Türkiye - Accelerating the Market Transition for Distributed Energy Program as part of Europe and Central Asia Renewable Energy Scale-up Program using the Multiphase Programmatic Approach : Additional Financing

Overview & Synopsis

The development objective of Accelerating the Market Transition for Distributed Energy Program as part of Europe and Central Asia Renewable Energy Scale-up Program using the Multiphase Programmatic Approach is to expand Türkiye’s distributed solar photovoltaic market and pilot distributed battery electricity storage to increase renewable energy. This paper requires the following changes to the ECARES MPA including: (i) increasing the IBRD/IDA MPA financing envelope by US$2,960 million, (ii) removing four phases planned at the time of Board approval, and (iii) revising the targets for the Program indicators. It also requires an Additional Financing (AF). The parent Program, structured as a Program-for-Results instrument, supports the development of distributed solar photovoltaics (DSPV) and battery energy storage systems (BESS), and is progressing satisfactorily with strong disbursement and pipeline performance, including a planned transition from direct sub-lending (Stage 1) to an apex Facility model (Stage 2) by September 2026. The proposed AF introduces two loans of EUR 200 million each to scale up results, expand the Program scope to include distributed renewable energy (DRE)—comprising distributed wind and medium-voltage solar—and broaden BESS applications, while maintaining alignment with the overarching MPA objectives. The AF strengthens the results framework by adding a new Results Area to support distributed wind and expanding storage capacity targets, thereby increasing investment volume, technology diversity, and development impact. It addresses market gaps driven by Türkiye’s elevated clean energy ambitions, CBAM-related policy pressures, and financing constraints faced by private developers, particularly for long-term foreign currency funding. The Program remains aligned with Türkiye’s national energy strategies and the World Bank Group’s Country Partnership Framework, contributing to energy transition and decarbonization goals, while maintaining institutional arrangements and enhancing environmental and social safeguards appropriate to expanded project complexity.