The energy industry in Turkey

Turkey is one of the fastest growing energy markets in the world, following its economic growth over the past decade.

The energy industry in Turkey

Turkey is one of the fastest growing energy markets in the world, following its economic growth over the past decade. It is built on the successful privatization programs implemented in that period – the distribution of electricity is now entirely in the hands of the private sector while the privatization of assets for the generation of electricity is to be completed within the next few years. This gives the Turkish energy sector increased competitiveness and new horizons for growth.

Economic expansion, rising per capita income, positive demographic trends and the rapid pace of urbanization were the main drivers of energy demand, which is estimated to grow at six percent per year until 2023. The current 70 GW of installed capacity of electricity should reach 120 GW by 2023, so as to meet the growing demand in the country. As part of its efforts to provide sustainable and reliable energy to consumers, Turkey offers investors favorable incentives such as feed-in tariffs, shopping guarantee priority access, licensing exemptions, etc., depending on the type and capacity of power equipment.

in the last decade, the Turkish government has made important reforms in the field of energy, towards private participation and thereby create a healthier competitive environment in the energy market. Privatization of generators to produce energy, together with the strategy of opening the way for more private investment is to increase private participation in the electricity sector, from 32 percent in 2002 to 75 percent in 2015. The next step is the creation of the Turkish government energy exchange. Once operational, will not only market liberalization but also ensure transparency and maintain a healthy balance between supply and demand.

In addition to the large domestic market, Turkey is in a strategic position between several major suppliers and consumers of energy, and thus serves as a regional energy hub. Existing and planned oil and gas pipelines, critical of the Turkish Straits and the promising findings of hydrocarbon reserves give Turkey a growing influence over energy prices and strengthen its position as an energy gateway gateways.

Opportunities for renewable forms of energy – water, wind, solar, geothermal and others – are Turkey rich, as policy support purchase prices are expected in the coming years will significantly increase its share in the national network. The Turkish government established a priority to increase the share of renewable energy in the total installed capacity of the country to 30 percent by 2023, in line with the concept of energy efficiency by adopting laws which provide guidelines for energy efficiency.

Just as important as renewable energy, are Turkey’s energy strategy for the coming years crucial technologies in related areas such as waste treatment and reduction of greenhouse gas emissions. Maintaining the level of environmental resorting to renewable resources is accompanied by a series of policies and regulations that are either currently in effect or will take effect in the near future – reducing carbon emissions, improving efficiency and promoting the use of technology waste management.

The sum of these factors has the profound impact on the energy sector in Turkey and turned it into one of the most attractive investment destinations in the world. In accordance with the regulations for investors pleasant and high demand growth, the Turkish energy sector becomes more vibrant and competitive. Attracting the attention of more foreign investors for each part of the production chain all energy subsectors.

The total investment needed to meet expected energy demand in Turkey in 2023 is estimated at around USD 110 billion, which is more than double the total amount invested in the last decade.

An ambitious vision of Turkey for 2023:

  • Increase total installed capacity of 120 GW.
  • Increasing the share of renewables to 30 percent.
  • Maximizing utilization of water energy.
  • The increase in installed capacity based on wind power to 20,000 MW.
  • The installation of power plants, which will provide 600 MW of geothermal and 5000 MW of solar energy .
  • Extending the length of transmission lines to 60,717 km.
  • Achieving a unit capacity of the energy distribution of 158,460 MVA.
  • Extending the use of intelligent networks.
  • Increasing natural gas storage capacity to 5 billion cubic meters.
  • The establishing of energy exchanges.
  • Putting into operation of nuclear power stations (two operating nuclear power plants, with a third under construction).
  • The increase in installed capacity of coal power from the current level of 14.5 GW to 30 GW.

Source: Deloitte

The energy industry in Turkey

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