Turkiye

Solar energy to become the cheapest source in Turkey: Energy Finance Studies

Tim Buckley, Director of Energy Economics and Financial Analysis Institute (IEEFA) & Energy Finance Studies stated that Turkey has a very high solar radiation potential, he said:

‘’ There is no doubt that solar energy will be the cheapest energy source in the next 5 years in Turkey. I think the solar energy in Turkey will stand out as the most important resource in meeting the growing energy demand in 10 years.’’

Buckley pointed out that with the coronavirus pandemic, the direction of financing in energy markets has begun to change completely and the “appetite for investment” in renewable energy continues to increase in order to combat the climate crisis.

Noting that the financing for coal technologies has decreased rapidly in the last few years, Buckley explained that the financing institutions have started to show the same trend towards the oil and gas sectors.

Buckley stated that the epidemic was a “catalyst” in the increasing trend of clean energy and changing the risk perception regarding fossil resources.

Emphasizing that the value of renewable energy companies in this period surpassed the fossil fuel companies, the “giants of the industry”, Buckley said:

‘’ Market value of Exxon Mobil, the largest energy company of 20 years ago is now $140 billion, this figure had risen to $500 billion before. On the other hand, Tesla with a market value of $ 400 billion is now three times larger than Exxon Mobil. This change is also true for many other companies, and it is a very important indicator that financial markets are pricing the climate crisis as a risk. The market value of renewable energy companies has hit a record every week, while the value of oil and gas companies is at the lowest levels in the last 10 years.’’

Solar energy is the future

Noting that the solar potential is high in countries such as India, Australia, Brazil, Africa, China and Mexico, Buckley explained that the increasing capacity in these countries will be effective in shaping the global market.

Noting that the solar potential is high in countries such as India, Australia, Brazil, Africa, China and Mexico, Buckley explained that the capacity increases in these countries will be effective in shaping the global market.

Buckley, reminding that approximately 100 gigawatts of solar energy capacity was put into use in the world last year, stated that with the new climate targets announced by China and Japan, the solar energy capacity in the world will increase rapidly.

Stating that the cost decrease in renewable energy technologies has been continuing rapidly, Buckley emphasized that especially the costs in solar will decrease by 10 percent on an annual basis in the next 10 years.

Buckley pointed out that solar energy has become the cheapest source in some countries and said:

‘’ Turkey’s electricity demand is growing and the costs in solar energy are gradually decreasing. There is no doubt that solar energy will be the cheapest energy source in the next 5 years in Turkey. I think the solar energy in Turkey will stand out as the most important resource in meeting the growing energy demand in 10 years. Turkey should seize opportunities to increase solar capacity. International investors can also be encouraged to invest with a more comprehensive policy.’’

source: AA / translated by Melisa Karayusufoglu

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button