The Growth and Potential of Turkey s Energy Sector

Transcription

1 THO FACTSHEET The Growth and Potential of Turkey s Energy Sector Turkish Energy Sector Overview Turkey s energy import dependency, mainly on oil and natural gas, is increasing due to a growing demand for energy. Currently, Turkey is able to meet around 26% of its total energy demand from its own domestic resources. Turkey plans to increase energy production from indigenous sources through several methods which include increasing the capacity of local renewable energy sources, exploring potential oil and gas reserves, increasing energy efficiency, and the addition of three nuclear power plants. Furthermore, Turkey aims to maximize the use of domestic resources while commiting to combating climate change. (as of the end of 207)3 3,66 H YD ROPOW ER MTOE % increase 36.2 MTOE 206 S OL A R Total primary energy supply in Turkey Number of Energy Production Plants in Turkey M T O E = million metric tons of oil equivalent N ATU RA L G A S C OA L 4 GE O TH E RM AL 40 OTH E R 203 TOTA L 5,02 OTHER 6% GEOTHERMAL Installed Capacity (as of the end of 207)4.2% SOLAR 4% 7.6% HYDROPOWER 32% 22% NATURAL GAS 27.2% Installed capacity = the total amount of energy that a power station is capable of producing under optimal conditions

2 Electricity Highlights Renewable Energy Highlights Increase in Renewable Energy Development0 27,273. MW Turkey s total installed capacity is 85.2 GW and is expected to reach 20 GW by ,000 MW Turkey is the 6TH-LARGEST electricity market in Europe.7 Installed Electricity Capacity Increase8 27,272 MW 26,496 MW 25,000 MW 20,000 MW 3,394.8 MW M W = megawatts HYDRO,764 MW 4,47 MW G AS 207 5,000 MW 36.4 MW 6,983 MW 0 8,438 MW 5,000 MW 2002,000 MW 0,000 MW ,24 MW 8,665 MW 5,000 MW 20,000 MW 0,000 MW NON-HYDRO OTHER RENEWABLES G W = gigawatts 5,000 MW 6% HYDROPOWER,250 MW 0 MW S OL A R BI OMA S S GEOTH ER MA L 46.3 MW 37% 2,500 MW 0 MW 2% NATURAL GAS MW 42.7 MW GEOTHERMAL 3,420 MW 2% 3,750 MW MW 23 MW (as of the end of 207) 9 OTHER 6,56.2 MW Electricity Generation W IND HY DRO New electricity capacity from renewable energy sources accounted for 64.4% of all new capacity installed during % 33% There was an additional 4,333 MW of new renewable-based capacity in

3 Hydropower Highlights Natural Gas Highlights As of 207, 628 hydro power plants with 27,723 MW have been licensed. This accounts for around 32% of Turkey s total potential.3 The Trans-Anatolian Natural Gas Pipeline (TANAP) is an,850 kilometer long pipeline that now pumps gas from Azerbaijan to Turkey. A continuation of this pipeline is scheduled to bring gas from Turkey through Greece to Italy by This pipeline highlights the strategic importance of Turkey for the future of EU energy security.20 Turkey has the 3rd-largest growing market in the World after China and Brazil.4 Wind and Solar Highlights The wind energy potential of Turkey is estimated to be 48,000 MW. The area required to meet this potential is just.3% of the total surface area of Turkey.5 $2 billion was allocated to wind and solar energy projects in % In December of 207, Turkish drill ships began exploring gas wells in the Mediterranean near Cyprus.2 Coal Highlights As of 205, Turkey s coal reserves are estimated to amount to roughly 5.7 gigatons.22 $2 BILLION Thus far, Turkey has only reached 4% of its solar power potential.7 Nuclear Potential Turkey s first nuclear power plant, at Akkuyu, commenced construction in April 208. Geothermal Highlights Turkey is one of only four countries that have more than,000 MW of installed geothermal power capacity.8 Thus far, Turkey has only reached.2% of its potential geothermal power.9 Investment 23 2 A Franco-Japanese consortium is to build the second nuclear plant at Sinop..2% China is in line to build the third plant with U.S.-derived technology. 24 In order to make Turkey s energy sector as investor friendly as possible, Turkey offers investors favorable incentives, such as feed-in-tariffs, purchase guarantees, connection priorities, and license exemptions, depending on the type and capacity of the energy generation facility. In addition to possessing a huge domestic market, Turkey occupies a strategic location between a number of major energy consumers and suppliers, thus serving as a regional energy hub. The existing and planned oil and gas pipelines, the critical Turkish straits, and promising finds of hydrocarbon reserves within the country itself give Turkey increased leverage over energy prices and reinforce its gateway status. 3

4 Mega-Tenders Held in Tender for a GW Capacity Wind Renewable Energy in 207 Power production capacity: circa 3 billion kwh Winning bid: US$0, 0348/kWh Siemens-KalyonTurkerler consortium Expected total investment: $. billion Tender for a GW Capacity PV Solar Renewable Energy in 207 Power production capacity: circa.7 billion kwh Winning bid: US$0, 0699/kWh Hanwha Q Cells Kalyon Energy consortium Expected total investment: $.3 billion Upcoming Tenders 26 Tender for a.2 GW Capacity Wind Renewable Energy Application deadline: 09/23/208 Capacity:.2 GW Starting bid: US$ 8/kWh Potential candidate regions: Aegean Sea (Gallipoli and Saros) and Black Sea (Kiyikoy) ALPU Coal-Fired Power Plant and Reserve Area The privatization tender is open for bidding until August 5, 208. License no: ER: , S:85839 License holder: EUAS (state-owned electricity production company) Reserved in underground site:.6 billion tons Installed capacity potential: 4 GW Location: Eskisehir province Tender for the privitazion of EUAS-owned energy production and coal reserve area in Çayırhan, Ankara province Capacity: 800 MW Power production capacity: circa.7 billion kwh Winning bid: US$60.4 /MWh Kolin-Kalyon - Çelikler consortium Expected total investment: $. billion Calorific valuet: 2240 kcal/kg Tender for a GW Capacity Solar Renewable Energy Zone with Integrated Battery Systems Power production capacity: circa.7-2 billion kwh Expected total investment: circa $. - $.4 billion Potential candidate regions: Niğde-Bor, Hatay-Erzin ve Şanlıurfa- Viranşehir Not open for applications yet, details to be announced in September 208 4

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