ECONOMİC AND POLİTİCAL ANALYSİS OF TURKEY ENERGY SECTOR

AND WİND ENERGY ANALYSİS

MERT KILIÇ

INTRODUCTION

For Turkey,whose energy neeeds are increasing rapidly every year,fundamental changes were
needed in the energy sector in order to maintain the supply-demand balance.Opening the
electricity,natural gas and oil markets to made to liberalize,opening them to competition and
separating them from the integrated structure that has existed for years came to the fore.

As a consequence of the ever-increasing demand for energy and inadequacy of state investments to
meet this demand ;significant progress on the promotion of foreign investments,development of
rebewable energy resources,diversification of primary energy resources and implemetation of energy
efficiency have been made;therefore,substainal changes have actually brought abaout some
economical and/or legal problems.

According to the latest economic and political situation of Turkey,we can evaluate the current
problems of Turkey in the energy sector in 10 basis sections.

1)DEPENDENCE ON OTHER COUNTRIES IN ENERGY

In terms of primary energy sources, dependence on the outside is seen as a problem in Turkey by
industrialists, businessmen, NGOs(non governmental organizations), consumer associations, political
parties and many other organizations and people. As a result of the inability of domestic production
to meet consumption, the difference was tried to be compensated by imports. Thus, Turkey's
increasing energy demand has raised the issue of dependence on energy. This has led turkey to
become one of the countries most affected by rising world oil and gas prices in energy. In the
previous scenarios and forecasting scenarios, demand for oil will continue to increase in the coming
years.

Resource: https://www.iea.org/fuels-and-technologies/oil

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Although Turkey is close to natural gas and oil regions in terms of geopolitical position, it does not
maintain its current advantage well.

Resource: https://www.iea.org/fuels-and-technologies/oil

In the country, which has become dependent on external sources in primary sources, the price of
electricity, which is a secondary source, is increasing in parallel. Another big problem that occurs as a
result of dependence on the outside is annual acquisition obligations, a.other name (take-or-pay)
obligations. As a result of these obligations, it undertakes that it will not fall below certain purchase
quotas as a result of the agreements or it will pay for the part that is not purchased. Usually in
contracts, this price is 75%. In addition to this method, the fact that the price to be paid cannot be
made for goods or services and cannot be sold to 3rd countries increases their negative effects on
the country.

2) INABILITY TO EFFECTIVELY EXPAND THE USE OF RENEWABLE ENERGY RESOURCES

Another major problem of Turkey in the field of energy is its inability to expand the use of renewable
energy sources. The future depletion of fossil fuels has led countries towards renewable energy
sources, and states have begun to take concrete steps to use these resources. In terms of type, the
introduction of subarnative energy sources such as solar wind and wave energy, hydraulic and
geothermal energy, biomass are the issues that have been emphasized in recent years. In order to
encourage the dissemination of these energies in Turkey, the law no. 5346 on the use of renewable
energy sources for the production of electrical energy was adopted on 10.05.2005. It has been stated
that the aim of the law is to expand the use of renewable energy sources, to bring these resources to
the economy in a reliable, economical and quality way and to increase the diversity of resources.

According to the IEA report on recent developments;Renewables

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*Turkey has experienced impressive growth in renewables in the past decade (notably solar, wind
and geothermal), driven by a favourable resource endowment, strong energy demand growth and
supportive government policies. In particular, renewable electricity generation has nearly tripled in
the last decade, and its share in total power generation reached 44% in 2019 (including notable
growth in distributed solar generation). As such, Turkey has already exceeded its target of 38.8% of
power generation from renewables set out under the Eleventh Development Plan (2019-2023).
Turkey aims to continue to promote the expansion of renewable energy resources and will
commission 10 gigawatts (GW) each of solar and wind capacity in the period 2017-27.

