Global energy plunge not producing lower prices in Turkey

Turkey's energy consumption has seen a sharp increase since 2003, hitting $40 billion annually with an average growth of 5 percent in the country's gross domestic product (GDP). The demand for electricity has also grown at around 5 percent annually for the last 16 years.

Skyrocketing demand is, however, mainly being met by imported crude oil and natural gas.

The trend makes securing an unstopped flow of foreign currency and energy imports the basis of the country's energy policy. The latest tensions with Russia and Iran, the largest energy suppliers for Turkey, have reminded the country of this fact once more.

 
Gas dependence

Natural gas has had the largest share in Turkey's power generation since 2008 as the country lacks fossil fuel reserves other than lignite. Its share increased to 32.5 percent in the country's primary energy consumption by the end of 2014. While Turkey's natural gas consumption was around 46 billion cubic meters (bcm) in 2013, this amount increased to 48.7 bcm in 2014, representing a 6 percent of increase. Some 48 percent of the gas was used for power generation purposes in 2014. The remaining 25 percent of the gas was utilized by the manufacturing sector and 27 percent for heating. It is estimated that Turkey's gas consumption did not fall below 48 bcm in 2015.

Turkey's electricity production is estimated to have increased from 257.2 billion kWh in 2014 to 262.5 billion kWh in 2015. The consumption also rose from 3,326 kWh per capita in 2014 to 3,359 kWh in 2015.
The overwhelming dependence on foreign gas has created a significant energy security risk that is worsened by high dependence on oil imports as well.

Energy bill

Until one year ago, Turkey's energy costs...