Turkish steel giant Tosyali secures loan to build 261 MW captive solar plant, adding a landmark case for industrial decarbonization.

Self-consumption PV model under the global wave of industrial decarbonization

As global carbon neutrality targets advance, energy-intensive industrial sectors are facing unprecedented emission reduction pressure. The steel industry, as a carbon emission-intensive sector, accounts for a significant portion of production costs through electricity consumption. Against this backdrop, the corporate self-consumption PV model is favored for its ability to directly reduce electricity costs, lower carbon footprints, and enhance energy autonomy. The latest move by Turkish steel manufacturer Tosyali is a typical example of this trend.

Industry background: Turkey's energy transition and industrial electricity demand

Turkey is one of the fastest-growing emerging markets for renewable energy. According to data from the International Renewable Energy Agency (IRENA), Turkey's cumulative installed photovoltaic capacity had exceeded 20 GW by the end of 2025, with distributed PV accounting for a significant share. However, the country's electricity demand is still growing at 3%-5% annually, and industrial electricity consumption accounts for about 30% of total electricity use. The steel industry is one of the largest industrial electricity consumers, with electricity costs accounting for 15%-20% of its total production costs.

To reduce energy costs and address trade barriers such as the EU Carbon Border Adjustment Mechanism (CBAM), Turkish industry is accelerating its shift to clean energy. The self-consumption PV model has become the preferred option because it does not require grid access permits (or only requires simplified grid connection procedures) and directly reduces electricity costs. The government also provides support through the Renewable Energy Resource Zone (YEKA) program and net metering policies. Although policy adjustments are frequent, corporate self-consumption projects generally enjoy more stable return expectations.

Current developments: Tosyali's 261 MW self-consumption PV project

According to a report by Renewables Now on July 13, 2026, Turkish steel manufacturer Tosyali has obtained a loan to build a 261 MW self-consumption PV power plant. The plant will be entirely used to meet the electricity demand of its steel production facilities, and is expected to generate about 400 million kWh of clean electricity annually, offsetting the equivalent of hundreds of thousands of tons of carbon dioxide emissions. The project financing details have not been fully disclosed, but such loans are usually provided by international financial institutions or local banks and may involve green credit terms.

Tosyali is one of Turkey's largest steel producers, primarily producing flat and long products, with export markets including Europe and the Middle East. This PV project is part of its green transformation plan announced in 2023, which also includes technical pathways such as hydrogen-based direct reduced iron (DRI) and carbon capture. The 261 MW scale makes it one of the largest industrial self-consumption PV projects in Turkey and even the Middle East, far exceeding typical corporate projects of 10-50 MW.

In recent years, Turkey's PV market has shown rapid growth. In 2025, about 5 GW of new capacity was added, with distributed projects accounting for more than 40%. Large-scale industrial self-consumption projects like Tosyali's case are expected to prompt more high-energy-consuming enterprises in steel, cement, chemicals, and other sectors to follow suit.## Impact on the Energy System: From Grid Relief to Carbon Reduction

This large-scale industrial self-use photovoltaic system has multiple impacts on the energy system:

1. Relieving Grid Pressure: Steel plants are typically high-load users running 24 hours a day. Self-use PV can directly replace part of the grid electricity purchase, especially during sunny hours, significantly reducing the midday peak load on the grid. According to data from Turkey’s National Electricity Transmission Company (TEİAŞ), the combination of PV output peaks and air conditioning demand peaks in summer creates enormous pressure on grid dispatch. Tosyali’s self-use model can reduce reliance on the grid and help balance supply and demand.

2. Reducing Industrial Electricity Costs: Industrial electricity prices in Turkey range from approximately 0.08–0.12 USD/kWh and are affected by natural gas price fluctuations. The levelized cost of electricity (LCOE) for self-use PV has dropped to 0.03–0.04 USD/kWh, and even with energy storage, it remains economically viable. The project is expected to recover costs within 7–9 years and provide low-cost electricity for 25 years thereafter.

