We are in a period in which energy supply and security are more important than the past, since the energy is being used increasingly in every area. A few countries possess the resources and this poses the “security of supply” problem in energy. Therefore, it would not be wrong to say that today, economic and political stability indicators of the countries are dependent on energy supply security directly. Along with the increasing energy need across the world, energy need of Turkey is also increasing in parallel with the rise in economic improvement and wealth. At this stage, approximately 30% of the total energy demand of Turkey is met by our own resources and the remaining amount is met from the diversified import portfolio. Sustainability of energy supply can be ensured by creating sustainable, applicable and long termed suitable energy policies based on the principle of using the energy in the most efficient and effective way. In order to meet the increasing energy demand and minimize foreign-source dependency, we should use all of our potentials within the shortest time possible and take advantage of our domestic and renewable resources. In this regard, the main goal of our energy policies bases on the principle of providing the necessary energy in time, reliably, with an affordable price, in an environment-friendly way and in high quality. Installed Capacity Increased by 5800 MW in 2014 Despite the economic crisis across the world, instabilities in our region and elections in our country, energy investments in Turkey have continued stably in 2014. Last year, we engaged 203 power plants with 5,800 MW power, for which total investment reached TRY 17 billion. As a result of these investments, our installed capacity which was 31,800 MW within the one-hundred-year period from 1902 in which the first power plant of Turkey started operating to 2002, doubled to 69,803 MW with the investments of last 12 years. More importantly, 40 percent, in other words, 2,382 MW of 5,800 MW power which was put into use in the last year consisted of renewable resources. The important strategies of our Ministry are to increase the share of renewable energy resources in energy supply, to raise energy efficiency, to minimize the negative effects of energy and natural resources activities on the environment and to become the pioneer and supporter of the innovation in the field of energy and natural resources. With this perspective, 2014 was the year in which the greatest amount of wind installed capacity was into use and the share of the wind in the installed capacity exceeded 5% for the first time. Such that we started to meet the 10% of the electricity production by wind. Thanks to the operating wind plants, we reduced the amount of our gas invoice by USD 850 million last year. Moreover, in 2014 unlicensed electricity and solar energy production began for the first time and attained a place in the installed capacity. We follow the technological developments regarding the use of solar energy in electricity production closely. In this regard, we aim to increase our solar energy installed capacity which was determined as 600 MW at the first stage to minimum 3,000 MW in 2023. Thanks to the reliance put in the political and economic stability of our country, I believe that we can easily reach this goal with domestic and foreign investors who would like to invest great amounts in the solar energy. On the other hand, this foresight or ours is supported by the fact that nearly half of the applications to the distribution companies for unlicensed electricity production made for the power plants based on solar energy. As a result of these investments, our electricity production increased by 4.3% and reached 238.1 billion kWh while electricity consumption increased by 3.7% and reached 253.3 billion kWh compared to the previous year. We broke the record of the history of Republic in electricity consumption on August 14. We consumed 831.8 million kWh in one day. The reason why energy consumption is not in parallel with the growth in economy and energy production is that our works regarding energy efficiency and saving turn out at advantage. Our Energy Team established in 2014 will continue to work in this sense. Privatization Process will Continue As our energy investments increase with the private sector we, as public bodies, should improve the policies, which will pave the way for the private sector, and take an active role as a supervisor. If private and public sector cannot work harmoniously, this growth would not be healthy. Along with the investments in the recent period, share of the private sector reached 72% in electricity production and 68% in installed capacity. In 2014, production plants with a total installed capacity of 1984 MW including Kemerköy, Yeniköy, Yatagan and Çatalagzı thermal power plants were privatized with a price of USD 4,122 million. Tender processes of power plants of 580 MW including Tunçbilek and Orhaneli Thermal Power Plants were completed and transition processes began. Tender process of Soma B Thermal Power Plant of 990 MW continues. Apart from our large hydroelectric power plants, privatization process for our production plants will continue in 2015. Nuclear Energy is not an Option but a Necessity Although our policies that will prompt our potential such as engaging renewable energy resources, accelerating the searching and operating activities for domestic resources, increasing the energy efficiency are still in effect, nuclear energy is a must for us in order to meet the accumulated investment deficit and ensure our energy supply security. Just like other developed and developing countries which set a goal and have a potential to become a global actor in the future, Turkey will also include nuclear energy in its production portfolio. In this regard, it is aimed to take 2 nuclear power plants into operation until 2023 and commence the construction works of another. As a result of the efforts in the last period, we have started