The Most Economic Solution for Turkey’s Power System: Energy Efficiency and Business Models
The transition to a low-carbon economy requires the accelerated deployment of renewables on the supply side, reduction of losses on the grid side, reduction of electricity demand through energy efficiency improvements, and increasing flexibility for grid integration of renewables. Among these, energy efficiency is the first option as a low-cost and local resource. Thanks to the long years of policy, research and business efforts of the public sector, private sector and the academia, Turkey currently owns a strong analytical capacity on energy efficiency. The energy efficiency potential, costs and benefits of Turkey’s energy efficiency has been evaluated by many organisations to date but how the potential emerging from such assessments can be realised remains to be answered.
The primary aim of this study is to evaluate the technical and economic potential of energy efficiency in Turkey power system to 2030 beyond NEEAP’s timeline of 2017-2023, and to determine the business, policy and financing models that will be needed to in turning this potential into actual investments. The study includes the assessment of the entire value chain of Turkey’s power system from the grid to the end user and outlines the potential, costs and benefits of energy efficient technologies at the sector level by distinguishing the perspectives of both the private and public sectors.
In order to provide insights into how this potential can be turned to investments, the study analyses the role of non-technology systemic issues that include regulations, market based policy mechanism instruments, business models, financial mechanisms and measures to increase overall system efficiency through distributed renewable energy resources, their investment opportunities and commercialisation roadmaps along with their costs and benefits.