Turkey’s renewable energy trade relations with Europe: The role of institutions and the energy market

Abstract

Globally, the level of electricity grid interconnectedness between neighboring countries varies depending on the level of regional cooperation enabled by institutions. As suggested by previous research, in transboundary river basins, this variation affects the environment and the management of transboundary waters. In regions where all electricity utilities are connected and function at a synchronized frequency, and where integrated electricity market mechanisms function, the tendency towards the implementation of the principles of integrated water resources management is higher. Turkey shares river basins and power transmission lines in Europe both with the members of the European Union (EU) and non-member states. Turkey trades electricity with its western neighbors that are members of the EU, and with its European non-EU-member neighbors in the east. The aim of this paper is to compare the level of Turkey’s electricity trade integrity with its EU-member European neighbors and with its non-EU-member neighbors and discuss the potential impacts of this situation on the environment and the shared water resources. The main argument in this paper is that the higher level of electricity trade between Turkey and its EU-member neighbors is facilitated by Turkey’s membership to the European Network of Transmission System Operators for Electricity (ENTSO-E). The higher level of electricity interconnection leads to a higher level of cooperation in water and environment issues in the shared river basins between Turkey and Europe through the facilitating role of established institutions.