Turkey Power Sector Analysis

The power sector in Turkey is a highly evolved and efficient sector, being supported by an extremely favorable and facilitative government policy and regulatory regime. The power sector is divided into three sub-sectors in Turkey, namely the generation, transmission and distribution sectors.

The power generation sector in Turkey is fully competent to meet the domestic demand. Furthermore, the country is also capable of supplying electricity to neighboring nations in Europe and Asia, as triggered by its strategic location as a Euro-Asia power hub. The total installed capacity in Turkey surpassed was around 57 GW in 2012 and future plans for further rise in this capacity, aided by rising investments from domestic and foreign companies.

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Turkey is a very promising destination for long-term power sector investments for domestic and foreign companies. The Turkish Power sector today boasts of extremely market friendly regulations, speeded up as a part of the ongoing liberalization process, which has resulted in huge capacity additions by big players in order to meet the growing present and future demand for power. The rising investment from public and private sector entities along with government focus on market liberalization will result in positive outlook for power sector in coming years.

The primary fuels currently being used for production of power in Turkey are coal and water. Other fuels that are gaining importance with time are oil, natural gas and geothermal resources. The sector is growing rapidly with Government facilitating the flow of private sector investment into the sector. The sector also has a great future owing to the rising demand for power in Turkey and nearby regions of Europe and Middle East.

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