ENERGY INFRASTRUCTURE

1. Energy Strategy

•    According to the Electricity Energy Market and Supply Security Strategy Paper, Turkey's strategy in the energy sector is to ensure delivery of energy resources and electricity, which plays a central role in Turkey’s economic and social life, to consumers in an adequate, high-quality, uninterrupted, low-cost, and environmentally friendly manner.
•    In addition to unused energy resources such as hydraulic power and lignite, Turkey's renewable energy potential is a great opportunity for investors. The Law on Amendments on Utilization of Renewable Energy Sources for the Purpose of Generating Electrical Energy (No. 6094), dated December 29, 2010, encourages these types of investments and makes them even more attractive.

With this new support scheme, different feed-in prices are introduced for different renewable resources based on electricity generation. The general feed-in tariff scheme is as below:

•    7.3 US cents per kWh for hydro and wind energy
•    10.5 US cents per kWh for geothermal energy
•    13.3 US cents per kWh for solar and biomass (including waste gases) energy

In addition, support amounting to 0.4 to 3.5 US cents per kWh is also provided to the plants for the utilization of domestically manufactured technical equipment.

1.a. The Distribution of Installed Capacity by Electric Utilities (2011 - March)

Source: Electricity Generation Co. Inc. (EUAS)

Source: Turkish Electricity Transmission Company (TEIAS)

1.c. Electricity Prices for Industrial Consumers (€ cent/kWh*)

Source: Eurostat

*This indicator presents electricity prices charged to final consumers. Electricity prices for industrial consumers are defined as follows: Average national price in Euro per kWh without taxes applicable for the first semester of each year for medium-size industrial consumers (Consumption band with annual consumption between 500 and 2,000 mWh). Until 2007 the prices refer to the status on January 1 of each year for medium-size consumers (Standard consumer with annual consumption of 2,000 mWh).

1.d. Pipeline Projects in Turkey

Turkey's priority is to secure its energy resources. In order to achieve this goal, Turkey is carrying out many pipeline projects for both natural gas and oil. Once they are completed, the following projects will provide secure energy resources for both Turkey and Europe.

Source: Petroleum Pipeline Corporation (BOTAS)

•    Baku-Tbilisi-Ceyhan* COPL Project
•    Turkey-Greece-Italy NGTL Project (ITGI)
•    Transcaspian Turkmenistan-Turkey Europe NGTL Project
•    Azerbaijan-Turkey NGTL Project
•    Iraq-Turkey NGTL Project
•    Egypt-Turkey NGTL Project
•    Turkey-Bulgaria-Romania-Hungary-Austria NGTL Project (Nabucco Project)
•    Eastern Black Sea NGTL
•    Western Black Sea Project
•    Natural Gas Underground Storage Project

*Construction of the Baku-Tbilisi-Ceyhan COPL was completed in 2005. The annual carriage capacity of this pipeline is 50 million tons of crude oil. It is an internationally recognized facility which transports Caspian crude oil to the Mediterranean region via Turkey.

2. Telecommunications Infrastructure

Source: Information and Communication Technologies Authority (ICTA)

Communication Technology (voice and data)
(0: Does not meet business requirements - 10: Meets business requirements)

Source: IMD World Competitiveness Yearbook 2010

The telecommunications sector in Turkey has evolved considerably in recent years, starting with the privatization of 55 percent of Turk Telekom stocks. The diversification of services within the telecommunications sector via mobile phones and the Internet has created new economies that represent attractive areas for further investments.

3. Transportation Infrastructure

Source: Ministry of Transport and Communication

Airports in Turkey

Turkey's advantages include its logistics industry, which has developed significantly since its entry into the EU Customs Union. Its geographic, physical and corporate infrastructure is one of the key attractions for potential investors, as seen below:

•    Turkey's proximity to major markets such as the CIS, the Middle East and North Africa means that approx. 1.5 billion consumers can easily be reached.
•    Important reductions in airline costs and price levels were made possible by rescinding a Special Consumption Tax on aircraft fuel. Accordingly, six firms have started domestic operations in the last few years to meet the increasing demand for air travel.
•    Turkey has a pivotal role in connecting Pan-European transport corridors to Central Asia. Additionally, the Mediterranean basin, to which Turkey is a natural conduit, has gained greater prominence in both East-West and North-South connections.
•    The national road and railroad networks are completely integrated into the Eurasian infrastructure. The Silk Road Railway project will ensure a uniform rail route between Europe, the Middle East, the Turkic republics, and the Far East through Turkey. Regular truck transportation and Ro-Ro ferry routes are continuing to increase logistic services capacity.
•    Two important natural gas transport projects to Europe have been initiated. The first one is the "Interconnector", developed by Turkey, Greece and Italy; the Turkey-Greece section is already complete and transporting natural gas to Greece, while the Greece-Italy section is under construction. The second one is the "Nabucco" project, which will deliver natural gas across Turkey to the European markets by connecting the Caspian region and the Middle East, via Turkey, Bulgaria, Romania and Hungary, with Austria, and further on, with the Central and Western European gas markets.

Turkey meets the requirements for the efficient and cost-effective shipment of goods with its high performance infrastructure, reliable transportation services and strategic location in the region.

Efficiency in the Distribution Infrastructure of Goods and Services
(0: Inefficient – 10: Efficient)

Source: IMD World Competitiveness Yearbook 2010

 

Source: Republic of Turkey Prime Ministry Investment Support and Promotion Agency

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