In its quest to become a self-sufficient regional energy hub and a hydrocarbon bridge between the Middle East and Europe, Turkey still hasn’t made that one big discovery, but the ambition is there and it also has a hungry appetite for renewables.
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This is an area of investment in Turkey that is often overlooked, as the majors explore the potential offshore bonanza in the Black Sea and Mediterranean, and both juniors and majors continue to explore conventional and unconventional plays onshore.
Renewables tend to get lost in the frenzy, but here’s the unique situation: Unlike most of its European counterparts, in Turkey retail electricity consumption lags BEHIND income growth. This is the key aspect that makes Turkey an ideal venue for renewable investment. Annual demand growth for the power industry is forecast at 6.3% over the next two decades.
Ankara hopes to spend $10 billion on new power generation ANNUALLY over the next 20+ years. The goal is to double power generation capacity from what is now only 55 gigawatts. To that end it’s eyeing renewables across the board—wind, solar, hydropower, biomass and geothermal.
General Electric Co. (GE) and Siemens AG (SIE) see the potential, and Turkey is doing all it can to lure more investors. GE is moving forward fast with a 22.5-megawatt wind farm (Sares) and a smaller, 10-megwatt farm at Karadag. These farms are already online, and now…