Türkİye, Economy

International investors paying close attention to Türkiye's renewable energy sector

Country's established renewables sector has potential to attract further investment, says official at UN Trade and Development

Duygu Alhan  | 11.06.2024 - Update : 11.06.2024
International investors paying close attention to Türkiye's renewable energy sector

ANKARA

Türkiye’s wealth of renewable resources, coupled with its economic diversification, has become a magnet for foreign renewable investment, according to Amelia U. Santos-Paulino, head of the investment research section at the UN Trade and Development (UNCTAD) division on investment and enterprise.

In an exclusive interview with Anadolu at the Global Investment Days organized by the International Investors Association of Türkiye (YASED) on Wednesday, Santos-Paulino touted the country’s renewable energy sector that has developed over the past years to one that offers infrastructure in place, services and a lucrative investment market that can support economic growth and further financial investment.

She said that because the nation's renewable energy market is already developed, it can draw significant investment in this area going forward.

"It is very good to recognize that Türkiye has started to become an important investor as well as holding an important position in attracting investors that also shows the maturity that its economy has reached," she said.

According to Santos-Paulino, even though the management of energy projects is far more difficult than managing a traditional production facility, given the significant upfront costs and pre-investment planning required, they yield better investment returns and sectoral job creation.

Türkiye's Central Bank policies send positive signal to investors

During the downturn in the global investment climate, the Central Bank of the Republic of Türkiye’s macroeconomic measures that were implemented sent encouraging signals for the country’s economic diversification.

Given that countries ranked as developing or underdeveloped lag behind other developed countries, particularly in sustainable development, she advised that, despite the current global economic climate with multiple crises, conditions should be created where these countries can also take advantage of opportunities.

She recommended that underdeveloped countries could avail of such sustainable investments ​​​​​​​aimed at promoting sustainability across various sectors of society, including environmental protection, social equity, and economic development.

Türkiye can attract more investors

Santos-Paulino cited stability as a key fundamental economic indicator for boosting foreign direct investment (FDI).

Based on this premise, other critical considerations would be the degree to which the nation's policies align with internationally recognized objectives, like the Paris Climate Agreement, sectoral policies and sustained adherence to these policies.

Transparency is also crucial to attractive FDI, and to this end, she lauded the task of YASED, which plays a critical role in attracting investors to the sector.

"At the end of the day, investors look at three things. Returning to their investment, the institutional framework, and the facility that will operate in the country. Türkiye has an advantage in these areas compared to other emerging markets. So, if the country continues like this, it can realize its potential to attract more investment in the sector in the country." she said.

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