GREAT WIND POTENTIAL OF TURKEY

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GREAT WIND POTENTIAL OF TURKEY
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Outline

• 1. Energy Figures Growing Country

2. EU Integrated Market Model
3. Renewable Paradise
4. Best Wind
5. Polat Energy Inc. Co.
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Rapidly Growing Country Today with over 400
billion US Turkey is the 20th largest economy.
The target is to become in 10 largest
economy in 2050.
Source Prime Ministry Undersecretariat of
Treasury
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Key Macro and Micro Data for Turkey
Estimation 9 months data Including gold
and commercial banks and financial instituions
reserves, year end.
Source Foreing Economic Relations Board


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Installed Capacity, 1984-2008 (MW)
Source TEIAS (Turkish Electricity Transmission
Company)
Source TEIAS (Turkish Electricity Transmission
Company)
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Electricity Generation, 1984-2008 (GWh)
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Source TEIAS (Turkish Electricity Transmission
Company)
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Installed Capacity of Turkish Electricity System
(2008)
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Source TEIAS (Turkish Electricity Transmission
Company)
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Energy Consumption
Total Primary Energy Consumption (104 MTOE) -
2007
Source Business Potential of Renewable Energy
Sources In Turkey Presentation (prepared by Mr.
M.Kemal BUYUKMIHCI - General Director of The
General Directorate of Electrical Power Resources
Survey and Development Administration)
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Electricity Consumption (187 756 GWh) - 2007
Source Business Potential of Renewable Energy
Sources In Turkey Presentation (prepared by Mr.
M.Kemal BUYUKMIHCI - General Director of The
General Directorate of Electrical Power Resources
Survey and Development Administration)
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Energy Demand Generation, 1970-2007
Net Energy Gross Generation Energy Import -
Energy Export
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Source TEIAS (Turkish Electricity Transmission
Company)
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Electricity Consumption Demand
Electricity demand increases by 8 for every years
Source The Policies of Renewable Energy in
Turkey Presentation (prepared by Zeynep
GUNAYDIN from Ministry of Energy and Natural
Resources )
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Import Export Dependency Ratio
Total Energy
Electricity Energy
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Source MENR (Ministry of Energy and Natural
Resources)
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Transmission System
Existing 154 kV
Planned 154 kV and 400 kV
Existing 400 kV
Existing 66 kV
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Source TEIAS (Turkish Electricity Transmission
Company)
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Turkish Electricity Transmission System is One Of
The Strongest Transmission System In Europe
TÜRKIYE ELEKTRIK ILETIM SISTEMI

• - 400 kV OHTL 14338 km
• - 154 kV OHTL 31429 km
• - 220 kV OHTL 84 km
• - 66 kV OHTL 477 km
• 154 kV Cable 153,2 km,
• 380 kV Cable 12,8 km
• Total OHTL 46483 km

• - 400 kV Substations 61
• - 154 kV Substations 458
• - 66 kV Substations 15
• Total 534
• Capacity 81.472 MVA

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TURKEY-UCTE
Interconnection Project

• All feasibility studies are completed and it is
  expected that the studies about the frequency
  improvement of Turkish National Grid system will
  be finalized in 2009.
• In the beginning of 2010 Turkish National Power
  System and UCTE are going to start trials for
  working in sencronise.

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Interconnections Of TURKEY
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Wind Capacity That Can Be Connected To The
Turkish Power System
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Growing Interest In Wind Energy Power

• 3274 MW Wind Energy Power Plant Project has been
  licensed by EMRA and 1312 MW Wind Energy Power
  Plant project are in licencing procedure. Total
  amount is 4586 MW.
• Last Year a huge group of wind power plant
  project application was accepted by EMRA. This
  group is formed by 632 projects and 69039 MW in
  total.
• After grid connection analysis by TSO,
  additional 7453 MW can be connected to national
  grid up to year 2013.
• The projects which the applications are single
  both in their project area and project connection
  point will be licenced by EMRA.
• The applications which are not single both in
  their project area and project connection point
  will bid for the highest kWh price within a
  tender procedure to be concluded by the TSO.

