As Dailysabah reports: Iraq poses a new market for Turkey with potential initial exports ranging between 200 and 400 megawatts (MW) in 2020, the head of Turkish Energy Traders Association (ETD) said. However, the country has the potential to export up to 2,000 MW providing $1 billion in foreign currency inflow to Turkey, ETD head Burak Kuyan told Anadolu Agency (AA) on Thursday.
Turkey’s Energy and Natural Resources Minister Fatih Dönmez announced in August that Turkey and Iraq agreed to start electricity trade as soon as Iraq makes the necessary updates to its infrastructure. Kuyan advised that Turkey diversify its electricity export countries to reduce Turkey’s electricity oversupply. Turkey’s installed electricity capacity surpassed 90,000 MW by the end of October 2019.
However, as the country’s electricity demand has seen only gradual growth in the last two years, the oversupply problem persists.
“Thus, we need to increase the export capacity so it will help reduce the oversupply and also increase electricity prices in the market, which are relatively low and are challenging for electricity producers,” Kuyan explained. Electricity producers are selling their output on the liberalized market in which prices are shaped by market dynamics. When there is an oversupply, prices automatically fall.