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ENERGY POLICY OF TURKEY. Contents. Towards a Sustainable Future Country Profile Renewable Energy Policy Energy Efficiency Policy Environmental Policy Energy R&D and Investments Turkey’s Foreign Relations in the Energy Issues Critique and Recommendations.
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Contents • Towards a SustainableFuture • Country Profile • RenewableEnergyPolicy • EnergyEfficiencyPolicy • EnvironmentalPolicy • Energy R&D andInvestments • Turkey’sForeignRelations in theEnergyIssues • CritiqueandRecommendations
Towards a SustainableFuture Where does Turkeystand in the sustainable world?
Country Profile • The Ministry of Energy and Natural Resources (MENR) • Scientific and Technological Research Council of Turkey (TUBITAK) • The Electrical Power Resources Survey and Development Administration (EIE) of MENR
Country Profile In 2013, total energy production was 282192GWh, 52727GWh of which were from renewable sources and 229465GWh from fossil fuels.
Country Profile Turkey does not possess huge fossil fuel reserves. Excluding lignite; coal, oil and natural gas reserves in the country are few and far from being able to meet the projected domestic demand.
Country Profile However, Turkey has substantial reserves of renewable energy sources. • Hydropower: Turkey has a gross annual hydro potential of 433,000 GWh.Meets 37% of the electricity demandcurrently. • Biomass: The total recoverable bioenergy potential is estimated to be about 16.92 mtoe. • Geothermal: 31,500 MW of geothermal energy potential is estimated for direct use in thermal applications while the total geothermal electricity production potential of Turkey is estimated as 2000 MWe. 7th in theworld.
Country Profile • Solar: The yearly average solar radiation is 3.6 kWh/m2 day, and the total yearly radiation period is approximately 7.2 hours/day.
Country Profile • Wind: There are a number of regions in Turkey with relatively high wind speeds. It is estimated that Turkey could install a wind capacity of 100,000 MW of electricity.
Renewable Energy Policy By 2023, TurkishGovernmentplanstoincrease the share of renewable resources in electricity generation to be at least 30%. Vision 2023 Programme: • Increasewind power capacity to 20000MW • Geothermaland solar power capacities to 600MW • Use 100% of hydroelectric potential • Start threenuclearpowerplants • Smart gridintegration • Increasetotal funding (public and private) for all R&D to 2% of GDP
Renewable Energy Policy In order to promote renewable energy generation, Turkish government has passed “renewable energy laws” in 2005. Following incentives are introduced to support prospective renewable energy producer: • Feed-in Tariffs • Purchase Guarantee • Connection Priority to the Grid • Reduced License Fees • License exemptionfromrenewable energy plants with less than 1MW capacity.
Renewable Energy Policy PricesforRenewableEnergyProduction:
Energy EfficiencyPolicy The 2007 law aims to reduce energy intensity by 15%by 2020. The law has four pillars: • Administrativestructure and tasks for delivering energy efficiency services across sectors • Training and awareness • Penaltiesfor misconduct • Incentivesto increase energy efficiency
Energy EfficiencyPolicy • Buildings: Energyperformancecertificates, energyaudits, annualperformancereports • Appliances: Mandatory energy labelling of domestic appliances, energyperformancestandards • Industry: Improvingefficiency of power plants, transmission, distribution and public lighting; investment support for energy efficiency projects;energymanagersandenergyunits; mandatoryenergyefficiencyreports • Transport: Use of fuelefficientcars, cash-for-clunkers incentive toremove in-efficientvehicles, increasingroadandrailwaynetworks. • PublicAwareness: Schools, media
EnvironmentalPolicy • United Nations Framework Convention on Climate Change (UNFCCC) since 2004 • Has been a party to the Kyoto Protocol since 2009 • Passed environmentallaws to set emission standards for industry and power plants.
Energy R&D andInvestments • Turkey produces twice of the electricity it did 10 years ago. • 100 new power plants, 70% of which are renewable, have begun to operate in the first half of 2013, an indicator of the fast growth in energy sector. • Since 2004, public spending on energy R&Dhas increased to reach USD 7.5 million in 2008:Out of that total, USD 3 million was spent on fossil fuels projects, USD 1.9 million on renewable energy and USD 1.4 million on hydrogen and fuel cells. There are no comprehensive data on private sector spending on energy R&D. Public spending on R&D is expected to continue to grow, as the Vision 2023 Program, which contains several energy R&D priorities, is supported by an increase in financing.
Energy R&D andInvestments Compared to other developed countries, public funding for energy R&D remains low in Turkey.
