Danish energy firms focus on Turkey as virus disrupts supply
Galskjot hailed the Turkish wind industry that "has proven itself in the last decade with a steady increase of around 500 megawatts (MW) each year with an impressive growth that makes it one of the largest in Europe."
The local content rules and renewable energy incentive scheme also supported the localization of the industry to an extent "but there are still areas for further innovation, collaboration and green job creation for sure," Galskjot said.
She said the Strategic Sector Cooperation (SSC) project between Turkey and Denmark both on district heating and offshore wind could facilitate new projects between Turkey and Denmark, also attracting green finance.
"My observation is there are very serious international players in the local industry who are ready to cooperate with Danish companies," she stressed.
The consul-general said that sustainable finance, laws, regulations and economy are critical for further investments in Turkey especially in the renewable energy sector, which she said: “is still very political and depends on incentives.”
"I see government to government projects as critical capacity-building tools between the countries and the Strategic Sector Cooperation (SSC) project in Turkey can lead to further investments and finance to Turkey in the renewable energy sector," she noted.
Denmark´s export credit agency, EKF, provides grants for feasibility studies through its EKF Green Accelerator Program from Denmark’s Exim Bank to facilitate green transition around the globe with Danish technology and expertise.
This program could be used in Turkey, she said along with contributions from the IFU, the Danish Investment Fund for Developing Countries, for more projects in Turkey.
Plans are afoot for two physical delegation visits in 2022 if the COVID-19 situation permits, one of which will focus on wind energy and the other on water and wastewater technologies and energy efficiency, which are strategic focus areas for the Trade Council of Denmark in Turkey.
To date, bilateral projects and investments have mainly focused on the energy, transport and infrastructure sectors.
Between 2002-2020, $642 million worth of Foreign Direct Investment (FDI) was made from Denmark to Turkey, whereas $25 million in FDI was realized from Turkey to Denmark, according to the Central Bank of Turkey.
Denmark’s FDI involved the $3.3 billion acquisition in 2020 of Eaton Hydraulics - a huge production facility in Turkey with 2,500 employees, by Danfoss, one of the biggest Danish conglomerates on power controls, automation, and energy efficiency in the world.
The Danish consul-general also acclaimed the entrance of LM Wind Power, the Danish multinational wind turbine rotor blades manufacturer, to the Turkish market in 2017, which she described as a breakthrough, as other Danish companies in the wind supply chain followed the original equipment manufacturer (OEM).
“We hope more to come in the new world after COVID-19 where sustainable supply chains in near markets are essential to be more competitive," she said.