Under the Renewable Energy Support Mechanism (YEKDEM), Turkey offers feed-in tariffs for
renewable power plants, including wind, solar, biomass, hydro and geothermal. Additional support is
provided if plant components are manufactured in Turkey. The scheme will expire at the end of June
2021 and the government is currently deciding on a new mechanism to replace it. According to the
Presidential Decree published on 18 September 2020, the implementation period for the YEKDEM
scheme was extended by six months until 30 June 2021 due to construction delays stemming from
the COVID‑19 pandemic. Renewable electricity generators can benefit from YEKDEM if commissioned
before 30 June 2021 and if they apply to the Energy Market Regulatory Authority for the guaranteed
price.

In 2016, the government introduced Renewable Energy Resource Areas (YEKA), a tender process for
larger scale renewable energy projects in renewable energy zones, which are deemed most suitable
for renewable power generation. To date, the support schemes have been successful in driving
sizeable new investments in renewables, and the government has demonstrated a willingness to
adjust the terms of the auctions for future projects to ensure investor interest. Such a planned
auction of smaller capacities is planned toward the end of 2020.

Though the targets of 10 GW each of additional solar and wind are commendable, there are likely
more sizeable volumes that Turkey could achieve given its considerable resource endowment. As
such, Turkey could look to further raise the ambition of its targets. In particular, the IEA encourages a
higher expansion of wind, given its low costs.

Beyond electricity, both solar and geothermal energy used for heating have more than doubled
within a decade, but growth has stalled since 2015. Turkey is among the leading countries for solar
water heater installations, notably in the absence of subsidies or policy support. However,
technology and infrastructure quality needs to improve significantly to maximise its potential,
especially given its geographical location and favourable irradiance conditions. The sizeable share of
energy consumption in buildings also offers untapped potential for other renewables, such as direct
geothermal and heat pump applications.*

*Resource:Key World Energy statistics-(2021 March Report):Renewable energy,expanding domestic

energy production

3) STATE INCOMPETENCE AND THE WILLINGNESS OF THE PRIVATE SECTOR IN INVESTMENTS IN THE
ENERGY SECTOR

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As a result of the huge costs of investments in the capital-intensive energy sector, sufficient financing
must be provided in order to make these investments. Investments in the Turkish energy sector were
sufficient until the 1980s, but with the increase in energy needs, the rate at which public investments
met demand decreased. The laws aimed at the introduction of the private sector were enacted
during this period, but the latest model, the Build-Operate-Transfer model, which covers not only the
energy sector but also in different sectors, has emerged. However, the biggest problem in this model
is not competition within the market, but competition logic for the market. Finally, in 2001, a major
reform was introduced, and a new law was introduced that was largely compatible with the
communautaire. However, the private sector has been reluctant to produce electricity on the
grounds that there is no take-or-pay, bringing down private sector investments in the hope of a
guaranteed resale contract.

4) EXISTING CONTRACTS

Take-or-pay agreements have been signed for the purpose of building-operate-transfer model signed
in electricity generation markets and investment incentives of the long-term private sector. However,
the high prices envisaged in these contracts have made it mandatory to buy at high prices despite the
fact that the price of electricity has fallen. This situation causes great problems in the system. Instead
of thermal power plants producing with an average of 3 USD cents, electricity had to be obtained
from the system that sold 10-12 USD cents. In addition, the selection of plant locations has led to
increased energy costs, loss and leakage rates as a result of the companies' determination. The
acceptance of the amount of investment in private companies, regardless of whether it does not
balance the equity return rates, has caused significant financial losses in Turkey in recent times.

5) HIGH RATES OF LOSS AND LEAKAGE IN THE ELECTRICITY MARKET

It is a situation in which all electrical energy used is not paid in monetary value. Among the reasons
for this; There are technical problems and losses when carrying electricity by high-voltage lines, as
well as people who use electricity and set up an illegal voltage line to avoid paying for it, which has
been a very serious problem.

Average leakage and lost electrical energy rates on the map of Turkey;

Resource: https://www.ensonhaber.com/gundem/turkiyede-kacak-elektrik-kullanim-haritasi

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In this case, it introduced cross subsidization, which is cross-region in Turkey, to balance high loss and
leakage rates. In this case, it created extra costs for the consumer who paid his taxes and electricity
fees.

