Chapter 3:
Coal
In this chapter
Growth in coal generation has slowed, but has not yet reached its peak
In Türkiye, approximately two-thirds of electricity generated from coal relies on imported coal. Although the growth in coal electricity generation has slowed, it is still too early to say that it has reached its peak. A purchase guarantee announced in 2025 for domestic coal plants may increase their capacity utilisation rates and lead to a new record in coal-fired electricity generation in the coming years.
3.1
Two-thirds of coal electricity comes from imported coal
As of the end of 2025, Türkiye has a total installed coal capacity of 22 GW, consisting of 11.5 GW from domestic coal and 10.5 GW from imported coal. The last coal plant commissioned in Türkiye came online in 2022, and no new coal plant construction has started since then.
Over the past three years, electricity generation from domestic coal has remained relatively flat. In 2025, coal-fired electricity generation in Türkiye declined slightly from a record of 122 TWh in 2024 to 121 TWh in 2025.
Although domestic coal has a higher installed capacity, about two-thirds of coal electricity generation relies on imported coal. This is because imported coal plants operate at capacity utilisation rates above 80%, whereas domestic coal plants operate at around 45%.
3.2
Purchase guarantee for domestic coal may increase generation
Coal generation in Türkiye could increase in the short to medium term following the introduction of a purchase guarantee for domestic coal plants from 2026.
In September 2025, Türkiye announced that domestic coal plants would receive a purchase guarantee from 2026 through the end of 2029. The guaranteed price, set at 75 USD/MWh, is 13% higher than the country’s average electricity market price in 2025. The unit cost of electricity generation for all but one domestic coal plant is lower than this guaranteed price. When the wholesale electricity market price (PTF) exceeds 75 USD/MWh, the plants benefit from the PTF instead.
The purchase guarantee will apply to up to 60% of a plant’s maximum potential generation. Therefore, a plant operating at a 60% capacity factor would be able to sell all of its production under the guarantee. Since the average capacity utilisation rate of domestic coal plants in Türkiye is below this level, many plants are expected to benefit from the guaranteed price for their entire output.
This purchase guarantee has the potential to improve the financial viability of domestic coal plants and increase their utilisation rates. As a result, less efficient plants may remain in operation for longer. Under current policies, coal-fired electricity generation in Türkiye is expected to peak between 2026 and 2029 and only begin to decline after 2030.