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Voltage Levels and Capacities at Connection
Points for The Existing Licenced WEPPs In TURKEY

• At 400 kV voltage level 375 MW
• At 154 kV voltage level 3909 MW
• At 33 kV voltage level 632 MW

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Regional Distributions of Existing Licenced
WEPPs
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Grid Code for Wind Generation

• Wind Energy Power Plants Grid Code approved and
  regulates the following issues.
• Fault- ride through capability of WEPP
• Active Generation Control of WEPP
• Reactive Power Response of WEPP
• Frequency Response of WEPP

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Outline
1. Energy figures Growing country
2. EU Integrated Market Model
3. Renewable Paradise
4. Best Wind
5. Polat Energy Inc. Co.
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Before Electricity Market Law
The Vertically Integrated Utility Model (Until
1994)
The Central Buyer Model(1994- 2001)
Unbundling to allow competition (in 2001)
New Generation EUAS or IPP
New Generation TEAS or IPP (BOT, BOO)
New Generation TEK (TEA)
State-Owned EUAS Electricity Generation Company
Suppliers(Generators, Marketers)
Only the Integrated UtilityTEAS can buy Energy
from generators.
Existing Generation(Regulated)
Generation
State-Owned TEIAS Turkish Electricity Transmission
Company
State Owned IntegratedUtility (Turkish Electricit
y Company- TEK)
Transmission and Operations
System Operator and Market Operator
Transmission and Operations
Distribution
Transmission Owner
Only the integrated Utility TEAS can sell energy
to TEDAS, Kayseri and Aktas.
Integrated Utility TEK and 2 concessionary
companies can sell energy to consumers.
TEDAS (State owned Distribution Retail Company)
Distribution Utility
State-Owned TEDAS Turkish Electricity Distribution
Company
Consumers
Consumers
Consumers
And Auto-producer companies for their own
consumption
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The Institutional Network
Presidency of the Rep. Of Turkey
The Turkish Grand National Asembly
Ministry of Energy and Natural Resources
Investors
Proposal for appointment
Formal appointment
Laws general policy guidelines
progress report
Annual report
Complaints
Competition Authority
Hearings
Requests for advice
notice for competition
EMRA
regulation
observer
European Commission
sentences
data information
Joint-stockLimited Co.
Courts
European Regulators' Group for Electricity and Gas
appeals
claims
appeals
Council of State
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Market Model
Public Wholesaler (TETAS) Cross border trade
Retailer
Retail activity (under Dist. Cos)
Captive consumers
Public Generator (EÜAS) and portfolio generation
Cos
Transmission System Operator
Distribution System Operators (21 companies)
Eligible consumers (3.000.000 kWh)
Private Generation Companies Autoproducers
Market Operator
Balancing Settlement
Private Wholesalers Cross border trade
Cross-bordering delivery (Import)
Energy flow
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Cash flow
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Strategy
Source Diversification
SecurityofSupply
Privatization
Electricity MarketLaw
Renewable Law
Efficiency Law
EU and otherregional possibilities
Market Mechanisms
Demand Side Management
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Outline

• 1. Energy figures Growing country

2. EU Integrated market model
3. Renewable Paradise
4. Best Wind
5. Polat Energy Inc. Co.
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Renewable paradise

• Installed capacity MW (end 2008)
• Hydro 13.453
• Wind 326
• Geothermal 82

• Economical capacity MW
• Hydro 37.000
• Wind 20.000
• Geothermal gt500

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Why do we need to increase the renewable capacity?

• Source Diversity
• Maximizing Domestic Source Usage
• Global Warming
• (The common global problem)
• Integration to the EU
• (EC Directives on Renewable)

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Regulations about Renewable Energy Sources

• Electricity Market Law, no4628 (2001)
• Law on utilization of renewable energy resources
  for the purpose of generating electricity (law
  on res), no 5346 (2005)
• Energy Efficiency Law no5627 (2007)
• Significant Amendments to the Electricity Market
  Law no 5784 (2008)

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Incentives for Renewable Energy Source

