TURKEY’S INTERNATIONAL ENERGY STRATEGY

Turkey has the fastest growing energy demand among the Organisation for Economic Co-operation and Development (OECD) countries in the past 2 decades. In this period, Turkey ranks second to China in the increase in electricity and natural gas demand in the world.

Located in a region adjacent to approximately 60% of the world's proven oil and natural gas reserves, Turkey has become one of the biggest natural gas and electricity markets in its region.

On the other hand, Turkey has a 74% import dependency to meet its energy demand. The versatile structure of Turkey's energy strategy and its energy import dependency brings international relations into prominence in this field.

One of the main goals of Turkey's energy strategy is to diversify routes and resources to strengthen its energy supply security. Turkey also aims to contribute to regional and global energy security and to become a regional trade center in energy. The fundamental elements that constitute the international dimension of Turkey's energy strategy are:

1. To ensure the diversification of routes and resources in the supply of oil and natural gas, taking into account the increasing demand and import dependency,

2. To contribute to regional and global energy security,

3. To be a regional trade center in energy,

4. To consider social and environmental impacts in the context of sustainable development in every phase of the energy chain,

5. To increase the share of domestic and renewable energy in electricity production,

6. To include nuclear power in its energy mix.

Further information on Turkey's energy production, consumption and installed power potential can be found in the following link of the Ministry of Energy and Natural Resources (MENR):

https://enerji.gov.tr/homepage

Information regarding Turkey's oil, natural gas and electricity markets, including import and export figures, can be found in the following link of Energy Market Regulatory Authority (EMRA):

https://www.epdk.gov.tr/Home/En

Improvement of the National Energy Mix

Turkey continues its efforts towards increasing the share of renewable energy sources in the national energy mix and adding nuclear power to its energy mix, in line with the goals of reducing its energy import dependency, maximizing the use of indigenous resources and combating climate change.

Renewable Energy

Turkey attaches great importance to the development of renewable energy sources. In accordance with the National Energy Policy adopted in 2017, increasing the use of domestic and renewable energy resources is among the main priorities. Furthermore, Turkey has ranked 5th in Europe and 12th in the world in terms of installed capacity in renewable energy. The share of renewables in Turkey’s installed power reached to 52% at the beginning of 2021.

Further information on Turkey’s data regarding renewable energy potential can be found in the following websites:

https://enerji.gov.tr/renewable-energy

https://enerji.gov.tr/bilgi-merkezi-enerji-hidrolik-en

https://enerji.gov.tr/bilgi-merkezi-enerji-ruzgaren

https://enerji.gov.tr/bilgi-merkezi-enerji-gunes-en

https://enerji.gov.tr/bilgi-merkezi-enerji-jeotermal-en

https://enerji.gov.tr/bilgi-merkezi-enerji-biyokutle-en

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 Akkuyu nuclear power plant (NPP) is underway. The first reactor of Akkuyu NPP is aimed to be commissioned in 2023.

Akkuyu 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. Furthermore, NPPs to be constructed in Sinop and Thrace region are on the agenda.

Further information on Turkey’s nuclear energy policy can be found in the following website:

https://enerji.gov.tr/bilgi-merkezi-enerji-nukleer-enerji-en

Turkey’s Role in Global Energy Trade

Turkey aims to be a center in energy trade in its region. In accordance with this aim, Turkey has undertaken and carried out several important natural gas and oil pipeline projects in the region.

Baku-Tbilisi-Ceyhan Crude Oil Pipeline (BTC), South Caucasus Natural Gas Pipeline (SCP), Baku-Tbilisi-Erzurum Natural Gas Pipeline (BTE), Turkey-Greece Natural Gas Interconnector (ITG), Trans Anatolian Natural Gas Pipeline (TANAP), and TurkStream are among the projects within this scope.

Turkey's contribution to Europe's energy supply security has reached a new level in 2020: The Southern Gas Corridor, the 4th natural gas artery of Europe, has been realized upon the completion of Trans Adriatic Pipeline (TAP) at the end of 2020.

The backbone of the Southern Gas Corridor is the Trans Anatolian Natural Gas Pipeline (TANAP) passing through Turkey. TANAP aims to reach an annual capacity of 31 billion cubic meters (bcm) in 2026.

Another project that has recently contributed to the strengthening of the natural gas supply security of Turkey is the TurkStream Natural Gas Pipeline project. This project consists of two pipelines, each with a capacity of 15.75 bcm, laid under the Black Sea. The first line delivers natural gas to Turkey and the second to European countries.

The Turkish Straits have a particular importance in terms of global energy security, as approximately 3% of the global oil demand is transported through the Turkish Straits.

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/bilgi-merkezi-petrol-boru-hatlari-en

B. Natural Gas Pipelines

i. Iran – Turkey Natural Gas Pipeline

ii. Blue Stream Natural Gas Pipeline

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

iv. Turkey-Greece Natural Gas Interconnector (ITG)

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/bilgi-merkezi-dogal-gaz-boru-hatlari-ve-projeleri-en

Turkey-EU Energy Relations

Energy constitutes one of the most important issues 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.

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 early as possible.

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, to ensure the physical integration of the European electricity market and Turkey's electricity market, providing for the permanent connection of the Turkish electricity system to the European continents electricity system. Hence an advanced integration between the Turkish electricity system and electricity market and the European internal electricity market has been realized.

Energy Statistics

Main statistics and monthly sector reports regarding Turkey in the field of energy can be found in the following links of TURKSTAT and EMRA:

https://data.tuik.gov.tr/Kategori/GetKategori?p=cevre-ve-enerji-103&dil=1

https://www.epdk.gov.tr/Home/En

Major International Organizations in the Energy Field

International Energy Agency - IEA ( https://www.iea.org/ )

IEA was established under the OECD in 1974 to ensure oil supply security. Today, it operates in a much wider framework in the field of energy. Turkey is one of IEA’s founding members. Its headquarters is in Paris.

International Atomic Energy Agency – IAEA ( https://www.iaea.org/ )

The International Atomic Energy Agency (IAEA) was established in 1957 as an independent intergovernmental organization. The establishment purpose of IAEA is to disseminate potential peaceful uses of nuclear energy. Within this scope, IAEA conducts activities to prevent the use of atomic energy for other than peaceful purposes. Turkey was among the first countries to become a member of IAEA in 1957. The agency's headquarters is in Vienna.

International Renewable Energy Agency - IRENA ( https://www.irena.org )

Turkey is a founding member of the International Renewable Energy Agency (IRENA), with the agreement signed at the end of the conference held in Bonn on January 26, 2009. IRENA started its operations in 2011 as an international organization that aims to promote the widespread and increased use of renewables towards sustainable development. As of 2020, it has 162 members. Its headquarters is in Abu Dhabi.

Energy Charter Treaty ( https://www.energycharter.org/ )

The Energy Charter Treaty is an agreement that aims to ensure energy security and is based on the principles of establishing transparent, competitive markets and supporting sustainable development. Within this framework, it includes regulations on matters such as investments in the field of energy, energy trade, energy efficiency and conflict resolution. Turkey is a party to the treaty. Its secretariat is in Brussels.