6) PRICE POLICY AND REGULATED DATES IN THE ELECTRICITY MARKET

With the price policy and tariffs implemented in the electricity market in Turkey, serious losses have
been made in the production market and in the realization of new production investments. In order
to create an affordable environment for the investor, a cost-based pricing should be made; a realistic
price should be determined taking into account investment cost, maintenance cost, fuel cost,
transmission cost, taxes, insurance costs, loss leakage rates and reasonable profit of the investor. As
a result of the failure to determine the price policy in Turkey in this way, investors have become
unable to produce and it is not possible to continue the work in a system where the investor does
not make a profit by not reflecting this increase in electricity wholesale and pareken sales tariffs
while increasing the cost of the primary source they use in production facilities.

Turkey's energy tariff research on pricing is conducted by experts:

*The Strategy Paper introduces a tariff structure that aims to provide a smooth transition from a
national to a genuinely regional cost-based approach, so that sudden price fluctuations may
beavoided, since regional cost-based end user tariffs vary significantly due to wide variation of
distribution cost centres. In line with the priorities and structural requirements for a smooth and
gradual transition, the first implementation period (the interim period) is set at five years from 2006
to 2011. The pre-determined revenue requirements and their conversion into the tariff menu
prepared by TEDAS have been approved by EMRA, and came into force in 1 September 2006 These
allowed revenues have also been enforced through certain operating performance parameters, such
as the loss and Xefficiency targets embedded within the end user tariff components. The total
investment amounts and their amortization have also been calculated and included in the revenue
requirements. Within the framework of the proposed tariffs, fewer customer groups are defined
compared with the number of previous customer classes and tariffs for each customer group and
cross-subsidization between groups are set for a five year period in a transparent manner. Since the
tariff proposal is in some respect at variance with current regulations set by of EMRA, new rules have
been published by EMRA, updating revenues in line with inflation and adjusting in order to take
account of demand fluctuations.* (TEDAS:Turkey electricity and distribution,EMRA:Energy Market
Regulatory Authority)

*References:Necmiddin Bagdadioglu and Necmi Odyakmaz 31 August 2007 (Department of Public

Finance, Hacettepe University, 06800 Ankara, Turkey ,E.ON Holding, Armada Business Centre, 06520
Ankara, Turkey)

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7) FAİLURE TO COMPLETE PRİVATİZATİONS AND TRANSFERS

Great importance has been attached to making arrangements for the increase of the effectiveness of
the private sector in the audit and guidance activities of the public. In this way, it is aimed to move
from the operating state model to the regulatory state model, where there are energy CISes that
carry out energy investments in person. The privatization of some publicly owned assets and the
transfer of certain contracts to the private sector, of which the public is a party, were among the
basic practices in the transition to the regulatory state. However, the desired competitive
environment has not been created and as a result of the lack of expected interest in privatization,
there has been a significant problem area in the electricity market.The strategic behavior of private
producer companies that do not contribute to a system other than closing the energy deficit arising
from bilateral agreements is working in a competitive environment of the electricity market, causing
the targets of lower prices and increasing supply to be shelved.

*Strategic behavior; It can be defined as a set of behaviors that a company performs to maximize its
profit ratio by affecting market conditions such as price, quantity, advertising *

*Reference:CARLTON,D and PERLOFF,J(2005),Modern Industrial Organization,Person Adisson Wesley

Press,4th edition,USA,page 350.

8) EXCESSIVE VALUE ADDED AND SPECIAL CONSUMPTION TAXES RECEIVED FROM FUEL

In Turkey, excessively high taxes are charged on energy sources, especially fuels. Apart from the
transportation costs and the profit margin of the fuel dealers, the entire difference between the exit
price of the refinery and the price received by the end user constitutes value added tax and special
excise tax, which has increased to over 70%.92% is imported in fuel products.

