Turkey's energy dependency to be solved with renewable energy

Energy investments in Turkey are increasing but the country needs $100 billion more in investments by 2020, the chairman of the Istanbul Chamber of Industry said Monday.

“New investments mean new employment opportunities,” Chairman Erdal Bahçıvan said in a speech at a summit organized by the Energy Commission of the Young Businessmen Association of Turkey, or TÜGİAD, and the Istanbul Technical University-TÜGİAD Renewable Energy Platform, or TİYEP, which focused on improving collaboration between universities and industry players on energy technology.

The trend toward renewable energy is increasing, Bahçivan said, adding that fossil fuel resources have a short life span, and that price increases in oil and natural gas have forced investors toward environmentally-friendly and renewable energy resources.

The European Union aims to obtain 12 percent of its energy need from renewable energy resources, Bahçıvan said.

Meanwhile, Turkey’s energy import dependency has been increasing constantly, he said. “Turkey’s import dependency in the energy sector rose above 75 percent. Therefore, it is very important to activate local energy resources and diversify those local resources. With its seasonal and natural resources, Turkey is a good candidate to become a center of green and clean energy,” he said.

“It is claimed Turkey fails to use 55 percent its hydro-energy potential, the same way it fails to use 85 percent of its wind-energy potential. The country is also failing to benefit from its geothermal energy potential by up to 95 percent,” Bahçıvan said.

“In using local energy resources, the government, investors and universities have important tasks to complete. Public resources are not enough to maintain clean and sustainable local energy production. The government is working on important policies to increase private sector investments,” he said.

“The industry needs investments worth $100 billion by 2020. These investments will also be new opportunities in terms of providing employment,” Bahçivan said.

Turkey’s crude oil imports are expected to equal $12 billion or $13 billion in 2010, said Lütfü Küçük, chairman of TÜGİAD. In 2012 this figure is expected to become $15 billion or $16 billion, he said.

“The overall energy import costs are $34 to $35 billion this year. This figure will become about $44 in 2012 with a $10 billion increase. The budget deficit for 2010 is expected to be $50 billion. On the other hand, energy resources such as, solar, wind, geothermal and water in Turkey, are clean energy resources and are waiting to be used,” said Küçük.

“We believe the solutions to problems, such as budget deficits, borrowing need and unemployment problems, lie with the development of the renewable energy sector,” he said.

Noting that Turkish business people are eager to invest in the energy sector, Küçük said: “However, this process is about to stop because of legal incompetence and ambiguities. When the rules are not certain and there is ambiguity, it is understandable not to invest in such a sector.”