Energy Subsidies in Turkey
The GSI’s projects work in Turkey have focused on research and policy engagement on subsidies for fuel producers and renewable energy, with the intention of contributing to the following policy objectives:
- Reduce overall fossil fuel subsidy expenditure
- Improve the fair social distribution of subsidy expenditure
- Balance energy demand and security at the same time as keeping prices affordable
- Increase clean energy access and use, particularly among poorer households
As part of a project jointly prepared by the Global Subsidies Initiative (GSI), Oil Change International (OCI) and the Overseas Development Institute (ODI), this country study and accompanying data sheet compiles publicly available information on subsidies to oil, gas and coal production in Turkey. It is one of the background papers to the report Empty Promises: G20 Subsidies to Oil, Gas and Coal Production.
In response to rising electricity demand, a pressure to keep prices affordable and a need to maintain energy security, the Turkish government plans to increase electricity generation from coal. This study finds that subsidies to the coal industry reached US$ 730 million in 2013. The study finds that if the external costs of health and environmental impacts are taken into account then wind and solar energy are already cheaper than coal and likely to become even more competitive over the coming decades. The report recommends that subsides to coal are phased out.