In series:Energy Policies of IEA Countriesview more titles
Published on October 25, 2016
Since the last International Energy Agency (IEA) review of Turkey’s energy policies, the country’s reliance on natural gas use has grown along with rising oil and gas imports, leaving the Turkish economy increasingly exposed to the volatility in oil and gas prices. Turkey aims to promote sustainable economic growth - the IEA urges the government to set a longer term energy policy agenda for 2030. However, owing to declining global liquefied natural gas prices, Turkey now has an opportunity to reduce its single supplier dependence, build a competitive gas market, and move ahead with its plans to create a regional gas hub.
Turkey’s power sector reforms have attracted private investment and fostered economic growth and energy access. Integration into a regional gas and electricity trade framework is moving along as a result of the first interconnection of Turkey with the European electricity grid and the construction of the Trans-Anatolian Natural Gas Pipeline that will deliver gas from the Caspian to Turkey and the European Union.
In that context, the IEA urges Turkey to complete the liberalisation of its electricity and gas markets in order to attract critically needed investment. The review also notes that Turkey should set up independent transmission system operators, competitive wholesale markets, and foster resilient and modern gas and electricity infrastructure.
This review analyses the energy policy challenges facing Turkey and provides recommendations for further policy improvements. It is intended to help guide the country towards a more secure, sustainable and affordable energy future.