Turkish power sector developments: stepping off the gas?

The Turkish power market is continuing to undergo far-reaching change. Gas has long been the primary driver of increased power production in Turkey, but policy change and pricing has changed this. The government is seeking to diversify the generation mix away from gas by supporting coal, nuclear and renewable energy. Strong additions of new capacity are occurring at a time of slowing demand growth, leading to oversupply and a squeeze on the economics of marginal generators. Against this background, we examine key demand drivers, review the outlook for new coal, gas, nuclear and renewable projects while highlighting the broader risks and uncertainties to Turkey’s generation forecast. We also evaluate the effects of regulated gas prices, the cost-competitiveness of gas against coal, the timescale for Turkey's first nuclear plant as well as the hurdles facing renewable energy projects. This slide pack is presented in downloadable PDF format.