Sector Report. Energy. Turkey

Transcription

1 Pwer & Renewable Energy - Turkey Sectr Reprt Energy Turkey Prduced by: Taylan Atakan, Senir Trade and Investment Manager, British Embassy Ankara March 2009 Whereas every effrt has been made t ensure that infrmatin prvided thrugh this Reprt is accurate, these Cmmercial Departments, UK Trade and Investment, the FCO and BIS accept n liability fr any errrs, missins r misleading statements in such infrmatin and accept n respnsibility as t the standing f any firm, cmpany r individual mentined. Published March 2010 by UK Trade & Investment. Crwn Cpyright

2 Table f Cntents OVERVIEW 3 OPPORTUNITIES 5 CHARACTERISTICS OF MARKET 6 KEY METHODS OF DOING BUSINESS 8 MORE DETAILED SECTOR REPORTS 8 EVENTS 9 CONTACT LISTS 10 Page 2 f 10

3 OVERVIEW The majrity f Turkey s electricity cmes frm cnventinal thermal surces. In 2007, Turkey had ttal installed electricity generating capacity f 40.8 Gigawatts (GW), a 36 percent increase since The cuntry prduced 143 billin kilwatt-hurs (Bkwh) f electricity in 2007, while cnsuming 133 Bkwh. Cnventinal thermal surces cmprise the largest share f Turkey s electricity supply, cntributing 68 percent in Hydrelectricity generatin makes up almst all f the remainder. Althugh Turkey des nt currently prduce any nuclear energy, the nly ffer fr the cuntry s first nuclear pwer plant tender came frm Russian-led cnsrtium f Inter RAO, Atmstriexprt and Turkey's Park Teknik and is expected t be awarded befre the end f Transitin in the electricity sectr started in 1993 when the gvernment agency, Turkish Electricity Authrity (TEK) under the Ministry f Energy and Natural Resurces (MENR) was split int tw as generatin & transmissin (TEAS) and distributin (TEDAS). In March 2001, the Turkish gvernment enacted a new Electricity Market Law, which set the new stage fr liberalizatin f pwer generatin and distributin activities. Under the law, the state- wned Turkish Electricity Generatin and Transmissin Crpratin (TEAS) was split int separate state-wned cmpanies: Turkish Electricity Generatin Cmpany (EUAS), Turkish Electricity Transmissin Cmpany (TEIAS), and Turkish Electricity Trading and Cntracting Cmpany (TETAS). Transmissin f electricity will cntinue t be run by the state. TEDAS The Electricity Distributin Cmpany is carrying ut the privatizatin f distributin cmpanies using a Transfer f Operating Rights ( TOR ) backed Share Sale mdel ("TSS mdel"). Accrding t this mdel, the investr will be the sle wner f the shares f the distributin cmpany and will be the unique licensee fr the distributin f electricity in the designated regin withut retaining the wnership f distributin netwrk assets and ther items that are essential fr the peratin f distributin assets. The wnership f these distributin assets will remain with TEDAS. The investr, thrugh its shares in the distributin Page 3 f 10

4 cmpany, hwever, will be granted the right t perate the distributin assets by a Transfer f Operating Rights Agreement ("TOR Agreement") with TEDAS. The new law als created the Energy Market Regulatin Bard (EPDK), which versees the pwer sectr and natural gas markets, including the setting f tariffs, issuing licenses, and assuring cmpetitin. Befre the 2001 refrms, EUAS perated 91 percent f Turkey s pwer supply. Hwever, EUAS will sell ff mst f its pwer plants and ther hldings under the gvernment s privatizatin plan. In June 2003, 27 state-wned cal and hydrpwer plants were transferred t a gvernment hlding cmpany in preparatin fr privatizatin, accunting fr 28 percent f the Turkish pwer generating market. The gvernment f Turkey riginally set a gal fr the ttal privatizatin f EUAS, althugh this has prceeded mre slwly. T date, the privatizatin prcess has wavered due t lack f investr interest and plitical uncertainty, althugh external institutins have kept the prcess n track. In August 2006, the EPDK apprved the privatizatin f Turkey s 20 reginal electricity grids. The EPDK has apprved a new electricity tariff structure, the final step befre Turkey can invite tenders t auctin the distributin grids. The pwer grids have been started t be sld in grupings f up t 6 reginal grids at a time t encurage ecnmies f scale and greater efficiency. DE-COMPOSITION OF END-USER TARIFF Surce: TEDAS The Electricity Distributin Cmpany Page 4 f 10

