Dr. Y

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Emerging European Markets Resilient in the
crisis? Policies, Markets Programmes
Dr. Yüksel MALKOÇ TWEA Vice President
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Outline

• Turkeys current financial outlook,
• Demand growth and supply development,
• Wind potential and capacity development,
• Policy and regulatory environment of the
  renewable energy market,
• Current wind projects and other investment areas
  in the wind market.

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Current Financial Outlook and Electricity Demand
Growth
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Electricity Demand
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Installed Capacity Development
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Wind Potential

• Turkey has substantial amount of renewable energy
  potential and the
• utilization rates are growing. Hydro, wind and
  solar energy resources
• are the major portions of our renewable
  portfolio.
• Turkey has at least
• 160000 GWh/a. economic hydro,
• 48000 MW wind capacity
• 380000 GWh/a. solar ()
• 31500 MWt geothermal capacity
• 8,6 MTOE biomass
• 1,5-2 MTOE biogas
• () Considering the parabolic CSP technologies.

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Wind Potential
Wind speed distribution, 50 m agl
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Wind Potential
Wind energy potential (annual average wind
speedgt7 m/s), 50 m a.g.l.
Resource potential Wind class Annual wind power density (W/m2) Annual wind speed (m/s) Total capacity (MW)
Good 4 400 500 7,0 7,5 29.259,36
Excellent 5 500 600 7,5 8,0 12.994,32
Outstanding 6 600 800 8,0 9,0 5.399,92
Superb 7 gt 800 gt 9,0 195,84
TOTAL CAPACITY TOTAL CAPACITY TOTAL CAPACITY TOTAL CAPACITY 47.849,44
ON-SHORE (MW) OFF-SHORE (MW)
37.836 10.013
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Wind Potential and Capacity Development
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• WPPs in Operation
• WPPs in Construction
• Licenced WPPs

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Energy Market Structure

• Competitive Market Structure
• State
• - Macro scale policy development through
  Ministry of Energy and Natural
• Resources (MENR)
• - Regulations, control, supervision of markets
  through Energy Market Regulatory Authority (EMRA)
• Private Sector Generation, distribution, trade

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Energy Policy

• Energy security and sustainable energy supply are
  among the main policy concerns of Turkey. Turkey
  attributes significant importance to
• encouraging the energy production from renewables
  in a secure, economic and cost effective manner,
• expanding the utilization of our renewable
  resources for generating electrical energy,
• increasing the diversification of energy
  resources,
• reducing greenhouse gas emissions,
• making use of waste products and protecting the
  environment,
• developing the related mechanical and/or
  electro-mechanical manufacturing sector.

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Strategy

• Turkish Government revised the Electricity
  Energy Market and Supply Security Strategy Paper
  in 2009. In this paper, some targets defined
  related with renewables until 2023 are as
  follows
• At least 30 of total electricity production
  from renewables,
• The whole economically feasible hydropower
  potential of Turkey
• will be provided for generating electrical
  energy,
• 600 MWe geothermal energy will be implemented,
  
• 20,000 MW capacity of wind power plant will be
  in operation,
• Utilization of solar energy for generating
  electrical
• energy will be expanded.

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Strategy Roadmap
Until now, TEIAS has confirmed connection of
around 12.5 GW WPPs. TEIAS announced investments
in transmission infrastructure and thus will be
able to deliver 1 GW each year starting from 2013
until 2020. All in all, TEIAS has declared that
the grid connection will be able to support the
20 GW WPP by 2023 target of Supply Security
Strategy Paper.
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Policy and Regulatory Environment
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Trade Possibilities
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Export Opportunities
Currently Turkey has interconnections with
Greece, Bulgaria, Georgia, Armenia, Iran, Iraq,
and Syria however, so far import and export fi
gures are almost negligible in comparison to
Turkeys overall electricity demand Eventually,
ENTSO-E synchronization will increase the
amount traded. In 2010, Turkey imported 1,883 GWh
and exported 2,674 GWh of electricity. The map
below illustrates the existing interconnection
capacities and the table indicates seasonal
capacities.
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Incentives provided in the New Renewable Energy
Law

• The New Law provides a Renewable Energy Support
  Mechanism ("Mechanism") which covers different
  incentives and benefits for renewable energy
  projects including feed-in tariffs (fixed minimum
  electricity sale prices). The New Law covers
  different feed-in tariffs depending on the type
  of the renewable energy projects as follows
• Turkish Lira equivalent of USD 0.073 per kWh for
  hydroelectric power plants,
• Turkish Lira equivalent of USD 0.073 per kWh for
  wind power plants,
• Turkish Lira equivalent of USD 0.105 per kWh for
  geothermal power plants,
• Turkish Lira equivalent of USD 0.133 per kWh for
  biomass power plants, and
• Turkish Lira equivalent of USD 0.133 per kWh for
  solar power plants.
• The above mentioned feed-in tariffs will be
  applicable for the legal entities holding
  generation licenses which start operations during
  the period from 18 May 2005 to 31 December 2015
  and for a period of ten years from the operation
  date.
• The New Law also features further price
  incentives from 0,004 to 0,024 kWh for the
  license holders which use locally produced
  mechanical and/or electro-mechanical
  equipment/components in renewable energy
  facilities, for a five-year term provided that
  they start producing energy before the end of
  2015.

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Table 2 (For wind) Table 2 (For wind)
Local Component Additional Local Content cent/ kWh
Blade 0,8
Generator and Power electronics 1,0
Tower 0,6
Rotor, Nacel all part of the mechanical components 1,3
Table 1 Table 1
Type of Facility cent/ kWh
Hidro 7,3
Wind 7,3
Jeothermal 10,5
Biomass 13,3
Solar 13,3
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Incentives provided in the New Renewable Energy
Law

• Purchase guarantee and guaranteed feed price,
• An option to make use of forested land and
  state-owned land to construct a renewable energy
  plant,
• A 99 per cent reduction in the license
  application fees,
• Exemption from annual license fee payments,
• Ability to purchase electricity from private
  wholesale and generation companies,
• Promote the manufacturing of renewable energy
  plant equipment in Turkey,
• Priority for system connection,
• Purchasing priority,
• Eligible consumers (gt25000 kWh/year),
• Renewable energy plant investments up to 500kW
  and micro-cogeneration plant investments are
  exempt from license and company establishment
  requirements and they can be connected to the
  grid,
• WPPs lower than 10 MW capacity are exempt from
  EIA report liability,
• Additional revenue generation for renewable power
  projects exists in Turkey through voluntary or
  verified emission reduction credits (VERs),
• Others (local and other ministries)

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3527 MW (93 Projects)
7571 MW


8902 MW
20.000 MW
2027 MW Single Application (61 Projects) 5544
MW TEIAS Races (147 Projects)
1800 MW Operation 600 MW Under Construction
TURKEY IS THE BIGGEST MARKET IN EUROPE
11.098 MW
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48.000 MW Techno-economic potential
Turkish Wind Energy Sector will show a rapid
development in the coming years.
20.000 MW 2023 Target
11.000 MW Licensed WPP Project
1800 MW Operation 600 MW Under Construction
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THANK YOU FOR YOUR ATTENTION.
Dr. Yüksel MALKOÇ TÜREB/TWEC Vice
President yuksel.malkoc_at_tureb.com.tr