* As long as there is no competition in the import market, it makes it possible to create competition
in the wholesale market where private sector companies will operate through contract transfer, but
since there are political, diplomatic and economic obstacles to creating competition in the import
market in the short term, the contract transfer process has an important role in the process of
liberalization of the market. *

*Reference:BÜLBÜL,M.O(2010),Liberalization of Turkish Natural Market,Rekabet

Dergisi,No:11(1)Page:23-29

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Resource: https://tradingeconomics.com/turkey/corporate-tax-rate

In our current chart, there is a trend of continuous tax increase according to trend line tracking.

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Resource: https://tradingeconomics.com/turkey/indicators

9) FUEL SMUGGLING

As a result of the state's weakness in collecting direct taxes, high special excise taxes were envisaged
for a number of goods and services, including fuel products, resulting in a distorted taxation policy.
Due to the high taxes on fuel, the problem of fuel smuggling has been raised. Fuel smuggling causes
tax losses and causes unfair competition to the state; distribution companies and fuel dealers as a
result of unfair competition by not paying taxes; market economy because it is moved away from a
fair competitive environment; and the wear of the engine parts of vehicles using illegal fuel, causing
great damage to citizens; and to the environment and wildlife due to the high sulfur content it
contains.

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* Energy supply security and diversity; ensuring security of supply and diversifying supply sources, as
well as ensuring that sufficient amounts of energy resources can be accessed from a consistent price
and stable source, through transportation facilities that are not de facto threatened and within the
framework of fair distribution.*

*Reference: ASIF, M. ve T. Muneer (2007), Energy supply, its demand and security issues for
developed and emerging economies, Renewable and Sustainable Energy Reviews, Volume 11, Issue
7, September, ss.1388- 1413, http://www.sciencedirect.com/science/article/pii/S13640321060000
49 (22.11.2011).

10)ENVİRONMENTAL POLLUTION

Environmental, air and water pollution caused by increasing energy use in Turkey with the whole
world is becoming an increasing problem. Therefore, unlike previous problem areas, the solution of
environmental pollution is on the agenda of Turkey as well as in the whole world. *As a result of
energy problems having a key role in achieving environmental goals, environmental concerns can be
experienced in both the production and consumption of energy. Harmful gases such as CO2, SO2,
CH4, which have a very large place in energy production, are released, which also cause a green
house effect that leads to climate changes.*
*Reference:BRADBROOK,A(1996) ‘Energy Law as an Academic Discipline’,Journal of Energy and
Natural Resources Law,NO:14(2), page:215.

In this context, imported coal was used for the first time in 1986. For a while, subsidies were applied
to imported coal in order to prefer coal, which has a higher price than domestic coal, to the people.

Resources: https://www.americanprogress.org/article/turkey-can-ensure-successful-energy-

transition/

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1.1) POLİTİCAL SOLUTİONS TO 10 KEY PROBLEMS İN TURKEY'S ENERGY SECTOR

a) It is necessary to diversify the energy sources and increase productions. Diversification of

resources is necessary to reduce the risks posed by dependence on any resource. For example,
entering nuclear energy to reduce dependence on natural gas in electricity supply. Increasing other
scanning production is gaining importance in terms of evaluating domestic resources. But as
everyone knows, the budget for investments in the energy sector is quite large. Therefore, foreign
investors should be encouraged to enter the energy sector as long as it is controlled.

b) The second proposal relates to a review. The increase in the promotion and use of subarnative and
renewable energy sources is naturally linked to the diversification and production of energy sources.
Hydraulic, wind, geothermal and biomass energy, which is one of the existing renewable energy
sources of Turkey, can be easily used at a higher rate with some incentives and regulations of the
state. In Turkey, the estimated hydraulic potential is 1/3 of the hydraulic potential, and the potential
of wind and geothermal energy is now 1 in 10. Even if it is not possible to meet all the electricity
needs if used in all its potentials, they should not be neglected because it reduces added value
creation and dependence on imported resources.

