What is the impact of the energy crisis on Turkiye?

In the past years, the Turkish government has provided many facilities for investors and major companies working in the energy field, to reduce energy imports and increase export, as this field occupies a great priority on the list of projects within Turkiye's Vision 2023, one of the reasons of the prosperity in the energy sector in Turkiye.

Over the past five years, in particular, Turkiye has aimed steadily towards achieving safety in its energy stocks, which calls to support companies and institutions working in the field of renewable and clean energy, in addition to filling its needs of oil and natural gas.

Natural gas sources in Turkiye

Two years ago and when the Corona pandemic crisis was at its highest, President Erdogan instructed the Ministry of Energy and Natural Resources not to rely on a single source of natural gas, and addressed the need to diversify the sources. Hence, now Turkiye gets gas from Azerbaijan on a three-year contract, after helping them in their war with Armenia at a more than favorable price, as well as from Iran and Russia via pipelines.

Turkiye secures its liquefied gas needs from Algeria, Nigeria, Equatorial Guinea, Angola, and Cameroon, explaining the reason for President Erdogan's historic visit to Africa last year, as well as from Norway, Egypt, the United States of America, and finally Trinidad and Tobago. Turkiye provides its liquefied gas needs from these countries through marine tankers.

This will take us to the point of Turkiye building gas liquefaction stations during the previous three years, and storing natural gas, as Turkiye diverted its efforts and gave the right to invest in the field of natural gas storage to many parties, trying to achieve a surplus in natural gas storage, with the beginning of Turkish natural gas production coming from the Black Sea during the next year, according to what the Turkish government previously stated.

Sources of electricity generation in Turkiye

Turkiye tried to significantly reduce its dependence on generating electricity on natural gas until the percentage of electricity generated from natural gas reached only 33% in the past year, and after analyzing the methods of generating electricity in Turkiye, we can say that the percentages of electricity generation from different sources are as follows:

This means that about 60% of the electricity is supplied and imported in “hard currency”, but the difference between Turkiye and Europe now is that Europe can buy and import gas, but it does not fulfill its requirement, unlike Turkiye.

Therefore, Erdogan and his government never stop reminding the Turkish people of the blessing of energy, which Europe may suffer from the lack of in the coming months, and this means that the voice of the Turkish resistance will decrease, which has always been calibrated by its government in European countries.

Time and the coming months will prove the effectiveness of what the Turkish government is doing against the infection of "inflation", based on the growth rates of the Turkish economy during the current year, exceptional growth that achieves record numbers in the language of the economy, we will be witnessing in the near and extended future.

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