• Feed-in tariff mechanism
• The most accepted and record breaking mechanism
  in EU countries (Germany and Spain)
• Power purchase guarantee
• Electricity distribution companies will buy the
  electricity generated from RES for 10 years
• based price
• Between 5 - 5,5 /kWh with possibility to sell
  to the wholesale and settlement market. Turkish
  Average Wholesale Electricity Price is determined
  by EMRA as 6,05 /kWh.
• Additional investment period incentives
• Approved by EC

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RES Incentive Mechanism In Energy Efficiency Laws

• Decreasing energy intensity
• 20 of energy cost of facilities belonging to the
  last year of the voluntary agreement between the
  real persons and legal entities, who signed
  voluntary agreement by EIE and fulfilled their
  commitments on decreasing energy intensity at
  least at the ratio of 10 in any facilities
  within 3 years, shall be paid.
• Energy generated from RES, by entities, who
  have signed voluntary agreement or energy
  generated in cogeneration plants consumed , shall
  not be included in the calculation of energy
  intensity.
• TUBITAK shall support research and development
  projects for improving energy efficiency,
  utilizing new and renewable energy resources
  prior.
• Real persons or legal entities, who establish
  generation plant using renewable energy resources
  with a generation capacity of minimum 500 kW for
  their own demands, shall be exempted from the
  obligations of taking licence and establishing
  companies.

Source Business Potential of Renewable Energy
Sources In Turkey Presentation (prepared by Mr.
M.Kemal BUYUKMIHCI - General Director of The
General Directorate of Electrical Power Resources
Survey and Development Administration)
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A good example from Turkey

• 11 Companies and TSO agreed on grid connections
  of 17 WEPP in Çesme Peninsula.
• Grid connection investment will be proportionally
  distributed to SPCs. The investments will be paid
  back to investors in 10 years from start of
  operation.

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ÇALIK SARPINCIK
ÇESME peninsula WPP projects
LODOS
YAYLAKÖY
17 km
AYEN MORDOGAN
17 km
5 km
AEGEAN SEA
15 km
S
11 km
380/OG KARABURUN TM
EGENDA MORDOGAN
EGENDA GERMEYAN
30 km
4 km
EGENDA URLA
13 km
55 km
S
14 km
380/OG ÇESME TM
ORTAN KARADAG
S
154/OG URLA-2 TM
11 km
31 km
380/154 kV UZUNDERE TM
S
5 km
HASSAS
10 km
9 km
ABK ÇESME
7 km
6 km
ÇALIK DEMIRCILI
10 km
11 km
EGENDA ALAÇATI
ÜÇGEN
SAGAP OVACIK
9 km
SAGAP SEFERIHISAR
YAPISAN ZEYTINELI
AYEN KORKMAZ
erinç
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UZUNDERE
Açiklamalar
ÇESME PENINSULA WIND POWER PLANTS GRID
CONNECTIONS
380/OG kV Substation
154/OG kV Substation
380 Kv 3x954 MCM OT
154 Kv 2x1272 MCM OT
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erinç
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ÇESME PENINSULA-CONNECTION SCHEMA
30 km 380 kV 3 Cardinal
55 km 380 kV 3 Cardinal
380/MV kV Karaburun Substation
380/MV Çesme Substation
380/154 kV Uzundere Substation
380/OG 125 MVA
380/OG 150 MVA
5 km 380 kV 3 Cardinal
31 km 154 kV 2x1272 MCM
MV
MV
154/OG URLA-2 TM

Yapisan Zeytineli RES 49,5 MW
7 km

11 km
Lodos RES 120 MW
154/OG 50 MVA
154/OG 50 MVA
154/OG 50 MVA
Ortan Enerji RES 16,25MW

15 km
14 km


MV
MV
MV
Sagap Ovacik RES 18 MW

10 km
17 km
Egenda Mordogan RES 13,8 MW
11 km

ABK Çesme RES 16 MW

5 km
Hassas Urla RES 15 MW

17 km

9 km
Ayen Mordogan RES 30,75 MW
Egenda Alaçati RES 15,6 MW

10 km
Üçgen Seferihisar RES 14 MW

4 km
Egenda Germiyan RES 10,8 MW

Sagap Seferihisar RES 16 MW
9 km


Yaylaköy RES 15 MW
13 km

Egenda Urla RES 13 MW


11 km
Ayen Korkmaz RES 24 MW
Çalik Sarpincik RES 32 MW
Çalik Demircili RES 40 MW

6 km
TM KURULU GÜÇ 211,55 MW
TM KURULU GÜÇ 139,15 MW
TM KURULU GÜÇ 109 MW
erinç
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Effect of Renewable Law