c) Efficient use and saving of energy should be encouraged. Ministry of Energy officials state that
there will be at least a 20% reduction in energy use in this way. The Productivity Act of February 2007
is an important step in this path and strengthens the legal infrastructure. But it's not about having
the law, it's about enacting it. The preparation of regulations with the law, the configuration of the
relevant institutions and coordination should be carried out quickly. In addition to preparing the legal
infrastructure, another move that should not be neglected at all is to educate and raise the
awareness of the society about the efficient use and saving of energy.

d)Unfortunately, apart from academics and local people in Turkey, environmental and air pollution
problems that do not attract much attention from the society in Turkey have to be taken into
consideration. While developed countries are trying to find solutions for carbon dioxide emissions
and climate change problems caused by the use of fossil resources, it is a serious problem that this
situation is not taken seriously in Turkey and no serious steps are taken in this regard.

e) The creation of an infrastructure less affected by the changes and negativity of the global energy
supply system in Turkey should be another important goal. For example, storing natural gas and oil
underground is of strategic importance. Given that the demand for natural gas and oil will continue
to increase in the future, the issue of the creation of strategic natural gas and oil reserves should
definitely be included in the energy policy. In the above proposals, the main task in carrying out the
targets falls to the government. Governments; in addition to providing the necessary support for
basic research and commercialization of attractive technologies, it is in a position to create the right
policy infrastructure and environment to encourage new research and development initiatives of the
private sector and investments within the energy supply chain.

f) Overcoming technical problems will be realized with the contributions of scientific disciplines. It is
only possible to develop and economically develop and economically develop the technologies of
resources that may be alternatives to fossil fuels by carrying out and maintaining research studies.
The provision of domestic technological breakthroughs in Turkey, whose technology is dependent on
the outside, can only be achieved with the right state policy. In line with the objectives in the policy,
certain centers should be configured for research, and the relevant institute-type units in universities
should be supported towards the targets set in the energy policy.

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 *In addition, it is often discussed in the literature that the production volume in this field will expand
with the support given to the renewable energy market and that a significant amount of income can
be generated from exports in the future with this expansion.*
*Reference: AYDIN, L. ve M. Acar (2011), Economic impact of oil price shocks on the Turkish economy
in the coming decades: A dynamic CGE analysis, Energy Policy, Volume 39, Issue 3, March, ss.1722
1731, http://www.sciencedirect.com/science/article/pii/S03014215110001 03 (22.11.2011).

A) TURKEY'S KEY SYSTEM FOR WIND ENERGY

Many practical studies evaluating alternative energy sources in Turkey as economical, environmental
and current potential show that wind energy is the best source for the economy and environment in
the face of other subarnative energy sources. As a result of a study,
*The effectiveness of energy sources for electricity generation in Turkey was evaluated by 'Dual
Fuzzy Data Enveloping analysis' in 11 different criteria and it was concluded that wind energy is the
most environmentally and economically efficient energy.*
*Reference: ÖZYİĞİT,T.M.N. Serarslan and E.E Karsak(2008),Türkiye’de Elektrik Üretimi için Enerji
Kaynaklarının Etkinliğinin Değerlendirilmesi ITU Dergisi page:55-66

Since the problem related to environmental pollution is expected to grow in parallel with time, policy
proposals have been presented to increase wind energy investments instead of thermal power plants
powered by fossil fuels in order to ensure that the increasing energy needs in Turkey are compatible
with sustainable development. The focus is on three main issues: calculating the emission reduction
gain to be achieved as a result of increasing wind energy investments in Turkey, then determining the
production cost gain to include external costs and finally finding employment gains. However,
turkey's average annual wind energy power must be calculated by region before these issues can be
calculated. This measurement;

Resouce: https://journals.sagepub.com/doi/pdf/10.1260/0144-
5987.23.1.51#:~:text=The%20technical%20potential%20of%20Turkey's,Europe's%20installed%20cap
acity%20in%202001.

