Gas will continue to lose out against coal in Turkey's power generation, according to a new report by Oxford Institute for Energy Studies published on Monday.
The report said that the Turkish government is prioritizing coal usage over gas for power generation because it does not have any binding obligations to restrict greenhouse gas emissions.
'However, Turkey expressed its readiness to join the global fight against climate change and is expected to reduce its 2020 emissions level from 1,185 tonnes to 940 million tonnes of CO2, in line with the Paris Declaration,' he report stated.
The report also read that Turkey's coal plant development is among the largest in the world outside China and India, taking into account coal plants announced, proposed and under construction.
'But most of the coal used in the power sector is imported coal due to the low calorific value of local coal and lignite. With the support scheme the government provides for coal-fired power plants, the share of coal in the energy mix rose by 22 percent in 2016, causing gas-fired output to fall by 9 percent, and this is likely to continue due to large investments in coal developments,' it said.
Oxford's report noted that reduction in gas demand in the power generation sector in Turkey has significantly affected overall gas demand growth in 2014 to 2016.
It noted that this trend would continue, bringing the share of gas in electricity generation sector down while increasing the share of coal and renewables.
The report stated that given the government's decisiveness, the target of a 30 percent gas share in the power sector by 2023, currently 33 percent with 16 billion cubic meters, is most likely to be achieved in one to two years and said it seems that the government will continue this policy in the longer-term.
By Murat Temizer
Anadolu Agency
murat.temizer@aa.com.tr