5.

• Turkey's rank in the European electricity market with an installed capacity of 88.5 GW.

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• Ranking of Turkey in energy consumption in Europe with 155 Mtoe.

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• With 1.3 GW, Turkey's rank in global geothermal power generation capacity.

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• The rank of Turkey in natural gas consumption in Europe with 49.3 bcm.

The growing economy and increasing population in Turkey cause an increasing need for energy and natural resources. It recorded the fastest growth in the OECD with an annual growth of 5.5% since 2002. As of this date, Turkey's basic energy supply has doubled in 17 years from 78.4 Mtoe to 155 Mtoe. Turkey's increasing economic performance has also been reflected in its electricity generation infrastructure showing a significant increase in total installed capacity from 31.8 GW to 88.5 GW, and electricity consumption from 132.6 TWh to 305.5 TWh as of the end of 2018. In order to meet the increasing needs of the country, the current capacity is expected to reach 110 GW by 2023 by increasing private sector investments as stated in the 11th Development Plan for the 2019-2023 period.

The success of the privatization and liberalization program, which has been going on since 2002, has transferred 78% of all electricity distribution assets as well as electricity generation assets to the private sector, generating a revenue of US $ 23 billion for the Treasury. In the same period, new public and private investments worth approximately US $ 100 billion in power generation, transmission and distribution assets were completed. The strategy of privatizing electricity generation assets and paving the way for private investments enabled private enterprises to increase their share in electricity generation from 40% in 2002 to 85% in 2018. Energy Markets Management Corporation (EPİAŞ), which is responsible for the management and operation of energy markets, including electricity and gas products, was established in 2013 within the scope of its strategy to increase liberalization and competition in the market.

The prominent economic performance supported by Turkey's liberalization efforts enabled Foreign Direct Investment (FDI) of approximately USD 209 billion to be attracted between 2002 and 2018, and approximately USD 18 billion of this amount was transferred to the energy sector. In 2018, investors carried out a total of USD 12 billion in mergers and acquisitions with 256 agreements in various sectors, and the energy sector is among the leading sectors in terms of mergers and acquisitions transaction volume with USD 400 million.

Undoubtedly, Turkey is a net energy importer country that obtains 73% of its energy needs through imports. The amount of energy imported in 2017 increased by almost 15.6% to US $ 42.99 billion in 2018. However, excluding fluctuations in certain years, invoices showed a marked decline from USD 60.1 billion in 2012 to USD 37.2 billion in 2017. Import dependency has been the main driving force behind the creation and implementation of new policies and investment models to deploy local and renewable energy sources.

The use of this potential in Turkey, which has a significant amount of renewable energy potential, has increased in the last decade. As of the end of 2018, 28.29 GW of the total installed capacity is hydro, 7.01 GW wind and 5.07 GW solar resources. As part of its efforts to promote localization, the Turkish government has made it a priority to increase the share of renewable energies to 30%, increasing geothermal installed capacity to 3 GW by 2023 and solar and wind installed capacity to 16 GW each by 2027. In order to create a favorable investment climate to strengthen the market position of renewable energy sources after 2020, the government has designed various investment models such as unlicensed (small scale), licensed (medium scale) and YEKA (large scale) that address different types of investors and are supported by lucrative incentives.

The use of local coal reserves for electricity generation in accordance with environmental standards has also been prioritized as a means of increasing localization. The government has adopted a new tender mechanism based on the obligation to build and operate coal-fired power plants in its vicinity and the transfer of coal reserves to the private sector. Turkey has a significant amount of coal reserves, totaling 17.3 billion tons, mostly lignite. The main coal reserves are located in Kangal, Orhaneli, Tufanbeyli, Soma, Tunçbilek, Seyitömer, Çan, Muğla, Çayırhan, Afşin-Elbistan, Karapınar, Tekirdağ, Alpu and Afyonkarahisar. Among these reserves, the Afşin-Elbistan site contains lignite reserves of 4.8 billion tons and 28% of Turkey's total lignite reserves. The areas that will be subject to reverse bidding have 6.4 GW of installed production capacity.

It should not be forgotten that Turkey's natural gas industry is also constantly developing. In order to increase supply security and seasonal gas shipping capacity, Turkey opened the first phase of the Tuz Gölü Natural Gas Storage Facility by commissioning two Floating Storage and Gasification Unit (FSRU) terminals in 2018. Another purpose of these investments is to increase Turkey's current gas storage capacity from 4 bcm to 11 bcm by 2023.

Located at the crossroads of major energy consumers and suppliers, Turkey has a strategic location acting as a regional energy hub. Existing and planned oil / natural gas pipelines, critical Turkish straits and promising hydrocarbon reserves all over Turkey provide further advantages over regional projects and reinforce the country's gateway position.

Turkey has taken important steps in energy efficiency. In the National Energy Efficiency Action Plan adopted in 2018, Turkey aims to save a total of USD 30.2 billion by 2033. In this context, approximately 11 billion USD will be invested until 2023, and energy saving equivalent to 23.9 Mtoe will be achieved. This savings is equivalent to a 14% reduction in Turkey's basic energy consumption in 2023 compared to the baseline use scenario. As part of its efficiency efforts, Turkey will provide additional employment for 20,000 people by 2023 and eliminate the need for US $ 4.2 billion in power plant investment.

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https://www.invest.gov.tr/tr/sectors/sayfalar/energy.aspx