IEA encourages Turkey to deepen energy reforms

Since the last International Energy Agency (IEA) in-depth review in 2009, Turkey has made significant progress in reforming its energy sector. Completing the reforms will allow Turkey to tap into its renewable and energy efficiency potentials, latest IEA report says.
With rising energy demand, increasing oil and gas imports, and an energy mix largely relying on fossil fuels, Turkey has a unique opportunity to tap into renewable energies, save energy and diversify its fuel mix, according to the IEA's latest survey of Turkey’s energy policies.
In its review, Energy Policies of IEA Countries: Turkey 2016 Review, the IEA called on the government to swiftly adopt an energy efficiency program and create a one-stop-shop for the deployment of renewable energy in the country.
Turkey’s energy sector has attracted substantial interest in the investor’s community thanks to privatization and electricity market reforms. The country should continue down this path and reform its energy markets. 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.
“To attract more investments, the liberalization of the energy markets needs to progress further,” said Fatih Birol, the IEA executive director.
The report highlighted three avenues for reform: Strengthening the independence of the system operators and regulatory authorities; abolishing market distortions in favor of market pricing; and continuing to invest in more flexible and modern gas and electricity infrastructure. These pillars are critical for securing stable and reliable electrical power supplies and ensuring sustainable economic growth, and ensuring much needed diversification, according to the IEA.
Turkey has a unique geographical location and is an important energy player in its region. The country’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 becoming an observer of ENTSO-E. 
“Turkey’s contribution is vital for regional and European energy security,” Birol said.
With the drop in gas prices and the rise in the global LNG trade, the IEA also sees an important opportunity for Turkey to reform its natural gas market. Natural gas accounts for 40 percent of Turkey’s electricity generation; and gas demand has more than doubled in one decade, outpacing electricity growth. The review highlights the need for competition, diversification and investments in the gas infrastructure, given Turkey’s proximity to major resources and private sector interest.

Source: Arab News