Energy
From The Report: Turkey 2013
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Now ranked the world’s 17th biggest economy with a GDP of nearly $790bn, Turkey, the prime minister claims, will become the 10th largest in 10 years’ time. To fuel that kind of growth, the country needs energy. Situated between the hydrocarbons-rich Middle East and energy-hungry Europe, but with negligible reserves of its own, Turkey has long been viewed as a transit state. While that continues to be part of its strategy, the nation is also hunting for resources to power its own economy, whether it is domestic supplies like coal or renewable energy, oil and gas extracted in foreign fields or new pipeline agreements to ship in fuel. It is also investing in hydroelectric plants, and plans to have eight nuclear reactors on-line by 2022.
This chapter contains interviews with Hasan Köktaş, President, Energy Market Regulatory Authority; Rövnag Abdullayev, President, SOCAR; Gülsüm Azerı, CEO, OMV Turkey; and Alexander Medvedev, Director-General of Gazprom Export.

Articles from this Chapter

Overview

Keeping up with demand: The government seeks new sources of energy at home and abroad
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When Trabzonspor, a premier-league football club on Turkey’s Black Sea coast, needed to raise revenue, it did not sign on more corporate sponsorship or look to boost merchandising sales. Instead, it decided to build a hydroelectric plant. The six-time champion in August 2012 won a licence to build a 28-MW power station in the mountains above the city of Trabzon. The plant at Üzüngöl in north-eastern Turkey could gross $500m over its 50-year lifespan, Milliyet newspaper reported. “Realising…

Interview

OBG talks to Hasan Köktaş, President, Energy Market Regulatory Authority (EMRA)
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Interview: Hasan Köktaş What can energy regulators do to improve licensing procedures and dissuade speculation? HASAN KÖKTAŞ: The new Turkish Electricity Market Law has created a structure that will attract more genuine investors. For legal entities that apply to engage in electricity generation, a preliminary licence will be issued so that these entities can obtain the necessary documents like permits and approvals, as well as usufruct rights for land use. The term of the preliminary licence…

Interview

OBG talks to Rövnag Abdullayev, President, SOCAR
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Inyerview: Rövnag Abdullayev What steps should Turkey take to ensure energy security over the long term? ROVNAG ABDULLAYEV: It is well known that Turkey faces immense energy challenges. Over the last decade the country experienced the second-highest increase in domestic energy demand in the world, following only China. At the same time, Turkey has become severely dependent on fossil fuel imports – and natural gas in particular – because it possesses few indigenous resources. This means unit…

Analysis

Taking another look: Stepping up efforts in exploration and production
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Long viewed as a critical transit state on one of the world’s most active energy corridors, Turkey is now searching for hydrocarbons at home and abroad. Per capita energy consumption is still about half that of Europe, but increased wealth means that Turkey is one of the world’s leading growth markets. Demand for energy is rising 6% each year, second only to China and far outstripping the EU’s annual increase of 1.6%. The International Energy Agency has projected energy use in Turkey will double…

Analysis

Pipelines in the sky: Plenty of plans, but so far little action
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While Turkey’s vital role as a hydrocarbons transit corridor will one day be a reality, which pipeline projects get off the ground remains to be seen. Of all the contenders competing to take gas from Azerbaijan’s Shah Deniz II reservoir via Turkey, only the Trans Adriatic Pipeline (TAP) and Nabucco West remain. The Shah Deniz Consortium plans to make a final selection between the two by June 2013, and this decision will determine the final route of Caspian gas to Europe. Gas Lines The Nabucco…

Interview

OBG talks to Gülsüm Azeri, CEO, OMV Turkey
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Interview: Gülsüm Azeri How can Turkey work to meet its 2023 energy goals? GULSUM AZER‹: Although Turkey experienced a slowdown in 2012, over the last years the country has been one of the fastest growing economies in the world. This has led to accelerating energy demand across all domestic industries. According to figures provided by the Ministry of Energy and Natural Resources, the total primary energy demand in Turkey is expected to reach 222.4 megatonnes of oil equivalent by the year 2020. As…

Analysis

Going green: A look at the alternative energy options
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A sun-kissed, wind-swept land criss-crossed by hundreds of rivers, Turkey is one of Europe’s most attractive sites for renewable power development. To date, red tape and underdevelopment of resources have clouded the investment landscape, but the government’s ambitious renewable energy targets may help jumpstart investor interest. Turkey is energy insecure, with almost half of its electricity generated by fossil fuels, of which more than 90% is imported. Renewable energy sources, such as wind…

Analysis

Revisiting old territory: A renewed interest in using coal to fire power plants
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In its search for new ways to meet the surging demand for energy, Turkey has focused on oil, gas and even nuclear power, overlooking one of its most plentiful resources: coal. In an effort to reconfigure its energy portfolio and become more energy independent, Ankara is restructuring its electricity sector, and coal figures to play an increasingly important role in the years ahead. Between 2001 and 2011, electricity demand in Turkey rose 70%, and independent analyses show that this figure is expected…

Interview

OBG talks to Alexander Medvedev, Director-General, Gazprom Export
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Interview: Alexander Medvedev What is the current status of purchasing agreements and negotiations between Gazprom and private sector gas importers in Turkey? ALEXANDER MEDVEDEV: When the contract with BOTAŞ to supply some 6bn cu metres of gas expired, we signed new contracts with four private companies for the same volume. These agreements, which were successfully implemented at the beginning of 2013, are regular, long-term, oil-linked contracts with a take-or-pay commitment. We always welcome…

Interview

OBG talks to Alexander Medvedev, Director-General, Gazprom Export
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Interview: Alexander Medvedev What is the current status of purchasing agreements and negotiations between Gazprom and private sector gas importers in Turkey? ALEXANDER MEDVEDEV: When the contract with BOTAŞ to supply some 6bn cu metres of gas expired, we signed new contracts with four private companies for the same volume. These agreements, which were successfully implemented at the beginning of 2013, are regular, long-term, oil-linked contracts with a take-or-pay commitment. We always welcome…