Renewable Energy Opportunities in Turkey

Former New
York Governor George Pataki, currently counsel at
the international law firm of Chadbourne & Parke,
said that the Turkish renewable energy sector has
significant potential.
Speaking at New York’s Rockefeller Plaza, the
headquarters of the international law firm, which
has about 500 attorneys and 12 offices including
three in the U.S., Governor Pataki answered Anatolia
news agency’s questions about renewable energy
opportunities in Turkey and around the world.
Governor Pataki said that a successful panel on
“Renewable Energy Opportunities in Turkey” was
organized by the American Turkish Society and
sponsored by Chadbourne & Parke and added that
Turkey possessed significant potential in the
renewable energy sector.
Noting the need to invest $80 billion for energy
generation within the next 10 years in Turkey,
Pataki said, “as Turkey’s population grows, its
economy is also expanding and it is securing a more
important place among other countries. In this
context, electricity generation is one of Turkey’s
most significant problems.”
Governor Pataki emphasized that Turkey had
significant hydroelectric, solar and wind energy
potential, and said, “I know that Western
companies operating in the U.S. wind and solar
energy sectors are keen on renewable energy
opportunities in Turkey.”
Noting the similarities of the energy sectors in
Turkey and the U.S., Pataki emphasized that Turkey
imports 70% of its energy, especially natural gas,
from Russia and Iran, while the U.S. similarly
obtains almost 60% of its oil from external resources.
“When I consider Turkey and the U.S. in this respect,
I view renewable energy as a great opportunity
from an economic, environmental and national
security perspective,’’ Pataki said.
Governor Pataki mentioned that renewable
energy resources would encourage economic
growth, and that Turkey would benefit
environmentally from such resources as these
resources generate almost no carbon emissions.
Emphasizing the importance of renewable
energy resources for national security, Pataki stated
that, instead of depending on foreign resources for
heating and electricity (such as the U.S.’s
dependency on external sources for oil), developing
and using domestic alternative energy resources
enhances a country’s geopolitical safety.
Pataki said, “Turkey’s economy is growing and I
am very optimistic about its future. While the U.S.
still has work to do on advancing its clean energy
production, Turkey would like to do the same. For
that reason, we are experiencing a very exciting
period.”
Meeting with Prime Minister Erdogan
Mentioning a meeting with Turkish Prime
Minister Recep Tayyip Erdogan about 1.5 years ago
in Istanbul’s Dolmabahçe Palace, Pataki said that he
had a great conversation with the Prime Minister
about Turkey’s future and global political issues.
Pataki added that when he asked Prime Minister
Erdogan what the biggest issue he was facing as the
Prime Minister of Turkey was, Erdogan responded
“energy,” and stated that Turkey needed its own
resources to generate energy instead of depending
on foreign countries.
Pataki mentioned that not only Turkey, but also
countries like the U.S., Germany and other Central
Europe nations were concerned about excessive
dependence on Russian natural gas. He said, “But in
Turkey you have these resources. You rank second in
Europe for solar energy capacity. You have incredibly
strong wind resources and geothermal energy
opportunities on the Aegean and Mediterranean
coasts. Moreover, the Turkish government has
announced its support in initiating hydropower
projects. All these will advance Turkey’s
environmental adaption, economic growth and
lower dependence on foreign energy resources. For
all these reasons, we are going through an exciting
period and we have opportunities ahead.”
Renewable Energy Law Draft
Governor Pataki, indicating that Turkey’s
renewable energy law amendment is still in
progress, said the amended law should provide
sufficient incentives for investors to attract them to
this sector. Pataki added that, during the process of
amending the law, he hopes to see a discussion
between the Turkish government and the global
business community to identify the necessary steps
for attracting investors into this field.
Emphasizing that Turkey can also become a
major manufacturer of solar panels, Governor Pataki
said, “Turkey is already a manufacturing country, so
there is no reason for Turkey not to become a major
manufacturer in the solar panel sector.”
In response to a question regarding the
economic profitability of renewable energy
resources, Governor Pataki said that in the
renewable energy field, as seen specifically in the
U.S. and Germany, government incentives are
crucial in the initial phases, and that only with such
support can the businesses function economically.
Pataki gave the example that the U.S.
government can provide “cash assistance” for the
30% of the projects in the renewable energy sector,
and federal loan guarantee for the 80% of the
remaining part of the projects, thus reducing the
overall costs. Pataki mentioned that with such
government support, the energy produced from
renewable resources in different states of the U.S. is
thus priced reasonably, and that the solar energy
industry in Germany is economically advanced
through similar incentives.
Pataki noted that while the Turkish
government and parliament were aware of the
necessities of providing such incentives, and while
the renewable energy law of 2005 included certain
incentives, certain investors did not find them to be
satisfactory. Pataki further stated that he hoped to
see the new draft of the law providing the necessary
incentives to drive investments into Turkey, leading
to the growth of the renewable energy sector.
Pataki said that he served as the Governor of
New York for three consecutive terms for a total of
twelve years, and after his service, he decided to join
an international firm that had an active practice in
the ‘‘renewable energy’’ industry, with global
experience particularly in emerging markets, and
that Chadbourne & Parke is especially strong in this
business.
Governor Pataki stated that Ayse Yüksel, head of
Chadbourne & Parke’s “Turkey, Middle East and
North Africa (Turkey/MENA) Group” was highly
successful, that the firm had 5 Turkish lawyers, and
that the firm was involved in important projects in
Turkey.
In response to a question relating to the use of
renewable energy resources in the struggle against
global climate change, Pataki indicated that the use
of such resources is a significant and positive step
towards “a reduction in the dependency on the old
and dirty technology.” Former Governor of New York
said that while countries grow their economies and
expand their energy resources, such countries and
the international communities will benefit from
the usage of zero-carbon emission energy options
such as solar, wind, and other renewable energy
resources.
Pataki also expressed that renewable energy
resources help maintain a resource balance around
the world, such that by using these new resources,
the world can prevent certain countries from having
a energy-exporting monopoly and earning excessive
profits from the countries that lack the domestic
energy resources.