Türkiye at the heart of the Energy transition: Geothermal’s shift from Capacity to Capital
Jan 6, 2026
Geothermal energy is transitioning into an infrastructure-grade investment class. Rising demand for baseload clean power, combined with advances in drilling technology, subsurface analytics, and targeted risk-mitigation mechanisms, is reshaping geothermal’s investment profile and attracting private capital.
This issue explores how geothermal investments are being structured and why 2026 represents a pivotal phase in the sector’s financial maturation.
From Capacity to Capital: Türkiye’s Geothermal Advantage in a Carbon-Constrained Europe
with Türkiye ranking as the EU leader and 4th globally, in geothermal capacity, 2026 represents a turning point as risk mitigation tools, policy support and investor knowledge converge to position geothermal energy as the value-creating financial asset of the global energy transition. Crucial to this transition is the integration of Turkey’s domestic emissions trading system. Under the recently enacted Emission Climate Law, Turkey is aligning with the EU’s 2026 carbon standards to ensure that potential tax outflows are instead retained locally. These funds are set to be reinvested into the green transformation of the industrial sector, where geothermal energy is expected to play a primary role as a stable, renewable power source.
Source: Türkiye's Geothermal advantage
JESDER Outlines the Investment Path for Geothermal Expansion
Ufuk Şentürk, President of the Association of Geothermal Power Plant Investors (JESDER), provided an evaluation of the geothermal energy sector to Anadolu Agency (AA), highlighting investor expectations for the coming year.
Şentürk emphazised that the current policies development, including fiscal incentives, explicit recognition of geothermal among strategic infrastructure,
and de-risking instruments will enable Türkiye to Increase Geothermal
Energy Capacity Tenfold in the near future.
Şentürk concluded by emphasizing that geothermal is more than just a source of electricity; it is a strategic tool for regional development, employment, and domestic technology production
Source: Mr. Şenturk on Anadolu Agency
2026 the year of Market and Stakeholder Mobilization:
A key sign of geothermal’s institutional momentum in 2026 is the schedule of domestic industry events and forums in Turkey bringing together investors, developers, regulators, and technology specialists.
· GT 2026 – Türkiye Jeotermal Kongresi: scheduled in 18–19 February 2026 in Ankara, this national geothermal event; brings together investors, developers, policymakers, and service providers to discuss investment frameworks, drilling, regulation, and sector strategy.
· ICGEST – International Conference on Geothermal Energy Systems and Technologies: Scheduled early 2026 in Istanbul, this event represents a strong academic–industry crossover with increasing attention to applied investment and development topic.
· ICRSE 2026 – International Conference on Renewable & Sustainable Energy: scheduled on 21–22 March 2026 in Antalya, the conference attracts cross-sector investors and sustainability-focused institutions.
· EIF World Energy Congress & Exhibition, scheduled in October 2026. A Major regional energy investment platform which includes infrastructure finance and energy discussions.
· Sector Workshops & Investor Roundtables (JESDER / Industry-led) various events to be held throughout 2026 focused on policy dialogue, drilling economics, and investment readiness.
These forums reflect a growing institutional ecosystem around geothermal energy in Türkiye — supporting knowledge exchange, investor confidence, and the gradual maturation of geothermal as a structured investment segment.
Sources:
Conclusion
Geothermal energy is no longer defined solely by resource potential or technical feasibility. The defining question for 2026 is how effectively capital is structured to unlock that potential. As risk‑mitigation tools, policy support, and investor sophistication converge, geothermal is increasingly positioned as a credible, scalable component of the clean energy investment universe.
For investors and developers alike, the transition from geological opportunity to financial asset is underway — and its pace will be shaped by those who understand both the subsurface and the balance sheet.
Next issue: “De-Risking the potential: Financial Structures for Geothermal Investments
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Sincerely,
GEOSIMA TEAM
