The Structural Transformation of Energy Market and Strategy of Turkey in the post-2001 period: A Historical Comparative Analysis
PD Dr. Lutz Mez
Since the major economic crisis of 2001, there has been a vast array of legislative and executive amendments in the Turkish energy sector, which puts Turkey’s integration into the EU enery networks and internal energy market as an ultimate mission. As the EU membership process, being the paramount external parameter and facilitator of the Turkish energy market reform, under the auspices of the promulgated energy market reform package, the incumbent ruling power endeavors to adress the main issue areas of energy security, competitiveness, sustainability, economic efficiency and environmental protection through an encompassing liberalization and privatization process of the hitherto state-owned and vertically integrated energy structure so as to harmonize with the relevant EU acquis. Complementing this sphere of legislative and regulatory amendments, Turkey’s aspiration to become a Eurasian Energy corridor has been outspokenly expressed and operationalized via various energy pipeline projects, connecting primarily the Central Eurasian supplies to European markets. Given the accelerated growth of EU energy demand and high level of import dependency, Turkey’s prospective role as such, strengthens the perception that Turkey will be of paramount importance as being one of the EU gas transit routes in the near future. Hence, a comprehensive analysis of this “transformation process” in the Turkish energy market is required in order to reach at a complete understanding of the logic of market regulatory novelties in the context of EU membership process with its possible implications of the role of Turkey on the EU internal energy market project. Hence, the objective of this dissertation is to question the primary cores of and drivers behind the market reforms in Turkey on the basis of changing geopolitical and market realities and their apparent implications on the profile and role of Turkey as a probable transit route for EU energy.