Turkey to de­velop en­ergy market model safe from cur­rency volatil­ity

Daily Sabah (Turkey) - - Business -

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 IN­CREASE

Al­bayrak 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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