Global News:Turkey opens electricity markets as demand grows
No.1: Turkey opens electricity markets as demand grows
Turkey, once known for strict government planning and control of all aspects of its economy, has made substantial moves to open its markets and reduce government control of foreign trade and outside investment in power markets.
Turkey’s gross domestic product has grown an average of 6.9% over the past six years, although growth in 2009 is projected to be only 1% or 2%. The consensus is that Turkey must have immediate and substantial investment in its electricity generating infrastructure if the country is to maintain its recent impressive record of economic growth.
Though the effects of a global economic slowdown in Turkey have decreased the country’s growing demand for electricity by about 10%, the slowdown will only be temporary. Turkey’s electricity consumption per capita is a mere 3,000 kWh — less than a quarter of the consumption of some of its neighbors in the European Union (EU). Rapid urbanization coupled with a young and growing population will put strong upward pressure on electricity assets. Indeed, Turkey will have to double its installed capacity of 40,000 MW by 2020 in order to cope with expected demand growth, according to Turkey’s Ministry of Energy and Natural Resources (MENR).
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