to obtain concrete results in this field. Last year, Environmental Impact Assessment (ÇED) report of Akkuyu Nuclear Power Plant was approved. We plan to receive the Host Government Agreement regarding Sinop Nuclear Power Plant in General Assembly of Grand National Assembly of Turkey. Moreover, within the scope of the works regarding third nuclear power plant, exclusive negotiations have been initiated by signing a Memorandum of Understanding between EUAS (Electricity Generation Company) and Westinghouse and Chinese company SNPTC in 2014. Turkey will be in the Coverage Area of Natural Gas in 2016 Last year, we took important steps regarding natural gas identified with clean energy in Turkey. The number of provinces that have natural gas pipelines reached 74. This year, four new provinces will have natural gas pipelines and such all provinces will have natural gas in 2016 as an ultimate objective. A loan agreement worth USD 400 million was signed with World Bank regarding BOTAS Tuz Gölü Natural Gas Storage Project. We aim to complete the 1st phase construction of Tuz Gölü Underground Storage Project with a capacity of 1 billion m3 per year in 2017 and the 2nd phase construction of the project in 2019 and engage the plant. We plan to complete the construction of BOTAS Marmara Ereglisi LNG Terminal project that will start this year in 2019. On the other hand, we invested USD 1.1 billion in search activities within last year as public and private sector in order to stimulate the domestic production of natural gas and oil. Turkish Petroleum and Shell have initiated the drilling works in Western Black Sea in the first months of 2015. The ship of MTA (Mineral Research & Exploration General Directorate) which will conduct three dimensional seismic explorations will start operating as of the second half of this year. We expect good news for our country from these projects. Meanwhile, we took a huge step in the solution of the current deficit problem by finally putting TÜPRAS Fuel Oil Transformation Unit, which is the biggest industrial investment in Turkey made with USD 3 billion, into service. We performed 1.5 million meters of mining drilling in total as public and private sectors in 2014. We completed our drilling projects in large sites such as Afsin-Elbistan, Karapınar-Ayrancı, Eskisehir- Alpu, Afyon-Dinar and increased our brown coal reserves to 15 billion tonnes. We aim to establish power plants of 17,500 MW in total on these sites with an investment of USD 30 billion. We plan to complete our on-going negotiations with four countries regarding Afsin Elbistan during this year and reach an agreement with one of these countries. Within 2015, we will determine the method to be used to add the reserve in Karapınar-Ayrancı, Eskisehir-Alpu and Afyon-Dinar to the energy production. We will Continue to Have a Key Role in Energy Turkey, which is an important bridge between Middle East and Central Asia possessing the 65% of oil reserves and 71% of gas reserves proven across the world, and European countries which are the biggest oil and natural gas consumers, has made progress for being a country of transit based on this location. As a country of transit and commercial center, our country has had key roles in international projects during the recent years and it will continue to contribute to every project that we will have a common interest in energy industry as in the past. In this regard, we signed 18 documents with 13 countries in 2014; we became the “Associated Member” of the European Organization for Nuclear Research (CERN) and carried on our activities as the Interim President of the International Energy Agency. We will sustain this key role regarding energy by hosting important organizations in 2015. Along with the first G20 Energy Ministers Meeting in G20 history, Intercontinental Wind Energy Congress and 6th World Forum on Energy Regulation will be held in Turkey within this year. On the other hand, we emphasized the importance of the normalization process of Iraq and both sides carrying out a business as a whole and we also conducted serious diplomacy traffic in 2014. Our efforts as Turkey yielded a result, and in November, Northern Iraq and central government reached an agreement. As a result of this progress, SOMO oil started to be piped to the international market from Ceyhan in November. Up to this day, 3.2 million barrel SOMO oil has been piped within this scope. TÜPRAS bought 520 thousand barrels of oil from SOMO. The groundbreaking ceremony of South Gas Corridor Project of USD 45 billion which would crown our role as a transit country in the field of energy was held in 2014. Moreover, the groundbreaking ceremony of Trans Anatolian Natural Gas Pipeline (TANAP) forming the Turkey part of the project was held in Kars last month with the participation of Presidents of Azerbaijan and Turkey. Another pleasing development regarding TANAP is that 6 Turkish companies won 80 percent of the total pipeline in the tender of mainline pipe purchase with the participation of 18 companies from different countries. Low Oil Prices will Affect Inflation in a Positive Way Slowing in the global economy and increasing supply are among the reasons of the decrease in oil. According to the International Energy Agency, the fundamental change observed in oil prices results from the decreasing growth expectations towards the global economy. As growth expectations are lowered the consumption expectations are minimalized. Appreciation of dollar can be explained by the slowing global economy. Moreover, there were many setbacks in global crude oil production over the last summer period; therefore oil prices decreased much further. While this situation forms a huge handicap for countries exporting oil and whose economies are based on oil and natural gas to a large extend, it has a positive effect for importer countries like Turkey. Macro data such as foreign trade deficit, current deficit and inflation rate will be mostly recovered thanks to low oil prices.