The energy sector, which is a priority for many countries on a global scale, is also the most prominent locomotive for development. While renewable energy costs are falling with rapidly increasing technological advancements, the most of energy consumption worldwide consists of fossil fuels. Although variations in countries with oil, natural gas, and coal reserves cause fluctuations in the market, they are the most essential resources in meeting the supply. While the share of nuclear energy in overall consumption is decreasing, the use of renewable energy is increasing and countries are setting targets to switch to 100% renewable energy use, especially after the Paris Climate Agreement.
Turkey is one of the richest countries in the world in terms of renewable energy resources. In addition to the resource richness, Turkey has become one of the fastest-growing energy markets in the world, paralleling its economic growth over the last 15 years. Economic expansion, rising per capita income, positive demographic trends, and the rapid pace of urbanization have been the main drivers of energy demand, which is estimated to increase by around 6 percent per annum through 2023. Turkey’s Non- Hydro renewable energy consumption which was equivalent to 0,1 million tons of oil equivalent in 2006 has reached 3,9 million tons of oil equivalent in 2016 with 51,0% (CAGR). To satisfy the increasing demand in the country, the current 80-GW installed electricity capacity is expected to reach 120 GW by 2023 through further investments to be commissioned by the private sector.
The Turkish government has made it a priority to increase the share of renewable sources in the country’s total installed power to a remarkable 30 percent by 2023. Turkish government introduced the new Renewable Energy Resource Zone (YEKA) model in 2016 to commission large-scale renewable energy projects through the utilization of locally manufactured components in the renewable power plants to reach its renewable energy-related 2023 targets. These targets are increasing the share of renewables to 30 percent, increasing the installed capacity based on wind power to 20,000 MW, installing power plants that will provide 1,000 MW of geothermal and 5,000 MW of solar energy, and extending the use of smart grids. Altogether, these factors will have a profound effect on Turkey’s renewable energy investments in the future.
On the other hand, Turkish renewable energy equipment investment has been increased recently. In the following period, the market size of renewable energy equipment is estimated to be annually 2 billion €. The distribution of the new equipment and system investment by sub-sectors in Turkey will take place during 2020-2027 is estimated to be as follows: 73,8 % for wind power, 15,6 % for solar power, and 10,6 % for other renewable energy systems and equipment. RE equipment manufacturing is highly important and strategic for the Turkish economy and for development efforts to break out the middle-income trap. By this means, BEST For Energy Project targets to form an infrastructure that accelerates products to switch into sophisticated, high added value products and make a contribution to 2023 targets of the Turkish Republic.