Energy consumption per person in
Turkey is similar to the
world average,[1][2] and over 85 per cent is from
fossil fuels.[3] From 1990 to 2017 annual primary energy supply tripled, but then remained constant to 2019.[2] In 2019, Turkey's primary energy supply included around 30 per cent oil, 30 per cent coal, and 25 per cent gas.[4] These fossil fuels contribute to
Turkey's air pollution and
its above average greenhouse gas emissions.[5][6] Turkey mines its own
lignite (brown coal) but imports three-quarters of its energy, including half the
coal and almost all the oil and gas it requires, and its energy policy prioritises reducing imports.[7]
Energy policy is to secure national energy supply[17] and reduce fossil fuel imports,[18] which accounted for over 20% of the cost of Turkey's imports in 2019,[19] and 75 per cent of the current account deficit.[20] This also includes
using energy efficiently. However, as of 2019[update], little research has been done on the policies Turkey uses to reduce
energy poverty, which also include some subsidies for home heating and electricity use.[21] Turkey's
energy policies plan to give "due consideration to environmental concerns all along the energy chain", "within the context of sustainable development."[18] These plans have been criticised for being published over a year after work mentioned in it had started,[22][23] not sufficiently involving the private sector,[24] and for being inconsistent with
Turkey's climate policy.[25]
Turkey meets a quarter of its energy demand from national resources.[27] The Centre for Economics and Foreign Policy Studies (EDAM), a
think tank, says that in the 2010s, fossil fuel imports were probably the largest structural vulnerability of the country's economy:[28] they cost $41 billion in 2019 representing about a fifth of Turkey's total import bill,[29] and were a large part of the 2018 current account deficit[30] and the country's
debt problems. Although the country imports 99% of its natural gas and 93% of the petroleum it uses,[31] in the early 2020s fossil gas supply was diversified to reduce dependence on Russia.[32]
To secure energy supply, the government built new gas pipelines,[28] and regasification plants. For example, gas supplies from
Azerbaijan surpassed those from Russia in 2020.[32] There is a large surplus of electricity generation capacity,[33] however the government aims at meeting the forecast increase in demand for
electricity in Turkey by building its first
nuclear power plant and more
solar,
wind,
hydro and
coal-fired power plants.[34] The International Climate Initiative says that, as an oil importer, Turkey can increase security of supply by increasing the proportion of renewable electricity it produces.[27] The
International Energy Agency has suggested a
carbon market,[35] and EDAM says that in the long term, a
carbon tax would reduce import dependency by speeding development of national solar and wind energy.[36]
In 2020, renewables generated 40% of Turkey's electricity, which reduced gas import costs: but, being mainly
hydroelectricity, the amount that can be produced is vulnerable to drought.[41] According to Hülya Saygılı, an economist at
Turkey's central bank, although imports of solar and wind power components accounted for 12% of import costs in 2017, in EU countries this is largely due to one-time setup costs. She said that compared with Italy and Greece, Turkey has not invested enough in solar and wind power.[42]
Energy efficiency
The National Energy Efficiency plan aims to decrease Turkey's
energy intensity—the energy required to produce ₺1 (
Turkish lira) of GDP—to the OECD average by 2023.[43] Despite the Energy Efficiency Law and a target to reduce its energy intensity by at least 20% between 2011 and 2023; between 2005 and 2015, Turkey's energy intensity increased by seven per cent.[35] According to one study, if energy policy was changed—most importantly the removal of
fossil fuel subsidies—at least 20% of energy costs could be saved,[44] and according to the Chamber of Mechanical Engineers, the energy required for buildings could be cut by half.[19] In 2019, Energy Minister Fatih Dönmez said that improvement of the
energy efficiency of public buildings should take the lead and that efficiency improvements are an important source of jobs.[45] It has been suggested that more specific energy efficiency targets for buildings are needed.[46]
In the 21st century, Turkey's
fossil fuel subsidies are around 0.2% of GDP,[48][49]: 29 including at least US$14 billion (US$169 per person) between January 2020 and September 2021.[50] If unpaid damages (such as health damage from air pollution) are included road fuel subsidy is estimated at over 400 dollars per person per year and for all fossil fuels over one thousand dollars.[51] Data on finance for fossil fuels by state-owned banks and
export credit agencies is not public.[49]: 32 The energy minister Fatih Dönmez supports coal[52][53] and most
energy subsidies are for coal,[54] which the
OECD has strongly criticised.[55] Capacity mechanism payments to
coal-fired power stations in Turkey in 2019 totalled
₺720 million (US$130 million) compared to
₺542 million (US$96 million) to gas-fired
power stations in Turkey.[56] In 2022 these payments totalled over US$200 million.[57] As of 2020[update], the tax per unit energy on gasoline was higher than diesel,[58] despite diesel cars on average emitting more lung damaging
NOx (nitrogen oxide).[59]
In Turkey, tax levied on diesel is lower than that on petrol, and it has been suggested by the
Istanbul International Centre for Energy and Climate at
Sabancı University that taxes on diesel and petrol should be more-closely aligned with each other to minimise imports, because Turkey has enough petrol-refining capacity.[61]
In 2022 the Turkish Energy Minister said Turkey and
Algeria would create a joint oil-and-gas-exploration company.[62]
The wholesale gas market is not as competitive in Turkey as it is in the EU: some analysts say that this is because the government does not want to split up the state-owned gas company BOTAŞ, or give
other power companies fair use of BOTAŞ' pipelines.[63] They say Turkey has not joined
the European gas network (ENTSO-G) because joining would require this
