IAI Working Papers 14 | 12 - November 2014 ISSN 2280-4341 | ISBN 978-88-98650-17-0 © 2014 IAI energy chapter inTurkey’s accession negotiations. such cooperation andintegration canbestmetbyopening the integration inthefield of energy. However, thefull potential of and theEUhave alot togain from close cooperation anddeeper energy challenges could beturnedinto opportunities. Turkey enhancing EUenergysecurity. It then examines how future relationship, focusing on Turkey’s increasingimportance in discusses thegrowing relevance of energyintheEU-Turkey and deepenintegration inthisfield. To that end,thispaper opportunity for theEUandTurkey tointensify cooperation challenges andcomplementary objectives offer anunparalleled diverse, secureandsustainable energysystem.Common supply anddemand,toestablishamore competitive, energy challenges. to Turkey andtheEU, insofar asbothfaceserious andmultiple an energy perspective. Energy is of mutual strategic interest The aimof thispaper istoanalyze EU-Turkey relations from Abstract by Sohbet Karbuz Challenges andOpportunities EU-Turkey EnergyCooperation: Turkey |European Union |Energy |EUenlargement Both Turkey andtheEU seek tobridge keywords IAI Working papers 14 | 12 - November 2014 ISSN 2280-4341 | ISBN 978-88-98650-17-0 © 2014 IAI 2 both economic andpolitical reasons. delivered anegative opinion on theopening of accession negotiations, citing full membership on 14April 1987.On20December1989theEuropean Commission * 3 2 1 policy areas,known as“chapters”, of theacquis communautaire, thetotal body The accession process involves a set of intergovernmental negotiations on 35 Turkey (“Ankara Agreement”) wassigned on 12September1963. on 31 July 1959. An agreement establishing an Association between the EEC and for anassociation agreement with the(then)European Economic Community (EEC) Turkey’s involvement with European integration dates backtoTurkey’s application negotiations 1. Abrief history of EU-Turkey relations andmembership by Sohbet Karbuz* Challenges andOpportunities EU-Turkey EnergyCooperation: EU-Turkey EnergyCooperation: Challenges andOpportunities . (OME), Paris. Views and opinions expressed in this article are those of the author. of the those are article this in expressed opinions and Views (OME), Paris. accession to the Community to the accession Turkish Ministry underlines that Turkey’s goal “to become an EU member is a strategic choice.” astrategic is member Turkey’s EU an that become “to goal underlines Turkish Ministry Relations Turkey-EU Affairs, of Foreign Turkishhttp://www.abgs.gov.tr/index.php?p=4&l=2; and Ministry information/turkey; Turkish for Ministry EU Turkey-EU Affairs, Relations http://ec.europa.eu/enlargement/countries/detailed-country- 2013, 6November updated Turkey Enlargement: Countries: website, Commission European the see Also abstract=2406851. Affairs European of Journal Romanian Turkey and Cooperation with the EU in the Neighbourhood”, October 2014. Neighbourhood”, October the in EU the Turkey with Cooperation and started inOctober2005. at theHelsinki summit inDecember1999.Theaccession negotiation process Union (EU).TheEuropean Council granted Turkey thestatus of candidate country December 1995.Two years later, Turkey wasdeclaredeligible tojoin theEuropean Paper produced within the framework of the IAI-Edison project “The Changing R Changing “The project IAI-Edison of the framework the within produced Paper Sohbet Karbuz is Director of the Hydrocarbons Division at Mediterranean Observatory for Energy for Energy Observatory at Mediterranean Division Hydrocarbons of the Director is Karbuz Sohbet
It entered into force on 1 December 1964. It into entered force on 1December For an overview see, Tamás Szigetvári, “EU-Turkey Szigetvári, Tamás R see, overview For an Commission opinion Commission on Turkey’s Communities, for request European of the Commission , http://www.mfa.gov.tr/relations-between-turkey-and-the-european-union.en.mfa. The (SEC(89)2290 final/2), 20 December 1989, http://aei.pitt.edu/4475.December 20 final/2), (SEC(89)2290 3 , Vol. 14, No. 1 (March 2014), p. 34-48, http://ssrn.com/ 2014), 34-48, , Vol. p. 14, No. 1(March 2 Turkey entered theCustoms Union on 31 elations: Changing Approaches”, in in Approaches”, Changing elations: , updated 29 May 2007, May 29 , updated 1 Turkey applied for egional R egional ole of , IAI Working papers 14 | 12 - November 2014 ISSN 2280-4341 | ISBN 978-88-98650-17-0 © 2014 IAI 3 4 and 6, http://www.abgs.gov.tr/files/foto/icing.pdf. 6, 4 and corruption and bribery targeting senior government officials. government senior targeting bribery and corruption into alleged investigations police 2013 December the and cities, other and Istanbul in protests a positive conclusion ispossible, indeedprobable, within areasonable period.” negotiations with aparticular country must bebasedon astrong conviction that In refusingTurkey’s candidacytheCommission argued that “any decision toopen Cyprus (called GreekCypriot Administration inTurkey) in2009. blocked: 8 by the EU Council in 2006, 4 by France in 2007 and 6 by the of which (science andresearch) wasprovisionally closed. Most chapters arestill 8 7 6 2013. February in chapter veto on its the lifted France after 2013, November in Instruments) 5 4 of EU law. EU-Turkey EnergyCooperation: Challenges andOpportunities 9 services and agricultural products are left aside. left are products agricultural and services union to customs of extension the if even agreement, Union Customs the of functioning effective the allow would finally which 3years, on in Turkish citizens visas Schengen of EU for lifting Community to the accession 2013, democracy inTurkey over thepastfew years, particularly following theevents in domestic polarization andmounting concerns over thedeterioration andstate of negotiations on the EU. Turkey also shares part of the responsibility. For instance, It would beunfairtoput all theblamefor thesnail paceof EU-Turkey accession on and vice versa. and acommunication strategy which solidifies theperception of theEUinTurkey based on threepillars: political reform, continuing socio-economic transformation, membership byaccelerating thedynamics of Turkey-EU relations. TheStrategy is European Union Strategy aimsat eliminating theobstacles on Turkey’s path toEU Turkey’s New European Union Strategy released inSeptember2014. as it isconsidered amodernization and democratization project, according to Turkey’s EUaccession is“astrategic goal which ispursued with determination” faced byTurkish citizens andon-going political problems such astheCyprusissue”, a century, thebelief that therearedouble standardsfor Turkey, thevisaobstacles Despite thefactthat Turkey’s EUadventure “has beengoing on for more thanhalf or associate membership. fledged membership versus something less thanthat, like aprivileged partnership have startedtoquestion what kindof membership Turkey should have: afully- the open-ended nature of the accession process. In addition, some on the EU side further andinto thefuture, sothat today several EUmemberstalk about Despite thisstatement, theprospect of Turkish membership hasbeenpushed
