Turkey is rapidly growing in terms of both its economy and its population. In parallel, its demand for energy, particularly for electricity, is increasing fast. The sharp growth of the Turkish energy sector has been accompanied by institutional reforms. Due to its demographic and economic growth, Turkey constitutes a major energy market. A major dilemma now faced by Turkey is how to invest in new electric power capacity while at the same time adhering to foreign debt ceilings under lending rules set by the IMF. One of the most important developments has been liberalization of all energy sectors, including electricity production and distribution, to private capital both national and foreign.