Socioeconomic evaluation of geothermal energy in Türkiye

2026-8-4
Korucan, Aysun
As a domestic, reliable and non-intermittent energy resource, geothermal energy offers a clean and sustainable option for diversifying energy supply, reducing carbon emissions and strengthening energy security. Türkiye has substantial geothermal potential and became one of the world’s fastest-growing geothermal power markets between 2015 and 2020. However, the recent slowdown in geothermal investments raises important questions about the drivers of sectoral development and the barriers to further expansion. To address these issues, this thesis examines geothermal development in Türkiye and its socio-economic impacts through a combination of qualitative and quantitative methods. The Technological Innovation System (TIS) analysis and semi-structured interviews reveal that institutional, financial, technological and social-environmental barriers continue to constrain sectoral development. These qualitative findings further indicate that realizing Türkiye’s geothermal potential requires moving beyond electricity generation toward integrated and direct-use applications. Complementing these qualitative insights, the Social Accounting Matrix (SAM) multiplier analysis demonstrates that combining geothermal heat and power production generates greater economy-wide benefits than electricity generation alone. Furthermore, the thesis develops an electricity-disaggregated Computable General Equilibrium (CGE) model, whose scenario results indicate that subsidies remain essential for geothermal power expansion. The findings further suggest that geothermal energy can contribute to decarbonisation and energy security by displacing fossil-fuel-based electricity generation, while direct-use applications represent a key pathway for future development. Overall, the thesis concludes that the long-term development of geothermal energy in Türkiye depends not only on expanding power capacity but also on promoting diversified geothermal utilization through policies addressing institutional, financial, technological, social and environmental challenges.
Citation Formats
A. Korucan, “Socioeconomic evaluation of geothermal energy in Türkiye,” Ph.D. - Doctoral Program, Middle East Technical University, 2026.