ADB Backs Turkish Municipal Shift to Renewable Energy

Implemented through the state-owned development bank İLBANK, the Municipal Renewable Energy Transition Program targets the installation of solar and wind facilities, alongside essential infrastructure like substations and access roads. By shifting toward locally generated power, the initiative addresses a significant energy footprint, as municipal buildings and utility services currently account for 31 percent of electricity consumption and 30 percent of greenhouse gas emissions within Turkish local governments.

Leah Gutierrez, ADB Director General for Central and West Asia, noted that the program aims to bolster energy resilience while improving fiscal sustainability. Beyond the core loan, İLBANK will contribute $43 million in counterpart financing. The initiative aligns directly with the objectives set forth in Türkiye’s National Energy Plan 2022 and the Twelfth Development Plan (2024–2028), ensuring that local governments can reduce energy costs and redirect savings toward critical public services.