CIAB Market & Policy developments 2005/06 - IEA

• develop cleaner energy supplies; and
• save energy.
242. There is particular concern over oil and gas supplies, with prices in these markets rising
rapidly in recent years reflecting economic factors and political uncertainties. The UK is
set to become a permanent net importer of oil within a few years, it became a net
importer of gas in 2004 and has been reliant on coal imports for some time. Indeed, in
2006, imported coal represented almost three-quarters of the UK’s coal consumption and
the surge in UK coal demand has drawn comment on the ability of UK port infrastructure
to cope with further growth. This and other questions relating to the value of a UK
indigenous coal industry were addressed by The Coal Forum, which published an
overview report (http://www.berr.gov.uk/files/file41186.pdf) on 31st August.
243. As coal offers an alternative to gas/oil it is attractive from a security of supply perspective
and is likely to remain an important part of the UK’s energy mix for many decades yet.
However, the Government requires coal to become cleaner too and efforts are underway
to develop clean coal technology through improvements in power station efficiency, cofiring
with biomass and development of carbon capture and storage (CCS).
Turkey
244. Turkey is a candidate for EU membership and is trying to increase its indigenous energy
resources and harmonise Turkish legislation on coal with EU legislation. Currently, the
coal sector is subject to a restructuring program. The early restructuring program was
undertaken in the 1990s and accelerated with the adoption of the Electricity Market Law
in 2001, designed to introduce more competition and the installation of new lignite
washing plants.
245. In accordance with national energy policy, coal policy is based on developing the
exploration and exploitation of coal and its economic, secure, reliable and
environmentally friendly use as one of the country’s main indigenous resources. The
priorities are:
• developing existing indigenous energy resources especially in the coal sector;
• restructuring the coal mining sector;
• privatising some inefficient and inactive coal mines; and
• promoting the adoption of clean coal technologies in the utilisation of coal in
thermal power plants, household and industry.
246. There are no legal restrictions on private sector operations and the coal sector is open to
foreign investment. Turkish Coal Enterprises (TKI) has been in profit since 1995 and
does not benefit from direct subsidies. It is being re-structured by consolidating its
operational units and facilities to improve productivity. Operations at small, loss-making
mines have ceased and the mines offered to the private sector. Inactive mine deposits
which are suitable for electricity generation are being offered for lease to the private
sector, but if this is not successful the licenses are transferred back to the government.
247. At the beginning of 2007, TKI had 47 licensed coal deposits (15 active, 13 leased, 19
inactive mines). Since 2002, production at eight small mines has ceased and they have
been leased to the private sector, one inactive mine has been sold to the private sector
and three mines have been leased to the private sector for electricity generation (two of
these were leased to private undertakings in 2006).
248. Following of enactment of the 2004 Mining Law, Turkish Hard Coal Enterprises (TTK) is
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