B)TURKEY ENEGY REPORT WİND ENERGY

According to the latest data general report of private news organizations in Turkey and the
mechanism for supporting renewable energy sources (YEKDEM);Turkey’s wind capacity and

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equipment production has grown to the extent that it now ranks as one of the 10 biggest markets
globally.
Growth in this sector has already crowned Turkey as the fifth biggest equipment producer in Europe
this year, according to Turkish Wind Energy Association (TWEA) data on Wednesday. And this growth
has seen Turkey expand its exports to 44 countries in six continents.Of the 79 wind equipment
producer companies in Turkey, 70% generate their revenues from equipment exports.
Turkey's current installed wind capacity is forecast to reach 10,000 megawatts (MW) by the end of
this year, marking an increase of around 1,200 MW. Wind power meets around 8.5% of the country's
total electricity generation and is estimated to replace $1 billion worth of natural gas imports.
"Thanks to the growing wind capacity and equipment production sector, Turkey has become one of
the 10 biggest markets in the world in wind energy," Hakan Yildirim, president of the Turkish Wind
Energy Congress (TWEC) told Anadolu Agency in an exclusive interview.
He attributed Turkey's Renewable Energy Support Scheme (YEKDEM) for paving the way for this
sector’s growth.
Turkey’s support for renewable energy investments through YEKDEM started in 2011. The scheme
supports wind and hydropower plants at $0.073 per kilowatt-hour (kWh), geothermal facilities at
$0.105 kWh, and solar and biomass plants at $0.133 kWh. These figures can also vary slightly
depending on the use of locally-produced equipment in the plants.
The expiry of the scheme was due to take place on Dec. 31, this year, but was extended to June 30,
2021, due to the COVID-19 pandemic which caused supply chain disruptions especially in the first
half of this year.
Turkey’s motivation to end the scheme was because of its dollar-based trade.
This year a total of 1,110 MW will start to benefit from YEKDEM while the 10-year support period of
1,375 MW capacity will expire, Yildirim said.
He advocated for a new, well-designed support mechanism to create a more reliable and predictable
market environment to benefit most business sectors and attract more wind energy investment in
the country.
"I personally believe a new mechanism will support domestic production and help employment," he
said.
As Turkey needs to add 1,000 MW of wind capacity every year, a new scheme is crucial to
contributing to this target.
“Wind power is a cheap source of electricity, and in the long term lowers power prices,” he
concluded.

Resource: https://www.aa.com.tr/en/turkey/turkey-becomes-key-player-in-global-wind-
energy/2093753
Turkey's wind energy new capacity and updated cumulative data;

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Resource:www.epias.com.tr

Resource: https://tureb.com.tr/eng/lib/uploads/6371c2b9854591cf.pdf

In 2020,especially during restrictions,wind power plants played an important role in meeting the
electricity demand.

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Resource: https://tureb.com.tr/eng/lib/uploads/6371c2b9854591cf.pdf

1.2) RENEWABLE ENERGY SECTOR IN TURKEY SUITABLE GROWTH PROJECT

In line with the renewable energy breakthroughs and investments made in Turkey from recent years,
I believe that a project should be launched to make new investments for the establishment of
Offshore in Turkey in order to use resources efficiently and to ensure diversity. My first reason for
this is that I think that renewable energy policies and gains in the UK can be integrated into Turkey in
terms of conditions and costs. Secondly, it's not like we're When the wind energy investments of
developed European countries are examined, the importance of many UK-led states to offsore
investments.

Resource:
https://proceedings.windeurope.org/biplatform/rails/active_storage/disk/eyJfcmFpbHMiOnsibWVzc
2FnZSI6IkJBaDdDRG9JYTJWNVNTSWhiakkwY25GbmRtaDBNR3hsYUdac2VYSXlNWFF6WVRod1lqWXlj
d1k2QmtWVU9oQmthWE53YjNOcGRHbHZia2tpVFdsdWJHbHVaVHNnWm1sc1pXNWhiV1U5SWtacGJ
tUnBibWMwTFVacFp6a3VhbkJuSWpzZ1ptbHNaVzVoYldVcVBWVlVSaTA0SnlkR2FXNWthVzVuTkMxR2
FXYzVMbXB3WndZN0JsUTZFV052Ym5SbGJuUmZkSGx3WlVraUQybHRZV2RsTDJwd1pXY0dPd1pVIiwiZ

