The CEO, in an interview with an Anatolia news agency reporter yesterday, noted that the regulation, which will bring about energy benchmarking standards for buildings, along with energy efficiency requirements, would transform the sector and require new investments in heating, cooling and insulation. According to Bulut, the regulation, which goes into effect on Dec. 5, would reinvigorate the ailing construction sector and decrease dependence on foreign energy sources.
Bulut revealed that 36 percent of all the energy consumed in Turkey was consumed by households. He noted that 18.4 million homes existed in Turkey according to 2008 data, 10 million of which were in large cities. He noted that a TL 50 billion market could be created for energy efficiency investments for these 10 million homes.
“This new regulation would reinvigorate the ailing construction sector, and its effects would snowball into other sectors as well. The regulation is the first of its kind, covering not only heating efficiency but energy efficiency in general, so many sectors will be stimulated,” stated Bulut.
Giving a general overview of the effects of this new regulation, Bulut noted: “If TL 5,000 is invested in the 10 million homes that fall under the scope of this regulation, then a TL 50 billion market will be created and spread across 10 years. … This TL 50 billion in investment will repay itself in a very short period of time. We currently consume the equivalent of 28 million tons of petroleum per year to heat homes, but with good insulation we can halve this. If we insulate all 10 million of these homes, then we will save on average TL 15 billion in energy costs per year, therefore amortizing the TL 50 billion in a little more than three years.”
Bulut stressed that the regulation along with the required changes need to be explained fully to the public so it is clear that the energy efficiency investments would increase their standard of living and shrink their energy costs. “Some costs will be incurred by homeowners, but it’s also possible to make these investments without enduring hardship. Our ministries need to work on making these investments easier. Proper lending schemes can help divert energy savings achieved from using more efficient insulation to repaying loans, thereby making it easy to make these much needed investments.” Bulut also said the 18 percent value-added tax (KDV) applied to the sector needed to be reduced to 1 percent for the sector to be further reinvigorated.
