14th IICEC Conference: “Global Energy Crisis: Solutions & the Role of Renewable Energy”

The energy crisis in the world and solutions to it, and the development of renewable energy in Türkiye were discussed at a conference entitled "Global Energy Crisis: Solutions & The Role of Renewable Energy" organized by Sabancı University Istanbul International Center for Energy and Climate (IICEC) at Sabancı Center.

The conference started with the opening speech delivered online by Güler Sabancı, the Founding Chair of the Sabancı University Board of Trustees. Dr. Fatih Birol, Executive Director of the International Energy Agency (IEA) and Honorary Chair of IICEC was the keynote speaker. Within the scope of the conference, the launch presentation of the "Türkiye Renewable Energy Outlook 2022 Report", which is a first in the sector and a pioneering study, was made by IICEC Director Bora Şekip Güray.

Güler Sabancı, the Founding Chair of the Sabancı University Board of Trustees, stated that she was very pleased to see IICEC expanding its work and sphere of influence within the ecosystem.  She added, “In this perspective, IICEC is a leading model and center in Türkiye. This year, within the scope of the Outlook series, it completed its first and pioneering work in the sector, focusing on renewable energy, one of Türkiye's most important opportunity areas, and offering an analytical perspective, with a participatory approach involving industry stakeholders. IICEC will continue its efforts to pave the way for energy and climate policies and to guide decision-makers and all stakeholders”. 

Dr. Fatih Birol, Executive Director of the International Energy Agency (IEA) and Honorary Chair of IICEC, emphasized that 2023 will be a much more difficult year due to the global energy crisis and that we may miss 2022. He continued, “The year 2022 has been extremely painful for many people, especially those living in Ukraine. In the future, in 2030, we will not only remember 2022 as a difficult and painful year, but also as a year in which clean energy technologies gained historical momentum”. 

In the panel during the conference moderated by Sabancı Holding Energy Group President Kıvanç Zaimler, the energy crisis in the world and the latest developments in the field of renewable energy were evaluated. Zorlu Enerji CEO Sinan Ak, Borusan EnBW Enerji General Manager Enis Amasyalı, Shell Türkiye Country Chair Ahmet Erdem, ING Türkiye Board Member Semra Kuran, and Sanko Enerji CEO Hakan Yıldırım took part in the panel as speakers.

Sabancı Holding Energy Group President Kıvanç Zaimler:
“The IICEC report was prepared from an analytical perspective. Today, while the energy transformation agenda is advancing rapidly, there is, on the other hand, the Russia-Ukraine War as well as the energy security debates in Europe and record energy prices. Crises bring opportunities. In world wars, the world's greatest innovations and innovations emerged. The environment created by the Russia-Ukraine War also made significant contributions to the development of clean and reliable energy. I hope that the economy of clean and reliable energy technologies can further improve  thanks to the benefits of competition”.

Zorlu Energy CEO Sinan Ak:
“It is obvious that change and transformation cannot happen in one day in order to prevent the crisis in energy. A long time is needed for the establishment of renewable energy infrastructure, , the sustainable mining required for battery and storage systems, and the establishment of the other necessary facilities. When we look at Turkish investors in the field of energy, they are extremely positive and eager to invest. However, we see that investing and competing in Europe is more expensive and more difficult compared to other regions such as the  Middle East. We see this in our charging station investments in Europe. I think that in addition to their investments in our country, Turkish investors should turn their route to the Middle East, India, and America considering the opportunities and incentives in the field of renewable energy. I also attach great importance to the Black Sea gas discovered in our country. I think Türkiye will have an advantage in every sense when it reaches the mentioned levels”.

Borusan EnBW Enerji General Manager Enis Amasyalı: 
"Today, in the midst of the climate crisis and the energy crisis, we are witnessing a major energy transformation, the birth of a new energy economy. In the past, energy transition cycles were experienced with great turmoil, from biofuels to coal, from coal to oil, with the use of fuels being added together. The climate crisis, on the other hand, has put the whole world in a process in which some resources need to be removed from the equation. Climate and energy crises are interconnected, and we must respond quickly to both. The right investment decisions to be made today will be historical milestones for a clean and secure  energy future that is affordable for consumers. At this turning point, we see that the decisions taken in the midst of the energy crisis have greatly accelerated the clean energy transformation."

