Energy Dependence of Turkey: The Role of Renewable Energy Sources

Abstract

Purpose: Energy imports are ranked first among import products in Turkey. In recent years, renewable energy capacity in Turkey has increased to minimize energy imports which constitute more than 20% of all imports. This article investigates how renewable energy sources affect Turkey's foreign energy dependency. Methodology: The effect of renewable energy sources, fossil energy consumption and gross domestic product on net energy imports in Turkey has been empirically analyzed using data between 1990 and 2018. The causal relationship between the variables mentioned above was determined using the Toda-Yamamoto test. In addition, quantile regression was used to determine the interaction between the variables. Findings: According to the results, increasing renewable energy utilization did not result in a decline in net energy imports. Turkey's policies to increase the use of renewable energy sources have been insufficient in minimizing energy reliance, and fossil energy sources continue to dominate. Implications: The very high energy demand is the most important reason why renewable energy sources are inefficient in reducing foreign energy dependency. Increased renewable energy consumption seemed to have no effect reducing net energy imports as high energy demand increased fossil fuel consumption dramatically. Limitations: The data on renewable energy resources were analyzed as a whole, not separately. Every year, the capacity of renewable energy resources has grown significantly in compared to the prior year. In the coming years, these resources may reach a point where they will have an impact on Turkey's reliance on foreign energy.