Turkey has significant geothermal energy potential.

This is the first ever financing for renewable energy development that came from the World Bank, and it goes to Turkey. The country will receive USD 600 million for developing renewable energy projects, which will significantly improve country development, and more particularly inject capital into the development of numerous geothermal projects in the country.

The main goal of the finance project is to aid in the increase of privately owned and operated energy generation from renewable sources available in the country, within the market based framework provided by the Turkish Electricity Market Law. This will help enhance energy efficiency.

Turkey is experiencing a great increase in electricity demand due to the country's economic growth in the past years. It is now between a rock and a hard place – higher energy consumption means higher carbon output from fossil fuels, so renewable energy is needed to provide the much needed electricity, but reduce carbon emissions. The new development will tap into the country's large potential from hydro, wind, solar, biomass, geothermal, and other resources. Measures for reducing energy consumption are also part of the effort.

Five hundred million will come from the World Bank, while another hundred million will come from the Clean Technology Fund.