Energy Subsidies in Turkey

This paper seeks, where possible, to quantify the costs of subsidies and external costs so that the impact of these policies can be understood. By way of comparison, the costs are presented alongside analysis of the costs and impacts of solar and wind energy.

When it comes to phasing out subsidies to the production of polluting oil, gas and coal—something G-20 leaders have committed to every year since 2009—we’re seeing little progress. In fact, as fossil fuel prices have fallen, some countries have even increased subsidies in response.

Jointly prepared by IISD, OCI and ODI, this country study and accompanying data sheet compiles publicly available information on fossil fuel production subsidies in Turkey in 2013 and 2014. It is a background paper to the report Empty promises: G20 subsidies to oil, gas and coal production and provides a baseline to track progress on the phase-out of such subsidies as part of a wider global energy transition.

Turkey faces a problem that is common to many developing countries: a growing economy and a growing demand for energy.  By 2030, electricity consumption is expected to rise from 240 TWh to over 600 TWh. Turkey plans a huge increase in coal-fuelled power generation to fill the gap.