Energy R&D andInvestments While sustaining the growth, the country puts forth an effort to improve its’ technology. Turkey has several government institutions to manage science and research activities. The highest level decisions on science and research policy are made by: • Grand National Assembly of Turkey • Council of Ministers • State Planning Organization (DPT) • Supreme Council of Science and Technology (BTYK) • Scientific and Technological Research Council of Turkey (TUBITAK) DPT and TUBITAK are the two main responsible institutions regarding the science and research policy development process.
Energy R&D andInvestments The following government bodies provide funding or financial incentives for R&D: • The ministry of Finance provides tax reduction for the R&D expenditures of private firms by a ratio of 40%. • TUBITAK provides grant funds for the private sector andtheuniversities • The Technology Development Foundation of Turkey (TTGV) provides soft loans for R&D projects in the private sector in the fields of renewable energy, energy efficiency and cleaner energy production. TTGVhas a new program for commercialization of advanced technologies • The under-secretariat of Foreign Trade (DTM) provides grant funds for the private sector. The support is on project base. • The Ministry of Industry and Trade, through its bounded institution KOSGEB, provides funds for small and medium-sized enterprises (SMEs) • The Ministry of Energy and Natural Resources provides funding for energy related R&D projects within its ENAR Program. • The Credit Guarantee Fund (KGF) provides guarantees on loans to SMEs for facilitating risk-sharing and lending among Turkish banks.
Energy R&D andInvestments Universities: Clean energy is a very active research topic in Turkish Universities.Turkey is ranked 13th in number of published clean energy R&D papers while ranked 4th in specialization index and scientific impact.
Energy R&D andInvestments Researchprojectsaresupportedby: • TUBITAK Funds • DPT Funds • IndividualFunds The largest such infrastructures are: • Solar Energy Research Centre at the Middle East Technical University • Solar Energy Institute of the Ege University. • Lignite R&D Lab at the Gazi University • Solar Energy Laboratory at the Harran University • Hydro Electric Power Research Laboratory at the Istanbul Technical University • Hydrogen Production Technologies Laboratory at the BogaziciUniversity
Energy R&D andInvestments International R&D collaborations: • Bilateralagreements with 19 countries to-cooperate in the field of science and technology. • Participationin R&D projects under the sixth and seventh EU Framework Programs for Research and Technological Development (FP6 and FP7). TUBITAK Marmara Research Centre’s Energy Institution participates in: • MC-WAP(FP6): Molten-Carbonate Fuel Cells for Water Borne applications • MCFC-CONTEX: Effects of contaminants in biogenous fuels on MCFC catalyst and stack component degradation and lifetime and extraction strategies, • TYGRE(FP7): High added value materials from waste tyre gasification residues, • EPHESTUS (FP7): Enhanced energy production of heat and electricity by a combined solar thermionic-thermoelectric unit system.
Energy R&D andInvestments Current Projects and Investments by Sector: • Hydropower: Recently 600 new small-scale hydroelectric power plants are being constructed. 15,400MWeproduction is aimed via the operation of these plants, equal to the 1/4of electricity production all over the country. • Solar: In 2013, construction of a 500KW PV power plant has begun. This will be the largest PV plant installed in Turkey. In the same year, the country’s first rooftop solar power stations began to operate having capacities 1.15MW, 2.3MW respectively. • Wind: In 2013, OSTIM, announced MILRES projectto design and produce Turkey’s first wind turbine.Currently, 9 new wind farms, 490MW capacity in total, are being constructed by a number of private companies.
Energy R&D andInvestments • Geothermal Energy: One of the biggest private companies in energy sector in Turkey, Zorlu Group, has a growing interest in Geothermal Energy and has been working on building a 45MWe geothermal power plant in Alaşehir, Turkey. • NuclearEnergy: In year 2010, an agreement between Turkey and Russia has been signed in order to build a nuclear power plant in Akkuyu, Turkey. Theplantwill start operatingby 2019. In 2013, an agreement between Republic of Turkey and Japan has been signed in order to build a Nuclear Power plant in Sinop, Turkey. • Electric Vehicles: Minister of Science, Industry and Technology stated that, in 2013, TUBITAK will grant money and R&D support for EV research projects to companies and universities. Accepted projects have already been started and are due 2017. The government aims to have companies begun production of EV’s or EV components by this year.
Energy R&D andInvestments • Energy Transfer: Nabucco-West Pipeline Project, is a proposed natural gas pipeline from the Turkey to Austria to be completed in 2018. TANAP will transfer natural gas from Azerbaijan through Turkey to Europe. It is to be completed in 2018 as well.
