has evolved into a strategic player managing high-scale investments across Türkiye and Europe. The Balıkesir 1 project, secured through the YEKA tenders, is a testament to our continuous growth; for us, leadership is defined by more than just increasing installed capacity. We measure our progress not only by power output but by our optimisation capabilities and system flexibility. By leveraging our end-to-end expertise – from investment to operation – we are reinforcing our position as a pioneering actor shaping the transformation of the entire energy landscape.”

The E-175 EP5 E2 is ENERCON’s new top model. With a rated power of 7.0 MW and a rotor diameter of 175 metres, it is one of the most powerful onshore wind turbines in Europe in terms of energy yield. The E-175 EP5 E2 is also a central pillar of the company’s market strategy and forms the basis of the solution portfolio with which ENERCON supports its customers.

The supply agreement for the “Balıkesir 1” wind farm marks another milestone in the market launch of the E-175 EP5 E2 in Türkiye. The country is an important international strategic target market for ENERCON. To supply Turkish wind farm projects with the new E-175 EP5 E2, ENERCON will continue its proven localisation strategy with long-standing Turkish production partners and will also manufacture selected main components of the new top model in the country in the future.

“This allows us to meet the local content requirements of the Turkish tender system,” said Arif Günyar, Regional Head of the Central Asia / Middle East / Africa (CAMEA) region. “We are fully committed to the Turkish market and to the energy transition in Türkiye. We look forward to opening a new chapter of cooperation with Polat Enerji as well as with other Turkish customers and interested parties.”

Construction of the “Balıkesir 1” wind farm is scheduled to begin in September 2027, with commissioning expected by the end of December 2027. A total of 23 wind turbines will be installed on steel towers.

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Mature Capital Provided Advisory Services for the Gülle Wind Power Plant Project

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Gülle Entegre Tekstil İşletmeleri, one of Türkiye’s leading integrated yarn and fabric manufacturers with 55 years of experience, has signed a wind turbine supply and service agreement with Goldwind for the Gülle Wind Power Plant (WPP) Project. The project aims to meet the energy consumption of its production facilities located in Ergene, Tekirdağ.

According to the agreement, the project, located in the Ergene district of Tekirdağ, will utilize Goldwind’s GW155-4.8MW turbine model, featuring a hub height of 110 meters, a capacity of 4.8 MW, and a rotor diameter of 155 meters. The agreement also includes a 10-year full-service package covering maintenance and availability services.

The Gülle WPP Project is planned to be commissioned in December 2026. Upon completion, the plant is expected to reach an annual electricity generation capacity of approximately 16 million kWh.

Mature Capital has provided two-phase advisory services to Gülle Entegre Tekstil from the initial concept stage of the investment. In the first phase, project development, advisory services included the preparation of economic and technical feasibility studies in line with current investment conditions, as well as strategic and procedural guidance on regulatory and permitting processes (such as EPDK, EIA, zoning, and grid connection procedures).

In the second phase, once the project reached a certain level of maturity in terms of permits, Mature Capital provided advisory services for wind turbine selection, final supplier decision-making, and the negotiation of turbine supply and service agreements.

Habib Babacan, General Manager of Mature Capital

Habib Babacan, General Manager of Mature Capital

Commenting on the agreement, Habib Babacan, General Manager of Mature Capital, stated:

“We are very pleased to see the outcome of our efforts and work materialize with this important agreement, which marks the realization of our approximately three-year collaboration with our investor, Gülle Entegre Tekstil.

We would like to thank the Goldwind Türkiye team for their cooperation and support during the contract phase, and our investor Gülle Entegre Tekstil for their trust in Mature Capital. We wish the Gülle WPP Project to be beneficial for both parties.”

About Mature Capital

Since 2022, Mature Capital has been exclusively focused on the wind energy sector, providing advisory services to investors in the areas of business development, project development, strategy formulation, and project transfer (M&A) for wind power projects.

In its fourth year of operation, the company has continued to expand its activities and has successfully completed 18 advisory projects with 15 different investor groups since its establishment.

Mature Capital will continue to provide high-quality and reliable services to wind energy investors in Türkiye.

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