Turkey’s New European Union Strategy Union European New Turkey’s for Affairs, EU TurkishSee, Ministry Negotiations are opened on chapter 22 ( 22 on chapter opened are Negotiations In the same month Turkey and the EU signed a readmission agreement and launched a roadmap aroadmap launched and agreement Turkey month areadmission same signed EU the In the and opinion Commission on Turkey’s Communities, for request European of the Commission These included the escalation of domestic turbulence in May-June 2013 Taksim Gezi Park Park Gezi Taksim May-June in 2013 turbulence of domestic escalation the included These Two chapters (34 and 35) do not require negotiation. Two do 35) not require and (34 chapters 8 have hurt boththeaccession process andTurkey’s relations with theEU. 4 So far, accession negotiations have been opened on 14 chapters, , cit., par. 6. , cit., R egional Policy and Coordination of Structural of Structural Coordination and Policy egional , 18 September 2014, p. p. 2014, September , 18 7 Turkey’s New R epublic of 5 one 9 6
IAI Working papers 14 | 12 - November 2014 ISSN 2280-4341 | ISBN 978-88-98650-17-0 © 2014 IAI 4 protection of the Turkish of the protection minority. for the Cyprus aTurkish northern in invasion triggering Makarios President Cypriot the deposed July In 1974, coup d’état aGreek-based Cypriots). had Greek to 1974 the (since 1963 according the OECD statistics. to according 3.3 billion dollars, amounted to Turkey’sassistance development 2013, In official net relief. emergency and for refugees, support scholarships, cooperation, technical support, program and project bilaterally. encompasses of provided it is Turkey’s bilateral development assistance Journal Law International agriculture. of thepeople still living invillages, andwell over half of thelabourforce engagedin document wasdescribing Turkey aslargely apeasant country with more thanhalf since its application for membership decadesago. A1977European Parliament and disaffection towards theEUhasgrown and much haschangedinTurkey well ason developments inTurkish domestic politics. OnTurkey’s side,mistrust on theevolution of attitudes of the EU memberstates on Turkish membership as process. It isnotclear how long thisgamewill last.It seemsthat much will depend alive. Neither theEUnor Turkey iswilling tomake thefirstmove toabandon the Nevertheless, somehow bothsideshave managedtokeep theaccession process or take something close toamiracle for Turkey tobecome afull memberof theEU. all membersof theunion. Seenfrom thisperspective, it will benexttoimpossible words, it isimpossible for acandidate tobecome afull memberunless it recognizes with theEUrequires unanimity on thesideof all existingMember States. etc.) areoften publicly pronounced. Turkey ignores thefactthat any agreement to theEU, even though several otherreasons (e.g.,Turkey istoobig andtooMuslim 12 11 10 tensions betweenTurkey, GreeceandR became more vocal, sodidEuro-sceptics inTurkey. Therecent escalation of on bothsidesbut also acomedy of errors. In time,asTurkey-sceptics intheEU Turkey’s on andoff accession process hasbeennot only source a of frustration existential crisiswith EUcitizens’ growing distrustof theEU. for areferendum on leaving theEU. Moreover, crisis-stricken EUisfacingan decision inJune 2013toput its accession negotiations on hold.TheUKmay vote In contrast, theattractiveness of theEUhasfaded,asdemonstrated bytheIceland’s The Cyprusproblem EU-Turkey EnergyCooperation: Challenges andOpportunities 13 http://aei.pitt.edu/42182. Series and Policy Transport Regional Papers, and Documentation Research Assistance. during 2015)andanincreasingly important donor tobilateral Official Development economy intheworld. Turkey isalso amembertheG20(Turkey will chairtheG20 a population of 75million andaGDP of US$786billion, makingit the18th-largest and its profile hasgrown. Today Turkey isan upper-middle-income country with
Fordam Fordam in Enlargement”, of EU Future and Present, Past, “The Petrović, Siniša and Emmert Frank In recent years Turkey has developed into being a significant foreign aid provider. A large part part large A aid provider. foreign asignificant Turkey into being years developed recent In has European Parliament, “EC Accession of Four Mediterranean Countries and R and Countries of Four Mediterranean Accession “EC Parliament, European The Cyprus question has remained one of the most complicated international disputes since since disputes international complicated most one of the remained has question Cyprus The 13 12 Since thenTurkey hasstrengthenedits position ineconomic terms 10 , Vol. 37, No. 5(2014), 1349-1419, p. http://fordhamilj.org/?p=650. remainsaformidable stumblingblock inTurkey’s accession epublic of Cyprusover maritime borders , No. 7 (October 1977), 1977), , No. 7(October egional Policy”, in in Policy”, egional 11 In other IAI Working papers 14 | 12 - November 2014 ISSN 2280-4341 | ISBN 978-88-98650-17-0 © 2014 IAI 5 to meettheirdemand.R Turkey will beinthefuture increasingly dependent on imported energyresources energy mix,theirshareintheEU’s energymixwill stay above 70%.TheEUand fossil fuel based.While fossil fuels will continue toaccount for over 80%of Turkey’s 16 15 14 become deeply intertwined. Available forecasts indicate that theenergyfutures of theEUand Turkey will policies. and theEU, simply because theysharecommon energychallenges, objectives and Energy isone of thekey topics that are of mutual strategic interest tobothTurkey 2. Thegrowing role of energy inEU-Turkey relations co-operation would bringfor bothsides. keep remindingthemselves of thebenefits that deeperintegration andcloser full member.Turkey’s accession tothe EUwill only make progress, ifbothsides In sum,long is theway that leads up totheaccession of Turkey totheEUasa complex relations. and offshore oil andgasexploration continues toaddadditional frictions to already EU-Turkey EnergyCooperation: Challenges andOpportunities changer of common interests andbenefits. energy can become a common denominator for better relations and a game Turkey andtheEU, andtore-energizetheaccession process. If given achance, The field of energyseemsto beapotential catalyst toimprove relations between commitments andaction planswith clear targets. common responsibility, mutual confidence, respect and benefit, with sustained partnership betweentheEUandTurkey basedon theprinciples of transparency, willingness for awell-balanced cooperation, open andfrankdialogue, true Perspectives -TurkeyPerspectives http://dx.doi.org/10.2833/17897; 2014, Union, European Energy Mediterranean of the (d) OME, 2013 Scenario Reference to 2050. Trends and Emissions, GHG (c) P. Energy, EU Transport al., et Capros ec.europa.eu/portal/page/portal/energy/other_documents; doc/20140528_energy_security_study.pdf; (b) Eurostat Energy B Security Energy European reality.aspx. regions/europe/turkey-cyprus/cyprus/229-divided-cyprus-coming-to-terms-on-an-imperfect- R Imperfect an to with Terms Coming Cyprus: Group, “Divided Crisis International Publication/?x=7365; Reports Centre Cyprus PRIO in Scenarios”, Future and Positions Context, Issue: Hydrocarbons Cyprus “The Tzimitras, Mullen Harry Fiona and Centre Reports R Hydrocarbons: Offshore “Cyprus (eds.), http://www.cer.org.uk/publications/archive/essay/2007/turkeys-role-european-energy-security.
