FT reported that much of Europe may be moving towards cleaner power but in Turkey it is a different story.

EUAS, the country’s state owned electricity company was due on Monday to sign a memorandum of understanding with two South Korean groups on USD 2 billion coal fired power plant. It is also moving ahead with plans for 2 nuclear plants.

The government said that by 2023 it wants to reduce the percentage of electricity generated by gas from 50% to 30%. That contrasts with a new study showing that 71% of new power generating capacity in the European Union last year came from renewable energy sources.

For economic and diplomatic reasons, Ankara is keen to cut its dependence on gas imports from Russia and Iran and to boost its hitherto insufficient domestic energy production. About Q3 of the country’s energy comes from abroad.

Turkey has had price disputes with both Moscow and Tehran, its two biggest gas suppliers. Such considerations are particularly important when you have a current account deficit of USD 77 billion and an energy import bill of more than USD 40 billion.

Having broken off one contract last year with Russia by far Turkey’s biggest gas supplier, Ankara recently announced it was taking Iran to arbitration over the prices it charges.

Mr Taner Yildiz energy minister of Turkey said at the weekend that the government would provide incentives for coal based projects and impose limits on natural gas projects.

(Sourced from blogs.ft.com)