RENEWABLES IN TURKEY

DR B A H A D I R K A L E A Ğ A S I

TURKISH INDUSTRY & BUSINESS ASSOCAITION

EUROPEAN PARLIAMENTBRUSSELS, 22 JANUARY 2013

Member of BUSINESSEUROPE since 1988

+

B20 I BIAC / OCDE I UBCCE I BUSINESSMED I EUCCChina

Brussels – Berlin – Paris – Washington DC – Beijing – . . .

Turkey’s global competitiveness

Democratic, economic and social reforms

Membership to the European Union

Globally a more competitive Europe

%60 of the economic added-value ( direct members + Türkonfed )

80% of the foreign trade

84% of the corporate tax revenuesI

31%

31%

28%

10%

Share of Total Primary Energy Supply

Natural gas

Coal

Petroleum

Renewable Sources

between 1990 and 2007

+ 119% total carbon emissions

+ 77% energy production

+ 9% waste

45.9%

17.9%

24.5%

6.9%2.4%

1.8%0.5%

Breakdown of Production by Type of Source (2010)

Natural Gas

Coal

Hydro

Import Coal

Liquid Fuel

Wind/Geothermal/Waste/ Other Renewables

Others

Source Production ( TWh )Natural Gas 96,47

Coal 37,7Hydro 51,5Import Coal 14,49Liquid Fuel 5,1

Wind/Geothermal/Waste/ Other Renewables 3,87Others 1,04

Total 210,18

TURKEY’S RENEWABLE ENERGY TARGETS

2 0 2 3

Renewables 30%

Hydropower 35,000 MW ( 18,234 MW in 2010 )

Wind 20,000 MW ( 1,694 MW in 2010 )

Geothermal 600 MW

Solar 3,000 MW

56 Wind Power Plants (WPPs) in operation with 2041 MW installed capacity

11 WPPs currently under construction with 453 MW installed capacity

159 licences WPPs with 5499 MW capacity Source : Turkish Wind Energy Association, 2012

I N S TA L L E D C A PA C İ T Y

F O R O P E R AT İ O N A L W P P S ( % )WIND

Aegean42.84%

Marmara37.97%

Mediterranean16.97%

Black Sea2.22%

19981999

20002001

20022003

20042005

20062007

20082009

20102011

20120

200400600800

1000120014001600180020002200

8.7 8.7 18.9 18.9 18.9 20.1 20.1 20.1 51146.3

363.7

791.6

1329.15

1805.85

2041

Cumulative Distribution of Years According to Installed Capacity for WPPs in Turkey (MW)

SOLAR

Total potential estimated at 50000 MW

14 systems connected to the network total power of 196,71 kWp;

6 independent systems total power of 33, 35 kWp

Most systems founded by universities and research institutes

Source: General Directorate for Renewable Resources

2012

GEOTHERMAL

20 licenses given for geothermal electricity production for 466 MWe installed capacity

Only 7 geothermal electricity plants in operation with 114 MWe capacity

16 license applications under review

7th highest potential in the world

- direct heating source: 2084 MWt

- electricity generation: 1500 MWe

R E N E W A B L E S : P R O J E C T E X A M P L E S

Bandırma wind farm (2009) : 20 turbines and 60 MW

Balabanlı wind farm project : 50 MW installed capacity

Turkey’s biggest wind farm in Osmaniye Gökçedağ :

54 turbines, 135 MW capacity & over 300 million kWh/year

Turkey’s biggest geothermal powerplant :

80 MW capacity to be completed in 2013

Other geothermal investments with 90 MW total capacity …

Çanakkale wind farm (2011) : 30 MW installed capacity

Dağpazarı (Mersin) wind farm project is underway: 39 MW

50% partnership with EDF Energies Nouvelles

8 Wind Power Plants with 504.1 MW total installed capacity

Soma WPP: one of the largest onshore WPPS in Turkey and Europe with 119 turbines and 140.1 MW installed power

• Tap renewable energy sources to make energy mix less carbon-intensive

• Extend renewable energy with a well-functioning internal energy market and right policy framework in Europe

• Investments in flexible generation capacity (power plants and storage facilities)

• Incentives for smart grids

• Incentives to encourage technological excellence and high economic efficiency

• Flexible, market-based approaches to allow MS to make use of cross-border trading in electricity from renewable energy sources

Wind, solar, hydroelectricity, tidal and other renewable energies hold great potential for energy production

National energy strategies should take more balanced approaches towards all energy types

Inform the public about the cost-effectiveness and the production capacity of renewables

Increase public dialogue and participation of business in energy policy decision-making

Restructure energy grids to address climate change by greater integration of renewable energy technologies

• A stable and predictable regulatory framework and supporting schemes for RES combined with renewable electricity targets

• Avoid the actual too low and too short duration (10 years) feed-in tariffs to guarantee deployment on a large scale particularly for solar photovoltaic.

• Continuous reduction of administrative and bureaucratic barriers to investment, including streamlining work permit procedures

• Fostering technological cooperation with clean tech European companies

ON THE RENEWABLES :

Energy supply security + sustainability + climate change + environment

Structural reforms to strengthen competition and the investment climate

Reference pricing that can provide long-term predictability

The Turkish private sector is capable of rapidly increasing investments

AND THE ENERGY

2023 Strategy = energy + climate policies + financing

Cost & Quality

New coal-powered thermic power plants + existing ones to be refurbished

Hydraulic potential : high efficiency + minimal harm to the environment

More energy market liberalisation

Energy Exchange as soon as possible

EU accession process : Energy chapter

Turkey’s rapid integration to the : European energy strategies Policy-making process