Global energy crises and regional conflicts are threatening energy supply security, but Turkey’s new energy strategy is drawing attention: „More Local, More Renewable.“
Turkey is accelerating its steps towards renewable energy sources and domestic production to meet the rapidly increasing energy demand. By reducing energy imports by 28.4% in 2023, Turkey has increased the share of renewable energy to over 55%.
With the commissioning of the Akkuyu Nuclear Power Plant in 2024, Turkey aims to further diversify its energy portfolio to strengthen supply security.
Global issues are impacting energy supply security significantly. While some urgent pressures from the global energy crisis have eased, conflicts such as the ongoing Russian occupation in Ukraine and long-standing conflicts in frozen conflict zones, especially in the Middle East, pose a risk. The recent tensions between Israel and Iran in Lebanon and their effects on oil and natural gas exemplify this. The macroeconomic mood, persistent inflation, higher borrowing costs, and rising debt levels are exacerbating the situation. Ensuring energy supply security and accelerating green transformation, increasing renewable energy production capacity, and improving energy efficiency have become strategically more important.
In the energy investments expected to reach 3 trillion USD in 2024, Clean Energy investments are projected to be twice as much as fossil fuels. Investments in renewable energy to achieve net-zero emission goals have increased by 40% since 2020. By 2024, renewable energy investments are expected to reach around 2 trillion USD, doubling the investments in fossil fuels. Investments in clean energy technologies such as grids and storage now exceed the total spending on oil, gas, and coal.
For example, investments in Solar PV (503 billion USD in 2024) now surpass the total of all other production technologies. In 2023, every dollar invested in wind and solar PV provided 2.5 times more energy output than a dollar spent on the same technologies a decade ago. Investments in nuclear energy are expected to recover by 2024, reaching around 80 billion USD.
While investments in clean energy are increasing, investments in oil and gas are expected to return to 2017 levels in 2024. (After a 9% increase in oil and gas investment in 2023, it is expected to reach 570 billion USD with a 7% increase in 2024.)
China is making massive investments in the sector, with Emerging Markets and Developing Economies (EMDE) outside China accounting for only about 15% of global clean energy spending. China is expected to spend around 680 billion USD on clean energy (mainly solar panels, lithium battery production, and EV production) in 2024. The United States is expected to exceed 300 billion USD in clean energy investments in 2024, while the European Union’s expectation is 370 billion USD. Affordability and durability are becoming key words for the future, as the share of renewable energy in electricity generation is increasing day by day. Improving energy efficiency, security, and affordability is becoming an increasingly global focus.
While vigilance regarding oil and gas security is the main issue during clean energy transitions, measures vary from region to region. Many countries are placing more emphasis on increasing the share of renewable energy in electricity generation, promoting electric vehicle sales (with one in every five vehicles being electric today compared to one in twenty-five in 2020), and improving energy efficiency. According to the International Energy Agency (IEA) report, nearly 700 billion USD has been spent on energy efficiency investment support since 2020. Many countries have adopted policies that encourage diversification of supply chains for clean energy technologies.
For example, policies such as the Inflation Reduction Act in the US or the Net Zero Industry Act in the European Union that promote clean energy technology production have been enacted. On the other hand, IEA estimates show that renewable energy sources will surpass coal as the dominant electricity source by 2025.
In Turkey, the rapid economic and population growth in the last twenty years has not only led to a strong growth in energy demand but also necessitated a restructuring of the energy system to rationalize Turkey’s energy demand growth, reduce energy prices, and slow down the growth rate of imports. Especially in the last decade, Turkey has achieved significant diversification in its energy mix.
Renewable electricity generation has tripled in the last decade, and the commissioning of Turkey’s first nuclear power plant in 2024 indicates further diversification of its fuel mix. However, fossil fuels, especially oil and gas, continue to dominate Turkey’s economy with a heavy dependence on imports.
With its dynamic economy and young population, Turkey is continuously increasing its energy demand. In line with the „More Local, More Renewable“ strategy, significant activities have been carried out between 2019-2023 to increase the share of local and renewable energy sources in the energy portfolio and to carry out energy and natural resource activities in a secure, value-added, and environmentally compatible manner.
Looking at the activities carried out, Turkey’s energy imports in 2023 decreased by 28.4% compared to the previous year, reaching approximately 70 billion USD. In addition to the existing lignite reserves, efforts are being made to gradually reduce external dependence on primary energy by exploring and developing natural gas and oil reserves discovered in recent years.
To meet the increasing energy demand as much as possible with its own resources, Turkey has increased the share of local and renewable sources in electricity production during this period. In 2023, Turkey increased its electricity installed capacity to over 106,000 MW, with the share of local sources at 66% and renewable energy at over 55%. Turkey sourced 57% of its electricity from local sources and 42% from renewable sources.
The Akkuyu Nuclear Power Plant, Turkey’s first nuclear power plant, received its first nuclear fuel in 2023. When completed, the plant with a total installed capacity of 4,800 MW will meet approximately 10% of Turkey’s electricity needs, with the first unit planned to be commissioned in 2024. As of June 2024, the number of electricity generation plants in Turkey has increased to 25,948 (including unlicensed plants).
Of the existing plants, 763 are hydroelectric, 69 are coal, 369 are wind, 63 are geothermal, 3,359 are natural gas, 23,851 are solar, and 474 are from other sources. In parallel with the development of electric vehicles in Turkey, the number of charging stations reached a total of 9,297 charging points by the end of September 2023. Considering Turkey’s rapidly increasing energy demand, ensuring supply security without jeopardizing it, utilizing local energy sources, increasing renewable energy production (an urgent area for action for Turkey according to the World Energy Council 2022 report), including new areas in the production portfolio including nuclear, and improving energy efficiency will remain a priority in the future.
In conclusion, Turkey’s energy outlook is evolving with a focus on increasing the share of local and renewable energy sources to meet the growing energy demand while ensuring supply security and sustainability. The country’s strategic shift towards more local and renewable energy sources is a step in the right direction to achieve a more sustainable and secure energy future.
Emrah Özgül / Energy Expert
Source: Haber7
Fuat Öner
Haber7.com – Responsible Editor / Publishing Coordinator
About the Editor
Born in Istanbul in 1989, Fuat Öner graduated from Hatay Mustafa Kemal University with a degree in Internet Journalism and Publishing and Eskişehir Anadolu University with a degree in Business Administration. He completed his master’s degree in Social Media Management at Marmara University. Öner entered the media sector in 2008 and held various positions at Star TV and Habertürk newspapers. In 2012, he joined Kanal7 Media Group as a news editor and currently serves as the Publishing Coordinator at Haber7.com. He is married and a father of one.