Katinka B Katinka Figures in this paragraph are obtain from: (a) European Commission, In-depth of Study Commission, (a) from: European obtain are paragraph this in Figures For a comprehensive overview, see, Hubert Faustmann, Ayla Gürel and Gregory M. R M. Gregory and Ayla Gürel Faustmann, Hubert see, overview, For acomprehensive eality”, in ICG in eality”, Europe Reports arysch, “Turkey’s R arysch, , No. 1/2012, http://www.prio.org/Publications/Publication/?x=7237; Ayla Gürel, Ayla Gürel, http://www.prio.org/Publications/Publication/?x=7237; No. 1/2012, , , Paris, OME, 2014. OME, , Paris, 14 (SWD(2014)330 final/3), 2 2014, July http://ec.europa.eu/energy/ final/3), (SWD(2014)330 eliance on netfossil fuel imports will increaseto78%in CER Essays CER in Security”, Energy European ole in 16 Theenergyfutures of theEUandTurkey will remain PRIO Cyprus Cyprus PRIO Wealth in Distribution”, and Politics egional , No. 229 (14 March 2014), http://www.crisisgroup.org/en/ (14, No. March 229 , No. 1/2013, http://www.prio.org/Publications/ No. 1/2013, , 15 What requiredistohave desireand , Luxembourg, Publication Office Office Publication , Luxembourg, alances, http://epp.eurostat. , December 2007, , December eichberg eichberg IAI Working papers 14 | 12 - November 2014 ISSN 2280-4341 | ISBN 978-88-98650-17-0 © 2014 IAI 6 getAllAnswers.do?reference=E-2013-001845&language=EN. E-001845/13 :E-002319/13, questions Written Turkey’s role andpotential. 18 17 generating capacity inEurope. importing country inEurope. Turkey will also have thethirdlargestelectricity Turkey will bethethirdbiggest energyconsuming andsecond largestnetenergy Turkey tobetterestablishthefunctioning of its domestic energy market. In 2030, Turkey may help theEUtoimprove its security of supply andthe EUmay help priority for theEU. energy security apolitical concern. Energysecurity hasalso become apolitical in demandall segments of energysector over thelastdecadehasalso made remains theTurkish government’s mainpolicy concern on energy. R Ensuring sufficient energy supply at affordable prices to its growing economy such security. shocks, andconsider diversification of sources asthe key instrument toensure in order toreduce energyimport dependency, become less vulnerable to energy not global, energyissues. Thisiswhy bothvalue highly enhancingenergysecurity argue that Turkey andtheEUareboundtobeirreplaceable partnerson regional, if and policies which overlap inmany aspectsandarecomplementary, one could even By looking at thesecommon challenges andconsidering theirenergyobjectives from 1.3billion euros in2013. in 2013).Turkey’s weekly netenergyimport bill will increaseto2.6billion euros the EU will spend 1.3 billion euros per day in 2030 (compared with 1.1 billion euros largest oil andgas supplier of boththeEUandTurkey. For netfossil fuel imports 2030 intheEUwhile inTurkey it will be82%.R EU-Turkey EnergyCooperation: Challenges andOpportunities 19 bild.html. bild.de/politik/ausland/guenther-oettinger/eu-kommissar-kritisiert-eu-kurs-zur-tuerkei-29190992. to us.’” in Paris will have tocrawl toAnkara on theirkneestobegtheTurks, ‘Friends, come said “one day inthenextdecadeaGermanchancellor andhisor hercounterpart last year theslow andlong drawn-out process of Turkish accession totheEU. He At ameetinginB energy security for bothTurkey andtheEU. energy technologies isanimportant policy toolinorder toachieve andimprove strategy agenda.Diversification interms of supply sources and routes aswell as security, more precisely, ensuringsecurity of supply isat thetop of theEC’s new security challenges, andpresented it totheEuropean Council inJune 2014.Energy and aplantoreduce energyimport dependencyinorder tocope with newenergy past 5 years have played an important role in that. role in important an played have 5years past
The natural gas-related concerns resulting from the tensions between R between tensions the from resulting gas-related concerns natural The European Parliament, of the Commission, on behalf byMr Joint Oettinger given answer “EU-Kommissar Oettinger kritisiert EU-Kurs Türkei”, Bild in zur kritisiert Oettinger “EU-Kommissar 18 He expressedhispersonal view basedon awidely sharedassessment of russels, EUEnergyCommissioner Günther Oettingercriticized 17 On28May 2014theECpreparedanEnergySecurity Strategy 19 , 6 May 2013, http://www.europarl.europa.eu/sides/ 2013, May 6 , ussia will mostlikely remainthe , 20 February 2013, http://www. 2013, February , 20 ussia and Ukraine in the the in Ukraine and ussia apid growth IAI Working papers 14 | 12 - November 2014 ISSN 2280-4341 | ISBN 978-88-98650-17-0 © 2014 IAI 7 enhanced_cooperation.pdf. ec.europa.eu/energy/international/bilateral_cooperation/doc/turkey/20120622_outline_of_ EU-TurkeyEnhanced Cooperation Energy http://europa.eu/rapid/press-release_MEMO-12-434_en.htm. also, Turkey-EU See agenda, Positive mobility and migration, trade, counter-terrorism and participation in EU programs. EU in counter-terrorism participation trade, and migration, and mobility (4) Promotion of renewable energy, energy efficiency and clean energy technologies; (5) Nuclear (5) Nuclear technologies; energy clean and efficiency energy, energy (4) of renewable Promotion cooperation; energy regional and (3) Global interest; of common development of infrastructures 21 20 operation in a number of areas of joint interest (including energy) Agenda” inMay 2012tocomplement andenhancethenegotiations byfostering co- The slow paceof theaccession process led theEUtolaunch theso-called “Positive needed toensurebettersynergies for such cooperation. there isgreat scope for cooperation on energyissues. However, furtherefforts are common interest incloser integration of theirenergymarkets andenergypolicies, interests andtohelp addressvarious geostrategic challenges. Since bothhave a engage inaneffort to align theirenergymarkets andpolicies intheareas of mutual - will benefit bothTurkey andtheEU. It is also animperative for bothparties to linking demandandsupply centres of EastandWest aswell asNorth andSouth In thissense,Turkey’s furtherdevelopment asaninternational energycentre - Source: ECandOME. Table 1|R EU-Turkey EnergyCooperation: Challenges andOpportunities 22 five topics of mutual interest Commissioners OettingerandFüle andTurkish MinistersBağışandYildiz listed enhanced energy relations in the framework of the positive agenda for Turkey, EU steps andtoadvance economic integration. In theirJune 2012joint statement Primary EnergyConsumption Primary EnergyProduction Net EnergyImports Gross Electricity Generation
Enhanced EU-Turkey Enhanced Cooperation Commission, Energy European (1) Long term perspectives on energy scenarios and energy mix; (2) Market integration and and integration (2) Market mix; energy and scenarios on energy perspectives term Long (1) The others are political reforms, alignment with the acquis the with alignment reforms, political are others The Natural Gas Oil Coal R Natural Gas Oil Coal enewables ank of Turkey inEUenergyscene 22 todeepenEU-Turkey energyrelations. It ishoped R , Outcome of the above mentioned meeting, http:// meeting, mentioned above of, Outcome the ank in2012 10 4 4 6 6 6 6 3 3 5 7 , dialogue on foreign policy, visas, policy, on visas, foreign , dialogue R ank in2030 , Stuttgart, 14 June 2012, 14 June 2012, , Stuttgart, 2 2 2 2 2 3 3 3 5 5 1 20 with practical 21 on on IAI Working papers 14 | 12 - November 2014 ISSN 2280-4341 | ISBN 978-88-98650-17-0 © 2014 IAI 8 http://eur-lex.europa.eu/legal-content/en/TXT/?uri=celex:52013SC0417. removed, according to the EC. to the according removed, be should progress further impede that framework regulatory and the legal in deficiencies and increased to be needs framework legal of the of implementation pace EU, the the with is something that hasnotyet beenachieved even inmostEuropean countries. the electricity distribution sector can beconsidered asareal revolution, because it place. Electricity distribution isprivatized. TheTurkish experience