ntry Overview - TURKEY


Country Overview - TURKEY

Section 1 : Energy provision

Main fuel sources for direct use and power generation

Total Primary Energy Production in 2004
= 25,2 MTEP
Total Primary Energy Consumption in 2004

= 87,8 MTEP
38% - oil
27% - coal
23% - natural gas
12% - renewables

Total installed capacity for electricity production in 2003 = 35.587 MW
Total electricity production in 2003



= 140.581 GWh
45% - natural gas
25% - hydroelectricity
23% - coal
7% - oil

Degree of reliance on imported energy

72%


Extent of connection to electricity network (households and businesses; rural
and urban)

Approximately 99%.


Any capacity concerns (power generation an/or transmission/distribution)

It is expected that a shortage of meeting the demand of electricity might not be met during the
first half of 2010. Losses in the transmission and distribution system are also seriously being
discussed. The technical capacity of the infrastructure of the transmission system is a serious
point of concern for to integrate large scale renewable energy investments.


Potential for renewable energy, energy efficiency and co-generation (i.e. any
authoritative assessments)

Turkey ranks 7th worldwide in the geothermal resources which yield a potential of 2000 MWe
(electricity) and 31.500 MWt (thermal), whereas the installed capacity is only 20 MWe and 1,077
MWt.
Turkey ranks one of the highest potential for wind energy in Europe and there exist an
economical potential of 10.000 MW. However, the current installed capacity is slightly above 20
MW. Turkeys huge potential in solar energy is also unique in Europe and globally. The total area of
installed solar collectors exceeds 10 million m
2
, which is slightly less than total amount in Europe.
Only 36% of total hydroelectricity potential of Turkey has been utilized as of 2003.
Considering the natural resources and extent of agroeconomic infrastructure, Turkey also yields a
significant potential in biomass. As of 2003, 15 million tons of forest residues and 5,4 million ton
of plant and animal wastes are used for utilization of energy. However, it is estimated that
around 50-60 million tons of animal wastes and 50-100 million tons of agroindustry wastes can
be used for utilization of energy. As of 2003, the installed capacity for biodiesel production
exceeds to 1 million tons/yr, and bioethanol production exceeds 20.000 tons/yr. There are
nationwide suitable areas for energy forestry. Throughout Turkey, there exist only 12 municipal
solid waste landfill sites and the rest are operated as wild dumping. There are 4 plants with a
capacity of 15.6 MW that utilize municipal solid wastes.






Section 2 : Energy market

Ownership (state/municipality/private/mixture) of electricity and gas utilities
and other sources of energy
Electricity: As of 2002, 66% of the consumption is covered by state owned companies.

Gas: The legislative framework for market is adopted in 2001. The Law aims to decrease the
control of the government down to 20% as of 2009. As of 2005, the government announced
bidding for transfer of 64% of market share of state owned company BOTA to private
companies.


Extent of competition in power generation and energy retail
Since 1980s, there have been various efforts for the liberalization of the electricity market. During
1990s, models like Built-Operate-Transfer and Built-Operate have been utilized but faced
significant juridical issues. As of 2001, Electricity Market Law is in force. Private investment in
electricity production is enabled, full liberalization of state owned companies is aimed to be
finalized by 2006, distribution is liberalized, full liberalization of transmission is aimed to be
finalized as of 2009.

Structure extent of vertical integration of
generation/transmission/distribution/retail

Generation
- EUAS (state owned company)
- Autoproducers
- Private owned companies
Transmission - TEIAS (state owed company)
Distribution
- TEDAS (state owed company)
Retail
- TETAS (state owed company)


- Free consumers and private companies Section 3 : Energy policy framework


Existence of an explicit energy policy framework (e.g a recent White Paper)
and key policies (e.g privatisation, liberalisation, rural electrification plan etc)
or not what role is envisaged for sustainable energy?

The latest policy paper was adopted by the Supreme Planning Council on 17 March 2004. The
main focus are; to complete privatization of state owned companies, liberalization of markets
with all of its elements, diversification of resources (introduction of renewables and nuclear) and
decrease dependence on imported fuels.

Any current energy policy debates/developing legislation e.g. on security of
supply; energy market reform; incentives for renewable energy etc

The scenarios for the demand potential and elements for liberalization of electricity market as of
2020 is defined at the latest policy paper, adopted by the Supreme Planning Council on 17 March
2004.

Any specific policies or programmes to promote sustainable energy
The Renewable Electricity Law was adopted in 2005, as the transposition of Directive 2001/77/EC
within the scope adoption of EU acquis. The law which enables government to purchase the
electricity from renewable energy sources by maximum 20% will be fully operational as of 2007.
The Draft Law on Energy Efficiency, the Draft Law on Geothermal Resources is currently being
discussed at the Parliament. Biodiesel and bioethanol is being developed under Petrol Markets
and Tobacco Markets Law respectively.
Any major energy network or sustainable energy studies available


Role of government in energy policy which departments are involved?

Ministry of Energy and Natural Resources General Directorate of Energy Affairs is the key
governmental institution in planning.

Any government (or government funded) agencies with a specific role in
sustainable energy and/or environmental protection (with an energy role)
The General Directorate of Electric Survey and Research (EIEI) provides technical research,
training drafting of legislation on renewable energy and energy efficiency

Any energy planning procedure in place
The latest policy paper was adopted by the Supreme Planning Council on 17 March 2004.



Section 4: Energy regulation

Is there an energy or utility regulator? When was it established?
Energy Markets Regulatory Authority is fully operational since 2001.

Degree of independence of the regulator from government (legal structure,
who appoints the regulator and board)
Fully independent

Regulatory framework legislation, duties, powers (any references to
environment, sustainable energy)
EMRA has issued numerous legislations on electricity, oil, LPG and natural gas, including

Law on Electricity Markets (2001)
Law on Natural Gas Markets (2001)
Law on Oil Markets (2003)
Law on LPG Markets (2005)

Law on Energy Efficiency is being drafted by EIEI and Law on Geothermal is being drafted by the
Ministry.

Regulators roles key tasks (e.g. price controls, promoting competition etc) ,
actions to date, any action/role in the sustainable energy field)
EMRA monitors and empowers punishment for the quality of oil served in the market, training of
experts in LPG stations, harmonizes demand potential of electricity.


Role of government departments in energy regulation (both where a regulator
exists and where there is no regulator)
EIE defines the technical potential of renewable energy sources.


Have any regulatory barriers to sustainable energy been identified and if so
what are they?

The delay in adoption of Energy Efficiency Law which will enable introduction of ESCOs in the
market is a serious concern. Support measures for better integration of renewable energy
sytems, especially those other than hydrolelectricity, are currently debated.






09.03.06