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Turkey 2021 Energy Policy Review Turkey 2021 Energy Policy Review INTERNATIONAL ENERGY AGENCY Turkey 2021 Energy Policy Review Turkey 2021 Energy Policy Review INTERNATIONAL ENERGY AGENCY The IEA examines the IEA member IEA association full spectrum countries: countries: of energy issues including oil, gas and Australia Brazil coal supply and Austria China demand, renewable Belgium India energy technologies, Canada Indonesia electricity markets, Czech Republic Morocco energy efficiency, Denmark Singapore access to energy, Estonia South Africa demand side Finland Thailand management and France much more. Through Germany its work, the IEA Greece advocates policies Hungary that will enhance the reliability, affordability Ireland and sustainability of Italy energy in its Japan 30 member countries, Korea 8 association Luxembourg countries and beyond. Mexico Netherlands New Zealand Norway Poland Portugal Please note that this Slovak Republic publication is subject to Spain specific restrictions that limit Sweden its use and distribution. The terms and conditions are Switzerland available online at Turkey www.iea.org/t&c/ United Kingdom United States This publication and any The European map included herein are without prejudice to the Commission also status of or sovereignty over participates in the any territory, to the work of the IEA delimitation of international frontiers and boundaries and to the name of any territory, city or area. Source: IEA. All rights reserved. International Energy Agency Website: www.iea.org Foreword The International Energy Agency (IEA) has conducted in-depth peer reviews of its member countries’ energy policies since 1976. This process supports energy policy development and encourages the exchange of and learning from international best practices. By seeing what has worked – or not – in the “real world”, these reviews help to identify policies that deliver concrete results. Since 2017, the IEA has modernised the reviews by focusing on the key challenges in today’s rapidly changing energy markets. Since the IEA in-depth review of Turkey in 2016, the guiding principles of Turkish energy FOREWORD policy continue to be market reform and energy security. Rapid economic and population growth in the past two decades have not only driven strong growth in energy demand but also an associated increase in import dependency. As a result, Turkey has pursued a restructuring of its energy system with the aim of rationalising energy demand growth, lowering energy prices for consumers and slowing the pace of import growth. In light of its heavy dependence on oil and gas imports, Turkey has prioritised security of energy supply as one of the central pillars of its energy strategy. The policy includes efforts to boost domestic oil and gas exploration and production, diversify oil and gas supply sources and associated infrastructure, and reduce energy consumption through increased energy efficiency. In particular, Turkey has made huge progress expanding its gas supply options through new gas discoveries, pipelines, LNG terminals and increased storage. Turkey has also made commendable headway in advancing energy efficiency policies, notably for buildings. I am pleased to observe that Turkey has seen considerable diversification of its energy mix in the past decade. In particular, renewable energy has staged impressive growth, with renewable electricity generation tripling over the period, led by hydro, solar and wind. Still, Turkey could achieve much more growth in renewables given its tremendous resource endowment, not just in electricity but also in the heating sector. The planned commissioning of Turkey’s first nuclear power facility in 2023 will further diversify the country’s fuel mix. To achieve a modern, competitive economy, Turkey needs to pay close attention to the sustainability of its energy sector and its longer-term carbon footprint. It is equally important to direct industrial policy toward the next phase of a clean energy transition. To this end, policies to promote innovation in areas such as electric vehicles, energy storage and digital technologies will be critical. Turkey has made significant progress on liberalising energy markets in the last decade, successfully improving predictability and transparency in pricing. However, additional reforms toward establishing more competitive gas and electricity markets will help mobilise needed investments into these sectors. I strongly believe that policy and regulatory measures can help Turkey further bolster its energy security and navigate its future energy challenges and opportunities in the most cost- efficient and sustainable way. The IEA is committed to supporting Turkey in these efforts. Dr. Fatih Birol Executive Director reserved. International Energy Agency rights All 3 IEA. ENERGY INSIGHTS 1. Executive summary .....................................................................................................11 Overview ............................................................................................................................11 Security of energy supply ..................................................................................................11 CONTENTS CONTENTS Expanding domestic energy production ............................................................................13 Energy market liberalisation ..............................................................................................15 Key recommendations .......................................................................................................16 2. General energy policy .................................................................................................17 Country overview ...............................................................................................................17 Supply and demand ...........................................................................................................18 TABLEOF Institutions ..........................................................................................................................23 National Energy and Mining Policy ...................................................................................25 Eleventh Development Plan (2019-2023) .........................................................................29 Emissions reduction strategy ............................................................................................30 Pricing and taxation ...........................................................................................................30 Assessment .......................................................................................................................31 Recommendations .............................................................................................................34 ENERGY SYSTEM TRANSFORMATION 3. Energy and climate change ........................................................................................35 Overview ............................................................................................................................35 Energy-related CO2 emissions ..........................................................................................36 CO2 drivers and carbon intensity .......................................................................................38 Institutions ..........................................................................................................................40 Emissions reduction targets and policies ..........................................................................41 Adapting to climate change ...............................................................................................45 Assessment .......................................................................................................................46 Recommendations .............................................................................................................49 4. Energy efficiency .........................................................................................................51 Overview ............................................................................................................................51 Institutions ..........................................................................................................................53 Energy efficiency policies ..................................................................................................54 reserved. Industry ..............................................................................................................................56 rights All 5 IEA. TABLE OF CONTENTS Transport ...........................................................................................................................60 Buildings ............................................................................................................................62 Agriculture ..........................................................................................................................68 Assessment .......................................................................................................................68 Recommendations .............................................................................................................71 5. Renewable energy .......................................................................................................73 Overview ............................................................................................................................73
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