The Turkish energy industry is one of the most dynamic sectors of our country. Alongside Turkey’s growing energy demand on an annual growth rate, the investments in the sector retain as a center of attraction.
There are three important facts standing before us.
The share of imports of energy and energy raw materials in the current account deficit, which is among the macro problems of the Turkish economy, varies between 75 and 90 percent over the years. The increasing foreign dependence of energy in Turkey; is the most important obstacle to a strong economy based on sustainable development and competitive production.
According to TEPAV’s Energy Policy and Impact on Investments Report; the problem of added value in industrial production prevents having additional current account surplus to cover the deficit in non-energy accounts. The renewable energy offers significant opportunities to escape from the middle-income trap – that Turkey is going through, and struggling with the current account deficit, as well as sustainable energy policies.
As a result of the intensive investments have been made in the last 10 years, Turkey had had the installed capacity of 25.174 MW of power in 2005, as it had exceeded 89 thousand MW by the end of 2018. Likewise, Turkey’s renewable energy installed capacity in 2011 was 1,511 MW, yet it has reached 14,000 MW by the end of 2018.
According to Turkish Wind Energy Association, in 2018, Turkey’s installed capacity of wind power increased by 7.2%, 7 thousand 370 megawatts (MW) has been reached; as reminding the fact that the total power in the wind was only 146 MW in 2007, this success should be acclaimed. The share of wind energy alone in the total installed power is considerably at 8%.
Although the seasonal variation, the one-third of the electricity production is obtained from natural gas cycle plants, the dependence on foreign goods is very high at 97%. The share of imported coal-fired thermal power plants in the total installed power is 22%. The rapid reduction of these rates is possible by the immediate commissioning of domestic and clean energy resources.
As analyzing the investment incentives given for the power plant investments, it is seen that the ratio of imported machinery/equipment for the power plants is more than 70%. This is an important indicator of our foreign dependence on energy technologies.
Turkey’s 2023 goal, regarding the 30% of total energy consumption shall be covered by renewable energy sources, means at least a $25 billion equipment market for the next 11 years will emerge. Therefore, meeting the need that will emerge in the domestic market with not the import but the production that will be held within Turkey and exporting it means both decreasing the current account deficit and keeping the foreign currencies remain within the country.
Association of Energy Industrialists and Businessmen (ENSIA) was established on 27 July 2016, to provide development to Turkish industry in the ‘renewable energy’ -as one of the leading industries of sustainable development, and ‘conduct cluster studies’ with an industrialist perspective, as well as with the project-based management consideration and the mission of ‘Production in the Energy Industry’.
ENSIA has set out with 18 founding members with the vision of ‘Becoming a Pioneering Energy Cluster in an International Scale’, alongside the mission of ‘Turning Turkey into a base of energy equipment manufacturing and distribution’ in terms of the production of domestic energy equipment, devices, components and raw materials needed in the energy investments that have been made and are planned to be in our region.
ENSIA aims to carry out the ‘Renewable Energy Clustering Studies’ initiated by the Energy Efficiency Working Group of Aegean Region Chamber of Industry (EBSO), and Izmir Development Agency (IZKA).
The corporate structure of ENSIA’s Board of Directors was established to contribute in the problems brought by the increasing interest in renewable energy while enabling the representation of each sub-sector of renewable energy and providing a holistic perspective to the renewable energy sector.
We as the ENSIA’s Board of Directors; are working for our sub-industrialists and supplier members to gather and meet under this corporate framework, to increase their cooperation and create common projects by forming mutual synergy in their works.
We are looking for cooperating with the relevant ministries and all other stakeholders to provide incentive mechanisms to support the production of all equipment, materials, and components (including sub-segments) used in renewable energy projects.
Increasing the influence of our region in renewable resources -particularly in wind and solar energy, and increasing the contribution of Turkish industrialists in the investments that have been made and are planned to be, is considered as the ‘Strategic Vision Goal’ of our Association based in Izmir.
ENSIA aims to be a reference point for all domestic and foreign investments in the energy sector in our region, as it will convey the problems and expectations of its members to all respondent persons and organizations -particularly to the public authorities, alongside the spirit of being a true stakeholder and creating common value.
ENSIA has the right vision and sufficient courage to produce and implement production and industry-oriented policies. We invite every person and institution operating in renewable energy industry to empower the association and to contribute building the future of our country as a stakeholder of all joint projects, as well as working to leave a legacy of a more liveable Turkey for our children…
MSc. Mechanical Engineer
ENSIA’s Chairman of the Board