Nordex: Order for 45 MW wind farm in Turkey

Hamburg, 23 November 2010.

Business is booming for Nordex Enerji A.S. The latest order obtained by the Turkish subsidiary of Nordex SE is for the supply of 18 machines for the “Susurluk” wind farm. The farm is owned by Iltek Iletisim, the energy subsidiary of the Eksim Group, which invests in projects in the renewables sector in Turkey.

Eksim already owns a 63 MW operating hydroelectric power station in the Black Sea region of Turkey and has seven licences for wind farms with a total capacity of 246 MW. “Susurluk” is the first wind project to be built. Nordex will be installing the turbines in the province of Balikesir in the coming weeks at elevations of between 320 and 470 metres. In order to make optimal use of the wind here the customer decided to purchase 15 N100/2500 turbines and three N90/2500 machines. These are expected to generate 145 gigawatt hours of clean energy a year and can power more than 70,000 Turkish households. The capacity factor is approximately 38 percent.

Nordex plans to hand over the wind farm to the Eksim Group as early as spring 2011.

Reference: http://www.nordex-online.com/en/news-press/news-detail.html?tx_ttnews[tt_news]=2119&tx_ttnews[backPid]=1&cHash=c34f8a1efe

Eksim signs huge wind turbine lease deal

Turkey’s Eksim Group has signed a 68 million-euro ($94 million) lease for turbines to be used in two wind-power projects it is developing in the country’s north.

The agreement with the Turkish bank Yapı Kredi marks the largest lease financing in Turkey’s clean energy sector to date, according to a statement on Yapı Kredi’s website. The bank purchased the turbines from Germany’s Nordex.

The lease runs for 10 years, with a two-year extension option. When it runs out, Eksim will pay a “symbolic fee” to assume ownership of the equipment, Eksim’s deputy chief executive officer Ekrem Yıldırım wrote in an e-mail Thursday.

The two 40-megawatt wind projects are in the Amasya and Tokat regions and require investment of 84 million euros, the bank said in the statement.

Construction is under way at both sites. The Amasya project is expected to go live in the third quarter of 2011, and the Tokat wind farm should begin operation the next quarter, Yıldırım said.

Eksim has seven licensed wind projects in the works and applications pending for 13 more, he said. The company eventually plans to have 1.2 gigawatts of wind capacity.

Eksim Group is mainly active in renewable energy, real estate & construction, mining, food and commodity trading. It also has investments in other countries, such as Kazakhstan and the Ukraine.


Reference :

http://www.hurriyetdailynews.com/n.php?n=eksim-signs-huge-wind-turbine-lease-deal-2010-11-11

Minister: Renewables delay won’t change pricing

Turkey won’t increase the prices it guarantees to buy alternative energy in draft legislation that’s before parliament, Energy Minister Taner Yıldız said.

The renewable energy law’s progress through the assembly has been delayed until after a week-long religious holiday next week, and the postponement doesn’t mean there will be a revision, Yıldız said Tuesday in comments confirmed Wednesday by his staff.

The draft guarantees a price of 5.5 euro cents (7 U.S. cents) per kilowatt-hour for wind and hydroelectric power and 10 cents for solar energy, the minister said. Companies are already investing in wind power at those levels and they are “investable figures,” he said in Ankara.



Turkey is seeking to reduce its dependence on imported gas from Russia and Iran by encouraging alternative energy production. Excluding energy, the country’s current-account last year produced a surplus of 0.5 percent of gross domestic product, or GDP, according to the Treasury. Including energy, the deficit was 2.3 percent of GDP.

Potential investors are lobbying lawmakers for prices of 7 cents for wind energy and 20 cents for solar.

Solar energy is a developing technology and the price Turkey’s setting marks a “starting point” and could be revised as the industry develops, Yıldız said.

Reference: http://www.hurriyetdailynews.com/n.php?n=minister-renewables-delay-won8217t-change-pricing-2010-11-10

GE’s Turkish unit eyes producing wind turbines

As the effects of the global financial crisis wane, General Electric’s Turkish unit revisits a plan to manufacture wind turbines in the country. ‘If the number of companies that need financing through export insurers falls, then we may dust off plans to make the equipment in Turkey,’ says Mete Maltepe, the chief of GE’s local energy unit

General Electric, which intends to expand its Turkish energy business as the government sells off power assets, may revive a plan developed before the 2008 global crisis to build wind turbines in the country.

Local unit General Elektrik may start manufacturing turbines and so-called nacelle casings, with half the output likely to be sold within Turkey as the government targets a 20-fold increase in wind capacity by 2020, said Mete Maltepe, the general manager of GE Energy Turkey.

Turkish companies have been going overseas to buy wind-generation equipment because they relied on export insurers such as Euler Hermes, the world’s largest insurer of trade credit, when financing was scarce. Generators will be more likely to be bought domestically as the global recovery takes hold and more loan facilities become available, Maltepe said.

“If the number of companies that need financing through export insurers such as Hermes falls, and we do expect it to change, then we may dust off plans to make the equipment in Turkey,” he said. “We are ready for that.”

GE will expand its energy business in Turkey and keep overall investment in the nation the same even after the sale of a stake in the country’s second largest bank, Kürşat Özkan, head of GE’s Turkish operations, said Oct. 1.

GE agreed to sell 18.6 percent of Garanti Bank to Spain’s Banco Bilbao Vizcaya Argentaria for $3.78 billion as part of a global effort to reduce its financial assets.

