Many countries are viewing Africa as an economic gateway, and stronger bilateral cooperation is being forged with Turkey trying to get onboard. The Turkish government has just passed new legislation that will offer incentives, particularly in renewable energy, that could see $30 billion in wind power investments.
The Mediterranean country is looking to further its expertise in hydropower, wind, and solar energy and will offer local manufacturers an easier route to produce these alternative technologies. The law guarantees $0.07 kw/h for wind and hydroelectricity from licensed plants, $0.13 for solar and biomass, and $0.10 for geothermal-derived energy. The integration of local equipment into operations can add $0.04 to the price over the next five years.
Zeki Eris, member of the Wind Power Plants Investors Association, said to Bloomberg that this new regulation could have Turkey as a key producer for renewable energy technology like wind turbines for the MENA region. “Turkey will be able to become a hub for wind power equipment producers which can export products to North Africa, the Middle East, and the Balkans,” he said.
The law will be applicable for 10 years with renewable energy producers able to benefit from an 85% discount on transmission costs.
In addition, Turkey gained observer status to the African Union (AU) in 2005 with academic experts on Turkey’s diplomatic and economic engagement with Africa Mehmet Ozhan and Birol Akgun citing in “Turkey’s Opening to Africa” that the Mediterranean country’s trade volume with African countries skyrocketed from $5.4 billion in 2003 to over $16 billion in 2008. The government is hoping to reach $30 billion per year in the near future.
In an interview with Balkanalysis.com, Ozhan said that future collaboration on renewable energy strategies will be seen between Turkey and various African countries. He said that Turkey is looking to diversify its energy resources, currently depending a great deal on Russia, and Africa shares in that strategy. Ozhan said, “That is why we look at trade statistics between Turkey and Africaenergy resources play an important role in Turkey’s import from Africa along with other things.”
However, if comparing to other countries vying for Africa’s favor, Ozhan noted, “Turkey’s move is more modest comparing to that of India, China, the US, and others.” As a result of such “modesty,” he added that Turkey didn’t consider itself in a race against the larger countries.
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