Energy and Natural Resources
Demand for energy and natural resources has been increasing due to the economic and population growth in Turkey. It is no doubt that Turkey is a net energy importer country, depending on such imports for 73 % of its energy requirements. The import dependence has been the main driving force behind the formulation and implementation of new policies and investment models to commission local and renewable energy resources.
Turkey has a substantial amount of renewable energy potential, and utilization of this potential has been on the rise over the last decade. As part of the ongoing efforts to promote localization, the Turkish government has made it a priority to increase the share of renewables to 30 %, with geothermal installed capacity to be 3 GW by 2023, as well as to have 16 GW of installed capacity in solar and wind each by 2027. In order to create a favourable investment environment to strengthen renewables’ position in the market beyond the 2020s, the government has designed various investment models such as unlicensed (small-scale), licensed (medium-scale), and YEKA (large-scale) models, which address different sorts of investors and are encouraged by lucrative incentive instruments.
Utilization of local coal reserves in line with the environmental standards for electricity generation has also been prioritized as an instrument to increase localization. The government has adopted a new tender mechanism based on transfer of coal reserves to the private sector with the obligation of building and operating coal-fired power plants in the vicinity. Turkey has a substantial amount of coal reserves, totalling 17.3 billion tons and composed of mostly lignite.
It is also worth mentioning that Turkey’s natural gas sector has been steadily improving. In order to increase security of supply and seasonal gas send-out capacity, Turkey has commissioned two Floating Storage Regasification Unit (FSRU) terminals in 2018 and opened up the first phase of the Tuz Golu (Salt Lake) Natural Gas Storage Facility. Another goal of these investments is to expand Turkey’s gas storage capacity to 11 bcm by 2023, up from its current capacity of 4 bcm.
As a crossroads between major energy consumers and suppliers, Turkey occupies a strategic location that serves as a regional energy hub. The existing and planned oil/gas pipelines, the critical Turkish straits, and promising finds of hydrocarbon reserves around Turkey allow for increased leverage over regional projects and reinforce the country’s gateway status.
Last but not least, Turkey has taken important steps in energy efficiency. Turkey aims to achieve savings of USD 30.2 billion in total by 2033. In this regard, approximately USD 11 billion of investments will be made by 2023, resulting in energy savings equivalent to 23.9 Mtoe. This saving is equal to decreasing the primary energy consumption of Turkey by 14 percent in 2023 compared to the base usage scenario. As part of Turkey’s efficiency efforts, Turkey will eliminate the need for USD 4.2 billion worth of power plant investments while also providing additional employment for 20,000 people by 2023.
Golden Maprix is ready to provide you the most beneficial consulting and detailed information in your investments on energy and natural resources of Turkey.