Turkey to develop energy market model safe from currency volatility

Published 12.10.2017 00:00
Updated 12.10.2017 01:52

In an emerging market the volatility of currency affects the Turkish lira. It is also a major problem for the Turkish energy sector because it immensely affects the prices in a market heavily dependent on imports.

"In order to minimize the repercussions of currency fluctuations and thwart them, Turkey is taking steps to develop an energy market model that will not be affected by currency moves, particularly in electricity production from coal," Energy and Natural Resources Minister Berat Albayrak said yesterday at a meeting on energy in Antalya. Albayrak participated in the 8th Energy Summit, which brought together the major local players in the sector.

Elaborating on Turkey's energy investments and agenda, Albayrak layd out the country's energy portfolio including hydrocarbon resources, renewables like wind and solar, coal, and nuclear. He also announced that new incentives for local coal sector will be implemented as of the beginning of 2018.

"We are taking steps to transform the energy market as a model purified from currency volatility, in the most possible way," he said.

Rate of domestic sources for electricity production to increaseAlbayrak said infrastructure work is ongoing in order for domestic and renewable energy sources to generate two-thirds of the country's electricity production.

He said that reducing external dependence in energy is of critical importance for Turkey to become one of the top-ranking players in the sector and that electricity generation from domestic sources was 49 percent last year.

He said that a growth of 6 percent to 7 percent was achieved in electricity consumption, adding that they need a balanced portfolio in this regard. He said that they will support this process as the public in order to commission a total of 15,000 megawatts in solar, wind and domestic coal.

"Turkey has a significant potential in these areas," Albayrak said, adding that they will commission a triple win-win system at the point of current account deficit, employment and production of these resources in Turkey, as well as the production costs of electricity.

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