Energy Council of Foreign Investors President Mario Diel said on Monday that the normalization of relations with Russia and Israel, the lifting of sanctions on Iran - despite the many challenges the country faced with terrorist attacks in 2016 - have helped foreign investment in Turkey to remain strong. Speaking to Anadolu Agency, Diel, evaluated energy developments in 2016 in terms of future prospects and expectations in Turkey.

The president hailed the potential in Turkey's energy sector as one of the most attractive in the region and for Europe, and asserted that foreign investors will continue to invest in the country despite the negative incidents that it experienced last year.Noting that German EWE Holding's decision to increase investments in Turkey and the declaration of the Danish Danske Commodities to have increasing confidence in Turkey are among the positive developments in the energy sector last year, Diel welcomed Energy and Natural Sources Minister Berat Albayrak's efforts and support in 2016 to help the energy sector and its investors establish a sustainable environment to attract investment and a positive outlook for the future."The government's guaranteed tariffs in the renewable sector are still much higher compared to most European countries. New investments are highly welcomed and supported by several governmental incentives and less bureaucratic hurdles," Diel said.He also explained that contrary to reports in Western media, Turkish banks are still showing strong commitments and supporting investments in the energy sector."Foreign investors are still interested in the Turkish energy market due to its growth potential and the importance of Turkey in the region," he said.Recent global developments including Brexit in the U.K., the U.S. presidential elections results and the weak Turkish lira have also impacted Turkey's economy and by extension its energy sector, Diel said."We could witness disruption in the electricity market as power plant owners struggle to pay their debts since most of them are financed either through U.S. dollars or on a euro basis," he added.Diel said, however, that these developments have been positively offset by the normalization of relations with Russia and Israel which will not only create new business and investment opportunities but also offer sustainable energy sources for Turkey and the region.Diel surmised that mega projects like the Trans Anatolian Natural Gas Pipeline (TANAP), Southern Gas Corridor - Trans Adriatic Pipeline (TAP), the TurkStream project, which are already under construction or in the development phase, will strengthen Turkey as an important energy corridor and transfer the country through connections to important energy producing countries with Europe.TANAP plans to transport 16 billion cubic meters (bcm) of natural gas from fields in Azerbaijan into Turkey and then onto markets in southern Europe, once operational in 2018.The Southern Gas Corridor Pipeline project, which aims to carry Caucasian gas to Europe, is regarded as a project that will reduce Europe's over-dependence on Russian gas and will provide the EU with diversification of energy sources.The project will include three major pipeline projects, the expansion of the South Caucasus Pipeline through Azerbaijan and Georgia, the construction of TANAP across Turkey and the construction of the TAP through Greece, Albania and into Italy.Additionally, the TurkStream, which was announced by Russian President Vladimir Putin during a 2014 visit to Turkey, is set to carry gas from Russia under the Black Sea to Turkey's Thrace region. One line, with 15.75 billion cubic meters of capacity, is expected to supply the Turkish market, while a second line is set to carry gas to Europe."Recent investments such as Turkey's first floating storage and re-gasification unit (FSRU) in western İzmir province along with the planned increase in natural gas storage will increase Turkey's competitive power in the natural gas market," he said."Iran will most likely be a bigger player especially in the gas market where Turkey will be again, not only one of the most important consumers but also as a transfer country to the Western world," he added.The newly constructed railway connection between Baku, Tbilisi and Kars will boost commodity trading in the entire region up to China, Diel said."Nevertheless, Turkey is the biggest market in the region with a still growing economy and is, despite all the challenges, a young, dynamic and demanding population located at one of the most important geopolitical regions," he added."We will contribute our know-how and experience in the market, not only for individual commercial interests, but also for a better future for the Turkish people," he concluded.Energy Investments in 2017TurkStream to start constructionThe construction of the first pipeline for the TurkStream project, which is estimated to cost 11.4 billion euros and will contribute to Turkey's ambition to become an energy hub in the region by carrying Russian gas to Europe, will commence in the second half of 2017.Last week, Gazprom CEO Alexei Miller announced that Gazprom completed the creation of capacities to feed gas to the TurkStream pipeline and the Russian party is fully ready for supplies at a conference call. In the second half of 2017, the laying of the pipeline in the Black Sea will start, he said.Russia's state-owned gas giant Gazprom estimated the cost of construction of the TurkStream pipelines at 11.4 billion euros, with the cost of the first line construction estimated at 4.3 billion euros, as previously reported by Russian news agency TASS.Russia also thinks that the first line will contribute about $750 million to the Russian treasury as revenue obtained from export taxes.On Oct. 10, Turkey and Russia signed an inter-governmental agreement on carrying out the construction of the planned TurkStream gas pipeline to compress Russian gas under Turkish waters in the Black Sea toward Europe.The agreement was signed by Energy Minister Berat Albayrak and his Russian counterpart Alexander Novak, in the presence of Russian President Vladimir Putin and President Recep Tayyip Erdoğan after their talks in Istanbul as part of the 23rd World Energy Congress.The General Assembly of the Turkish Parliament ratified the bill for the TurkStream agreement on Dec. 2 and it was consequently approved by President Erdoğan.Following Prime Minister Binali Yıldırım's two-day official visit to Russia upon the invitation of his Russian counterpart Dmitry Medvedev, the bill for the TurkStream project was ratified by the Russian government and it will be voted out in Duma, the lower wing of the Russian parliament this month.Steps toward third nuclear power plantCurrently, surveys for the two nuclear power plants, one in Sinop province in northern Turkey and the other in Akkuyu in southern Turkey, are continuing. However, these processes are to accelerate in the new year in order to facilitate the beginning of the construction process.Furthermore, Energy Minister Albayrak previously announced that studies on the third nuclear power plant are also continuing in accordance with the increasing energy demand of the country.Yesterday, the Dünya daily reported that a consortium consisting of Japan's Toshiba, China's State Power Investment Corporation and the U.S.'s Westinghouse plans to meet with the Turkish government to initiate the project, which is estimated to cost around $17 billion.