inliberalizing unbundling of theTurkish electricity transmission company (TEIAS)isalready in Joint Stock Company (EPIAS,or Turkish EnergyExchange). Theownership the market will soon becarried out byrecently created EnergyMarkets Operation in electricity generation iscurrently about 80%.Organizedwholesale operations in largely compliant with theEU’s thirdenergypackage.Theshareof private sector The electricity market inTurkey isquite advanced andtheelectricity market law is policy andacquis. areas is still needed due to some important recent developments in EU energy 25 24 23 protection. radiation and safety Nevertheless, thereisstill room for improvement electricity andgasmarkets, renewable energyandefficiency with the EU. market isthat Turkey has,toalargeextent, harmonized its legal framework on In fact,animportant factor contributing totheattractiveness of theTurkish energy a liberal andcompetitive market structure with aninvestor-friendly environment. has beentakingimportant stepsbyenactingnumerous Laws inorder toestablish for thestill ongoing energysector restructuring inthe country. Since 2001Turkey The aspiration of Turkey to become a member of the EU has been one of the factors of energy.” conclusion reads:“Overall, Turkey isat anadvanced level of alignment inthefield 2014, the EC dropped the word “rather” from its conclusion of last year. The new of joint interest.” shares with theEU, it isimportant that theenhanceddialogue develops on all issues development potential asanenergyhub andthecommon energychallenges it The ECacknowledged inits 2013Enlargement Strategy that “given Turkey’s further supply inEurope andTurkey. which will create important businessopportunities andimprove security of energy that theseissues will facilitate theeventual EU-Turkey energymarkets integration EU-Turkey EnergyCooperation: Challenges andOpportunities 26 http://eur-lex.europa.eu/legal-content/en/TXT/?uri=celex:52014SC0307. October 2013, p. 44, http://eur-lex.europa.eu/legal-content/en/TXT/?uri=celex:52013DC0700. p. 44, 2013, October in thefield of energy.” the ECemphasized that “Overall, Turkey isat arather advanced level of alignment
(SWD(2014)307), 8 October 2014, par. 4.15, par. 4.15, 2014, 8 October (SWD(2014)307), Turkey Report 2014 Progress Commission, European (COM(2013)700), 6 6 2013-2014 (COM(2013)700), and Main Challenges Enlargement Strategy Commission, European Even though there has been considerable progress on the harmonization of current legislation legislation of current harmonization on the progress considerable been has there though Even (SWD(2013)417), 16 October 2013, par. 4.15, par. 4.15, 2013, 16 October (SWD(2013)417), Report Turkey Progress 2013 Commission, European 25 23 In its 2013Progress R 24 In its latest progress report on Turkey, dated 8October eport conclusions on Chapter 15(Energy) 26 andfurtheralignment insome IAI Working papers 14 | 12 - November 2014 ISSN 2280-4341 | ISBN 978-88-98650-17-0 © 2014 IAI 9 term imports of LNG. imports term long- and spot to liberalize 2008 in amended was Law This country. the in market gas competitive a help establish hence, and activities &import sales and storage, transmission, corporation’s acquis EU the with legislation successful inits deregulation efforts on thedistribution side.BOTAŞ wasgiven the position due to implementation of theexisting legislations. Turkey has beenmore directives, Although the rules and regulations on natural gas are in compliance with the EU Source: OME. and Electric Transmission System Supply R in Turkey areinaccordance with theTransmission System GridCodeR Moreover, thetransmission systemdesign characteristics andoperation principles EU-Turkey EnergyCooperation: Challenges andOpportunities 27 Figure 1|Turkish electricity transmission systemisinterconnected with neighbours Europe, andthus improve tradingopportunities. will be further developed in the future to increase the cross-border capacity with the synchronous interconnections with theEuropean platform of ENTSO-E, which lines toBulgaria andone toGreece.TheTurkish electricity systemcanbenefit from It isexpectedtobefully functional bytheendof 2014.Today, Turkey hastwo tie- with the ENTSO-E’s Continental European Synchronous Area is in the final stage. since September2013.Theparallel trial interconnection of theTurkish power grid The Turkish system has been synchronously connected totheENTSO-E system (European Network of Transmission System Operators for Electricity) bestpractices. Both of theregulations andsystemoperation principles areinlinewith ENTSO-E
The purposes of the 2001 Turkish Natural Gas Market Law was (a) to harmonize Turkey’s (a) to harmonize was Law Market Turkish Gas 2001 of Natural the purposes The 27 therearesome delays inreducing BOTAŞ’s market shareanddominant , (b) to abolish the natural monopoly of B natural the to abolish , (b) eliability andQuality R OTAŞ by unbundling the the unbundling OTAŞ by egulation. egulation 10 IAI Working papers 14 | 12 - November 2014 ISSN 2280-4341 | ISBN 978-88-98650-17-0 © 2014 IAI transporting Caspian gastoEurope. to betransported furthertoGreece,therebybreakingR inauguration of the Greece-Turkey natural gas pipeline in2007,Azerigasstarted the South Caucasus pipeline, carryingAzerigasto ErzuruminTurkey. With the one of themostimportant outlets for Iraqi oil shipments. Alongside theBTCruns through theTurkish Straits. Furthermore, theport of Ceyhan hasalready become Ceyhan (BTC)crudeoil pipeline, which also helped easetheincreasingoil traffic of international significance hadbeenpartly fulfilled thankstotheBaku-Tbilisi- Turkey relations. discussions as slogans for Turkey’s strategic role and on the prospects for EU- Energy corridor or energyhub concepts have beenput forward inpolitical security 3. Turkey’s increasingimportance inenhancingEU’s energy requirements or bymarket demandfor cleaner andgreenerproducts. largely driven byexistingpolicy signals from national legislation, EUAccession pollution-reducing measuresinto production andconsumption activities, the EnergyEfficiency Law. Turkey has already integrated many efficiency and effective implementation of the Energy Efficiency Strategy Paper and on improving harmonized with the2012EnergyEfficiency Directive yet, works continue onthe EU Directives. Although the Energy Efficiency Law and related legislation are not in theareasof energyefficiency and nuclear energyto align them with relevant It istrue that furtherefforts areneeded on costbasedpricing mechanismand cross subsidies. Thisiswhy thereisanewgasmarket law underway. including provisions for thirdpartyaccessandcapacity allocation, andremoving of BOTAŞ andpresent abetterpricing mechanisminagasbalancing systemby a newlegal andregulatory framework, which would betterdefinethechanging role the thirdfor foreign tradeandwholesale activities. TheTurkish gasmarket needed will befor transmission systemoperatorship, thesecond for LNG andstorage, and happen isnotyet known but it isplannedtodivide BOTAŞ into threeentities: one BOTAŞ isyet tocomplete thelegal unbundling of its activities. Whenthiswill amounts of gascontracts toprivate companies. with thisLaw, studies arebeingcarried out byTurkish officials totransfer further compared with thetargetsgiven intheNatural GasMarket Law. In compliance so fartheimplementation of thecontract release program hasbeenslow when option of reducing its sharethrough contract transfer toprivate enterprises, but EU-Turkey EnergyCooperation: Challenges andOpportunities 28 markets. major oil and gas producing areas in R in areas producing gas oil and major linking bridge energy anatural constitutes thus and reserves world’s gas of oil the and quarters
