Listening to Client Needs: ESMAP Support to Turkey’s Energy Transition
Few countries can parallel Turkey’s efforts to restructure its energy sector over the past 15 years. Moving from a state-owned, vertically-integrated model, Turkey has entirely privatized electricity distribution; passed ground-breaking electricity market, renewable energy, and energy efficiency legislation; established new regulatory bodies; and carried out price reform.
Few countries can parallel Turkey’s efforts to restructure its energy sector over the past 15 years. Moving from a state-owned, vertically-integrated model, Turkey has entirely privatized electricity distribution; passed groundbreaking electricity market, renewable energy, and energy efficiency legislation; established new regulatory bodies; and carried out price reform. Energy sector management assistance program (ESMAP’s) engagement with Turkey began in 1983, with the publication of an issues and options paper - a comprehensive assessment of the current state and future potential of the country’s energy sector. The focus then was on building a secure energy supply by developing enough coal and hydropower potential to replace costly imported fossil fuels. In 2004, the World Bank extended a 202 million dollars loan to Turkey to develop privately owned and operated power generation from renewable sources. The loan sought to foster institutional capacity, new regulations, and financing mechanisms that will allow for this renewable energy expansion.