Turkey to increase share of renewables in electricity to 30 percent

Turkey is making great progress in energy investments by the day with the Akkuyu nuclear power plant and the first homegrown seismic research vessel, the Turkuaz, taking the lead among many other major projects



Energy and Natural Resources Minister Taner Yıldız said that Turkey would add 4,000 megawatts to its electricity production capacity this year, 95 percent of which will be provided through local and renewable resources. Turkey's installed electricity capacity had reached 69,520 megawatts as of 2014 and the government aims to increase the share of local and renewable sources in electricity production to 30 percent by 2023, he said. The cost of crude oil and natural gas remains the main cause of resource-poor Turkey's perennial current account deficit. "Hydroelectricity power plants will contribute 1,500 megawatts, wind power plants 800 megawatts, geothermal resources 240 megawatts and bioenergy resources 50 megawatts, to create the planned 4,000 megawatts capacity increase in 2015," Yıldız was quoted as saying in the statement.During an interview with Anadolu Agency (AA) on Saturday, in response to a question as to whether any delay will occur in the construction schedule of the Akkuyu nuclear power plant, and, if so, what kind of an impact it will have on the Turkish energy sector, Yıldız answered that they have not received information from the authorities about any delay and that equipment and turbines to be used in the construction have been ordered for $2 billion and they are being produced in France, Germany and Russia.Yıldız added that with the Akkuyu nuclear power plant, $735 million flew into Turkey and that the commissioning date for the power plant is the end of 2019. A delay will be experienced if the first unit of the power plant is put into use later than 2020, stated Yıldız, referring to the fact that Russia will pay for such a delay in accordance with the agreement. "We are talking about a business that has a daily turnover of $12 billion," he said, continuing: "The earlier it becomes operational, the more beneficial it will be. As Turkey, we want this facility to be completed soon and become operational."Touching upon the Energy Markets Business Corporation's (EPİAŞ) contributions to Turkey's energy sector, Yıldız said that EPİAŞ is very important for the liberalization of the energy market. Stressing that private and public sectors have traded places with each other over the past 12 years, Yıldız stated: "12 years ago, the private sector's share in total energy production was around 32 percent, now the public sector's share is around this level. We want the share of the private sector to rise to at least 75 percent."Yıldız added that there are some private companies that want to exploit this situation, expressing his support for those who do not capitalize on it. "We are striving to manage a paradox where producers find prices cheap and consumers find them expensive," he said. Turkey sells natural gas cheaper than all 28 EU countries and sells the third cheapest electricity among EU countries, Yıldız pointed out.Yıldız also said that Turkey's engineering level is gradually improving and that the country's next target after the Turkuaz seismic survey vessel is to have a drillship and a drilling platform.Turkey's first domestic seismic vessel, the Turkuaz, which is set to sail in October, would be used both in mining activities and in exploring undersea life. According to Yıldız, Turkuaz will provide information about marine species and the pollution level in seas, helping explore for oil, natural gas and mines that start from 50 centimeters above the bottom of the sea. This has been given the necessary legal infrastructure, said Yıldız. Yıldız also noted that the Barbaros Hayreddin Paşa seismic research vessel has been leased for $14 million for a while so that it can amortize its initial cost in a few years and said that he believed that the TL 300 million that was invested in the Turkuaz will pay for itself in the same way.Underlining that Turkey will seek to have a drillship and a drilling platform as its next target after the Turkuaz, Yıldız stated that drillships have become cheaper with the current decline in crude oil prices. According to Yıldız, Turkey previously spent around $1 million on a daily basis to hire drilling platforms; however, the country will have its own drilling platform, which will also pay for itself in three to four years. There are some Turkish companies that produce drilling platforms in the Caspian Sea, said Yıldız, indicating that he preferred to actualize expensive productions in the domestic industry.