• Hydro licenses 13.392,4 MW
• Over 10.000 more MW expected for application to
  General Directorate Of State Hydraulic Works to
  achieve 35.000 MW total installed target of
  Turkey
• Wind licenses 3.274 MW
• Additional 69039 MW applications waiting for
  evaluation at EMRA
• Geothermal licenses 82,3 MW
• 500 MW target is achievable by 2020

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Outline

• 1. Energy figures Growing country

2. EU Integrated market model
3. Renewable Paradise
4. Best Wind
5. Polat Energy Inc. Co.
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Wind Energy Potential Atlas of Turkey is prepared
Wind Speedat 50 m
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Source General Directorate of Electrical Power
resources Survey and Development Administration
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Some of Wind Projects in Turkey
Bangüç A.S. BalikesirBandirma / 15 MW
Lodos A.S. Istanbul-G.O.P. / 24 MW
Bares A.S. BalikesirBandirma / 30 MW
Ertürk A.S. IstanbulSilivri / 0,85 MW
Sunjüt A.S. Istanbul-Hadimköy / 1,2 MW
Dogal A.S. Çanakkale-Gelibolu / 15,2 MW
Ertürk A.S. IstanbulÇatalca / 60 MW
Sagap A.S. Bilecik / 67 MW
Anemon A.S. Çanakkale-Intepe / 30,4 MW
As Makinsan Temiz A.S. Çanakkale / 30 MW
Bores A.S. Çanakkale-Bozcaada / 10,2 MW
Baki A.S. BalikesirSamli /90 MW
Ak-El A.S. IzmirK. Pasa / 66,66 MW
Alize A.S. Izmir-Çesme / 1,5 MW
Ares A.S. Izmir-Çesme / 7,2 MW
Mare A.S. Izmir-Çesme / 39,2 MW
Innores A.S. Izmir-Aliaga / 42,5 MW
Rotor A.S. OsmaniyeBahçe / 130 MW
Sabas A.S. Aydin-Çine / 19,5 MW
Dogal A.S. Manisa-Akhisar / 30,4 MW
Deniz A.S. Manisa-Akhisar / 10,8 MW
Ezse A.S. HatayTürbe / 35,1 MW
Commissioned Under construction BOT plants
Ezse A.S. HataySamandag / 22,5 MW
Deniz A.S. HataySamandag / 30 MW
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Some of Wind Projects in Turkey
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Source EMRA (Electricity Market Regulatory
Authority)
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Advantages of Investing In Turkey (1/4)

• Connection to the grid is guaranteed
• TSO (Turkish Electricity Transmission Company)
  guarantees connection point before license is
  given)
• EIA Report procedures are fast. It takes 45 days
  to receive approval from the Ministry of
  Environment and Forestry
• Master application plans are approved in 2-4
  months
• Local Authorities are becoming more experienced
  in evaluating applications and are friendly for
  attracting investements in their region
• Regulatory Authority is leading the expropriation
  issues for private land
• This reduces risks for private companies the
  problems during construction period

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Advantages of Investing In Turkey (2/4)

• Windy areas are distant from population
• Most of the windy areas are far from cities,
  mainly in forestry areas
• 75 of total land in Turkey is forestry or
  treasury
• Avarage purchase price per m2 in project areas is
  1 (one) Euro.
• Land rental fee for a 100 MW wind farm, if rented
  from forestry administration, is 60.000/year
  for the first 10 year of operation.

