DOE DAS HEGBURG DISCUSSES CLEAN ENERGY WITH ENERGY

C O N F I D E N T I A L SECTION 01 OF 02 ANKARA 000268 SIPDIS SIPDIS EEB FOR A/S SULLIVAN EUR FOR DAS BRYZA EEB FOR MANN DOE FOR HEGBURG E.O. 12958: DECL: 02/13/2018 TAGS: ENRG EPET TU SUBJECT: DOE DAS HEGBURG DISCUSSES CLEAN ENERGY WITH ENERGY MINISTER GULER REF: ANKARA 2755 Classified By: Economic Counselor Dale Eppler for reasons 1.4 (B) and ( D) ¶1. (C) Summary. On the margins of a January 29-30 Department of Energy-sponsored Clean Energy Technologies Conference, DOE DAS for International Policy Alan Hegburg discussed a range of energy issues with Energy Minister Hilmi Guler. Guler said Turkey wants to be a regional leader in clean energy development and encouraged U.S. investment in those technologies as well as oil and gas exploration and nuclear power. Of note, Guler expressed GOT interest in partnering with U.S. firms to develop Iraq's oil and gas sector. Guler mentioned energy efficiency would also be an area ripe for GOT-U.S. collaboration. Referring to a January 7 meeting with Secretary Bodman, Guler stressed the urgency of establishing bilateral working groups on energy issues. Hegburg said he would convey Guler's message to Bodman. End summary. Energy Security is Key -------------- ¶2. (SBU) Minister Guler said Turkey will need $125 billion in energy investments by 2020 to meet growing energy demand. He added he would like to see U.S. energy companies invest in Turkey and mentioned numerous sectors for collaboration including oil and gas exploration, energy efficiency, clean energy technologies, and civilian nuclear power. Minister Guler emphasized that with the U.S, Turkey "can diminish the efforts of certain countries and that together, we can prepare a vision for the region." Hegburg said energy security in Turkey could be enhanced by developing further a liberal energy market where fuels can compete on a level playing field for energy sector investments. Turkey's Leadership in Clean Energy -------------- ¶3. (SBU) Guler expressed appreciation to the Department of Energy for organizing the January 29-30 Clean Energy Technologies Conference in Istanbul. He said Turkey wants to be a regional leader in clean energy development and believes investment in green energy technologies could help increase energy security by reducing reliance on imported natural gas. He added that new clean coal technologies would help revitalize Turkey,s coal sector and enhance energy security by exploiting the country's natural resources. Hegburg said the U.S. is experiencing tremendous growth in the renewable energy sector, especially in wind energy. He added growth could be limited by turbine availability, but that the technology is commercial, already being deployed in the U.S. and is growing substantially. Oil and Gas Exploration and Nabucco -------------- ¶4. (SBU) Guler confirmed that the GOT would like to work with us to develop Iraq's vast oil and gas resources. He said Turkey knows the geology and people of Iraq and would make a natural partner for U.S. companies doing business there. In addition, Guler said he hoped U.S. companies would bid on a Turkish Petroleum Company (TPAO) tender which closes February 15 to explore for oil and gas in the Black Sea. Guler expressed optimism that large volumes of oil and gas could be found. Guler also said GOT wants to move forward on development of Nabucco and said newly appointed BOTAS Board Member Osman Goksel would serve as Turkey's Manager of the Nabucco project. (Note: Goksel previously worked as the BOTAS Manager of the Baku-Tbilisi-Ceyhan pipeline. End note.) Civilian Nuclear Power -------------- ¶5. (SBU) Guler said the development of nuclear power is a key part of the government's strategy to meet growing electricity demand. He added that Turkey wants to cooperate with the U.S. in this field and he hopes U.S. companies will participate in the bidding that will be announced February ¶21. The Cabinet of Ministers is reviewing implementing legislation to supplement the first nuclear law passed ANKARA 00000268 002 OF 002 November 7. (reftel) He predicted that the GOT would announce a tender process to construct the reactor shortly after the new legislation was agreed. Energy Efficiency -------------- ¶6. (SBU) Guler said improving Turkey's energy efficiency could help meet Turkey's growing energy demand. He again encouraged U.S. investments in this sector, saying that Turkey could export electricity to the region if U.S. firms form JVs with Turkish partners. (Note: This is a long-term goal. Turkey is facing an acute electricity shortage. We understand electricity demand could exceed supply as soon as this summer. End note.) Hegburg added that Turkey could realize the best gains in the short term by improving energy efficiency. What's Next for Our Partnership? -------------- ¶7. (C) Recalling a January 7 meeting with Secretary Bodman, Guler asked that we work together to define the next steps of our energy partnership and suggested drafting an action plan to guide proposed U.S.-Turkey energy working groups. Hegburg cautioned that it may be too early for an action plan and suggested developing a strategy first and then a calendar. Guler stressed Turkey urgently needs energy and was racing against time. He requested the bilateral groups convene at the earliest possible time to look at upstream, pipeline, and LNG terminal projects. Hegburg said he would convey Guler,s ideas to Secretary Bodman. ¶8. (C) Following the meeting, we spoke with MFA Energy Directorate General Vural Altay and Ministry of Energy and Natural Resources International Department Head Cigdem Hatunoglu and suggested they send us detailed information about the goals and issues to be addressed in the working groups. They agreed. ¶9. (C) Comment: Guler did not articulate a sound energy strategy for improving efficiency and increasing renewables, contribution. The conference made clear to us the Turkish private sector interest will drive the development of renewable technologies and clean coal; rather than institutional, government-to-government arrangements. ¶10. (U) DOE DAS Alan Hegburg cleared this cable. Visit Ankara's Classified Web Site at http://www.intelink.sgov.gov/wiki/Portal:Turk ey WILSON