Turkey 2021 Energy Policy Review

Abstract

The International Energy Agency (IEA) regularly conducts in-depth peer reviews of the energy policies of its member countries. This process supports energy policy development and encourages the exchange of international best practices and experiences. The guiding principles of Turkish energy policy continue to be market reform and energy security. Rapid economic and population growth in the past two decades have not only driven strong growth in energy demand but also an associated increase in import dependency. Turkey has prioritised security of energy supply as one of the central pillars of its energy strategy, including efforts to boost domestic oil and gas exploration and production, diversify oil and gas supply sources and associated infrastructure, and reduce energy consumption through increased energy efficiency. Turkey has seen considerable diversification of its energy mix in the past decade, in particular through the growth of renewable electricity generation. The commissioning of Turkey’s first nuclear power facility in 2023 will further diversify the country’s fuel mix. Notwithstanding many positive changes Turkey has made toward liberalising its energy markets and diversifying its energy sources, the government should ensure that policies in place to bolster energy security – including growth in coal-fired generation and support for various forms of electricity generation – do not impede the economic efficiency of markets and the country’s longer-term decarbonisation efforts. In this report, the IEA provides energy policy recommendations to help Turkey smoothly manage the evolution of its energy sector.