Turkey is located between 36 – 42 north latitude and 26 – 45 east longitude, bordering the...

OUR ENERGY SOURCES

• Turkey is located between 36 – 42 north latitude and 26 – 45 east longitude, bordering the Mediterranean, Aegean and Black Seas, Turkey is blessed with renewable resources. Among the European Union, it has the highest hydropower, wind and geothermal energy potentials (GENI 2011).

• As of 2011, Turkey is the sixth biggest economy in Europe with its more than $376 billion foreign trade volume and exports its goods to more than 200 countries two thirds of them being advanced economies (EPDK 2012).

• Energy consumption in Turkey is low when compared with Western European countries. However, the large, young and increasingly urban population together with expected industrial development potential in Turkey represents a significant growth potential. Currently, Turkey is a major energy importer, as the increase in its energy consumption has outpaced domestic production. Substantial investment in the energy sector will be required in near future in order to meet the increasing demand in Turkey (REPUBLIC OF TURKEY P.M. 2010)

Germany France United Kingdom

Spain Turkey Poland Romania Bulgaria Denmark Lithuania

306.4

242.9

198.2

145.9

118.8102.8

34.819.2 18.7

6.4

Primary Energy ConsumptionMillion tonnes oil equivalent

51%

20%

17%

9% 3%

Primary Energy Pruduction of Turkey

Coal

Biomass

Renewable

Oil

Natural Gas

* Energy in the form that it is first accounted for in a statistical energy balance, before any transformation to secondary or tertiary forms of energy. For example, coal can be converted to synthetic gas, which can be converted to electricity; in this example, coal is primary energy, synthetic gas is secondary energy, and electricity is tertiary energy.

• The energy production (kt of oil equivalent) in Turkey was last reported at 30286.84 in 2010, according to a World Bank report published in 2012. Energy production refers to forms of primary energy--petroleum (crude oil, natural gas liquids, and oil from nonconventional sources), natural gas, solid fuels (coal, lignite, and other derived fuels), and combustible renewables and waste--and primary electricity, all converted into oil equivalents.

• Turkey is the 22nd country in the world that has the highest energy consumption with 114.3 billion TEP (BP Statistical World Review of Energy, June 2011).

Primary Energy Consumption of Turkey (2000-2011)

33%

29%

29%

5% 4%

Primary Energy Consumption of Turkey

Oil

Coal

Natural Gas

Biomass

Renewable

• Based on the reference scenario, our primary energy consumption is expected to increase by 4% annually by 2020.

• Primary energy consumption rates of Turkey is given below;

• In order to boost the use of renewable energy, in May 2005 the Turkish government published the first Renewable Energy Law, which introduced tariff support for electricity produced by renewable sources. After the reformation of 2010;

REL (Renewable Energy Law, 29.12.2010) Offers Incentive

The Type of Facility based on Energy Source ABD Dollar cent/kWh

Hydroelectric Power Production Facility 7.3

Wind Power Production Facility 7.3

Geothermal-Based Production Facility 10.5

Biomass-Based Production Facility 13.3

Solar Energy-Based Production Facility 13.3

Our Renewable Energy Sources

Hydroelectricity

Turkey's PotentialInstalled Power

(End of September 2012)

Electricity Generation


2023 Objectives

160000 GW 33.4%18.596 MW 25.9% 50.000MW

The goal is to use the all existing potential in Turkey.


Wind Power





2023 Objectives

48000 MW 3.8%2.106 MW 2.4% 20.000MW

In terms of the growth of wind energy, our country is one of Europe's leading 10 countries. Expected to invest more wind power plant in the future.


Geothermal Energy

Turkey is rich in geothermal energy. Turkey is one of the top 5 countries in heat and thermal applications in the world.





2023 Objectives

31.500 MWt 0.2%114MW 0.3% 600MW


Solar Energy

Our country is the world's leading countries in the use of solar energy water heating systems. However, Turkey is not as successful as in producing electricity from the sun yet.





2023 Objectives

380 billion kWh/year There is almost no 3000 MW


Biomass Energy

Our country is the world's leading countries in the use of solar energy water heating systems. However, Turkey is not as successful as in producing electricity from the sun yet.





2023 Objectives

4000 MW 145.7 MW 88.4 MW 600MW


Wave Energy

Wave energy has the highest energy renewability. Turkey has a huge potential for wave energy due to surrounded by water on three sides.

