Turkey: 2013 Turkey Energy Report


Turkish economic growth that had been going on for more than a decade have created a strong economy that is based on high demand for energy. However as a country that is heavily dependent on energy imports Turkey is investing on the means that will provide it with a more diversified energy base. This report is intended to provide an extensive analysis of such an effort on the part of Turkey by laying out the energy map of the country. It puts a specific emphasis on combining the sector specific dynamics with the legal knowledge of the Turkish energy market. The report should be read in conjunction with the recent developments in the region including new discoveries of energy resources in the Eastern Mediterranean and their resonances for the Turkish energy policy as well as the energy policies of the regional players.


Turkey's Economic Outlook 2013

Turkish economy has been growing in unprecedented rates during the course of the last decade. Its macro economic restructuring and reforms following the economic crisis of 2002 had paid off and led the country to an economy based on solid macro-economic foundations. Throughout the last ten years the country has been increasingly associated with the emerging economic power houses of BRIC and has been regarded as an economic hub in its region.

  • GDP per capita increase from 3,492 USD in 2002 to 10,497 USD in 2013
  • Economic growth by 3.6% in 2013
  • Inflation rate 7.4% in 2013
  • Annual Exports of 151.3 USD billion in 2013
  • Annual Imports of 248.3 USD billion in 2013
  • Budget deficit to GDP 1.2%

Political Analysis

Outstanding Turkish economic performance which has spread out to the last decade has a keen connection with the political situation in Turkey. Once a country of an unstable politics that is marked by ever changing coalition governments, Turkey has managed politically to transformed itself in to a stable and reliable country with a single party government capable of implementing much needed political and economic reforms. Throughout the last decade Turkey had experienced no major political crisis and the stable political situation had found an expression in the country's unprecedented economic growth almost reaching double digit numbers in its heyday.

The year 2014 is a year to watch for the Turkish politics to see if the country will continue to proceed in a stable course or two ballot boxes that will be brought before the Turkish electorate will change the political landscape in Turkey. Turks will go to the polls both in March 2014 local elections to determine who will run the Turkish cities and August 2014 to directly elect their President for the first time in their history. What is crucial for these two elections are two events that have the potential to change the Turkish politics.

Turkish Energy Market in Perspective

  • Turkish energy market has been structured through the liberalization policies of Turkish government with intent to form a competitive energy market.
  • Despite the latest monetary policies of Central Bank of Turkey on interest rates which were implemented against to currency risk, Turkish electricity consumption rate is estimated to mount up to 4.5 % annually in parallel with GDP.
  • Turkish natural gas market is sharply expanding with substantial privatizations in recent years. In line with economic growth, Turkish natural gas consumption augmented circa 5% compared to 2012.
  • Electricity consumption performed a sustainable growth throughout 2007 to 2013. Although it was very soft winter season last year, the electricity consumption increased 1.3% in 2013. This is a fundamental indicator that electricity demand is mostly related to industrial consumption.

Overall Distribution of Energy Resources

  • Turkey has become one of the fastest growing energy markets in the world and has been experiencing rapid demand growth in all segments of the energy sector for decades.
  • Turkey comes in possession of the most dynamic energy economies of the world in terms of increase in energy demand.
  • Having a substantial potential for the renewable energy resources, Turkey ranks seventh in the world and first in Europe in terms of geothermal energy.
  • Turkey aims at further increasing its use of hydro, wind and solar energy resources and Turkey has potential producing 30% of its electricity need from the renewable by 2023.
  • Turkey is geographically located in close proximity to more than 70% of the world's oil and gas reserves.
  • Annual electricity generation is approximately 179, 5 billion kWh in Turkey.
  • Renewable energy and energy efficiency projects are assisting to reduce CO2 emissions in Turkey by more than 3 million tons annually.
  • Turkey has different kinds of energy sources which Turkish energy sector is becoming more active, competitive and attracting the attention of investors.