14
XhwIjoiMjAyMS0xMi0xMFQwMjo1MDoxNi43NjNaIiwicHVyIjoiYmxvYl9rZXkifX0=--
9d18b23f041b4cd61bad4b017c468eef91d09c57/Finding4-
Fig9.jpg?content_type=image%2Fjpeg&disposition=inline%3B+filename%3D%22Finding4-
Fig9.jpg%22%3B+filename%2A%3DUTF-8%27%27Finding4-Fig9.jpg (WindEurope)
Thirdly, Wind energy investments have achieved more significant growth momentum than other
renewable energy investments.

Resource:(WindEurope)

Fourthly, turkey has the average wind speed and geographical location on the South side where such
a system can be started and it is not yet offshore in fertile areas.

Resource: https://www.windfinder.com/#7/36.6199/30.5750/2021-12-07T00:00Z

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As seen above, the direction of the wind. It is classified according to colors for its average speed;

Resource: https://www.windfinder.com/#7/36.6199/30.5750/2021-12-07T00:00Z

On the map below is the offshore zone that exists. As you can see, there is no offshore area in one of
the regions of Turkey with the highest average wind speed.

Resource: https://map.4coffshore.com/offshorewind/

According to the latest developments, Turkey's wind energy union also has a moderate approach to
offshore investments on its official website and moderate statements from leading businessmen and
politicians
Reference: https://www.tureb.com.tr/eng/

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 RESULTS
In the report, the main conditions of the energy sector in Turkey are the information that is intended
to be given in general, such as forecasts for current problems and for the solution of current
problems, steps to be taken for the development of wind energy and energy sector, and the
simplification feasibility report of the project. Although investments in the production of electricity
from wind energy have increased in Turkey in recent years, the activity of producing technology
related to these plants based on domestic resources has not been encouraged and the support of
relevant research and development institutions has been ignored. More concretely, when
determining the "price purchase guarantee" given to power plants and energy sources that the
government will allow to be established, it is necessary to include not only special costs but also
social costs in the price. The state's support for investments in renewable energy sources should be
done taking into account the negative externalities that fossil fuels emit to the environment.
Incentives such as tax relief, easement of loan interest and customs exemption can be provided to
the renewable energy sector, as well as studies should be carried out to carry out the production of
materials (such as wind turbines and parts) to be used in renewable power plants in our country. To
summarize the political moves that need to be made; Here are a few of the changes required to
implement these policies. The first is the implementation of measures to ensure efficient use of
energy. Incentives for efficient use of energy and deterrent mechanisms are known to be more
effective than other methods. Secondly, the use of renewable energy can be widened not only in
metropolitan areas and industrial areas, but also on smaller scales and in the agricultural sector.
Energy constitutes one of the highest input costs in the agricultural sector. By selecting the most
suitable renewable energy according to the characteristics of the region where agricultural
production is carried out, it can be achieved to reduce costs and environmental damage in areas such
as irrigation, greenhouse cultivation and livestock. Thirdly, agricultural productions with clean energy
sources can be rewarded, while productions with dirty energy sources can be punished. In the same
way, raising the consumer's awareness in favor of clean energy use is an important policy option for
improving environmental quality. Fourth, urbanization and industrialization policies that allow the
dissemination of renewable energy use or allow recycling and use energy efficiently can be followed.
Finally, it is necessary to prepare the necessary legal and institutional basis to expand the
technological development that ensures that renewable energy is compatible with environmental
and development goals in all areas from transportation to industry and to ensure that the technology
is produced with local facilities.

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RESOURCES AND REFERENCES LİST

• https://www.iea.org/fuels-and-technologies/oil

• Key World Energy statistics-(2021 March Report):Renewable energy,expanding domestic

energy production

• https://www.ensonhaber.com/gundem/turkiyede-kacak-elektrik-kullanim-haritasi

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