Most frequently used slogan points out that Turkey is geographically close to Turkey three- some outclose that points geographically slogan is used frequently Most 28 In anutshell, Turkey’s ambition tobecome anenergybridge ussia, the Caspian region and the Middle East to European to European East Middle the and region Caspian the ussia, ussia’s monopoly on 11 IAI Working papers 14 | 12 - November 2014 ISSN 2280-4341 | ISBN 978-88-98650-17-0 © 2014 IAI 29 Turkey torealize its ambition toestablishitself asaninterregional energy hub. Europe may strengthentheEU’s handinnegotiations with Gazprom, andallow energy landscape. Oncerealized, thesepotential newsuppliers androutes to Mediterranean may strengthenTurkey’s role asamajor corridor intheEurasian In addition, theotherplannedgaspipelines from Iraq, Iran andperhaps eastern Trans-Caspian GasPipeline, TAP, andInterconnector Turkey-Greece-Italy. interest. These include TANAP, the Expansion of the South- Caucasus Pipeline, the bring CaspiangastotheEUviaTurkey areidentified astheprojects of common carrying thelabelprojects of common interest. Several gaspipeline projects to On 14October2013,theECadopted alistof 248key energyinfrastructure projects share of R a corridor will help diversify bothTurkey andEU’s supplier portfolio, reduce the Although Turkey islikely tobethemainbeneficiary of Southern GasCorridor, such Corridor which will become areality mostprobably towards theendof thisdecade. supply diversification strategy mergethrough theconstruction of aSouthern Gas to largescale reserves inCaspianandtheMiddle East.TheEUandTurkey’s energy priorities of theEU. Thisconcept aimsat connecting theEUmarkets vianewroutes security through theSouthern GasCorridor concept hasbeenone of thetop energy Middle EastandtheCaspianregion into theEUmarkets. Promoting EUgassupply Turkey hasbeenconsidered akey transit corridor for transporting gasfrom the efforts. onwards, theEUneedstofindnewsupply sources andintensify its diversification Algerian gasexports toEurope will mostly likely startdecliningfrom themid-2020s Europe, areconcerned about theirdependencyon R Norway andAlgeria. Many EUmembers,particularly thoseincentral andeastern The EUisdependent on threeprincipal external suppliers of natural gas:R EU-Turkey EnergyCooperation: Challenges andOpportunities 30 The remaining 10 bcm/yr will be transmitted to European markets through TAP beginning in 2019. in TAP beginning through markets to European transmitted be will 10 bcm/yr remaining The 2018. in beginning gas this of bcm/yr field. II 6 willreceive Turkey Deniz Shah Azerbaijan’s from of gas 16 bcm/yr initially carrying to start It scheduled is 2026. by of 31 bcm/yr capacity design maximum the to reach planned is TANAP market. European for the (bcm/yr) year per meters cubic have restricted competition. restricted have clauses destination because partly developed not well is (or prices) competition spot Gas-to-gas oil. in general, andof south-eastern Europe inparticular. gas to markets in Europe, and hence will help boosttheenergy security of Europe link it with TANAP andTAP. Thiswill open thedoor for delivering Caspiannatural given thegreen-light for theplanstoexpandSouth Caucasus pipeline andto the second stageof theShahDenizgasfield development inDecember2013has mutual economic, tradeandpolitical benefits. Thefinal investment decision for bridge betweenTurkey, Europe, Middle EastandCaspianthat promises tobring of thiscorridor goes beyond energy, asit canalso constitute animportant additional b
The currently envisaged TANAP design capacity could potentially transport up billion to 25 transport could potentially capacity design TANAP envisaged currently The oth EU and Turkish gas markets are dominated by long-term contracts with prices indexed to indexed prices long-term with by dominated contracts are Turkish and markets EU oth gas ussian gas supplies, and introduce price competition. 30 ussia. Since Norwegian and 29 Thesignificance ussia, 12 IAI Working papers 14 | 12 - November 2014 ISSN 2280-4341 | ISBN 978-88-98650-17-0 © 2014 IAI The world oil market is desperately searching for a new light crude oil benchmark. non- The changinggeopolitical situation might work toTurkey’s advantage asmore question intheshort tomid-term,thelong runwill dependon numerous factors. Although the reality could put Turkey’s energy corridor and hub wishes into and sufficient storage capacity) and allow for the uptake oflarge volumes ofgas. place thenecessaryphysical infrastructure (an extensive transport infrastructure competitive market. Besidesthesecommercial features, such ahub must have in trade inanopen, transparent, stable, fully liberalized andwell-regulated Turkey isnotyet ready to become areal gashub where suppliers andconsumers strategic importance, Turkey should notoverestimate it. and financial transactions. However, while theEUmay underestimate Turkey’s geopolitical standing,create lucrative business through transit fees, re-exports it to become amajor energy hub in the long run. Thiswould increase Turkey’s oil andgasfrom theCaspianregion andtheMiddle EasttoEurope -allowing energy hungry EUmarket could enable Turkey toact as atransit country for the strategic location betweenresource-rich suppliers inits neighbourhood andthe Turkey aimsat becoming notonly atransit state, but also an energy hub. Turkey’s Source: OME. Figure 2|Theplaceof Turkey inEuropean gassupply security EU-Turkey EnergyCooperation: Challenges andOpportunities R ussian oil andgasmay betransported across Turkey tointernational markets. 13 IAI Working papers 14 | 12 - November 2014 ISSN 2280-4341 | ISBN 978-88-98650-17-0 © 2014 IAI id/07553.pdf. Analysis Policy International FES in Corridor”, for negotiations with theEUon Turkey’s membership totheEnergyCommunity. Turkey believes that theopening of theenergychapter will surely pave theway and undertaken major stepstoalign its energymarket rules with EUstandards. rather late. Turkey hasalready become anattractive placefor energyinvestors an attractive investment climate for foreign investors much earlier. Today, it is a decadeago, because adopting theEUacquis would have helped with creating Perhaps Turkey could have benefited from EnergyCommunity membership prefers toadopt themaspartof its accession negotiations. does notlike theideaof unilaterally aligning theEUenergyacquis andhence TXT/?uri=celex:52011DC0105. Treaty) Community relevant EUrules on energy, environment andcompetition. Energy Community, theContracting Parties commit themselves toimplement the Community would entail Turkey’s adoption of theEUenergyacquis. Byjoining the energy-strategy.en.mfa. Treaty) 34 33 32 31 acquis through joining theEuropean EnergyCommunity. territory. TheEUisnow tryingtopersuadeTurkey toalign itself with theenergy had questioned why it should accepttheapplicability of EUlaws on Turkish When the EU wanted Turkey to be a member of the Energy Charter Treaty, Ankara 4. EnergyCommunity Treaty andenergychapter political integration with theEU. increase theEU’s gassupply security, andaccelerate Turkey’s economic and It has been argued that establishing the southern corridor could significantly EU-Turkey EnergyCooperation: Challenges andOpportunities 35 the EU energy policy into non- EU countries.” Turkey is an observer of the Energy Community. Energy of the Turkey into non- countries.” EU policy observer an is energy EU the of import the rather is Treaty Community Energy the behind leitmotiv “the website its in indicated As neighbourhood. Eastern South and Eastern its in countries third towards market energy internal on theenergychapter inTurkey’s accession process have notbeenstarted. in developing thesouthern corridor. And yet, due topolitical reasons negotiations energy chapter would accelerate Turkey’s adoption of EUenergylaw andthus help the EnergyCommunity Treaty, discussions on theEnergy Chapter inreturnfor implementing theacquis under Although candidate countries may have smootherprogress intheiraccession commitment toEnergyCommunity. In away, opening theenergychapter could beusedasleverage for apolitical