unbundling.[63] BOTAŞ controls over 90% of the natural gas market,[64] and is the gas infrastructure regulator and the only operator of gas transmission.[65] Exploration for gas in the
Eastern Mediterranean is subsidised,[66][67] and is a cause of geopolitical tension because of the
Cyprus dispute.[68]
A
capacity market (or capacity mechanism) for electricity is payments to make sure that sufficient
firm power is available to satisfy peaks in demand, such as late afternoon air conditioning in August. Because
gas-fired power stations can usually ramp up and down quickly they are one way of ensuring supply at times of peak demand. Some other countries also have capacity markets but Turkey's has been criticised. The government says the purpose of capacity market payments is to secure national electricity supply.[69] However, despite almost all natural gas being imported, some gas-fired power plants received capacity payments in 2021, whereas some non-fossil
firm power, such as
demand response, could not.[69][70] 17 gas-fired power stations were eligible for capacity payments in 2023.[71]
Coal subsidies and taxes
Coal in Turkey is heavily subsidized.[72] As of 2019[update], the government aims to keep the share of coal in the energy portfolio at around the same level in the medium to long term.[73] Coal's place in the government's energy policy was detailed in 2019 by the
Foundation for Political, Economic and Social Research (SETA), an organisation that lobbies for the Turkish government.[74] Despite protests against coal power plants,[75] construction of
Emba Hunutlu was subsidized,[76] and in 2021
Turkey's sovereign wealth fund was still hoping for Chinese partners to start constructing
Afşin-Elibistan C.[77] Even in cities where natural gas is available, the government supports poor households with free coal.[20] Electricity from plants which are 40% efficient and burn imported coal never costs less than around 25 USD/MWh to generate: because if the coal costs under 70 USD/tonne it is taxed to bring it up to that price.[78]
Politics
Without subsidies, new and some existing coal power would be unprofitable, and it is claimed that
path dependence or past decisions, political influence, and distorted markets are why they continue.[79] Although the coal industry and the government are said to have a close relationship, the falling cost of wind and solar may increase pressure against maintaining coal subsidies.[80] Hydroelectric plants, especially new ones, are sometimes controversial in local, international and environmental politics.[81] The EU might persuade Turkey to cooperate on climate change by supporting policies that reduce the country's external energy dependency in a sustainable manner.[35]
The
World Bank has estimated the cost and benefits, but has suggested government do far more detailed planning.[85]
60,000 people are employed as of 2020[update] and it is estimated employment could be boosted to 80,000 if rooftop solar is boosted.[86]
According to the
International Renewable Energy Agency and academic study, increasing the share of renewable energy could make the country more energy independent and increase employment[87] especially in Turkey's solar PV and solar heating industries.[88]SHURA Energy Transition Center said in 2018 that a plan for solar power in Turkey beyond 2023 is needed.[89] In an attempt to reduce fossil fuel imports the government supports
local production of electric cars and
solar cells.[90] Some academics say that funding for renewables such as wind should be decentralized.[91]
For three decades from 1990,
carbon intensity remained almost constant around 61 tCO2/TJ (tons of carbon dioxide per terajoule).[2] Nuclear safety regulations and human resources could be improved[92] by cooperation with
Euratom ( European Atomic Energy Community).[35] In 2018, a new regulator was set up for nuclear power safety, and $0.15 per kWh of generated electricity will be set aside for waste management.[93]
Retrofitting equipment for pollution control, such as
flue-gas desulfurization at old lignite-fuelled plants like
Soma power station,[94] might not be financially possible, as they use outdated technology.[95] The government collects data on
sulfur dioxide (SO2), NOx and
particulate air pollution from each large plant,[96] but it is not published.
The energy policy aim of reducing imports (e.g. of gas) conflicts with the climate change policy aim of reducing the emission of greenhouse gases as some local resources (e.g. lignite) emit a lot of CO2. According to Ümit Şahin, who teaches climate change at
Sabancı University, Turkey must abandon fossil fuel completely and switch to
100% renewable energy by 2050.[97]
Turkey's energy trade deficit was over $US80 billion in 2022,[100] causing a large foreign trade deficit.[101] Europe supports energy efficiency and renewable energy via the €1 billion Mid-size Sustainable Energy Financing Facility (MidSEFF) to finance investments in these areas.[35][102]Energy subsidies amounted to 200 billion lira in 2021.[103] Up to 150kWh per month of free electricity is provided to two million poor families.[104]
Fatih Birol, the head of the
International Energy Agency said in 2019 that, because of its falling price, the focus should be on maximizing onshore wind power in Turkey.[105] The economics of coal power has been modelled by
Carbon Tracker.[106] They estimate that for new plants both wind and solar is already cheaper than coal power.[107] And they forecast that existing coal plants will be more expensive than new solar by 2023 and new wind by 2027.[107]
Most energy deals in 2019 were for renewables, and over half the investment in these was from outside the country.[108] The
external costs of fossil fuel consumption in 2018 has been estimated as 1.5% of GDP.[109] The government sets the price of residential gas and electricity,[110] and as of 2018[update], for residential consumers, "high cost is the most important problem of Turkey's energy system".[111]
In 2022 the energy import bill was 97 billion USD. Keeping consumer prices low is a political priority.[100]
Coal supplies over a quarter of Turkey's primary energy.[112] Every year, thousands of people die prematurely from coal-related causes, the most common of which is
local air pollution.
