International Energy Agency’s final report on Turkey’s energy politics indicates that with privatization and electricity market reforms, Turkey’s energy sector has attracted substantial interest from the investors. Dr. Fatih Birol, the IEA Executive Director, said that, to attract more investments, the liberalization of the energy markets needs to progress further. He also underlined that Turkey’s contribution is vital for regional and European energy security.
According to the report titled “Energy Policies of IEA Countries: Turkey 2016 Review” published by International Energy Agency on September 2016, Turkey’s energy sector has attracted substantial interest in the investor’s community thanks to privatisation and electricity market reforms and the country should continue down this path and reform its energy markets.
“Privatization in electricity distribution sector triggered private investment boom”
Report said, “During the last decade, electricity market reforms have advanced. The liberalization and privatization of electricity generation and distribution triggered a private investment boom (generating capacity doubled between 2007 and 2014) and secured energy access for its population.” Dr. Fatih Birol, the IEA Executive Director underlined that, to attract more investments, the liberalization of the energy markets needs to progress further.
The report highlighted 3 avenues for reform:
- The strengthening of the independence of system operators and regulatory authorities
- The abolishment of market distortions in favor of market pricing
- Continuance of investments in a more flexible and modern gas and electricity infrastructure
According to IEA, these pillars are critical for securing stable and reliable electrical power supplies, ensuring sustainable economic growth and ensuring much needed diversification.
Turkey is an important energy player in the region
The report underlined that Turkey has a unique geographical location and is an important energy player in its region and Turkey’s regional integration is advancing, thanks to the construction of the Transanatolian Natural Gas Pipeline and the connection to the European electricity grid (ENTSO-E) with the Turkish Transmission System Operator for Electricity (TEİAŞ) becoming an observer of ENTSO-E. Dr. Birol stated that, “Turkey’s contribution is vital for regional and European energy security,”
Investments in clean coal technologies are needed
Pointing at Turkey’s emission reduction goal and plans to double coal-fired electricity supply by 2019, the report said that further investment in clean coal technologies, the swift refurbishment of old plants to reduce greenhouse gas emissions and curb air pollution will be required.
Dr. Birol said that, “With more energy efficiency and renewable energy, cleaner coal and nuclear can be part of a secure and low carbon mix, but the legal frameworks must be put in place to ensure high standards of environmental performance and safety.”