Kristin Linke and Marcel Viëtor“ (eds.), Marcel and Linke Kristin Report under Article 7 of Decision 2006/500/EC (Energy (Energy 2006/500/EC 7of Decision under Article Report Commission, European Report under Article 7 of Decision 2006/500/EC (Energy Community (Energy 2006/500/EC 7of Decision under Article Report Commission, European The Energy Community Treaty, in force since June 2006, is an initiative of the EU to extend its its to extend EU of the initiative an is June 2006, force since in Treaty, Community Energy The Turkish Ministry of Foreign Affairs, Turkey’s Strategy Energy Affairs, of Foreign Turkish Ministry , cit. , (COM(2011)105), 10 March 2011, http://eur-lex.europa.eu/legal-content/en/ 2011, March 10 (COM(2011)105), 31 35 In thissense,it wasalso thought that opening the notopening of theenergychapter naturally B eyond Turkey. The EU’s Energy Policy and the Southern Southern the Turkey.eyond and Policy Energy EU’s The , November 2010, http://library.fes.de/pdf-files/ 2010, , November , http://www.mfa.gov.tr/turkeys- , 32 Beingamembertothe 33 Thisiswhy Ankara 34
14 IAI Working papers 14 | 12 - November 2014 ISSN 2280-4341 | ISBN 978-88-98650-17-0 © 2014 IAI separates markets and undermines security of supply instead of being an interconnection that can can that interconnection an of being of supply instead security undermines and markets separates therefore and legislation EU Turkey from with gas line in not operated is transports that pipeline distribution companies) to the ministry. to the companies) distribution of electricity supervision and (monitoring authority regulatory of the of activities some transfer http://www.egmontinstitute.be/?p=13861. Papers Egmont or Peril?”, in Promise Mediterranean: Eastern the in “Energy (eds.), Koranyi David and Andoura Sami http://www.iai.it/content.asp?langid=2&contentid=1078; Working Papers IAI in Corridor”, Energy Mediterranean South-Eastern asp?langid=2&contentid=1091. R in Turkey-EU Issues and Citizenship Society Civil Energy, Relations in Migration, II. Europe Turkey Global (eds.), Aydın-Düzgit al. et Senem in Gas”, on Natural Focus Negotiations: Accession 40 39 38 37 36 prolongation of existingloopholes the adaptation of EUenergylaws andtheirimplementation; pave theway for likely Chapter could hamper thecontinued development of physical infrastructure; slow a stable, transparent legal andregulatory framework. Not opening theEnergy market integration. Market integration requirescross-border infrastructure and limits tothescope andtimingof theEU-Turkey energypolicy coordination and cooperate inthefield of energy, non-opening of theEnergyChapter will put some Besides beingcounter-productive for bothTurkey’s andtheEU’s wishes to both supply sources androutes. contribute tothemuch-discussed European security of gassupply bydiversifying decades-long problem would increasethepossibility of EastMediterranean gasto to bringreal benefits totheaccession negotiations. In addition, resolving this of the reasons why a comprehensive settlement of the CyprusProblem is needed politically blocked intheEuropean Council bytheR While Turkey ispreparedtostartnegotiations on theenergychapter, its opening is positions with B acquis will ultimately benefit Turkey without underminingTurkey’s negotiating some that byaccedingtotheEnergyCommunity andthus adopting theenergy encourages a less cooperative standon this issue from Ankara. It issuggested by EU-Turkey EnergyCooperation: Challenges andOpportunities 41 only berealized through theopening of theenergychapter inaccession talks. with theEU’s energyacquis andTurkey’s entry intheEnergyCommunity can thinking rather ignores thefactthat theharmonization of Turkey’s energyrules rules which separate markets andunderminesecurity of supply. also lead theEUandTurkey tocontinue tohave fragmented energypolicies and only berealized within theconfines of acredible accession process. Moreover, thefull potential of energycooperation betweenTurkey andtheEUcan report_2014.html. on Turkey http://www.independentcommissiononturkey.org/ 2014, Commission March oma, Nuova Cultura, 2014 (IAI R (IAI 2014 Nuova Cultura, oma,
Ibidem.
In its 2014 European Energy Security study the EC emphasized that the existing main transport transport main existing the that emphasized EC the study Security Energy European 2014 its In Nathalie Tocci, Turkey Tocci, Nathalie for Imperative Change The in Europe. For more on this see, for instance, Elif B Elif for instance, see, For more on this David Koranyi and Nicolò Sartori, “EU-Turkish Nicolò R and Sartori, Koranyi Energy David These include, among others, the issues concerning cross-subsidies, unbundling, and and unbundling, cross-subsidies, concerning issues the others, among include, These russels on eventual EUmembership. esearch Papers 13), p. 23-39, p. 13), http://www.iai.it/content. Papers esearch 39 40 urcu Günaydın, “Turkey’s R Potential Günaydın, urcu inTurkey’s energylaws andregulations; and elations in the Context of EU of EU Context the in elations , Third R , Third epublic of Cyprus.Thisisone 36 However, thiskindof , No. 14|05 (13 March 2014), March (13 , No. 14|05 eport of the Independent Independent of the eport , No. 65 (May 2014),, No. (May 65 41 ole in the Emerging Emerging the ole in 38 , 37
15 IAI Working papers 14 | 12 - November 2014 ISSN 2280-4341 | ISBN 978-88-98650-17-0 © 2014 IAI di lavoro di aR in Partnership The Enhancing Crisis. Ukraine 2014 the EU-Turkey “The Tagliapietra, Simone also, R See Energy working_document_en.pdf. Paper and regional cooperation must beenhanced. be pursued inparallel tothediversification efforts: Interconnections must bebuilt in theprocess of improving energysecurity. Two otherimportant elements have to Diversifying sources of supply androutes isanecessarybut notsufficient element level of theirparticipation toENTSO-E and ENTSO-Gactivities should beincreased. Network of Transmission System Operators for Gas)should beenhanced,andthe transmission company) with ENTSO-E andof BOTAŞ with ENTSO-G(theEuropean intensified. In thisframework, theactive cooperation of TEIAS(Turkish electricity and electricity markets into theEuropean Union’s internal energymarket could be Market Package. However, cooperation toenable theintegration of theTurkish gas interest, Turkey continues tomake progress in implementing theEUThirdEnergy In terms of market integration anddevelopment of infrastructures of common provide mutual businessopportunities. mutually beneficial toboth. Increased energycooperation intheseareaswill also the context of asharedvision over common energypolicy andstrategy would be better cooperation didnotmaterialize. Cooperation inthesefields desirably within fragmented. Instead of converging, memberstates energypolicies diverged and common or integrated EUenergypolicy, andEuropean energypolicies remain 42 Security Energy of European study In-depth Commission, European See, markets. vulnerable between gas transport to used flexibly be and security goals. energy policies in line with both the economy as well as Turkey’s foreign policy energy policy andstrategy. Thereisanurgent needfor formulating longer term energy strategies. Unfortunately, Turkey still does nothave awell-established energy markets. However, theyhave very limited synergies informulating their energy future, improving security of energysupplies, andensuringcompetitive The EUandTurkey have similar energypolicy goals: achieving asustainable relations have mainly revolved around cross-border gaspipeline projects. Turkey’s strategic importance for theEUinfield of energyandEU-Turkey resources, energyefficiency and conservation. Nonetheless, discussions on security, diversification of sources, increaseduse of renewable andindigenous Turkey andtheEUhave similar long-term priorities focusing on thethemesof supply 5. Theroad toenhanceEU-Turkey energycooperation EU-Turkey EnergyCooperation: Challenges andOpportunities 43 vol_12_no_3_2010_karbuz_sanli.pdf. Turkey
