GİLA BENMAYOR
The Paris-based International Energy Agency, or IEA’s, chief economist, Fatih Birol was in Istanbul for a two-day visit.
He visited Istanbul to make a presentation and released the World Energy Outlook 2010 Report in a meeting organized by the Turkish Industry and Business Association, or TÜSİAD, and to announce the honorary presidency of the Istanbul International Energy and Climate Center under the auspices of Sabancı University.
Sabancı University Board of Trustees Chairwoman Güler Sabancı has taken a critical step.
Energy consumption in Turkey will increase more than the world average by 2020.
As Birol pointed out, the center of gravity in energy production and consumption is shifting to the East.
The weight of the Middle East countries neighboring Turkey, Russia and the Caspian region is gradually increasing in international oil and gas markets.
Only in the Caspian region, have three new gas reserves been found to have three times bigger than that of Norway.
On the other side, China and India are fighting for the world’s consumption leadership.
Turkey’s energy interest
Birol rightfully says: “Turkey should make the right decisions if it is reading energy developments accurately. The new center at Sabancı University will fill a big gap.”
One should take one’s hat off to the energy vision of Ms. Sabancı who led the foundation of Nanotechnology Institute under the roof of the university.
Thanks to these centers Turkey will without doubt become a stronger player in the future.
The appointment of Birol, being one of the experts who know the world energy policies very well, as the chairman of the center is a right decision.
I’ve known him for years; Birol is perfectly aware of where Turkey’s interest lies in energy games, if we forget about its role in the energy world.
For instance, Birol has kept on saying for years that Turkey has to adopt nuclear energy, but, in suspicion, approaches Russia as being our number-one choice in nuclear energy partnership because we already depend on Russia for natural gas (to the tune of 60 percent).
$100 billion from private sector
As for the World Energy Outlook Report-2010, the IEA Chief Economist has sent Turkey two critical messages.
A price decrease in natural gas is possible, as it was in 2009. Therefore, Turkey might buy some more gas from Russia for a more suitable price.
And the second message is this:
Despite the global economic crisis, the renewable energy trend is becoming more popular throughout the world.
So, Turkey should catch up with the world in this trend, too.
As Birol talks about “renewable energy,” he also touches upon subsidization issue.
Relatively less affected by the economic crisis, Turkey should act generously in subsidies, says Birol.
At this point, Energy and Natural Sources Minister Taner Yıldız differs from the IEA Chief Economist Birol.
“Renewable energy investors shouldn’t expect generous incentives from us,” the minister says.
Aside from a signal on subsidies, there is no “renewable energy law” to encourage investors in Turkey.
We are talking about a law of which we have heard endless stories, but seen no action taken.
As TÜSİAD Chairwoman Ümit Boyner points out, structural reforms are needed to increase competition power of the energy market and to accelerate supervision mechanisms.
The private sector plans to invest $100 billion in the sector and that’s a good starting point.