The $11 billion will be invested through the implementation of the National Energy Efficiency Action Plan (NEEAP), developed with the help of the European Bank for Reconstruction and Development and funded by the European Union.
Under NEEAP, the Turkish government will invests in increased use of renewable energy and district heating in buildings and in use of combined heat and power across all industries.
The energy efficiency plan will include the development of a national energy efficiency financing mechanism and a regulatory framework for the creation of a heating and cooling market.
The plan will help Turkey to adopt energy efficiency standards set by the the European Union.
Arvid Tuerkner, Managing Director at EBRD in Turkey, said: “This is a major step towards making a rapidly expanding economy also much more energy efficient. The plan builds on the realisation that a sustainable, efficient and prudent generation and consumption of energy is crucial for both economic growth and a sound environment. The action plan addresses the need to balance both aspects with detailed measures and where possible and feasible, the EBRD stands ready to support this crucial effort.”
The $11 billion energy efficiency investment follows Turkey witnessing an increase in energy demand due rapid growth in economic activities.
The Turkish government expects the country’s GDP growth to average to around 5.5% a year for the coming three years. Turkey’s energy demand is the highest amongst the 35 member countries of the Organisation for Economic Co-operation and Development.
To date, the country’s energy generators are able to meet 26% of consumer’s total energy demand. and as such energy efficiency and expanding the country’s renewable energy resources will help to meet demand.
In addition to developing NEEA, the Turkish government has designed and started implementation of the National Renewable Energy Action Plan (NREAP) to increase renewable energy portfolio to 30% of total energy by 2023.