How the Energy System Is Structured
The government of Turkey aims to privatize public power plants, including hydro and thermal power plants. EÜAŞ, the largest electric power company in Turkey, was founded by the Turkish government in 2001 and has 72 hydroelectric power plants and 10 thermic power plants. Privatization will demolish the public monopoly and cause competition. Some private groups control 30% of distribution and their share in power generation is rapidly increasing. Some want to control distribution, wholesale, retail sale and generation at the same time. Currently, two private groups control more than 50% of the electricity distribution market.
Renewable energy power plants are installed by private companies. According to the target capacities in the 2019 Strategic Document and the 2023 National Renewable Action Plan, an increase in renewable energy installed capacity is expected. However, a review of the status of licensed investment projects and the energy sources of projects seeking licensing implies that these targets are not realistic.
The renewable energy installed capacity will increase in the next five years, which will decrease Turkey’s greenhouse gas emissions. However, higher energy demand and the use of coal resources should not raise high expectations.
Sources of Energy
Among OECD countries, Turkey has the highest growth rate on energy demand, which attracts attention as Turkey is largely dependent on energy imports. For example, Turkey’s oil import dependency ratio is 93.6%, and the rate of dependence on imports of natural gas is 99.2%. The government has several action plans against this level of energy dependency. However, the drop in oil prices in 2015 reduced Turkey’s oil and natural gas import cost and caused a slight increase in the fossil fuel use and dependency on external energy sources.
The percentage of Turkey’s energy use for the past year that is provided by (a) fossil fuels (b) and renewable energy can be seen on the table below.
Turkey Energy production companies/organization types and their energy production percentage during 2015 can be seen on the table below.
Profiles of Leading Energy Companies
Calik Enerji: Çalik Enerji is a Turkish energy company of the Çalık Holding, which was established in 1998. The main areas of operations include:
• oil and gas exploration, production, transportation, and distribution;
• power generation, transmission, and distribution;
• power design and engineering; and
• telecommunications services.
The company’s website tells us that Çalik Enerji has oil and gas exploration and production activities in Turkey, Iraq, Afghanistan, Azerbaijan, and Turkmenistan (notably in the Ýolöten Gas Field). Along with the Italian company Eni, it is constructing the Samsun-Ceyhan Pipeline to transport crude oil from the Black Sea to the Mediterranean Sea. It also operates power plants in Turkey and Turkmenistan. In 2015, Mitsubishi Corporation announced a strategic alliance with Çalık Enerji to develop infrastructure projects in Turkey and Northern Africa.
Gama Enerji A.S. GAMA Enerji A.Ş. is a Turkish company founded in 2002 that engages in building, financing, and investing in energy and water utility infrastructure. While the development, construction, and operation of power plants are its main focuses, power generation and trading are also a part of its activities.
The total power generation capacity of the GAMA Enerji is 1,715.80 MW, including two CCGT power plants in Galway, Ireland, and Kirikkale, Turkey. GAMA Enerji also owns Disi Mudawara, the Amman water conveyance project by the Ministry of Water of Jordan. Despite the headquarters location in Ankara, the company is active in energy trading business with its affiliate GATES Enerjiin Istanbul.
General Electric Energy Financial Services (GE EFS) acquired 50% of the shares of GAMA Enerji in 2007 and held its position as a shareholder until 2015. In 2015, International Finance Corporation (IFC), a member of the World Bank Group, and a fund managed by IFC acquired 27% of the company’s shares. In late 2015, Malaysia’s state electricity utility, Tenaga Nasional (TNB) bought a 30% stake in GAMA Enerji.
RES Anatolia: RES Anatolia is a leading renewable energy developer, dedicated to the delivery of wind and solar power projects. With a portfolio of over 8,000 MW of renewable energy capacity constructed worldwide, the RES Group has been playing a leading role in the renewable energy industry for almost 30 years.
RES Anatolia is fully owned by RES Mediterranean, the southern European division of the RES Group. It specialises in the design, development, financing, construction, and operation of renewable energy power plants (wind and photovoltaic) across the Mediterranean basin and the Middle East. Working alone or with strategic partners, RES has the capability to bring forward projects that will contribute to the sustainable future of Turkey. With decades of experience in the renewable energy and construction industries, RES has the technical, engineering, and construction expertise needed to develop projects of outstanding quality.
RES Anatolia can deploy the significant capabilities of specialist staff from other parts of the group as required. These include centers of excellence for wind resource assessment, wind turbine procurement, turbine technology assessment, network analysis, and connection design.
Submitted by Climate Scorecard Country Manager Ozlem Duyan