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Advantages of Investing In Turkey (3/4)

• Wind towers are manufactured under licenced by
  local companies

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Advantages of Investing In Turkey (4/4)
Enercon and Demirer manufacture for local market
and exporting to EU countries from Izmir
Enercon and Demirer manufacture for local market
and exporting to EU countries from Izmir
300 x 2 MW blades/year
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Turkey Wind Power Market Evolution
Enercon and Demirer manufacture for local market
and exporting to EU countries from Izmir
Enercon and Demirer manufacture for local market
and exporting to EU countries from Izmir
300 x 2 MW blades/year
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Source Emerging Energy Research
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Competitive Landscape on Turkish Wind Value Chain
300 x 2 MW blades/year
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Source Emerging Energy Research
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Outline
1. Energy figures Growing country
2. EU Integrated market model
3. Renewable Paradise
4. Best Wind
5. Polat Energy Inc. Co.
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POLAT ENERGY

• Turkey attracts many European companies and
  investors in wind energy.
• EDF EN enter the market by acquiring 50 of the
  shares of the Polat Energy, one of the top wind
  developers of Turkish market.
• Polat Energy Inc. Co was established in 2000 for
  electricity production, distribution and trade.
• Polat Energy chose to invest primarily on
  renewable energy due to the rich wind and hydro
  potential of Turkey .
• In 2001, Polat Energy established 4 companies
  with Demirer Energy and applied to the Energy
  Market Regulatory Authority (EMRA) for 7 WPP
  licenses.
• The total installed capacity of these 7 licensed
  project is 336 MW but the final installed
  capacity of these projects will be 400 MW with
  the planned capacity increases.

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Subsidiaries of Polat Energy, Demirer Energy and
EDF EN
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Existing Investments and New Applications
Yildiz WEPP (952 MW)
Burgaz WEPP (14,9 MW)
Poyraz WEPP (54,9 MW)
Soma WEPP (140,8 MW)
Samurlu WEPP (30 MW)
Doruk WEPP (30 MW)
Kozbeyli WEPP (30 MW)
Sayalar WEPP (30,6 MW)
Beydagi WEPP (120 MW)
Harman WEPP (394 MW)
Ege WEPP (20 MW)
Gokova WEPP (720 MW)
Yaylakoy WEPP (150 MW)
Existing Projects
New Applications
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Operational and Under Construction Projects
Operational WEPPs The values above are
estimation for Bankable Reports.
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Burgaz WEPP-14,9 MW
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Sayalar WEPP-34,2 MW
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FUTURE PLANS

• One of the newest sunsidiary of Polat Energy,
  Batiyel Energy Co. planned and construct 90 MW
  Gokova WEPP.
• Polat Energy planned construction of solar energy
  power plants and now waiting call of EMRA.
• Polat Energy planned geothermal power plants and
  search alternative regions.

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Conclusion

• Energy demand is increasing
• 500.000 GWh to generate by 2020
• 2.5 times more of 2007
• The free market price is expected to increase due
  to lack of supply
• Last years average is over 60 EUR/MWh
• The market design and the regulations are in
  parallel to the EU
• Turkey will be EU Member by 2014
• More obligations to come for green electricity
• Huge potential of RES
• Over 75 billion EUR to be invested before 2020
• Capacity factor of the wind is perfect
• Sites still available for capacity factors
  between 35 and 45

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Sources and Web-sites

• EMRA - Electricity Market Regulatory Authority
• http//www.epdk.org.tr/english/default.asp
• Ministry of Energy and Natural Resources
• http//www.enerji.gov.tr/
• Prime Ministry Undersecretariat of Treasury
• http//www.hazine.gov.tr/indexe.htm
• Turkish Electricity Transmission Company
• http//www.teias.gov.tr/eng/
• General Directorate of Electrical Power resources
  Survey and Development Administration
• http//www.eie.gov.tr/english/index-e.html
• TUSIAD - Turkish Industrialists' and
  Businessmen's Association
• http//www.tusiad.org/english/rapor/tanitim/eng.pd
  f
• TOBB - Union of Chambers and Commodity Exchanges
  of Turkey
• http//www.tobb.org.tr/eng/index.php
• DEIK - Foreing Economic Relations Board
• http//www.deik.org.tr/default_eng.asp
• Invest in Tukey
• http//www.investinturkey.gov.tr/cms/

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Thank you for your attention !
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