5 OPPORTUNITIES Turkish Energy sectr ffers ne f the tp grwth pprtunities fr an array f business segments within the next decade. The grwth drivers are diverse. The cntinuing steady grwth f GDP, rapid grwth f cnsumptin per capita and demgraphic structure in Turkey will drive a duble digit demand grwth at a multiple f GDP. The gegraphic disparity between the surces f primary energy and demand fr il and gas is als driving grwth fr transprtatin f these cmmdities. Turkey s strategic lcatin amng multiple surces and cnsumers f primary energy, will cntinue t drive the pipeline investments, while presenting pprtunities fr shipping industry vertical and its adjacencies such as prts. Cntinuing high input prices and dependency fr imprted gas have been creating a cmpelling case fr increased renewable energy investments and entry int nuclear energy prductin. Cntinuing deregulatin including privatizatin f electric distributin will bring new investments in distributin and cntrl technlgies. This represents abut $100Bn + business ptential in the next decade fr multiple industries and needless t say this wuld nt happen withut financing mdels. Investment Needs f the Turkish Energy Sectr Ttal=$128,574Millin $M Investments Cal Extractin Oil Natural Resurces Water(DSI) Generatin(EUAS) New Gen.Facilities Transmissin Distributin Surce: SPO State Planning Organisatin UKTI publishes internatinal business pprtunities gathered by ur netwrk f British Embassies, High Cmmissins and Cnsulates wrldwide. These pprtunities appear in the Opprtunities prtlet n the relevant sectr and cuntry pages n the UKTI website. By setting Page 5 f 10

6 up a prfile yu can be alerted by when relevant new pprtunities are published. New r updated alert prfiles can be set in My Accunt n the website. CHARACTERISTICS OF MARKET The electricity industry is a large, high-grwth sectr in the Turkish ecnmy. The industry cnstitutes an imprtant part f the cuntry s GDP and is a USD 18.5 billin industry based n current end-user prices. The sectr s share in the Turkish ecnmy has been grwing rapidly, given the 10.6% per annum grwth in electricity demand ver the past tw decades. This rate f demand grwth has been higher than the grwth rates seen in ther majr Turkish industries and utstrips grwth in the Turkish ecnmy verall. In 2007, the Turkish electricity sectr recrded apprximately 182 billin kwh f grss cnsumptin (ttal cnsumptin including lss/theft, internal cnsumptin and exprts) and 155 billin kwh f net cnsumptin (excluding lss/theft, internal cnsumptin and exprts). The industrials custmer grup represent apprximately 50% f the ttal demand, while residential custmers cnsume slightly less than a quarter f the ttal. Cmmercials custmer grup, excluding public institutins, is placed third in terms f cnsumptin with a 14% share. Distributin lsses f the system, which amunted t 26.6 billin kwh in 2007, are high cmpared t internatinal benchmarks. Accrdingly, ne f the primary bjectives f the electricity sectr refrm has been defined as reducing the lss/theft rati t OECD levels. Electricity cnsumptin grwth has histrically been less vlatile than the verall ecnmic grwth in Turkey. Between 1980 and 2007, GDP grwth displayed a wide variance with a standard deviatin f 4.6% arund an average grwth rate f arund 4%. Cnsumptin grwth in the electricity sectr during the same time perid displayed a lwer standard deviatin f 3.0%, arund a higher average grwth rate f apprximately 8%. As can be seen in the next chart, electricity cnsumptin grwth was negative nly in a single year ver the past 27 years. MAIN POWER GENERATION RESOURCES Pwer generatin f Turkey in 2007 was based n: gas (45%), cal (27%, bth indigenus and imprted, including lignite), hydr (24%) and il & negligible renewables (%4). Natural gas will cntinue t be a majr input fr pwer prductin, since cheap dmestic lignite and hydr will nt be enugh t keep up with the demand. Tday, pwer generatin alne is accuntable t arund 56% f the ttal natural gas cnsumptin f the cuntry (Cnsumptin breakdwn f natural gas in 2007 was realised as: pwer generatin at 56.1%, residential use at 22.3% and industrial use at 21.6%): Natural Gas/ LNG Turkey has 10 billin cubic meters f prven natural gas reserves as f January Althugh Turkey des nt have sizeable reserves, it is an imprtant natural gas transit cuntry. Turkey is als a grwing cnsumer f natural gas in its wn right, with cnsumptin having increased significantly ver the last decade. In 2007, Turkey cnsumed 26,5 billin cm f natural gas, up 51 percent since 2000, while nly prducing 800 millin cm f natural gas. Cnsumptin f natural gas has increased substantially ver the last several years in Turkey. Tday, pwer generatin alne is accuntable t arund 56% f the ttal natural gas cnsumptin f the cuntry. Cnsumptin breakdwn f natural gas in 2008 was realised as: pwer generatin at Page 6 f 10

