Energy in Turkey
Economic growth, increasing income per capita, positive demographic tendencies and high urbanization rate constitutes prominent factors of energy demand in Turkey and this demand is estimated to increase by 6% annually till the year 2023. With investments made through private sector, in order to meet increasing demand in Turkey, already existing 70 GW of electricity capacity is estimated to be increased to 120 GW by the year 2023. As a part of efforts in order to supply sustainable and reliable energy to consumers, Turkey offers attractive incentives to the investors such as guarantee of price (depending on energy production facility’s type and capacity), guarantee of purchase, connection privileges, license exemption, etc.
In addition to having a wide domestic market, Turkey is in the position of a great regional energy hub as it is geographically located in between a number of great energy consumers and suppliers. Existing and planning oil/natural gas pipelines, critical Turkish straits, and newly discovered promising hydrocarbon reserves increase Turkey’s control over energy prices as well as strengthen its position as an energy hub.
Along with great production opportunities in hydro, wind, solar, geothermal and other energy types in Turkey; incentive policies supported by favorable price guarantees are estimated to increase the share of renewable energy in the national energy network.
For the following years, as important as renewable sources, technologies in waste processing and reducing greenhouse gases are frequently mentioned as being critically important to the Turkish energy policy as additional applications. While protecting the environment by using renewable sources, reducing the carbon emissions, increasing the production/transfer efficiency, and using waste management technologies are encouraged.
By the year 2023, the total investment amount necessary to meet Turkey’s energy demand is estimated to $110 billion, which is more than double the total amount realized in past ten years.