Energy markets in the world and Turkey
It is apparent that there is a strong correlation between energy and economic development. Industrialized countries develop energy policies in accordance with world energy supply and demand, population increase, and economic developments. In the last 20 years, the process of opening the energy sector to competition in the free market in the world, especially in the European countries, and the process of regulation and auditing of the formed market has brought the need to restructure and regulate the energy sector in our country. In this sense, Energy Market Regulatory Authority began its operations in 2001, to regulate and supervise energy sector in our country, and with the regulation which came into effect in 2003, it introduced the obligation of auditing beginning from 2004, for the real and legal persons that operate in energy sector.
Gas and Electricity Market in Turkey
Energy investments have vital importance in developing countries’ economies. Turkey as a developing country is in need of new energy investments for its economic growth. In this context remarkable advances have been noted in recent years with the Electricity Market Law, and Natural Gas Market Law. Restructuring of the public in electricity and gas sectors, and increase of private sector’s share of participation is continuing rapidly. In this context, privatization of electricity distribution regions first, and production plants then, and transfer of Botaş purchase contracts to private sector are significant stages.
Electricity production plants and gas production/distribution require high cost investments. It is very important for the investors to conduct initial feasibility works in a proper way, careful appraisal of alternatives for market strategies, performing of price estimation modeling by expert teams, bringing foreseeable tax costs which have impacts on return period of investment since the start of the project.
Oil Market in Turkey
The privatization process in the fields in the oil sector that the State operates brought the need to restructure the legislation in the market. Therefore, the Oil Market Law, which regulates the Turkish oil market, has been brought into effect.
Following the start of the Blue Stream, and Bakü-Tblisi-Ceyhan pipeline projects, Turkey has become an integral part of the international oil market.
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