TURKEY’S ENERGY PROFILE AND STRATEGY

Turkey has the highest rate of growing energy demand among OECD countries over the last 15 years.

Located in close proximity to around seventy percent of the world’s proven oil and gas reserves, Turkey is one the biggest natural gas and electricity markets in its region.

The main elements of our energy strategy can be summarized as follows:

1. Taking into account increasing energy demand and import dependency, prioritization among energy supply security related activities,

2. Within the context of sustainable development, giving due consideration to environmental concerns all along the energy chain,

3. Increasing efficiency and productivity, establishing transparent and competitive market conditions through reform and liberalization,

4. Expanding research and development activities on energy technologies.

In this scope, the following goals are aimed:

1. Route and source diversification of oil and natural gas imports,

2. Increasing the ratio of indigenous and renewable energy sources in our energy mix,

3. Increasing energy efficiency,

4. Adding nuclear to our energy mix.

Further information on Turkey’s energy production, consumption and installed capacity can be accessed through the following websites:

http://www.enerji.gov.tr/en-US/Mainpage - Info Bank

http://www.enerji.gov.tr/en-US/Pages/Electricity

http://www.enerji.gov.tr/en-US/Pages/Petrol

http://www.enerji.gov.tr/en-US/Pages/Natural-Gas

http://www.enerji.gov.tr/en-US/Pages/Coal

Enrichment of the National Energy Mix

Turkey continues its efforts to increase the share of renewable energy sources and to add the nuclear power to its energy mix in order to reduce its energy import dependency, to maximize the use of indigenous resources, and combating climate change.

Renewable Energy

As an indication of the importance given to renewable energy, Turkey became a founding member of International Renewable Energy Agency (IRENA) on 26 January 2009.

Further information on Turkey’s renewable energy potential can be accessed through the following websites:

http://www.enerji.gov.tr/en-US/Pages/Hydraulics

http://www.enerji.gov.tr/en-US/Pages/Wind

http://www.enerji.gov.tr/en-US/Pages/Solar

http://www.enerji.gov.tr/en-US/Pages/Geothermal

http://www.enerji.gov.tr/en-US/Pages/Bio-Fuels

Nuclear Energy

Turkey aims to add nuclear power into its energy mix in order to decrease negative environmental effects of energy production, to meet its energy demand increase as well as to reduce its energy import dependency. To this end, construction of two nuclear power plants (NPPs) in Akkuyu and Sinop are on the agenda.

Akkuyu and Sinop NPPs are Generation III+ plants to be designed and equipped with the most advanced safety systems. Their safety measures are in accordance with the International Atomic Energy Agency standards.

Further information on Turkey’s nuclear energy policy can be accessed through the following website:

http://www.enerji.gov.tr/en-US/Pages/Nuclear

Turkey’s Role in Global Energy Trade

Turkey has a high import dependency in energy. Therefore, Turkey aims to turn into a key energy trading center in its region by making use of its market size in energy and its geostrategic location.

With this aim, Turkey has undertaken and carried out several important natural gas and oil pipeline projects in the region.

In this scope, South Caucasus Pipeline (SCP), Baku-Tbilisi-Erzurum Natural Gas Pipeline (BTE), Turkey-Greece Interconnector (ITG) and the Trans-Anatolian Natural Gas Pipeline (TANAP) projects have already been realized. These projects can be considered within the Southern Gas Corridor (SGC) concept. SGC will enhance source and route diversification of natural gas imports. The Trans-Adriatic-Pipeline (TAP) project, another SGC project, has not been realized yet.

Inauguration of TANAP was held in Eskişehir on 12 June 2018 and gas flow to Turkey commenced as of 30 June 2018. As of 1 July 2019, TANAP was completed ahead of schedule with the aim of transporting natural gas produced in Shah Deniz 2 Gas Field in Azerbaijan along with other areas in the south of the Caspian Sea to Turkey and then to the rest of Europe.

TANAP Inauguration Ceremony for European Connection was held under auspices of President Recep Tayyip Erdoğan in Edirne on 30 November 2019. Therefore, a connection between TANAP and TAP Project has been established. With this very important step in the realization of the Southern Gas Corridor, a major contribution will be made to further strengthening the collaboration and supply security in our region.

The flow of natural gas to Europe through TANAP will commence when the TAP project is also completed.

TurkStream Natural Gas Pipeline is another project which enhances natural gas supply security of Turkey. Composed of two lines with the capacity of 15,75 bcm each and with a length of 930 km, the project establishes a new interconnection between Turkey and the Russian Federation under the Black Sea and thus allowing a direct natural gas supply to Turkey.

The first line of the project aims to supply natural gas to Turkey and the second line to European countries. The TurkStream project replaced the Russian gas supplied from the western (Trans Balkan) pipeline.

TurkStream Natural Gas Pipeline Inauguration Ceremony was held in İstanbul, on 8 January 2020 with the participation of President Recep Tayyip Erdoğan and the President of the Russian Federation, Vladimir Putin.

Oil and Natural Gas Pipeline Projects

A. Crude Oil Pipelines

i. Kirkuk-Yumurtalık Crude Oil Pipeline (Iraq-Turkey Crude Oil Pipeline)

ii. Baku-Tbilisi-Ceyhan Crude Oil Pipeline (BTC)

Further information on crude oil pipelines and projects can be accessed through the following website:

https://enerji.gov.tr/en-US/Pages/Oil-Pipelines

B. Natural Gas Pipelines

i. Baku-Tbilisi-Erzurum Natural Gas Pipeline (BTE)

ii. Turkey-Greece Interconnector (ITG)

iii. Blue Stream Natural Gas Pipeline

iv. Iran – Turkey Natural Gas Pipeline

v. Trans-Anatolian Natural Gas Pipeline Project (TANAP)

vi. TurkStream Natural Gas Pipeline

Further information on natural gas pipelines can be accessed through the following website:

https://enerji.gov.tr/en-US/Pages/Natural-Gas-Pipelines-and-Projects

Oil Transportation through the Turkish Straits

The Turkish Straits play a distinctive role in terms of energy supply security since around 3% of the global oil supply passes through the Turkish Straits.

Considering the busy traffic as well as the physical structure of the Straits; a maritime accident to be caused by oil tankers carrying hazardous material constitutes a huge risk. An accident in the Straits can cause not only a humanitarian and environmental disaster but also a disruption in the global oil supply. Alternative oil export options that by-pass the Straits should therefore be developed.

Turkey-EU Energy Relations

Energy is one of the most important agenda items in Turkey-EU relations. As an indication of the importance given to regional energy cooperation, Turkey, with its indispensable position on ensuring energy security of Europe, joined the Energy Community with an observer status in 2006.

Within the scope of Turkey’s accession negotiations with the EU, the screening process of the Energy Chapter was completed in 2007. Turkey wishes to open the Energy Chapters for negotiations as soon as possible.

Turkey-EU High-Level Energy Dialogue was launched and its first meeting was held on 16 March 2015 in Ankara. The second High Level Energy Dialogue Meeting was held on 28 January 2016 in Istanbul.

Long Term Agreement Between TEİAŞ And ENTSO-E

Turkish Electricity Transmission Company (TEİAŞ) and the relevant boards of European Network of Transmission System Operators for Electricity (ENTSO-E) signed a long-term agreement on 15 April 2015 providing for the permanent physical integration of the Turkish and European electricity markets. The integration of the Turkish electricity system and market with those of Europe has hence been taken to a higher level.