7 56.1%, residential use at 22.3% and industrial use at 21.6%):Percent shares f supply surces in 2007 were: RF (63%), Iran (17%), Algeria LNG (12%), Azerbaijan (4%), Nigeria LNG (4%), Spt LNG (0.47%) and Dmestic (0.17%): Algeria LNG Spt LNG 12% 0,47% Iran 17% Nigeria LNG Azerbaijan 4% 4% TPAO 0,17% Russia 63% Cal Cal-fired pwer statins remain an imprtant energy surce fr Turkey, and there is renewed interest in expliting Turkey s dmestic cal resurces fllwing large natural gas price increases. In August 2006, tenders were ffered by EUAS fr the cnstructin f tw new 1,200-MW cal-fired units at the existing Afsin-Elbistan pwer plant. The Afsin-Elbistan regin hlds 3.3 billin shrt tns f lignite reserves, r 40 percent f Turkey s dmestic ttal. Over the last few years, several new cnventinal thermal pwer plants have cme nline. Hwever, except fr the recent EUAS tender, few new pwer statins are currently scheduled t be built in Turkey. The majrity f Turkish cal prductin is fr electricity generatin. In 2007, Turkey had ttal recverable cal reserves f 4,614 millin shrt tns (Mmst), f which nly 306 Mmst, r less than 7 percent, was hard cal (anthracite and bituminus). The remainder, arund 4,308 Mmst, cnsists f lignite and sub bituminus cal reserves. In 2007, Turkey prduced 51 Mmst f ttal cal, f which 94 percent was lignite. The bulk f Turkey s lignite prductin ges t cal-fired pwer plants. Turkey cnsumed abut 70 Mmst f ttal primary cal in 2007, shwing net imprts f apprximately 19 Mmst. Hydrpwer Turkey has significant hydrelectric pwer resurces, with mre than 100 ttal plants and ttal installed hydrelectric generating capacity f 12.6 GW. Turkey is als develping a great deal mre f hydrpwer plants, especially as part f the $32-billin Suth-eastern Anatlia Prject (GAP) alng the basin f the Tigris and Euphrates Rivers. Under the GAP prject, which is cnsidered ne f the mst ambitius water develpment prjects ever undertaken, Turkey will cnstruct 22 dams, 19 hydrelectric pwer statins (with arund 7.5 GW f generating capacity), and an expansive netwrk f tunnels and irrigatin canals cvering 1.7 millin hectares f land. The GAP prject is verseen by the Suth-eastern Anatlia Prject Reginal Develpment Administratin.By the end f 2007, 8 hydrpwer plants had been cmpleted, representing 74 percent f ttal planned energy prjects under the GAP scheme. The 8 pwer statins generated 18.7 Bkwh f electricity in 2007, which adds substantially t the share f hydrelectricity in Turkey s energy mix. The entire GAP prject is scheduled t be cmpleted by Nuclear Turkey will undertake three nuclear pwer plants, each rated at 1,500 MW and making up a ttal nuclear capacity f 4,500 MW, by the year During Turkish Atmic Energy Agency s in Page 7 f 10

8 site studies at Nrth Anna nuclear pwer plant during February 2006, the US Department f Energy urged fr technlgic cperatin with Turkey, stating that they wanted t cperate with the Turkish Gvernment in the area f nuclear energy with the latest technlgy, which is knwn as Generatin 3.5. the nly ffer fr the cuntry s first nuclear pwer plant tender came frm Russian-led cnsrtium f Inter RAO, Atmstriexprt and Turkey's Park Teknik and is expected t be awarded befre the end f Renewables Other renewable surces add very little t Turkey s ttal electricity supply, cntributing nly abut ne tenth f ne percent t Turkey s electricity generatin in Hwever, Turkey is cnsidered t have a large amunt f wind, gethermal, and slar pwer ptential, and a number f prjects t explit these surces are underway. Hwever, renewable energy surces are nt likely t cntribute significantly t Turkey s energy mix in the near term. Renewable Energy Ptential MW Wind Ecnmic Ptential 10,000 Hydr Ecnmically Usable 35,000 Gethermal 35,000 Slar 35Mte KEY METHODS OF DOING BUSINESS Other backgrund infrmatin n ding business in Turkey can be fund n UKTI s website. Simply g t the Turkey cuntry page where yu will find infrmatin n: Custms and Regulatins Cntacts and Setting Up Selling and Cmmunicatins Backgrund and Gegraphy Visiting and Scial MORE DETAILED SECTOR REPORTS Research is critical when cnsidering new markets. UKTI prvides market research services which can help UK cmpanies ding business verseas including: Overseas Market Intrductin Service (OMIS). Bespke research int ptential markets, and supprt during yur visits verseas Exprt Marketing Research Scheme. In-depth and subsidised service administered by the British chambers f Cmmerce n behalf f UKTI Cntact yur lcal Internatinal Trade Advisr if yu are interested in accessing these services, r fr general advice in develping yur exprt strategy. Page 8 f 10