Most coal mined in Turkey is
lignite (brown coal), which is more polluting than other types of coal.[113]Turkey's energy policy encourages mining lignite for
coal-fired power stations to reduce
gas imports;[114] and coal supplies over 40% of domestic energy production.[115] Mining peaked in 2018, at over 100 million tonnes,[116] and declined considerably in 2019.[20] In contrast to local lignite production, Turkey imports almost all of the
bituminous coal it uses. The largest coalfield in Turkey is
Elbistan.[117]
Households buy the most gas, followed by industry and power stations.[135] Over 80% of the population has access to gas,[136] and it supplies half the country's heating requirements.[130] As the state owned oil and gas wholesaler
BOTAŞ has 80% of the gas market,[128]: 16 the government can and does subsidize residential and industrial gas consumers.[137] All industrial and commercial customers, and households using more than a certain amount of gas, can switch suppliers.[128]
Although there are plenty of renewable resources for energy in Turkey,[141] only hydropower has been developed to any degree, supplying an average of about 20% of Turkey's national electricity supply.[89] with other renewables supplying 12%.[142] However, due to
drought in Turkey, hydro has supplied less electricity than usual in recent years,[143] compared to around a third in a wet year.[144] Turkey has invested less in solar and wind power than similar Mediterranean countries.[143] Turkey is a net exporter of wind power equipment, but a net importer of solar power equipment.[145]
By greatly increasing its production of solar power in the south and wind power in the west, the country's entire energy demand could be met from renewable sources by 2050.[146]
Consumption
Consumption of energy in Turkey is around the
world average of about seventy
gigajoules (GJ) per person per year.[147][2] In total Turkey
uses about six billion GJ of
primary energy per year—[2][148] over 80% from
fossil fuels.[3] As of 2020[update], more than 25% of energy is used in buildings, of which over 80% is for heating.[149] Heating is the main use for
geothermal power in Turkey. Gas consumption is concentrated in the north-west due to the concentration of industry, and the population in Istanbul.[150] The government introduced a green electricity tariff in 2021.[151]
Turkey uses more
electricity per person than the global average, but less than the European average, with demand peaking in summer due to air conditioning. Most
electricity is generated from coal, gas and hydropower, with
hydroelectricity from the east
transmitted to big cities in the west.
Electricity prices are state-controlled, but wholesale prices are heavily influenced by the cost of imported gas.
Each year, about 300 terawatt-hours
(TWh) of electricity is used, which is almost a quarter of the total energy used in Turkey. On average, about four hundred grams of
carbon dioxide is emitted per kilowatt-hour of electricity generated (400 gCO2/kWh); this
carbon intensity is slightly less than the global average. As there is 100 GW of
generating capacity, far more electricity could be produced. Although only a tiny proportion is exported; consumption is forecast to increase, and there are plans for more exports during the 2020s.
Turkey's
coal-fired power stations are the largest source of the country's
greenhouse-gas emissions. Many
brown coal power stations are subsidized, which increases
air pollution. Imports of gas, mostly for
Turkey's power stations, are one of the main
expenses for the country. In winter, electricity generation is vulnerable to reductions in the gas supply from other countries.[152][153]Solar and
wind power are now the cheapest generators of electricity,[154] and more of both are being built. If enough solar and wind power is built, the country's
hydroelectric plants should be enough to cover
windless cloudy weeks. Renewables generate a third of the country's electricity, and academics have suggested that the target of 32% renewable energy by 2030 be increased to 50%, and that coal power should be phased out by the mid-2030s. Increased use of
electric vehicles is expected to increase electricity demand.
Four thousand years ago most of what is now
Turkey was forested.[155] Deforestation occurred during both prehistoric[156] and historic times, including the
Roman[157] and
Ottoman[158] periods. The forests were cut down by people, partly to burn wood for heating.[159]
During the late 20th and early 21st centuries the country was very exposed to oil and gas price volatility.[160] Around the turn of the century many gas fired power plants were built, and BOTAŞ extended the national gas pipeline network to most of the urban population.[161] As Turkey had almost no natural gas of its own this increased import dependency, particularly on Russian gas.[162] Therefore, many more
regasification plants and gas storage (such as the
gas storage at Lake Tuz) were built in the early 21st century, thus ensuring a much longer buffer should the main international import pipelines be cut for any reason. However
growth in Turkish electricity demand has often been overestimated. Although much energy infrastructure was privatised in the late 20th and early 21st centuries, energy is still highly state controlled.[160]
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