• Black Sea Coastal sites,• Marmara Sea Coastal sites,• Aegean Sea Coastal sites,• Mediterranean Sea Coastal sites

Germ

any

Italy

Fran

ce

Bulgaria

Denm

ark

Turk

ey

24820

12782

2576135 17 12

Installed Photovoltaic (PV) PowerMegawatts

* Source: BP

Germ

any

Denm

ark

Turk

ey

Poland

Roman

ia

Bulgaria

29075

39261729 1667 990 582

Installed Wind Turbine CapacityMegawatts

* Source: BP

Philippines

Indones

ia

Italy

Turk

ey

Fran

ce

Germ

any

1967

1189

863

114 16 8

Installed Geothermal Power CapacityMegawatts

* Source: BP

Turkey’s ambitious vision of 2023, the centennial foundation of the Republic, envisages grandiose targets for the energy sector in Turkey. These targets include: 125,000 MW of installed power (up from 54,423 MW in 2010) Increasing the share of renewables to 30 percent 60,717 km of transmission lines (up from 49,104 km in 2010) 158,460 MVA of power distribution unit capacity (up from 98,996 MVA in 2010) Decreasing electricity loss-theft to 5 percent and extending the use of smart grids 5 billion m3 of natural gas storage capacity (up from 2.6 billion m3 in 2010) Establishing an energy stock exchange 8 nuclear reactors with a capacity of 10,000 MW will be active Construction of 4 nuclear reactors with a capacity of 5,000 MW Construction of power plants with a capacity of 18,500 MW in the coal basins Full utilization of hydropower Increasing wind power to 20,000 MW (up from 1,694 MW in 2010) Power plants with 600 MW geothermal, 3,000 MW solar energy

SWOT ANALYSIS OF TURKEYSTRENGTHS

Well-organized and structured legal framework in the energy sector EPDK operating as an independent market regulator High growth potential of the Turkish energy sector compared with other European

countries Advantage of Turkey operating as an energy hub between Europe and the Middle East

Electricity

Increase in the share of the private sector through the privatization of state-owned generation assets

Probable horizontal and vertical mergers of electricity, natural gas and water distribution, to allow synergy between regional utility companies

Natural Gas

High gas demand drives growth potential Favorable gas supply geography and infrastructure Potential role as a transit corridor and potential for development of trading hubs

SWOT ANALYSIS OF TURKEY

WEAKNESSES

Electricity

Coal is the only energy source with significant domestic availability, leaving the country increasingly import-dependent

Natural Gas

Requirement for gas storage for system security reasons Dependence on imported natural gas


OPPORTUNITIES

Electricity

Privatization of regional distribution companies (to be finalized by 2010) will allow for an independent merchants’ market

Synergy expected to be created between electricity, natural gas and water distribution businesses

Natural Gas

Tenders for the remaining cities, gas requirements to be met by the end of 2011 Privatization of municipality-owned natural gas distribution companies Restructuring of BOTAS and transition to a competitive market structure Increasing interest by foreign investors in the natural gas distribution market


THREATS

Natural Gas

No new contract releases are announced/expected in the short term Shortage of electricity supply against electricity demand

Turkey-EU Relations in the Field of Energy

As a candidate country, Turkey has aligned her legislation with the EU “acquis communautaire”.

As an indication of the importance given to regional energy cooperation, Turkey joined the Energy Community with an observer status.

Turkey believes that the opening of the energy chapter will surely pave the way for negotiations with the EU on Turkey’s membership to the Energy Community.

As regards electricity networks, after completion of all necessary studies and tests, trial synchronous operation with ENTSO-E (European Network of Transmission System Operators for Electricity) began on 18 September 2010.

Studies towards full membership to ENTSO-E will be completed at the end of 2012, which will provide for physical integration of the Turkish electricity market with the EU internal electricity market. Full membership to ENTSO-E will contribute in competitiveness of the electricity sector in the region.

Turkey-EU Relations in the Field of Energy

Moreover, Minister of EU Affairs and Chief Negotiator Mr. Egemen Bağış, Minister of Energy and Natural Resources Mr. Taner Yıldız, Commissioner Mr. Stefan Füle and Comissioner Mr. Günther Oettinger met in Istanbul to strengthen Turkey-EU energy relations within the context of The Positive Agenda on 9 February 2012.

As a result of this meeting, a working group was established as a step towards preparing a roadmap, which will contribute to enhance cooperation between the two parties in the energy sector. On 30th of March, the first meeting of the Energy Working Group was held in Brussels. In the meeting held on 19th of April in Istanbul, both parties provided in-depth information on the established agenda items and the draft text prepared thereon was decided to be declared soon by the Minister Egemen Bağış, Minister Taner Yıldız, Commissioner Füle and Comissioner Oettinger on 14 June 2012 in Stuttgart.

Turkey is located between 36 – 42 north latitude and 26 – 45 east longitude, bordering the...

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