TITLE:
The Risks of Financing Energy in Turkey: Heading for a Rocky Road
AUTHORS:
Esin Okay
KEYWORDS:
Energy Projects; Energy Saving Industry; Energy Financing; Credit Risk; Country Risk; Turkey
JOURNAL NAME:
Open Journal of Energy Efficiency,
Vol.3 No.1,
March
10,
2014
ABSTRACT: After the
implementation of Energy Efficiency Law (EEL) in Turkey, Turkish engineering
firms show considerable interest in energy savings projects. There is a growing
sign of an energy effi- ciency
implementation in Turkey. However, energy importation costs
of Turkey still present a challenge leading to huge financial burdens. This
paper explores the energy financing in Turkey and the likelihood of risks after
the establishment of structural reforms. The so-called
structural problems on the agenda of Turkey are emphasized during the crisis. Actually,
global crisis affected the lending conditions herein counterparty risk and
restricted the relations of enterprises and banks. In this study, it is argued
that there are strong barriers for the future energy saving industry in Turkey
made up of macro-economic, micro-economic and financial risks coming through
both domestic and global means.