Annual energy consumption

In comparison with 2012, annual electricity consumption in Turkey has risen by 1.3% and climbed to 245K GWh. The highest energy consumption revealed on July by 22K GWh due to the cooling off items usage.

Total Energy Supply Sources

Energy Generation

  • Electricity demand has been growing in line with economic developments which driven by industrialization and urbanization in Turkey.
  • Growing demand is driven by population and industrial growth which in emerging markets calls for a rise in the supply capacity as well as diversity in the energy generation mix.
  • Diversification of primary energy supplies decrease dependency on a single source and contributes to supply security.
  • Developing countries which is Turkey to constitute 93% of the growth in demand.
  • According to the International Energy Agency (IEA), shale gas caused a decline in gas prices which increase the demand on natural gas and LNG.
  • Turkish electricity market has been increasing in size with its economic developments which industrialization and urbanization make room for the importance of electricity in Turkish market.
  • The Turkish electricity market is one of the fastest growing in the world with an average of approximately 9% annual growth in 2010 and 2011.
  • Turkish electricity market play a crucial role in terms of natural gas demand since it is expected to grow by 2.9% annually until 2020 according to the Ministry of Energy and Natural Resources.
  • Turkey has the second highest energy consumption growth after China and is highly dependent on external energy resources.

Energy Imports

  • There is a competitive global market place in which energy cost is a significant competitive factor. Turkish economy is an aim of becoming more competitive in the global market place.
  • The geographic position of Turkey and its proximity to the energy sources is its biggest asset.
  • The energy intensity of Turkish industry is higher than any modern standard. Energy intensity of Turkish industry is two times higher than the OECD average and four times higher than Japan's average. Turkish industry has to increase energy efficiency in production and increase the share of the renewable energy in its energy mix in line with the EU regulations and standards.
  • Turkey is located in a region that holds 72% of the world's proven gas reserves and 78% of proven oil reserves. Countries to the west of Turkey consume 50% of world's oil and natural gas while countries to the east produce 70% of world's oil and natural gas.
  • Turkey is located at the crossroads of energy in the middle of five seas. In regard to this, this position makes Turkey an indispensable energy corridor between the two regions of energy production and consumption.
  • The limits of Turkey's domestic energy sources in light of its growing energy demand have resulted in dependency on energy imports, primarily of oil and gas.
  • Turkey aims at fully utilizing its indigenous hard coal and lignite reserves, hydro and other renewable resources such as wind and solar energy in order to meet the demand growth in a sustainable manner.
  • Integration of nuclear energy into the Turkish energy mix is also one of the main tools in responding to the growing electricity demand while avoiding increasing dependence on imported fuels.
  • Turkey imports about 90% of the hard coal mainly from Russia, Australia and the United States. The volumes of imported coal will rise in the future as coal's importance for electricity generation increases.
  • Turkey's lignite reserves make a significant contribution to Turkey's energy sector and power mix. The government has begun a policy to encourage exploitation of Turkey's domestic lignite reserves instead of natural gas for electricity generation.
  • Progress in the liberalization process allowed Turkey to be a part of European markets in which political integration exists. After Norway, Russia, and Algeria, Turkey aims to become the fourth artery in energy imports.

Legislative Framework Summary

Legislation in Turkish energy market has been amended within the scope of the adaptation of Turkish Law with the European Union's Directives and Regulations and within the frame of the energy market liberalization policies. The energy market legislation supports the access of private sector companies into energy market and accordingly, the energy market has been opened to competition to a large extent. The most essential is that the legislation has been amended in accordance with the changes and requirements in each market. The last legal reforms have been made in Natural Gas Market.

Electricity Market

Oil & Gas



Renewable Energy

Due to the Resolution of the Council of Ministers from 05.12.2013, the support mechanism for power manufacturing from renewable resources, feed-in tariffs and local equipment incentives have been extended to 2020.

Nuclear Energy

To read this Report in full, please click here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.