Turkey Investing in Coal Despite Cheaper Renewable Energy

• by Sean Buchanan (geneva)
• Friday, March 27, 2015
• Inter Press Service

According to a report on ‘Subsidies to Coal and Renewable Energy in Turkey' released on Mar. 24,

Turkey already spent more than 730 million dollars in subsidies to the coal industry in 2013.

This figure, says the report, does not even count subsidies under the Turkish government's ‘New Investment Incentive Scheme', which provides tax breaks and low-cost loans to coal projects, so the true figure is likely to be even higher.

The report, by the International Institute for Sustainable Development (IISD), says that the Turkish government is planning to triple generation from coal by 2030 despite the fact that renewable energy is already cheaper than coal when external costs, such as health and environmental damage caused by burning coal, are taken into account.

According to the report, the country has developed a strategy "focusing on developing domestic coal resources, such that growth in coal-fired power generation is expected to be highest of all Organisation for Economic Cooperation and Development (OECD) countries."

Nevertheless, this strategy "also acknowledges the importance of environmental protection and emissions reduction, and foresees a much larger role for renewable energy in the energy future."

The report comes at a time when public and private institutions are under mounting pressure to stop investing in coal mining companies.

"Subsidies for coal lock in coal power for another generation when renewable sources of energy are less costly for society in economic, social and environmental terms," said Sevil Acar, Assistant Professor at Istanbul Kemerburgaz University and one of the report's authors.

The report says that when the costs of coal are compared with the costs of wind and solar energy, taking into account environmental and health costs, electricity from wind power is half the cost of electricity from coal, and solar power is also marginally cheaper than coal.

"This study provides further evidence to support the case for eliminating fossil-fuel subsidies once and for all," said Peter Wooders, director of IISD's Energy Programme. "As a G20 country that has already committed to phasing out inefficient fossil-fuel subsidies, this is a call to action for Turkey."

According to the report, just over half of Turkey's subsidies are used to provide coal to low-income households and while these serve the important goal of improving energy access, they come at a high health cost and are no replacement for social security programmes.

The report recommends a gradual phase-out of these subsidies in favour of more efficient measures to support access to energy and support social welfare.

Meanwhile, notes the report, coal also remains a significant employer in many areas, and any moves away from coal use would need detailed planning to ensure that affected communities can benefit from compensation measures and additional job creation from new technologies.

Edited by Phil Harris    

© Inter Press Service (2015) — All Rights ReservedOriginal source: Inter Press Service

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