On the second day of the EIF-8th International Energy Congress and Exhibition held in Ankara, special sessions were organized by OSTİM. In the ‘Offset and Localization in the Energy Sector Panel’ and the ‘European Energy Clusters Meeting’, representatives from the public and private sectors of the energy industry, as well as international representatives, discussed localization and cooperation opportunities.
Participants pointed out that for the sector to reach a certain level in terms of domestic products, importance should be given to design, international standards, testing, and certification. It was noted that although companies in the sector are very experienced, skilled, and willing, they lack basic certifications and documents.
EIF - 8th International Energy Congress and Fair, the only platform in Türkiye that combines international congresses, fairs, and B2B events, was held at ATO Congresium. The program, which brought together leading energy sector decision-makers, experts, and private sector representatives from around the world, included two separate panels hosted by the OSTİM Renewable Energy and Environmental Technologies Cluster and Ostim Technopark.
“80% of Needs are Met from Abroad”
The first session of the day featured a panel discussion on ‘Offset and Localization in the Energy Sector.’ Orhan Aydın, Chairman of the OSTİM Board of Directors and moderator of the panel, summarized the current situation regarding Turkey's energy needs. Aydın emphasized that Turkey's energy needs increase by approximately 6% annually, requiring around $10 billion in investment to meet this demand. Noting that up to 80% of resource and equipment needs are met from abroad, Orhan Aydın asked, “Is a system sustainable that relies on using the resources and capabilities of companies from other countries, purchasing their technology, and paying excessively for it?”
“We take into account the capabilities of the clusters”
Bilal Aktaş, Head of the Industrialization Department of the Undersecretariat of Defense Industry, gave information on the development stages of offset in his presentation titled ‘Offset Applications in Turkey’, accompanied by the Undersecretariat's practices. Reminding that offset is applied at different rates worldwide, Aktaş stated that the process, which started with ready-made procurement in Turkey in 1991, has evolved into joint production and domestic development. The Head of the SSM Department said, “In the last 10 years, we have started to undertake projects with our own main contractors. We make it mandatory to use our own main contractors in all projects. Clusters are indispensable in this process. We obtain maximum domestic contribution by taking into account the capabilities of the clusters.” Bilal Aktaş added that many Turkish firms continue their offset-based projects even after the offset commitment ends, due to quality and price advantages.
“4,500 Manufacturers Received Domestic Product Certificates”
Bilal Tek, Head of the Industrial Policies Department at the Ministry of Science, Industry and Technology, emphasized the importance of the Industrial Cooperation Program (ICP) at a panel he attended on the topic of ‘Domestic Contribution and Offset Regulation in Public Procurement - Opportunities’. Tek stated that three fundamental axes are taken as the basis in the new industrial strategies, listing them as: Domestic Production, Innovative Production, and Green Production.
Bilal Tek stated: “If we want to be a growing economy, we need to raise our production level to that of developed countries. With the amendment made to the Public Procurement Law in 2014, our Ministry was tasked with preparing a circular on domestic goods in public procurement. Our legislation has been prepared and implemented. As of today, approximately 4,500 domestic producers have received domestic goods certificates.”
"Especially in the civilian sector, public administrations have hesitations about implementing regulations. In our country, there were $114 billion worth of public procurements in 2014. Domestic production in the energy sector is a matter that needs to be addressed. Our country is dependent on foreign sources for machinery, equipment, and resources in this sector. To break this dependence, SIP (Strategic Investment Plan) should be implemented in nuclear power plant investments.”
“An Undersecretariat for Energy Industrialization should be established”
Ziya Kemal Gazioğlu, a member of the Ankara Chamber of Commerce (ATO) Offset Commission, shared his views under the title ‘Business World’s Expectations from Offset’. Recalling that they established a Special Expert Commission within the ATO in 2013, Gazioğlu stated that they decided to address the issue in the areas of transportation, health, energy, and defense industry.
Ziya Kemal Gazioğlu stated: “We see that we are stuck in terms of production. It is not possible to surpass this level in production items that will create high added value with old habits. Original designs and production are needed. Long-term planning is absolutely necessary; cooperation is needed. A success story has been written in defense. The Undersecretariat of Defense Industries (SSM) is working as the heart of this planning. Unfortunately, such a structure does not exist in health and transportation, including energy. An energy industrialization strategy should be determined and an Undersecretariat for Energy Industrialization should be established. Turkey has the ingredients for creating its energy industry: flour, sugar, and oil. Someone needs to mix the halva. We hope that our newly formed government will take steps to realize this request. As the private sector, we are ready.”
“State purchase guarantees provide relief”
Serkan Başar, Marketing Manager of Alfa Solar, emphasized that to compete in the global market, one must first establish a presence in the domestic market. Başar stated, “Provided that certain quality standards are not compromised, power plants built with panels purchased from domestic producers, under a state purchase guarantee, will provide relief to manufacturers.”
“A Technological Plan Must Be Prepared”
Aysun Özen Tacer, Senior Manager of Deloitte Energy and Natural Resources Group, drew attention to the issues of quality and certification in localization. Pointing out the need for a critical technology plan, Tacer said, “These should be outlined within the framework of the R&D strategy document. When we talk about energy investment, we are talking about a broad area. $3.5 billion worth of machinery and equipment is purchased in our country. For the sector to reach a certain point in terms of domestic products; can we ensure design, international standards, testing and certification, and quality within competitive market conditions? A support mechanism that does not compromise on quality is critical. Quality is largely related to company competence. However, for volume, public policy, macro applications, and regulations for the use of domestic products in public procurement need to be effectively activated.”
“550,000 Parts in a Nuclear Power Plant”
Necati Yamaç, Deputy Undersecretary of the Ministry of Energy and Natural Resources, the last speaker of the panel, stated that the nuclear age has begun in Turkey. Yamaç noted that a nuclear power plant involves 550,000 different parts, and that nuclear power plants are activities that will advance the country's industry several steps forward. Necati Yamaç said, “Although our companies are very experienced, skilled, and willing, they have shortcomings in terms of basic certifications and basic documents at the subsystem level. If you can't establish a system, the quality and price don't mean much. We are focusing a large part of our work on increasing the participation of Turkish industry and its ability to do business in countries around our country that intend to invest in the nuclear field; we attach great importance to this. We want Turkish industry to be companies that can sell goods and services not only to nuclear investments within Turkey but to the whole world.”
In the second panel of the day, cluster managers from Italy, Belgium, and Bulgaria met with Pınar Yalman Akcengiz, manager of the OSTİM Renewable Energy and Environmental Technologies Cluster, at the 'European Energy Clusters Meeting'. The panel, moderated by Tolga Arıcan, Head of Cluster Policies Branch at the Ministry of Science, Industry and Technology, featured presentations on cluster activities.
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