9 When cnsidering ding business in Turkey it is essential t btain legal, financial and taxatin advice. A useful cntact list f lawyers and ther relevant prfessinal bdies, as well as further infrmatin is available frm the British Embassy in Turkey. The British Missin Cmmercial Sectin in Turkey ffers a range f services t British-based cmpanies wishing t d business in the Turkish market. Our services include the prvisin f market infrmatin, validated lists f agents/distributrs, key market players r ptential custmers in the Turkish market; establishing the interest f such cntacts in wrking with yu; and arranging appintments. We can als rganise seminars r ther events fr yu t meet cntacts r prmte yur assciatin/cmpany. Yu can cmmissin these services frm us under ur Overseas Market Intrductin Service,OMIS. This is a chargeable service perated by UK Trade & Investment, UKTI, t assist Britishbased cmpanies wishing t enter r expand their business in verseas markets. Yu can find details f the OMIS service n the UKTI website: Yu might als like t nte that all infrmatin abut UKTI/British Embassy cmmercial events and trade missins in Turkey is published n the UKTI prtal and the Embassy website We als pst n the UKTI prtal infrmatin abut specific business pprtunities in Turkey. As a UK-based cmpany, we encurage yu t register n the UKTI prtal. This will allw yu t set up yur user prfile t ensure that yu receive autmatic updates abut pprtunities in yur sectr in markets f interest t yu. This service is free f charge. The prtal als has a great deal f backgrund infrmatin n pririty business sectrs in Turkey and n ding business here. Yu might als be interested t find ut mre abut the range f services available t UK cmpanies trading internatinally thrugh the UK Trade & Investment Internatinal Trade Team in yur regin f England, r thrugh the Devlved Administratins in Sctland, Wales and Nrthern Ireland. Yu can find details f yur lcal ffice n the same prtal by clicking n Lcal Office Database in the same sectin and/r the map abve. EVENTS TRADE FAIRS IN TURKEY 2008/09 The Unin f Chambers and Cmmdity Exchanges f Turkey prvides details f trade shws/fairs/exhibitins ver 140 main and sub sectrs under the headings: Fairs Accrding t Sectrs Fairs Accrding t Cities Fairs Accrding t Dates Fairs Organizing Cmpanies Fairs Search UK Trade & Investment s Tradeshw Access Prgramme (TAP) can help eligible UK businesses take part in verseas exhibitins. Attendance at TAP events ffers significant benefits: pssibilities fr business pprtunities bth at the shw and in the future a chance t assess new markets and develp useful cntacts grants are available if yu meet the criteria UKTI staff verseas will be available t assist delegates Page 9 f 10

10 Find ut if yu are eligible t apply t attend this event, and mre abut the supprt UKTI can ffer, n the UKTI Market Entry web page. Details f TAP events can be fund in the Events prtlet n the Turkey page. Other Market Visit Supprt may be available via yur lcal Internatinal Trade Advisr. CONTACT LISTS The UK Trade & Investment Pwer Sectr team prvide cmpanies with knwledge, advice and practical supprt thrugh a netwrk f internatinal specialists in the UK and in British Embassies and ther diplmatic psts arund the wrld. The Pwer Sectr team can ffer yu: Supprt t build exprt capability Access t inward and utward market visits, seminars, pprtunities and reprts Sales leads and bespke research services specific t market Assistance in exprting fr the first time, including access t the Passprt T Exprt prgramme UK Trade & Investment Cntact: karen.smith@ukti.gsi.gv.uk Shuld yu be interested in mre in-depth, tailred infrmatin and/r cntacts in the Turkey pwer and renewable sectr, yu shuld cntact; Taylan Atakan Senir Trade & Investment Manager British Embassy, Ankara T: F: Taylan.Atakan@fc.gv.uk UKTI s Internatinal Trade Advisers can prvide yu with essential and impartial advice n all aspects f internatinal trade. Every UK regin als has dedicated sectr specialists wh can prvide advice tailred t yur industry. Yu can trace yur nearest advisr by entering yur pstcde int the Lcal Office Database n the hmepage f ur website. Fr new and inexperienced exprters, ur Passprt t Exprt prcess will take yu thrugh the mechanics f exprting. An Internatinal Trade Adviser will prvide prfessinal advice n a range f services, including financial subsidies, exprt dcumentatin, cntacts in verseas markets, verseas visits, translating marketing material, e-cmmerce, subsidised exprt training and market research. Page 10 f 10