3. Synergistic Carbon Reduction Effects: Turkey plans to achieve net-zero emissions by 2053, with the steel industry required to reduce emissions by 20%–30% before 2030. Tosyali’s project can avoid approximately 200,000 tons of CO₂ emissions per year (estimated based on Turkey’s grid emission factor of 0.5 tons/MWh), thereby reducing CBAM costs for its products exported to the EU.

4. Promoting Local Industrial Chain Development: The photovoltaic modules, inverters, and mounting systems required for the project may be partially sourced locally. Turkey has a PV module production capacity of about 10 GW, but most is export-oriented. Large projects can stimulate local manufacturing demand and drive technological iteration.

Challenges Faced: Financing, Land, and Grid Bottlenecks

Despite bright prospects, similar large-scale self-use PV projects still face numerous challenges:

• Complex Financing Structures: Self-use PV projects lack fixed feed-in tariffs and rely entirely on savings from electricity costs. Banks require strict power purchase agreements (PPAs) or guarantees when issuing loans. Tosyali, as a company with a high credit rating, can obtain favorable loans, but small and medium-sized enterprises may find this difficult to replicate.

• Land and Grid Connection Constraints: A 261 MW PV plant requires approximately 400–500 acres of land. Steel plants are usually located in industrial zones and may face land resource shortages. In addition, large self-use projects still need to sign backup capacity contracts with the grid and pay certain fees, which reduces some economic benefits.

• Output Fluctuations and Energy Storage Needs: Steel production requires a stable power supply, while PV generation is intermittent. To meet nighttime and overcast day electricity demand, the project may need to be paired with battery storage. Whether Tosyali has plans for energy storage has not been disclosed, but this gap could affect the actual substitution rate of the project.- Policy Uncertainty: Turkey has repeatedly adjusted its renewable energy feed-in tariffs and net metering rules, encouraging self-consumption models but limiting surplus electricity grid injection. In 2025, the government proposed a "self-consumption tax" on self-use projects exceeding a certain scale. Although it has not been finally implemented, policy risks remain.

Future Outlook: Industrial Self-Consumption Solar + Storage Will Become the New Normal

Looking ahead 5-20 years, industrial self-consumption photovoltaic and even "solar-storage integration" models will become widespread in global high-energy-consuming industries.

• Technology-Driven: With photovoltaic module efficiency rising above 24% and lithium-ion battery prices falling below $100/kWh by 2025, 24-hour renewable energy supply has become possible. If Tosyali's projects are equipped with 4-hour storage, they can achieve a self-generation ratio of over 70%.

• Policy-Oriented: The EU CBAM will accelerate industrial decarbonization in non-EU countries. The Turkish government is also formulating a new national energy plan, targeting 45 GW of photovoltaic capacity by 2035, of which corporate self-consumption projects may contribute 10-15 GW.

• Competitive Landscape: Besides Tosyali, other Turkish steel companies such as Erdemir and Çolakoğlu have announced similar plans, while the cement, textile, and automotive industries are following suit. It is expected that by 2030, Turkey's industrial self-consumption photovoltaic installed capacity will exceed 5 GW.

• Global Significance: In developing countries, industrial electricity consumption accounts for a high proportion and the power grid is weak. The self-consumption photovoltaic + storage model can bypass grid upgrade investments and directly achieve low-cost decarbonization. Institutions like the World Bank and the International Finance Corporation (IFC) are increasing financing support for such projects.

Tosyali's 261 MW project is not only a strategic decision at the enterprise level but also a microcosm of the global energy transition shifting from utility-dominated to industrial and commercial user-dominated. As financing models mature and technology advances, industrial self-consumption photovoltaic is expected to become an important engine for renewable energy growth in the next decade.

Conclusion

The loan secured by Turkish steel manufacturer Tosyali marks a milestone in industrial users' deep participation in the energy transition. This project demonstrates how to reduce carbon emissions and energy costs through the self-consumption photovoltaic model, while providing a replicable solution for high-energy-consuming industries. Despite challenges in financing and grid integration, the long-term trend is clear: industrial decarbonization will increasingly rely on its own renewable energy investments.