Turkey's electricity consumption hits a record

ANKARA - Anatolia News Agency

Exhausted from heat, children enjoy refreshening at a pond in a park in southern Turkey. The hot weather is increasing air conditioning usage, boosting power consumption. AA photo

Turkey recorded its highest daily electricity consumption record since the inception of the Turkish Republic in 1923 on July 10, with 744.7 million kilowatts of electricity consumed, according to data released by the Energy and Natural Resources Ministry.

In the first days of July daily electricity consumption averaged 725-730 kilowatts, but it hit 744 million on July 10. According to the ministry, electricity usage for agricultural irrigation in southeastern Anatolia, industrial production, and the current heat wave, which has spurred the use of air conditioning, are the reasons behind the record. Ministry officials also expect the level of use to continue increasing in the coming days, but stressed that there will be no disruptions in electricity. Turkey turned to neighboring Georgia and Bulgaria to help make up shortages of electricity on July 10.

Electricity consumption in June was up 11.3 percent compared to the same month last year, reaching 20.4 billion kilowatts. In the first half of 2012, electricity consumption was also up 8.1 percent year-on-year, hitting 119.3 billion kilowatts.

Energy trading hub
Turkey is likely to overtake the U.K. as Europe’s third-largest electricity consumer within a decade, and is seeking to become an energy trading hub, capitalizing on its booming population and economy as well as its proximity to cheap natural gas resources, according to Reuters. At 75 million and growing, Turkey’s population is set to overtake Germany’s, currently the EU’s largest at 82 million, by 2025. Its economy has been booming for years, although the crisis in Europe has slowed its rate of growth. The government is keen to develop Turkey into the benchmark electricity market for trading in spot and derivatives contracts for southeastern Europe and much of Central Asia.

“As a bridge between Asia and Europe, Turkey has the potential to develop a reference price for this region,” said Turkish Energy Ministry Undersecretary Metin Kilci.

Analysts say the liberalization of Turkey’s power markets has made them attractive to foreign investors.

“The Turkish electricity market has taken a lot of steps towards liberalization and reorganization,” said Richard Sarsfield-Hall, a principal at the energy consultancy Poyry, who has advised energy companies on entering the Turkish market. A number of major utilities have begun eyeing Turkey for expansion. Turkey plans to finalize the privatization of electricity distribution by the end of this year, Energy Minister Taner Yıldız said at an Ankara meeting yesterday. Addressing journalists at a meeting with electricity sector representatives, Yıldız said the privatization board and the ministry are currently working on the issue.