Electricity

Our country's electricity demand tends to increase by a rapid average of 7,5%. Having been realized as 191,5 TWh in 2007, our electricity generation is expected by 2020 to reach 499 TWh with an annual increase of around 7,7 according to the higher demand scenario, or 406 TWh with an annual increase of 5,96% according to the lower demand scenario. As of 2008, our installed power is 41.987 MW, and our electricity consumption is 198,4 billion kWh.

In 2008, our electricity generation came from three main sources: natural gas by 48,17%, coal by 28,98%, and hydroelectric by 16,77%. Recent draughts have restricted the expected contribution of hydroelectric power plants.In 2004, the amount of electricity generated by hydroelectric power plants was 46 billion kWh. Although a new 600 MW hydroelectric power plant was commissioned between 2004-2008, our hydroelectric generation in 2008 will remain at the level of 33 billion kWh.

In order to meet the increasing demand for electricity, we need to at least double our existing installed power by 2020. From early 2003 until the end of 2008, 10.561 MW of installed power has been commissioned, 2.636 MW of which is in the public sector, 3.809 MW under Build-Operate and Build-Operate-Transfer models, and 4.116 MW in the private sector. In line with the target of liberating the electricity market, Law No. 4628 provided for new production investments by private sector. Of the projects licensed from 2002 to 2008, which correspond to a total power of 36000 MW, a substantial number has gone into the investment stage. With these licensed investments, a new capacity of roughly 15000 MW power is expected to be commissioned by 2015.

These initiatives aim at creating a transparent and competition-driven market in the electricity sector, and thus to help improve the investment environment.

Source: Ministry of Energy and Natural Resources