Energy Policy Review of Turkey 2021
Executive Summary
- Security of Energy Supply: Turkey has prioritized energy security, particularly through diversifying energy sources and reducing import dependency. This includes boosting domestic oil and gas production, diversifying supply sources, and increasing energy efficiency.
- Expanding Domestic Energy Production: Significant progress has been made in expanding gas supply options through new discoveries, pipelines, LNG terminals, and increased storage. Building on this, Turkey plans to commission its first nuclear power facility in 2023.
- Energy Market Liberalization: Turkey has made substantial progress in liberalizing energy markets, improving predictability and transparency in pricing. Further reforms are recommended to establish more competitive gas and electricity markets.
Key Recommendations
- Enhance Energy Security: Continue efforts to diversify energy sources and reduce import dependency.
- Promote Innovation: Encourage policies promoting innovation in areas such as electric vehicles, energy storage, and digital technologies.
- Improve Energy Efficiency: Strengthen energy efficiency policies, especially in buildings.
- Liberalize Energy Markets: Further liberalize energy markets to mobilize needed investments and ensure competitiveness.
Energy System Transformation
- Energy and Climate Change: Focus on reducing energy-related CO2 emissions and adapting to climate change. Turkey aims to meet its emissions reduction targets through various policies.
- Energy Efficiency: Enhance energy efficiency across all sectors, particularly in transport and buildings. Specific policies and measures should be implemented to achieve these goals.
- Renewable Energy: Expand renewable energy sources, particularly in electricity generation. Hydro, solar, and wind have shown impressive growth, but there is potential for further expansion.
Conclusion
Turkey has made significant strides in energy policy and market liberalization. However, continued focus on enhancing energy security, promoting innovation, improving energy efficiency, and further liberalizing energy markets is necessary to address future challenges and opportunities in a cost-efficient and sustainable manner. The International Energy Agency (IEA) remains committed to supporting Turkey in these efforts.