Kalyon Enerji is a Turkish company that develops and operates solar and wind power plants, with a capacity of over 2,900 MW. Established in 2016, it is jointly owned by Kalyon Holding and the UAE-based International Energy Holding, and is also pursuing projects abroad.
Türkiye has made a significant leap in renewables in recent years. What do you see as the country’s biggest strategic advantages in the green energy transition?
The greatest advantage is its geographical location. Türkiye sits in an ideal spot for maximising solar energy —not in the equatorial zone, where excessive heat lowers performance, and not too far north. Solar radiation must strike at a near-perpendicular angle for maximum efficiency, and Türkiye achieves this balance very well. In excessively hot climates, solar panel performance decays, so Türkiye's temperate climate is ideal for solar energy generation.
Türkiye sits on a major wind corridor stretching from the Middle East to the north. This indicates Türkiye's strong wind potential, currently at about 15 gigawatts of wind power. However, the onshore wind capacity is estimated to be at least 100 gigawatts. Solar potential is even greater—between 300 to 400 gigawatts, although current capacity is only around 25 gigawatts. These resources are crucial for energy independence and addressing Türkiye's significant foreign trade deficit, which can be 70-80% driven by energy imports in certain years.
Kalyon Enerji’s 1.3-gigawatt Karapınar solar power plant seems to be something of a symbol of Türkiye’s renewable ambitions. What made this project possible on such a scale?
Karapınar is one of the most important projects enabled by the Renewable Energy Resource Area policy from Türkiye's Ministry of Energy. The project secured around $800 million, with $300 million backed by the UK Export Finance agency (UKEF)—their largest green energy support to date. The key element that made the project feasible was the dollar-based off-take agreement with the Ministry, providing guaranteed cash flow through a power purchase agreement. The government designated the area specifically for renewable energy and tendered a 1,000 megawatt capacity, with a condition: the investor had to also build a 500 megawatt-capacity solar panel factory.
This factory, (Kalyon PV) built in 2017, is fully integrated—from ingot to cell production—making it 100% independent from Chinese supply chains. That independence is critical, especially amid ongoing trade wars, particularly between the US and China. Beyond the power plant and factory, the project benefited from being in a designated special energy zone, with land provided and environmental assessments already secured by the Ministry. The site itself is an ex-lakebed, dried up over the last 50 years due to climate change. Since construction began, the shading from solar panels has reduced evaporation, leading to increased endemic plant growth and even the return of small animals.
What are some of the structural or regulatory challenges you've encountered with permitting and the grid, and how are you navigating these in 2025?
Permitting is a significant challenge. The process is heavily bureaucratic, requiring approvals from numerous government bodies, often with redundant or duplicated steps. There's no single coordinating authority, which leads to contradictions between central and local governments. A clear example is our investment in a southeastern town. The local administration team lacked the knowledge to even classify a solar power plant correctly under construction regulations.
For instance, the permitting regulations that do not specifically address solar power plant construction most of the time lead to unrealistic demands from authorities; for example, you may be required to provide thousands of parking spots for a power plant with just 10 employees. Despite current challenges, the Provincial Governors have mostly been supportive, often stretching existing regulations to help us proceed with vital renewable projects. But, a new law, proposed by the Ministry of Energy, which has been ratified recently, I hope will answer major issues to accelerate the permitting process for renewable investments.
Kalyon Enerji is targeting a diverse range of geographies — from Eastern Europe to North Africa. What unites this expansion strategy?
Kalyon Enerji is an independent power producer with strong in-house capabilities in both solar and wind. We handle everything from project development and engineering to investment. This allows us to move quickly—our three wind projects, for instance, went from inception to commissioning in just one year. We're leveraging this capability to start a second project in Karapınar, named Karapınar G24, a 500 megawatt solar power plant scheduled for completion by the end of 2026.
The energy regulator recently issued over 30 gigawatts of new licenses with storage, which equates to more than 30 gigawatt-hours. We're especially interested in next-gen grid-forming inverters, which can reduce reliance on gas or coal-fired plants. Our target over the next four to five years is to grow to at least 5 gigawatts of solar and wind capacity and 1,000 megawatt-hours of storage.
You mentioned that several US projects have been offered to Kalyon Enerji and are under review. Can you share updates on your expansion into the US market?
We’ve been offered several projects in the US, a stable market with solid structures. Especially, focusing on the states where non-renewable power plants are more common, we would like to invest in renewable energy projects. For the solar power plant investments, one of our sister companies, Kalyon PV, might bring an opportunity for us in the US market. Kalyon PV can produce solar wafers and cells independently, it is well-positioned for the US market, especially given sanctions on Chinese solar tech. Most Chinese-made cells are subject to heavy tariffs in the US, but Kalyon PV solar panels are eligible without penalty.
Kalyon PV, offers higher yields and improved efficiency. The plan is to export these cells to the US. While the competition with China remains tough—Chinese firms receive massive government support—we’re building our presence in markets with reliable legal and economic frameworks.
How do you approach both financing and community development in your projects, particularly given the expectations of international backers alongside the needs of local communities?
We've received substantial international support. For our second project, UKEF backed another €249 million. This level of trust from international institutions highlights our credibility. Equally important is our community engagement. To ensure tangible benefits for local communities, Kalyon Enerji implements the Community Development and Livelihood Restoration Programme for each project. These programmes are designed to foster both environmental, social and economic gains for stakeholders. In Şanlıurfa, we distributed cattle, funded home repairs, built social houses, and refurbished schools. We prioritize hiring local workers. In Karapınar, the reduced evaporation under solar panels has boosted plant growth. We’ve welcomed over 100,000 sheep to graze beneath them. We’re also building guesthouses and continuously developing socio-economic support programs tailored to each project location. Supporting local communities is central to how we operate.
This under-panel grazing project bolsters our goal of social sustainability by fostering economic development and providing new livelihood opportunities for local communities. By creating additional income streams for shepherds and integrating traditional animal husbandry with modern energy infrastructure, it supports both community well-being and inclusivity. Our under-panel grazing practice proves a key idea: "clean energy facilities don't have to compete with local lifestyles; they can be integrated with them." The project offers a sustainable model that enhances community welfare and diversifies livelihoods. These results validate our project’s success across social impact, environmental management, and economic sustainability. This programme is a scalable solution that can be integrated into all solar power plants.
