ELECTRIC ENERGY SECTOR IN TURKEY

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ELECTRIC ENERGY SECTOR IN TURKEY
Budak Dilli, General Directorate of Energy
Affairs Ministry of Energy and Natural Resources-
Turkey
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TURKEY Main Characteristics Of Energy Sector

• High demand increase rate
• High investment requirement
• Import Dependency
• High Energy Intensity
• Low Efficiency
• High efficiency gain potential
• Considerable potential of renewable sources
• Emerging Market

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TURKEY Primary Energy Demand Projection
51000
61000
25000
31000
80000
24000
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INCREASING CONSUMPTION
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(No Transcript)
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Electricity DemandIncome Elasticity European
Countries
Turkey 2005 2020
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TURKEY- Electrical Energy Demand Projection
(2006-2020)
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TURKEY ELECTRICITY CONSUMPTION COMPARISON
(2001-2006)
Enerji Isleri Genel Müdürlügü
(Kaynak IEA)
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1994-2004 INCREASE IN ELECTRICAL ENERGY
CONSUMPTION
1970app.2000 MW -TODAY 43000 MW, 1400 MW / YEAR
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Electricity
New capacity requirement (2020)

• High scenario
• 56.000 MW additional capacity need
• Low scenario
• 40.000 MW additional capacity need

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GAS SECTOR

• Natural Gas ConsumpNatural Gas Consumption in
  2007 35,5 bcm
• tion Forecast for 2008 37,5 bcm

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Investments in Energy Sector

• Estimation up to 2020
• Power Generation, Transmission, Distribution 100
  Billion
• Natural Gas...2,5 Billion
• Coal.5 Billion
• Petroleum..16 Billion
• New Power plants, rehabilitation, Pipelines,
  Natural gas storage

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Prospects for Gas Demand
Major Challenge security of supply, sufficient
gas suppy
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POLICIES

• Energy security
• New investments to cope with increasing demand
• Reduce import dependency, diversification
• Increase the utilisation of Local Sources
• Establishing Functioning markets based on
  competition
• Environmental sustainability
• Renewable Energy Wind, Hydro, Geothermal, Solar,
  Biofuels
• Clean Coal Technologies, Carbon Capture Storage
• Efficiency Increase
• Nuclear Energy (5000 MW until 2020)
• UNFCC (Turkey became a Party in 2004)
• s

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MILESTONES OF THE TURKISH ELECTRICITY MARKET
REFORM
Finalization of generation privatization
Electricity Market Law (No 4628)
BOT Law (No 3996)
Strategy Paper BSR
BOO Law (No 4283)
Law No 3096
Communique regarding the Financial Settlement
Cash settlement
Establishment of EMRA
Start of distribution privatization
Market opening 100
Market opening 29
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Electricity Energy Supply Chain under the Liberal
Market Conditions
Monopoly activities subject to regulations
Transmission and system facilities
Distribution
- TEIAS
- Regional Distribution Companies
Competitive Market
Small Consumers
Retail Sale Market
Retail Sale
Production
Wholesale Market
Major Consumers
-EÜAS-Hydro -Portfolio Companies - IPP -
Autoproducers Autoproducer groups
- TETAS - Private Wholesale Companies
- Non eligible consumers
- Retail sale companies
- Regional Distribution Companies -Autoproducers
facilities -Eligible consumers - Consumers
directly connected to transmission system
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Evolution of the Wholesale Market
Bilateral contracting supplemented by Balancing
and Settlement Regime
August 2006
December 2003
starting by 2009
Future
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Electricity Market
Breakdown of installed capacity by generators
(2007)
TOTAL 40.755
TOTAL 41 GW
Ongoing studies for privatisation of distribution
and generation
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Amendment to the Electricity Market Law

• Enhancing the Security of Supply
• Improving the monitoring evaluation mechanism
• Further improving the investment climate on
  generation side
• Capacity mechanisms
• Optional tendering

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NEW INVESTMENT LICENCED PROJECTS
TOTAL 23078 MW (MARCH 2008)
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NEW PROJECTS, EXPECTED COMMISSIONING YEARS
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Renewables

• Second largest contributor to the primary
  production
• ? In 2007 11 of TPES was supplied from renewable
  sources
• 20 of total electricity production was from
  renewable sources (43736 GWh) (2006 25 )
• Aim to keep and further increase renewable share
  in energy balance
• (80 increase in supply from renewables
  until 2020 )
• Utilization of the remaining hydro resources
  until 2023
• 37 being utilized at present, 18 under
  construction (Total 35000 MW, Today 13000 MW)
• gt 20 000 MW Additional Wind (Today 350 MW, 1000
  MW under Construction))

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Energy Efficiency

• Energy conservation potential up to the 30 was
  defined in end use sectors.
• Energy Efficiency Law was adopted in the Turkish
  Grand National Assembly,
• To increase the energy efficiency awareness
  through media, training in schools, contest,
  informative billing etc.
• To set up administrative structure and mechanism
  for energy efficiency services
• To promote the energy services activities in the
  market
• To promote renewables and cogeneration for the
  protection environment (Cogeneration installed
  capacity 4476 MW, i.e. 11 of total installed
  capacity as of April 2007.)
• Incentives and obligations to decrease energy
  intensity
• Demand side measures , incentives
• Measures for production supply

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Interconnection with UCTE
Technical studies approved by UCTE in April 2007.
Ongoing studies for Improvement of Frequency
Control Performance
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Oil And Gas Transit