New government purchase guarantees for domestic coal are expected to keep older, less efficient power plants running longer and potentially drive coal-fired electricity to record highs in the coming years. This policy creates a financial safety net that allows these ageing facilities to remain operational despite competing renewable energy goals, according to the authors of the newly released report.
“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.”
Essentially, the government is promising to buy a set amount of electricity from these coal plants at a fixed price, even if it is higher than the standard market rate. This guaranteed income makes it profitable for companies to keep running old, less efficient plants that might otherwise have been shut down because they were too expensive to compete in the open market.
The report “Türkiye Electricity Review 2026” was published by the international energy think tank Ember on April 8, 2026. It was authored by Ufuk Alparslan, the organization’s Regional Lead for Türkiye and the Caucasus, alongside a team of researchers.
