Turkey is not rich in petroleum and natural gas resources and is dependent on energy. Electricity generation in Turkey from its own domestic resources is, at present, about 40% and is expected to be at 20% by the year 2020. It has been planned that the maximum capacity for hydraulic and other national resources will be reached by the year 2020. This means that the total electricity generated by domestic resources is to be 245 TWh/yr, and the remaining electricity demand of about 302 TWh/yr for the year 2020 must be ensured by imported resources. In Turkey, hydropower projects are part of integrated water resources development. Most new powerplants will be developed as build, operate and transfer (BOT) or build, own and operate (BOO) projects with the private sector. It is expected that many foreign investors and financiers will also be interested in the Turkish hydropower market. For a sustainable development the next investments should be made for clean technologies such as hydropower. Depending upon the latest technological developments, other economic and political factors will also affect the quality of the environment. (c) 2005 Elsevier Ltd. All rights reserved.