Foreword
Turkish electricity sector experienced several challenges over the last 3 years.
Unlike most other countries, electricity demand in Türkiye stood firm at the face of Covid-19 pressure. 2021 saw a rapid increase in electricity consumption due to a rebound in economic activity as Covid-19 impact started to neutralize. Like all other countries in Europe, Türkiye experienced soaring electricity prices especially during the last quarter of 2021 and throughout 2022. The depreciation in Turkish lira only added to increasing electricity prices and authorities had to take certain measures to control the inflationary impact on corporates and households. Despite all challenges, regulators and investors continued to announce new investments, targets and legislations to organize the introduction of new technologies and services into the ecosystem, which are overall intended to support the adoption of renewable energy technologies on a more widespread and sustainable scale. Regulators strongly outspeak their commitment to Türkiye's net zero targets and Türkiye is closer, than ever before, to experiencing a significant increase in the field of new activities supporting low-emission and sustainable green electricity.
PwC Türkiye updated this public document, first issued in 2020, to factor in the latest developments Türkiye experienced through 2022 and 2023 in its electricity sector. This document is intended to provide background to dynamics constituting the electricity sector whilst also elaborating on the latest developments. The information in this assessment is collected from various public resources controlled by market regulators, all of which possess high standards of transparency.
We hope the industry stakeholders as well as all other parties find our research useful in understanding the dynamics of the Turkish Electricity Market. Our sole purpose in publishing this research is to be able to help raise more awareness among the public towards the Turkish Electricity Market and contribute to its development by creating another source of clearly visualized and explained industry data.
1 Market Background& Timeline
The development of the Turkish electricity market can be split into three stages. Market is in the late Growth Stage, setting the screen for Green Transition Chapter, during which main focus will be on decreasing carbon emissions at the face of growing electricity demand.
Türkiye's commitment to Green Transition can be best observed in the National Energy Plan prepared and submitted in May 2022.
In October 2021, Türkiye has signed the Paris Agreement and subsequently announced its commitment to achieve an economy with Net Zero Greenhouse Gas emissions by 2053. National Energy Plan summarizes MENR's perspective on targets that need to be met until 2035 in order to secure the achievability of 2053 vision.
Footnote
1. June2023 Installed Capacity Data
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Originally published in September 2023
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.