Sohbet Karbuz and B and Karbuz Sohbet What is at stake - Background document on the Green on document the Green at -Background is stake What Commission, European for instance, See , 8 March 2006, p. 37, p. 2006, http://ec.europa.eu/energy/green-paper-energy/doc/2006_03_08_gp_ , 8March , Vol. 12, No. 3(2010), 89-105, p. , Vol. http://file.insightturkey.com/Files/Pdf/insight_turkey_ 12, , No. 75.2014, http://www.feem.it/getpage.aspx?id=6679. No., 75.2014, 43 ariş Şanli, “On Formulating a New Energy Strategy for Turkey”, Strategy Insight Energy aNew in Formulating “On Şanli, ariş Asimilar argument could beextendedtotheEU. Thereisno , cit. , Note Note in Environment”, apidly Changing elations After After elations 42 16 IAI Working papers 14 | 12 - November 2014 ISSN 2280-4341 | ISBN 978-88-98650-17-0 © 2014 IAI TXT/?uri=celex:52014DC0520. http://eur-lex.europa.eu/legal-content/en/ 2014, July 23 (COM(2014)520), Policy Climate and Energy Framework for 2030 and the security toenergy Contribution its and Efficiency Energy Commission, meetings on energyissues wereorganized betweentheEC andTurkish officials energy cooperation agreedbetweenboth sidesinJune 2012,several technical enhanced EU-Turkey relations. With a view of achieving the enhanced EU-Turkey Finally, theenhancedenergycooperation ispartof the“positive agenda” for infrastructure), biogas, andsmartgrids. capture and storage, new technologies for mobility (electric cars, batteries, and energy research anddevelopment toadvance clean coal technologies, carbon There isalso significant potential for more effective EU-Turkey joint efforts in capacity relating totheseissues. support thedevelopment of Turkey’s legal framework, technical andadministrative on theareasof mutual interests. Furthermore, the EU could provide expertiseto the EUcould establishcommon energyemergencyandsolidarity mechanisms responsible andsafe management of spent fuel andradioactive waste. Turkey and appropriate administrative framework for matters of nuclear safety aswell asthe The EUmay offer expertise on thedevelopment of adequate legal standardsandan Assuring thehighest standardsof nuclear safety inTurkey isamutual interest. climate andenergy. an energyefficiency target compatible with theEC’s 2030policy framework for through energyefficiency and conservation. This would allow Turkey todetermine Moreover, theEU could help Turkey inassessingits energysaving potential enforced biofuels contents setbythegovernment following theEU’s regulations. The push for biofuels inTurkey could be spurredbyexcise taxreduction and concentrated solarpower applications andsolarheat for industrial purposes. particularly for thedevelopment andadaptation of efficient solarPVmodules, which eventually could trigger investment opportunities andattract financing and conservation. Cooperation intheseissues could focus on regulatory matters, Turkey andtheEUaimtopromote renewable energyresources, energyefficiency Caspian region, R energy policy cooperation with theexistingandpotential energypartnersinthe a strategic oil andgasbridge andhub. Thiswould also requireenhancedforeign are fully compatible with theEUdirectives. EUcould enhanceTurkey’s potential as mostly aligned with thoseof theEUpolicies. Sulfur limits ingasolineanddiesel Turkey’s policies regardingoil stocksand emergencyresponse mechanismsare the Turkish Straits. As Turkey isamemberof theInternational Energy Agency, infrastructure projects that would easetheburden on thetanker traffic through In termsof oil, theEUandTurkey may consider cooperation on oil transport EU-Turkey EnergyCooperation: Challenges andOpportunities 44
The EC is considers proposing an EU level of energy savings of some 25%-30%. See, European European of 25%-30%. some See, savings of energy level EU an proposing considers is EC The ussian Federation andtheMiddle East. 44 17 IAI Working papers 14 | 12 - November 2014 ISSN 2280-4341 | ISBN 978-88-98650-17-0 © 2014 IAI direction of theharmonization work. it could beused asatoolfor identifying thebottlenecks andfor determiningthe up todate overview of thediscrepancies andcommonalities inenergylaws. Then field of energybothinTurkey andtheEUsincethen. Such atable would provide an screening process on energywascompleted in2006, table comparing the EU laws and directives with those in Turkey. Although the One important avenue for theway forward istojointly prepareatransposition energy markets. would facilitate furtherprogress towards theinterconnection andintegration of energy cooperation aswell asrelevant progress intheaccession negotiations October 2014,October http://eur-lex.europa.eu/legal-content/en/TXT/?uri=celex:52014DC0700. pace. However, thefull potential of cooperation betweentheEUandTurkey on this its energylaws with thoseof theEU, albeit rather selective mannerand at aslow EU membership prospects. In the mean time, Turkey will continue harmonizing to cooperate on energymatters anddeepen theirdialogue irrespective of Turkey’s negotiations on thechapter. Thisholdssome truth: Turkey andtheEUwill continue irrespective of the destiny of theaccession process andwithout actually opening Some seemtobelieve that EU-Turkey cooperation inthefield of energycandeepen, chapter represent serious barriers tothedeepeningof EU-Turkey relations. yet. Theslow paceof accession negotiations andthenotopening of theenergy energy partner, it is counterintuitive that the energy chapter has not been opened Given theinterest of theEUinestablishingaproductive dialogue with Turkey asan emerging energychallenges. and cooperation on energymatters of common interest torespond tocurrent and on energyissues. Thisiswhy theymust furtherdevelop andintensify dialogue It isclear that bothTurkey andtheEUhave alot togainfrom close cooperation cooperation anddeeperintegration. challenges areanunparalleled opportunity for theEUandTurkey tointensify rational useof resources, andensuringasustainable future. Thesecommon energy energy supply, meeting growing energy needs in most efficient ways, fostering The EUandTurkey will facemultiple energychallenges inthefuture: securing Concluding remarks the EC’s enlargement strategy inOctober2014, of thesituation of theenergychapter intheaccession negotiations. As stated in in 2013and2014.Thismomentum should bemaintained andexpandedregardless EU-Turkey EnergyCooperation: Challenges andOpportunities 46 45 is not officially communicated to communicated not officially is Turkey.
(COM(2014)700), 8 8 2014-15 and Main Challenges (COM(2014)700), Enlargement Strategy Commission, European The screening report is still pending approval by the Council of the European Union and hence hence Union and European of the Council the by approval pending still is report screening The 45 strengtheningof theEU-Turkey 46 much haschangedinthe 18 IAI Working papers 14 | 12 - November 2014 ISSN 2280-4341 | ISBN 978-88-98650-17-0 © 2014 IAI them, must remainapriority. relations between the EU and Turkey, as well as the quality of the dialog between should go beyond rhetoric and beturnedinto tangible actions. Healthy andstable initiatives arealready underway tofoster cooperation. However, theseefforts Mutual understandinganddialogue inbetweenbothparties isrising,and several of energycooperation, including foreign energypolicy. not only on diversification of gas supply routes and sources but also on all aspects energy chapter andsystematically include Turkey indeveloping its energystrategy, If theEUisserious about its energysecurity, it needstodo its utmost toopen the uncertainties for financing andhenceinvestments. generation plants), accelerate progress on on-going projects, and also help reduce increase theirparticipation inexistingones (e.g.,privatization of electricity new projects (e.g.,on gasstorage, gastransport, renewable energytechnologies), regulatory framework would facilitate andencouragetheprivate sector todevelop for European companies tooperate inTurkey. Thecommonly applied legal and Moreover, opening of theEnergyChapter would also provide alevel playing field creating apositive environment intheTurkey-EU accession process. for Turkey’s potential membership totheEnergyCommunity; andit would help border electricity andgastradebetweenTurkey