The ongoing economic crisis in Turkey hit energy companies hard. Investors began to withdraw from the market due to the imbalance between supply and demand.
According to the calculation made by SÖZCÜ from the data of the Union of Chambers and Commodity Exchanges of Turkey (TOBB), 2,254 companies that produced electrical energy over the past decade from January 2013 to March 2022 have shut down.
For the past four years, the energy sector has experienced a downfall. The majority of the companies that have shut down during this period came from the energy sector. In 2013, only 56 companies that generate electricity were closed. However, in just the first quarter of 2022, 76 companies locked their doors. The worst contraction in the energy sector was recorded in 2019, with 536 company closures. A total number of 354 companies ended their activities in 2020, and 304 companies in 2021.
Pointing out the unpredictable sector growth, experts stated that many entrepreneurs entered the energy business with the expectation of high earnings eliminated failed due to the supply-demand imbalance.
Previous demand forecasts were an exaggeration to make the sector attractive. Sources noted that when the production exceeds the demand, the companies start to make losses.
Experts stated that electricity consumption has decreased due to the shrinkage in the economy, contraction in the energy industry, price hikes, and the solar energy companies established in recent years to produce unlicensed electricity.
Electricity hike for workplaces has reached 774.6 percent since 2018. In the same period, this rate was 408 percent in residences.
Translation: Cem Cetinguc