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Abstract: The most important renewable sources are hydropower, biomass, geothermal, solar and wind. Turkey''s geographical location has several advantages for extensive use of most of these renewable energy sources. In recently, electricity has demand increased significantly; it is the fastest growing end-use of energy. Therefore, technical, economic and environmental benefits of hydroelectric power make it an important contributor to the future world energy mix. In the world, particularly in the developing countries renewable energy resources appear to be one of the most efficient and effective solutions for sustainable energy development in Turkey. Turkey''s geographical location has several advantages for extensive use of most of the renewable energy sources. This paper deals with policies to meet increasing energy and electricity demand for sustainable energy development in Turkey. Turkey has a total gross hydropower potential of 433GWh/year, but only 125GWh/year of the total hydroelectric potential of Turkey can be economically used. [Copyright &y& Elsevier]