andtheEU; it would pave theway implementation of theEU’s newenergysecurity strategy; it would increasecross- interconnection of EUandTurkey energymarkets; Turkey would contribute to allow Turkey move fastertowards cost-basedenergytariffs; it would facilitate the those regardinggastransit regime,energyefficiency and nuclear energy); it would accelerate Turkey’s adaptation andimplementation of theEUlaws (particularly for adeepercooperation andmarket integration. More specifically, it would to all, perhaps more totheEUthanTurkey because it could provide arationale On theotherhand,opening of theEnergyChapter would bringnumerous benefits B deals andcross-border oil andgasinfrastructure projects without going through the EUbut will limit Turkey’s current leverage andfreedom inmakinggastrade One theone hand,opening of theEnergyChapter will notchangeanything for strategic issue canbebestutilized byopening the energychapter innegotiations. EU-Turkey EnergyCooperation: Challenges andOpportunities russels. Updated 31October 2014 19 IAI Working papers 14 | 12 - November 2014 ISSN 2280-4341 | ISBN 978-88-98650-17-0 © 2014 IAI content/en/TXT/?uri=celex:52011DC0105 Community Treaty) (COM(2011)105), 10March 2011,http://eur-lex.europa.eu/legal- European Commission, Report under Article 7of Decision 2006/500/EC (Energy study.pdf final/3), 2 July 2014, http://ec.europa.eu/energy/doc/20140528_energy_security_ European Commission, In-depth Study of European Energy Security (SWD(2014)330 TXT/?uri=celex:52014DC0700 (COM(2014)700), 8October 2014,http://eur-lex.europa.eu/legal-content/en/ European Commission, Enlargement Strategy and Main Challenges 2014-15 TXT/?uri=celex:52013DC0700 (COM(2013)700), 6October2013,http://eur-lex.europa.eu/legal-content/en/ European Commission, Enlargement Strategy and Main Challenges 2013-2014 June 2012,http://europa.eu/rapid/press-release_MEMO-12-434_en.htm European Commission, Enhanced EU-Turkey Energy Cooperation, Stuttgart, 14 2014, http://eur-lex.europa.eu/legal-content/en/TXT/?uri=celex:52014DC0520 and the 2030Framework for Climate and Energy Policy (COM(2014)520), 23July European Commission, Energy Efficiency and its Contribution toenergysecurity fordhamilj.org/?p=650 in Frank EmmertandSiniša Petrović, “ThePast, Present, andFuture of EUEnlargement”, http://aei.pitt.edu/4475 request for accession totheCommunity (SEC(89)2290final/2), 20December1989, Commission of theEuropean Communities, Commission opinion on Turkey’s dx.doi.org/10.2833/17897 Scenario 2013,Luxembourg, Publication Office ofthe European Union, 2014, http:// P. Capros etal., EUEnergy, Transport and GHG Emissions, Trendsto2050.Reference role-european-energy-security December 2007,http://www.cer.org.uk/publications/archive/essay/2007/turkeys- Katinka be/?p=13861 Promise or Peril?”, inEgmont Papers, No. 65(May 2014),http://www.egmontinstitute. Sami Andoura and David Koranyi (eds.), “Energy intheEasternMediterranean: R EU-Turkey EnergyCooperation: Challenges andOpportunities eferences Fordam International Law Journal, Vol. 37,No. 5(2014), p.1349-1419, http:// Barysch, “Turkey’s R ole in European EnergySecurity”, inCEREssays, 20 IAI Working papers 14 | 12 - November 2014 ISSN 2280-4341 | ISBN 978-88-98650-17-0 © 2014 IAI Pdf/insight_turkey_vol_12_no_3_2010_karbuz_sanli.pdf in Sohbet KarbuzandBarişŞanli, “OnFormulating aNew EnergyStrategy for Turkey”, terms-on-an-imperfect-reality.aspx org/en/regions/europe/turkey-cyprus/cyprus/229-divided-cyprus-coming-to- R International CrisisGroup, “Divided Cyprus:Coming toTerms with anImperfect 1/2013, http://www.prio.org/Publications/Publication/?x=7365 Context, Positions andFuture Scenarios”, inPRIO Cyprus Centre Reports, No. Ayla Gürel,Fiona Mullen andHarryTzimitras, “TheCyprus Hydrocarbons Issue: http://www.iai.it/content.asp?langid=2&contentid=1078 Mediterranean EnergyCorridor”, inIAIWorking Papers, No. 14|05(13March 2014), Elif Burcu Günaydın, “Turkey’s Potential R Reports, No. 1/2012,http://www.prio.org/Publications/Publication/?x=7237 Hydrocarbons: R Hubert Faustmann, Ayla GürelandGregory M.R europa.eu/sides/getAllAnswers.do?reference=E-2013-001845&language=EN Written questions E-002319/13, E-001845/13 , 6 May 2013,http://www.europarl. European Parliament, Joint answer given by Mr Oettinger on behalf of theCommission, Series, No. 7(October1977),http://aei.pitt.edu/42182 Policy”, inResearch and Documentation Papers, Regional Policy and Transport European Parliament, “ECAccession of Four Mediterranean Countries andR gp_working_document_en.pdf 8 March 2006,http://ec.europa.eu/energy/green-paper-energy/doc/2006_03_08_ European Commission, isat What stake -Background document on theGreenPaper, cooperation.pdf international/bilateral_cooperation/doc/turkey/20120622_outline_of_enhanced_ Ministers Yildiz andBağis,Stuttgart, 14June 2012,http://ec.europa.eu/energy/ Cooperation, Outcome of themeetingof Commissioners OettingerandFüle and European Commission, Turkey-EU Positive agenda,Enhanced EU-Turkey Energy 2014, http://eur-lex.europa.eu/legal-content/en/TXT/?uri=celex:52014SC0307 European Commission, Turkey 2014ProgressReport (SWD(2014)307), 8October 2013, http://eur-lex.europa.eu/legal-content/en/TXT/?uri=celex:52013SC0417 European Commission, Turkey 2013ProgressReport (SWD(2013)417), 16October EU-Turkey EnergyCooperation: Challenges andOpportunities eality”, inICG Europe Reports, No. 229(14March 2014),http://www.crisisgroup. 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TheEU’s EnergyPolicy p. 23-39, http://www.iai.it/content.asp?langid=2&contentid=1091 Global Turkey in Europe II.Energy, Migration, Civil Society and Citizenship oma, Nuova Cultura, 2014(IAIR elations: ChangingApproaches”, inRomanian R apidly Changing Environment”, in Note di elations After the2014Ukraine elations intheContext of esearch Papers 13), eport 22 IAI Working papers 14 | 12 - November 2014 ISSN 2280-4341 | ISBN 978-88-98650-17-0 © 2014 IAI Latest IAIW EU-Turkey EnergyCooperation: Challenges andOpportunities www.iai.it [email protected] F +39 T +39 Via Angelo B and otherpapers’ series related toIAIresearch projects. (AffarInternazionali), two series of research papers (QuaderniIAIandR publishes anEnglish-language quarterly (TheInternational Spectator), anonline webzine and theMiddle East;defence economy andpolicy; andtransatlantic relations. TheIAI in the global economy and internationalisation processes in Italy; the Mediterranean research sectors are:European institutions andpolicies; Italian foreign policy; trends and abroad andisamemberof various international networks. More specifically, themain that end,it cooperates with otherresearch institutes, universities andfoundations inItaly and disseminate knowledge through research studies, conferences andpublications. To economy andinternational security. Anon-profit organisation, theIAIaimstofurther Founded byAltiero Spinelli in1965,does research inthefields of foreign policy, political Istituto Affari Internazionali (IAI) 14 |04 14 |05 14 |06 14 |07 14 |08 14 |09 14 |10 14 |11 14 |12 14 |03 06 3224360 06 3224363 Dominant System Neera Chandhoke, India 2014:Return of theOne-Party and Choices Dialogue in theMediterranean: Lessons Learnt, Opportunities Eduard Soler iLecha,TheFuture of Multilateral Security Kristina Kausch, Competitive Multipolarity in theMiddle East Project for theSingle Market Immediate Tool for Euro CrisisManagement and aLong-Term Giulia R Opportunities Sohbet Karbuz,EU-Turkey Energy Cooperation: Challenges and Next for Ukraine? Nona Mikhelidze,Second Revolution on Euromaidan: What Context of theSouthern Corridor Şaban Kardaş,TheTurkey-Azerbaijan Energy Partnership in the South-Eastern Mediterranean Energy Corridor Elif Burcu Günaydın, Turkey’s Potential Role in theEmerging Security Ariel Cohen, Caspian Gas,TANAP and TAP in Europe’s Energy David Koranyi, TheSouthern GasCorridor: Europe’s Lifeline? runetti, 9-I-00186 R osa MariaCavallo, European Banking Union: An o r ome, Italy king P aper s esearch Papers)