Shell Türkiye Country Chair Ahmet Erdem:
“I find predictable and efficient energy market development critical. In 2022, war and human tragedy, energy security risks, climate change concerns, rapidly rising energy prices, global inflation, and recession expectations were on the agenda. Under these conditions, energy transformation will continue, and renewable, zero and low-carbon energy investments will even accelerate. As energy systems change around the world, Shell is playing a leading role. At Shell, our goal is to be a net zero emissions energy business by 2050. Today we are one of the world's largest producers of biofuels and have 10% of the global electrolyzer capacity for hydrogen production. We aim to sell approximately 560 TWh  of electricity per year by 2030. We have increased our electric vehicle charging network from approximately 60,000 in 2020 to approximately 90,000 at the end of 2021. We aim to increase it to over 500,000 by 2025 and to 2.5 million by 2030."

ING Türkiye Board Member Semra Kuran: 
“Energy plays a critical role in solving the global problems we face today. In this period, where investments for a net zero world are expected to increase by more than 50 percent, renewable energy investments will take the largest share. In this respect, it is of strategic importance for financial institutions to develop green financing instruments, provide consultancy to their customers, and establish the necessary frameworks and standards in order to ensure that these investments are realized with a focus on sustainability. At ING, an institution that has been leading the sustainability movement since the 1990s, we are moving towards our net zero targets for 2050 with innovative solutions in this field. While minimizing the effects of our own operations, we also develop products, services, solutions, and standards that play a role in helping our customers and business partners achieve their sustainability goals."

Sanko Energy CEO Hakan Yıldırım:
“As Türkiye, we need to focus on what kind of roadmap we should follow in renewable energy technologies. Today, there are very important issues that both excite and preoccupy the energy sector in our country. Undoubtedly, the biggest concern of the industry is uncertainty. However, there are also exciting topics. One of the most exciting topics, especially after the Russia-Ukraine war, is the understanding of the strategic importance of renewable energy in a way that will never be forgotten again. Therefore, it is a fact that we will experience processes where the efficiency of technology increases and the cost decreases. The developments to be experienced in the fields of electric storage and hydrogen, especially solar energy, arouse great excitement throughout the sector."

At the conference, the launch presentation of the “Türkiye Renewable Energy Outlook 2022 Report” prepared by IICEC, a first in the industry, was made by Bora Şekip Güray, IICEC Director. Bora Şekip Güray underlined that in the study they prepared, they presented 7 strong concrete proposals about renewable energy to all stakeholders and continued as follows:

“According to IICEC's 'Türkiye Renewable Energy Outlook' study, the proportional contribution of renewable energy in Türkiye's electricity generation may increase by two times, and the contribution of renewable energy in the total energy system may increase more than four times until 2050. In the High Scenario, nearly 90% of electricity generation can be met from renewable energy in 2050. While the fastest growth is in solar and wind, the contribution of these two sources to electricity production will reach two-thirds in 2050 with a proportional increase of four times. In the IICEC analysis, while the weight of fossil fuels is greatly reduced, this development offers critical gains to the Türkiye energy economy and environmental performance of Türkiye.

Investments to be made, especially for a renewable energy-oriented and efficient electricity system, will greatly reduce Türkiye's fossil fuel imports and emissions inventory. This will be the most important supporter of a more secure and cleaner energy future. One unit of additional electricity investment increase will create ten units of savings in imported fossil fuel and emission costs. To support efficient and strong growth in renewable energy, developments will be critical in market framework, investment climate, finance models, electricity networks, technologies, and strategic objectives. IICEC 'Türkiye Renewable Energy Outlook' presents 7 concrete suggestions to all stakeholders, including the human resource development focus, to utilize Türkiye's high growth potential in renewable energy and related technologies, which offers multidimensional opportunities for energy security, clean energy transformation, and a more competitive and technology-oriented industrial development:

7 Concrete Proposals:

1. Reaching a total renewable energy installed power of more than 250 GW and a renewable electricity generation share of more than 85% and a total renewable energy share of 50% in final energy demand by 2050, and determining roadmaps on the basis of resources, technologies, and sectors.
2. Developing sustainable investment and financing models for an efficient, in-depth, cost-reflective, predictable electricity market operation, thus ensuring strong growth in the project stock.
3. Strengthening the capacity and flexibility of the networks, which form the backbone of the electricity system, with technology-oriented investments supported by long-term dynamic planning.
4. Continuing the development of wind and solar technology in a way that supports the sustainability of supply chains and Türkiye being a regional clean energy technologies production base, and implementing developments in energy storage and green hydrogen production technologies.
5. Promoting energy security and the clean energy transition by ensuring that direct renewable energy contribution is increased at least threefold in addition to clean electrification in buildings, industry, transportation, and other energy-consuming sectors.
6. Transforming growth in renewable energy ecosystems into high value-added opportunities by leveraging the energy efficiency potential and digitalization solutions in the value chain.
7. Developing qualified human resources and entrepreneurial ecosystems that will support strong and sustainable growth and competitiveness in renewable energy.