Electrification of Türkiye’s Residential and Industrial Process Heat

Executive Summary

Electrification refers to the process of converting a machine or system into a state that consumes power. Examples of electrification include the transition from gasoline vehicles to electric vehicles, from gas boilers to heat pumps, and from gas cookers to electric ones. Electrification is a crucial strategy for decarbonizing the energy sector. Despite significant progress in decarbonization through the use of renewable energy in power generation, energy-intensive end-user sectors such as industry, buildings, and transport remain heavily reliant on fossil fuels.

Electrification of these sectors, where current renewable energy utilization is limited, enables the replacement of fossil fuels with power generated from renewable energy sources. When combined with digital technologies, electrification ensures smart and efficient energy use, resulting in significant savings for end-use sectors. The efficiency achieved through electrification and the replacement of fossil fuels with zero-emission power in end-use sectors make it possible to reduce greenhouse gas emissions arising from energy consumption.

In this regard, the most significant contribution of electrification to Türkiye is the reduction of fossil fuel dependency in final consumption. This is important for reducing energy imports and the current account deficit of Türkiye, which shows high external dependency in energy, as well as for maintaining energy security.

In October 2021, Türkiye ratified the Paris Agreement and subsequently declared its commitment to achieving a net zero greenhouse gas emission economy by 2053. This ambitious target necessitates a transition from fossil fuels to a renewable energy based system, as well as the decarbonization of energy-intensive sectors such as industry, buildings, and transportation. Additionally, the target requires a shift towards energy-efficient, low-carbon, and high-value-added production methods for industry.

While ensuring supply security, economic access to energy, and emissions mitigation are crucial factors in Türkiye's energy transition, numerous policies are being rapidly developed to address these concerns. Among the most significant strategies within the context of electrification are those that aim to promote the direct use of electricity by these sectors (e.g., through the use of electric vehicles or heat pumps in buildings) or indirectly (e.g., through synthetic fuels or green hydrogen obtained by electrolysis). The power system is therefore the backbone of Türkiye's efforts to achieve its net zero emission targets and decarbonize its economy.

When fossil fuels used as raw material in industry and in the transport sector are excluded, power consumption comprises only 28% of the final energy consumption in Türkiye (ETKB, 2021). 6% of the final energy consumption is provided directly from renewable resources (biomass, geothermal and solar energy), while 66% of energy need is met from waste heat, natural gas, coal, and oil. Therefore, even if complete decarbonization of the power sector is fulfilled, this does not mean that the entire energy use is decarbonized. In this respect, increase in the share of power use in all sectors and obtaining the necessary power from renewable energy is an important strategy for decarbonization.