ForeignRelations in theEnergyIssues Geographical proximity to the 70%of the world’s proven energy resources gives Turkey a place on the game board of energy politics. Turkey’s international energy policy is based on: • Havingregional and global influence in the area of energy. • An energy hub and terminal for oil and gas flowing from the Caspian Basin and Middle East to world markets.
ForeignRelations in theEnergyIssues Turkeyand EU: • Energypipelinesareprominent indicatorsfor future prospects for Turkey and the EU. • The projections show that the EU’s dependency rate on gas will be 70% by 2020 compared to that rate of 40%in 1995. • Being highly dependent on the imported natural gas, the EU has decided to take action to overcome this energy dependency through secured and diversified external energy lines. • In this respect, Turkey’s closeness to the most important gas fields of Central Asia, the Persian Gulf, Iran and Russia has made Turkish option as one of the most attractive gateways for the “fourth artery” of the EU’s energy supply. • TAP, TANAP, Nabucco West Pipelines
ForeignRelations in theEnergyIssues TurkeyandRussia: • Economic relationship, a growing tradetiesparticularly in energysector • Turkey imports more than half its gas consumption from Russia (2nd importer) • Russian exports to Turkey were nearly 23 billion USD, of which 17.9 Billion USD related to fossil fuels. • Bilateralmeetings betweenon various economic projects, particularly relating to energy. • Agrowing number of major projects (such as the Turkish nuclear programand Blue StreamPipeline) • Each in their own wayhave factored the idea of diversifying foreign economic relations into their strategic plans.
ForeignRelations in theEnergyIssues WaterIssues: • Turkey’s Damson Euphrates and Tigris rivers have brought huge strain to relationships with Iraq and Syria for decades. • Newdam construction on Kura River has created new problems with another neighbor, Georgia.
CritiqueandRecommendations Thedevelopmentsin energy sector in the past 10 years has been quite impressiveyetthere arestillbigobstacles on theway. Turkishgovernment set a goal to observe 30% of the country’s energy from renewable energy sources, the current measures are not ample enough to support such growth. Recommendations: • Renewable energy policy must be re-arranged to attract producers, pricing and incentives must be regulated. • Improvingthe grid should be done simultaneously with renewable energy investments • Moregovernmentsupportforgeothermalandbiogasinvestors
CritiqueandRecommendations The hydropower and nuclear energy policies need a major revision, the fast growth with such technologieswill only bring short term success. Sustainability of the environment should be the priority and the starting point of all development plans. Recommendations: • Cancellation of allnuclearprogramsor a plebiscite • Cancellation of hydropowerplantconstructions • Strongerenvironmentallawsandpolicies • Increasingpublicawareness
CritiqueandRecommendations Biggest burden on Turkish economy is dependence on fossil fuels especially in transportation. However, there’s no comprehensive planning to reduce this dependence. Recommendations: • Instead of inclining towards the conventional automotive technologies, Turkey should direct this flow into the way of producing alternative vehicle technologies like fuel cell, biogas and electric vehicles. • Sub-industries that produce car parts should be supported more • Lawsand taxation to encourage customers to buy EV’s must be re-arranged simultaneously with production. • A bigger and a better public transportation service • Increase of railroad network capacity, high speed trains
CritiqueandRecommendations Reformsand political stability during the past 10 years have proven their positive affects on Turkey’s energy sector. In order to keep the development at this pace, it is essential for the country to maintain a balance in internal and external politics. Solutions to problems with neighbors, continuity of negotiations for Turkey’s accession to EU, mutualeconomic partnership with Russia are all vital to achieve an optimum result. Recommendations: • Sustainingthe politicalstabilityandeconomic growth • Carryingout reforms to harmonize with EU criterias • Avoiding a greaterlevel of dependencetoRussia • Turkishinvestmentstounderdevelopedcountries • Collaboration withneighbors
CritiqueandRecommendations Turkeydoes not have natural resources to generatelarge incomes thus the best solution lies in successful R&D strategies. In some sense, this is the only way to the ultimate success. Developed nations have ascended to the highest level of civilization through successful technological developments. If Turkey can achieve developing its’ own energy technology further into a state of creating world class energy companies, then with successful marketing strategies it can become a global player. Recommendations: • A comprehensive R&D strategy withspecificplans • A higher share of GDP must be sparedfor R&D expenditure • Morefundingfortrainingspecializedpersonnel