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RENEWABLE ENERGY RESOURCES. SOLAR ENERGY. PRIVATE SECTOR EXPERIENCES & FINANCING. Murat Sungur BURSA CEO, Zorlu Energy Group. V.SWISS – TURKISH ECONOMIC FORUM - ISTANBUL. World Electricity Sector. Installed Capacity – 2007 Total: 4.013 GW. Generation Capacity – 2007
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RENEWABLE ENERGY RESOURCES SOLAR ENERGY PRIVATE SECTOR EXPERIENCES & FINANCING Murat Sungur BURSA CEO, Zorlu Energy Group V.SWISS – TURKISH ECONOMIC FORUM - ISTANBUL
World Electricity Sector Installed Capacity – 2007 Total: 4.013 GW Generation Capacity – 2007 Total: 19.771 TWh Source: Energy Information Administration
Electricity Sector in Turkey Installed Capacity – 2008 Total: 42,9 GW Generation Capacity – 2008 Total: 198,3 billion kWh Source : EİE
Economy vs. Power Demand From 1986 to 2008 average electricity demand growth is 7,7% while GDP growth rate is 5,2%.
Energy Intensity Source: EİE
Demand Projections Reliable Generation Projection: Source: TEIAS
Turkey Energy Challenges and Opportunities • -Installed capacity in 2008 is 42.000 MW, • -Expected to increase to 96.000 MW by 2020, • - Approximately 100 Bil US$ investment will be required. • -Over the next five years 17.000 MW capacity will be added to cost 25-35 Bil US$
Investments in 2008 Source: Ministry of Energy, Turkey
Why Renewable Energy? • Energy Security: • Diversification • Dependancy • -Import Substitution • -Sustainability • -Environmental friendliness • Global warming (Kyoto Protocol ratified Feb,2 2009) • -EU Integration
Renewable Targets • “25% of total generation from Renewables by 2020.” • HydroPower: • Full exploitation of feasible hydro potential by 2023. • Wind Power: • 20.000 MW wind power until 2020. • Geothermal: • 600 MW of geothermal capacity by 2020. • Solar:
Incentives for Renewables Feed in Tariff Mechanism Power Purchase Guarantee – guarantee for 10 years € based Prices – 5,5 €¢/kWh Eligibility to enjoy all investment incentives Exemption from licensing fees 85% deduction on land use costs • New Renewable Energy Law is on the way: • Purchase guarantee for 10 or 20 years • More competitive prices
Main Criteria for CSP • Efficiencies around %10 - %25 • Land requirement 12.000 – 20.000 m2 / MW • Collector life around 25 years • Construction time ~ 3 years (for 50 MW) • Capital investment ~ 4 – 7 mio USD per MW
CSP Return of Investment* Not Available Payback : 12-13 years Payback : 8-9 years * With the prices in the Draft Renewable Energy Law
Pay Back Time of Large Scale PV Investment (>1 MW) Pay Back : 14 years Pay Back : 11 years Pay Back : 9 years * With the prices in the Draft Renewable Energy Law
Pay Back Time of Small Scale PV Investment (<50 kW) Pay Back : 12 years Pay Back : 9 years Pay Back : 7 years * With the prices in the Draft Renewable Energy Law
PV Market Foresight of EPIA, 2020 2020 Installed Capacity GW 2020 Electricity Generation from PW TWh EPIA : European Phtovoltaic Industry Association
PV Installed Power vs. Year IEA : International Energy Agency
1% Market share (2006) 49% 27% 13% 10% PV Applications PV Applications BIPV Rooftop PP Size of the System Residential Homes 1-10 kWp Commercial 10- 1000kWp Very lage Commercial > 1 GW
Zorlu Enerji Investment Strategy Leading energy company in Turkey • DIVERSIFICATION of RESOURCES • Natural gas>>Hydro, Geothermal, Wind, Solar) • - ENVIRONMENTAL FRIENDLY • TECHNOLOGIES • - BAT (Best Available Technology) • - SOCIALLY RESPONSIBILE A robust, profitable, environment friendly growth Regional player in the global arena - We support the Global Compact -