TURKEY’S ENERGY PROFILE AND STRATEGY

Turkey’s demand for energy and natural resources has been increasing due to economic and population growth. In recent years, Turkey has recorded the fastest growth in electricity demand among OECD members, with an annual growth rate of 5, 5% since 2002. Turkey’s energy use is expected to increase by 50% over the next decade. As of July 2019, Turkey has 90,4 GW installed capacity, which represents a threefold increase in 15 years.

Two main characteristics of the Turkish energy markets are growing energy demand and dependency on imports. Turkey, in line with its local and national energy strategy, is taking necessary steps to reduce this dependency.

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) Augmenting research and development on energy technologies.

Through application of these four basic principles, we aim for the following goals;

1) Diversification of supply routes and sources for imported oil and natural gas;

2) Increasing the ratio of local and renewable energy in our energy mix;

3) Increasing energy efficiency;

4) Adding nuclear to our energy mix.

Data on Turkey’s energy production, consumption and installed capacity can be accessed through the following web sites:

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 in and add the nuclear power to its energy mix for the purpose of reducing its energy import dependency, maximizing the use of domestic resources, and combating climate change.

Renewable Energy

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

Information related to Turkey’s renewable energy potential can be accessed through the following web sites:

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 decided to add nuclear power into its electricity generation mix with the aim of decreasing negative environmental effects of energy production; of meeting its ever increasing energy demand as well as reducing 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 (IAEA) standards.

Detailed information regarding Turkey’s nuclear energy policy can be accessed through the following web site:

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

TURKEY’S ROLE IN THE REGIONAL ENERGY TRADE

Turkey is geographically located between energy producing countries of its region with more than 75% of the world’s proven oil and gas reserves and the well-developed European energy consumer markets. This privileged natural position provides Turkey with both opportunities and responsibilities in terms of energy security. Turkey remains convinced of the need to strengthen this unique role given by its geostrategic location. In this regard, while developing its energy strategy, Turkey aims to strengthen its position between East-West and South-North Energy Corridors.

The “East-West” gas pipeline projects which are envisaged to bring gas from Caspian and the Middle East regions to Europe through Turkey are referred to as “Southern Gas Corridor” (SGC). South Caucasus Pipeline (SCP), Baku-Tbilisi-Erzurum Natural Gas Pipeline (BTE), Turkey-Greece Interconnector (ITG) are the existing pipelines.

Trans Anatolian Pipeline Project (TANAP) which constitutes the backbone of the Southern Gas Corridor was inaugurated on 12 June 2018 and was completed as of 1st of July 2019. (Transportation of the first commercial gas to our country began on June 30, 2018.) It is expected that Trans Adriatic Pipeline Project (TAP) will be completed in 2019 and thus, Azerbaijani gas will be delivered to Europe in 2020.

OIL AND NATURAL GAS PIPELINES / PROJECTS

A. CRUDE OIL PIPELINES

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

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

Detailed information about oil and natural gas pipelines and projects can be accessed through the following website:

http://www.enerji.gov.tr/en-US/Pages/Transit-Pipelines-and-Projects

B. NATURAL GAS PIPELINES AND PROJECTS

a. CURRENT PIPELINES

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

ii. Turkey-Greece Interconnector (ITG)

iii. Western Route (Russia-Turkey Natural Gas Pipeline)

iv. Blue Stream Natural Gas Pipeline

v. Iran – Turkey Natural Gas Pipeline

vi. Trans-Anatolian Natural Gas Pipeline (TANAP)

b. NATURAL GAS PIPELINE PROJECTS

i. TurkStream Project

Detailed information about natural gas pipelines and projects can be accessed through the following website:

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

OIL TRANSPORTATION THROUGH TURKISH STRAITS

Turkish Straits play a distinctive role in terms of energy supply security since 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 may 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 subjects of 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. (Energy Community, established in 2005, is an international organization aiming to establish an integrated and competitive energy market among EU members and non-EU South Eastern European countries as well as other neighboring countries.)

Within the scope of Turkey’s accession negotiations with the EU, the screening process of the Energy Chapter was completed in 2007. Work on the update of the Report on the screening of the Energy Chapter is currently ongoing by the EU side. Turkey expects that the Energy Chapter is opened 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. Turkey-EU High Level Energy Dialogue is expected to continue in the coming period.

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 EU electricity markets. The integration of the Turkish electricity system and market with those of Europe has hence been taken to a higher level. An observer membership agreement was signed by TEİAŞ and ENTSO-E on 14 January 2016 and TEİAŞ became an observer member of ENTSO-E.