Energy independence of Turkey for 500 billion dollars.
Ankara estimated energy restructuring by 2040 at 500 billion dollars. We waited a few days to review Turkey's updated energy plan. The clarifications of the Minister of Energy, Elferslan Bayerkat, show how much the implementation of the program depends on attracting capital. The Turkish authorities even link the reduction of coal production with the construction of nuclear power plants, the conditions of which are still being discussed.
According to the plan presented on November 5, the installed capacity of the power plants is expected to increase from 123 GW in 2025 to 281 GW. The main increase should be provided by solar and wind plants, whose total capacity will reach 175 GW.
This would require adding about 9 GW per year. The peak result for 2025 is 6.5 GW. Turkey will have to exceed its peak by about 40% and maintain this pace for many years in a row.
The 500 billion dollars announced speaks of the need for investment. About 210 billion dollars are expected to be invested through five state-owned companies, which will have to raise funds themselves. To facilitate access to capital, the authorities are considering placing their shares while maintaining the majority in the country.
In a meeting with the international press on November 6, Bayer Qatar reported interest from foreign financial institutions. Ankara also relies on the support of international development banks. The conditions for providing money for specific projects still need to be agreed upon. The cost of the entire restructuring for the Turkish economy will depend on them.
The development of the electricity networks will be extremely expensive: the need is estimated at 116 billion dollars. Almost 69% of this amount comes from distribution. Without timely upgrades to the local infrastructure, new stations will face connectivity limitations. The built capacity will generate less revenue than investors expected.
The main clarification concerns coal.