Turkey is one of the world's fastest growing energy markets. The average growth rate for electricity demand was 6.6% per annum between 1995 and 2006, and is projected to remain between 6.3% and 8.4% over the next decade (2007-2015) in line with new projections on supply and demand which were revised in June 2006. Regarding the high demand scenario, electricity consumption, which peaked at 176 billion kWh in 2006, is expected to increase to 354 billion kWh by 2015. This requires installed capacity to increase from about 40,500 MW in 2005 to 71,000 MW by 2015. These figures are well above the average levels in many countries and, combined with low per capita consumption levels, are an indication of the vitality of the sector.
Fundamental changes have been witnessed in the energy sector of Turkey since the adoption of the Electricity Market Law No.4628 in 2001. Taking into account the efforts of the government to create a liberal energy market structure, and attract considerable interest from private companies and investors, both domestic and foreign, into the Turkish electrical energy sector, it is appropriate to introduce past developments in the sector, the goals and objectives of the reform, summarize the first interim results and try to evaluate its future prospects. Besides the author supposes that such a review should be of interest and appreciated by analysts in countries, where similar reform has already started and is still on-going.