While Turkey currently has an economy that ranks among the world’s largest twenty, it has also established the aim of growing the economy so that by the year 2023 Turkey’s economy will be among the top ten. When we look at the HVAC&R sector, we see that its growth is being propelled by dynamic sub-categories:
Turkey’s growing demands for energy and its need to decrease dependence on foreign sources are leading to a continual increase in energy sector investments. It is foreseen that this growth will also give rise to the appearance of various new and alternative fields of operations. Idris Gulluce, the Minister of Environment and Urban Planning, announced that to date the government had designated more than one billion TL to urban renewal purposes. Saying that his ministry had initiated approximately
400,000 units of renewal projects during the 2.5 year implementation period, Minister Gulluce added that the ultimate aims of these projects was to renew a total of 6,500,000 housing units by the 100th anniversary of the Republic (2023): Turkey alone is annually consuming almost as much cement as all of the rest of Europe.”
Sefik Tuzun, the Chairman of the Management Board of the Construction Products Producers Association, said: “In a span of just twenty years time, 7,000,000 housing units across the face of Turkey will be re-constructed, with a total cost estimated at around five hundred billion US dollars. This will include almost one-third of Turkey’s total housing stock. In line with the fact that our sector has always assumed a leading role in the preservation of the environment and in recycling efforts, it is also currently involved in various research projects aimed at reutilizing those construction materials removed from those units that are being demolished within the urban renewal project.”
The Chairman of the Association of Turkish Construction Material Producers (IMSAD), Dundar Yetisener, said that forecasts for 2015 called for a general growth of the economy of 3.5% and the construction sector of 4.5 – 5%. He went on to say that the construction materials industry recorded a growth of 73.6 billion dollars in 2014, with 52.3 billion of that total stemming from the domestic market and 21.3 billion from exportation. It is expected that the construction materials industries will also achieve a production growth of 4.5 – 5%.
With its growth of 157.6 billion dollars in 2014, Turkey’s export figures broke all records achieved thus far in the Republic period, a figure that represents a 4% increase over the prior year. The exports carried out by Turkey’s electric- electronic sector in 2014 exceeded 12,390,000,000 US dollars, while Turkey’s steel pipe sector achieved exports of almost 2,000,000 tons in 2014.
Turkey and Azerbaijan, acting together under the joint title of the Eurasian Union, have become leading players in the field of energy. Professor Gurkan Kumbaroglu, the Chairman of the International Association for Energy Economics, has said that by drawing other regional countries into the energy projects led by Turkey and Azerbaijan
a giant conglomeration of cooperative efforts has been formed. Kumbaroğlu said that the Alliance hopes to include efforts provided by Turkey, Azerbaijan, Turkmenistan, Kosovo, Macedonia, Albania, Montenegro, Bosnia- Herzegovina, Georgia, Russia, Ukraine, Romania, Kazakhstan, Greece, Croatia, Serbia, Bulgaria, and Slovenia into the same project.
The project aim of TANAP, the Trans- Anatolian Natural Gas Pipe Line Project, is to transport the gas released from the Shah Deniz gas field at the Caspian Sea and the gas released from the other gas fields at the south of the Caspian Sea, first to Turkey and then from there on to Europe. Eventual TANAP connections with the South
Caucasus Pipeline (SCP) and then the Trans-Adriatic Pipeline (TAP) will form the Southern Natural Gas Corridor. Turkey’s Minister of Foreign Affairs, Mevlut Cavusoglu, says that the 1850 kilometer long project is critical for Turkey and that plans call for the completion of the entire project in a three-year period.
Gas will begin to flow from the TANAP Project in 2018. While the initial capacity will equal 16 billion cubic meters annually, this amount will be gradually increased to 24 billion m3 and then finally to 31 billion m3. Upon its completion, TANAP will rank as the biggest circumferential and longest natural gas pipeline project ever effected by Turkey within its borders.
According to TEDAS data, in 2014 Turkey was utilizing 50 MW of unlicensed solar energy systems. This figure is set to double in 2015, reaching a 100% growth rate. It is predicted that the news of the new licensing procedures to go in effect in 2015 will further growth the sector. Expectations say that this sector will achieve a value of 10 – 15 billion EU in the coming five years.
According to stated plans, public investments will reach a sum of 250 billion dollars during Turkey’s 10th Development Plan, which covers the years 2014-2018. Projects carried out jointly by the public and private sectors for this same period will equal almost
100 billion US dollars. In the first half of 2015 the public and joint public-private efforts will act to further propel the overall economy. It is thus obvious that the combination of these positive markers will even further vitalize the Turkish economy in general, and Turkey’s HVAC sector particular.