Over the past 12 months, Turkey has managed to save $7 billion on energy imports through the development of sun and wind power, which has helped lower electricity bills amid a sharp rise in gas prices around the world, according to a report by the British think tank Ember, local media reported.
The Turkish government has tried to keep the cost of utilities low, in particular electricity and gas tariffs. However, like many other countries, Turkey has faced a sharp rise in costs, as the increase in gas prices by more than seven times in a year has led to a sixfold increase in the cost of electricity in the country, Turkish Sabah writes.
The report says that the collapse of the Turkish lira exacerbated the impact of higher gas prices on the cost of electricity. This growth began in the second quarter of last year and almost doubled in July-August last year, reaching $50 per MWh. Growth only accelerated in September when the average monthly gas price reached $90 per MWh.
Last year, the imbalance of supply and demand, coupled with geopolitical differences, led to an increase in gas prices. This trend has continued this year, which was also facilitated by the situation in Ukraine. Amid high fossil fuel prices, the report points out that renewable energy, namely solar and wind power, has played a critical role in lowering electricity bills in Turkey, which would have been much higher if this sector had not been so developed.
The data shows that between May 1, 2021, and April 30, 2022, wind and solar power plants produced 46.3 TWh of electricity. “Without these power plants, little-used gas-fired or coal-fired power plants dependent on energy imports would have to be brought in to offset the power plants’ power,” the report says.
“Assuming all 46.3 TWh of electricity was generated by gas-fired power plants, this that over these 12 months, wind and solar power offset an additional $7 billion in gas imports.”
Sun and wind farms saved the lion’s share of $5 billion in imports, generating 32.2 TWh of electricity over the past 12 months. Solar power plants accounted for $2 billion, while the share of unlicensed solar power plants was 86%.
From the end of February to the end of April, wind and solar generation in Turkey replaced potential energy imports worth $2 billion. “We expect wind and solar generation to save approximately $700 million on gas imports each month if the gas price level,” the analysis says.
Ufuk Alparslan, an energy and climate analyst at Ember and author of the report, called for an increase in solar and wind power capacity as the energy crisis calls for quick solutions such as solar power, noting that “with the right renewable energy strategy, better results can be achieved.”
“Rising gas prices and a collapse in the lira are pushing up electricity prices in Turkey, while renewable energy avoids the need to import billions of dollars of fossil fuels,” Alparslan said. “Market interventions that harm the investment climate in the country”.
It follows from the center’s report that electricity prices in the country were determined by gas-fired power plants, given that this most expensive source of energy accounted for about a third of electricity production last year.
Turkey is 99% dependent on gas supplies, making the country vulnerable to rising prices. Turkey’s natural gas consumption was a record high in 2021 at approximately 59 billion cubic meters. Ember called for accelerating the development of wind and solar power to lower electricity bills and remove barriers to new investment.
Last year, renewable energy accounted for 97% of the country’s new capacity increase. By the end of March this year, the total installed capacity of power plants in Turkey exceeded 100 GW, with more than half of it coming from renewable energy sources, including hydropower, wind power, solar power, and geothermal power.
However, despite this significant contribution, it is still not enough to meet the sharp increase in demand in recent years.