With distributed energy sources, such as rooftop solar systems, behindthe-meter storage, and flexible loads offered by electric vehicles, the electricity system is evolving toward a decentralized structure in which consumers play a more active role and electricity is generated close to consumption points. This report assesses the contribution of distributed energy resources, particularly distributed generation, to Turkey’s energy transition. It presents potential challenges in grid and market integration with the increase in distributed generation—and offers solutions. The report also highlights key issues related to the development of distributed generation for policymakers, distribution companies, transmission system operators, generating consumers, and other energy sector players.