ADB Approves $175 Million for Türkiye's Clean Energy Push

ADB said the programme will help municipalities generate more of their own renewable electricity, reducing greenhouse gas emissions while lowering energy costs for local governments.

The Asian Development Bank (ADB) has approved a US$175.48 million results-based loan to support the expansion of renewable energy projects across municipalities in Türkiye, helping the country move closer to its goal of achieving net zero emissions by 2053. The financing will support the Municipal Renewable Energy Transition Program, which will be implemented through İller Bankası Anonim Şirketi (İLBANK), Türkiye's state-owned development and investment bank that finances local government infrastructure projects. The programme will provide funding for metropolitan, provincial and district municipalities to build renewable energy infrastructure, including solar and wind power facilities, along with supporting infrastructure such as substations, switchgear, switchyards and access roads.

Clean energy expected to reduce costs and emissions

ADB said the programme will help municipalities generate more of their own renewable electricity, reducing greenhouse gas emissions while lowering energy costs for local governments. Savings on electricity bills are expected to free up municipal budgets for other essential public services. The initiative also aims to strengthen energy security by increasing the use of locally generated renewable power and reducing pressure on Türkiye's electricity transmission and distribution networks.

Municipal buildings and utility services currently account for around 31 per cent of electricity consumption and 30 per cent of greenhouse gas emissions within Türkiye's municipalities. Expanding renewable energy generation at the local level is expected to significantly reduce both energy use and emissions while supporting cleaner public services.

Programme supports Türkiye's long-term climate goals

ADB Director General for Central and West Asia Leah Gutierrez said expanding renewable energy in municipalities is an important step toward improving the country's long-term energy resilience and supporting its climate commitments. She said the programme will contribute to Türkiye's net-zero target while improving fiscal sustainability and delivering lasting environmental and economic benefits for communities. Beyond infrastructure development, the programme will strengthen the capacity of municipal governments and local utility providers to plan and manage renewable energy projects more effectively.

The ADB loan is backed by a government guarantee and will be complemented by US$43 million in counterpart financing from İLBANK. The programme supports the objectives outlined in Türkiye's National Energy Plan 2022 and the country's Twelfth Development Plan (2024–2028).