GE wants to generate “significant” business as Turkey increases wind power capacity to 20,000 megawatts by 2020 from less than 1,000 megawatts now, Maltepe said. Currently GE gets turbine wings and poles from Turkish producers. On average, 1 MW of power can supply electricity to as many as 300 households per year.

GE has provided about 8,000 megawatts, or 17 percent, of Turkey’s power capacity, mainly with gas and steam turbines and some wind turbines, Maltepe said. GE turbines account for about 30 percent of total generation, he said.

A planned government incentive of 5.5 euro cents per kilowatt-hour to wind power producers needs to be increased to at least 7.5 cents to justify investments, he said. The subsidy is awaiting parliamentary approval.

Wind turbine prices, which fell during the global economic crisis, have steadied and will start rising unless other, less-costly sources of renewable energy are developed, Maltepe said.

Investments in Turkey

GE Energy Financial Services bought half of Ankara-based Gama Enerji in 2007 and announced plans to invest at least $4 billion until 2015 to build 3,000 megawatts of power plants in Turkey and the Middle East. GE will invest in energy by itself or with a partner as Turkey expects to double its national power capacity to 90,000 megawatts in 10 years, said Özkan.

The company will seek to tap a market for the so-called smart grids that may be worth $2 billion after the government sells off electricity distribution assets, Maltepe said. The government will raise as much as $16 billion from the sale of 20 electricity grids, due to be completed by the end of this year, Energy Minister Taner Yıldız said Oct. 12.

“We don’t expect new operators of the grids to immediately start seeking smart grid systems as they will first have to deal with the existing network improvements,” Maltepe said. “We are already in talks with four or five companies on this but we expect the real interest in smart grids within two years.”

Smart grids use digital technology to optimize power use. Siemens and Areva are the main competitors in this market, Maltepe said.

GE’s energy unit may buy Turkish companies that make equipment for low- and medium-voltage transmission networks, Maltepe said. “We are looking around and in talks for this, but we don’t know when the talks will conclude.”

Reference: http://www.hurriyetdailynews.com/n.php?n=ge8217s-turkish-unit-eyes-producing-wind-turbines-2010-11-10

Nordex supplies 24 large turbines to Turkey

Order for turnkey project and wind farm extension

Hamburg, 26 October 2010.

Nordex has obtained the order for the turnkey installation of a wind farm in Turkey. Nordex is building the “Akres” project with 18 N90/2500 machines for Karesi Enerji, a subsidiary of the Turkish transformer manufacturer Best. In addition to this, the wind farm operator Dost Enerji has ordered six N90/2500 turbines for the extension of “Yuntdag”.


The “Akres” site is located near the city of Akhisar in the west of Turkey. Thanks to very good wind conditions, the capacity factor stands at around 42 percent. The turbines are able to produce 170 gigawatt hours of clean energy a year and supply some 90,000 Turkish households. The 45 MW wind farm is to be handed over to Karesi Enerji in summer 2011.


“Turnkey projects number among Nordex’s core competences worldwide. Now we can show what our project management is capable of in Turkey, too”, says Ayhan Gök, Nordex CEO in Turkey.


The order for the extension of the “Yuntdag” wind farm underlines Dost Enerji’s confidence in Nordex. “Yuntdag” (17 N90/2500s) had marked the start of Nordex’s entry into the Turkish market in 2007. The six machines to be added to the farm in summer 2011 provide an energy yield of 59 gigawatt hours per annum.

Reference:

http://www.nordex-online.com/en/news-press/news-detail.html?tx_ttnews[tt_news]=2106&tx_ttnews[backPid]=1&cHash=b8ddcc54ea

Is It Another Problem Waiting for Wind Energy Project Developers?

20 September 2010, by Middle East wind energy editor H. Erkoc

Turkish wind energy developers who have been expecting to be granted their generation licences in the last quarter of 2010 since November 2007 have been struggling with a new problem lately.

The projects cannot be licensed because they cannot get approval from Turkish General Staff on the grounds that the wind turbines built may interfere with radar and military monitoring systems.

Although it has been stated by several authorities and technical experts that wind turbines do not cause interference with radar systems more than 12 wind farms in western part of Turkey with a total capacity of 460 MW are waiting for their approval letters from General Staff. GS states that they need report of The Scientific and Technological Research Council of Turkey – TÜBİTAK regarding the issue and that official request had been sent.

Since wind farm licensing process in Turkey requires positive opinions from all related authorities, developers who cannot get this approval are not able to start construction. Also because of late response time of General Staff to official enquiries of developers makes the situation worse than it should be.

Despite the country’s potential and willingness of both foreign and domestic investors, Turkish wind industry is not able to kick start because of legislative problems. The slow processing times within governmental institutions and offices, lack of precise technical knowledge partly due to the industry’s being relatively new in Turkey is keeping the industry as a toddler and it cannot stand on its feet, which seems to be the same for near future too.

Wind Energy News

332 million kWh electricity from new wind farm

Agaoglu Group of Companies which is operating in many sectors ranging from real estate to tourism, and now wind energy, started construction of a new wind farm in Bandirma which is expected to generate 332 million kWh electricity annually.

http://www.sirkethaberleri.com/basin-bultenleri/agaoglu-sah-ruzg%C3%A2r-enerjisi-santraliyle-yilda-332-milyon-kwh-enerji-uretecek-50802

Turkey will be connected to European grid through smart grid technology

Turkey will be connected to European electricity grid through smart grid technology of GE and will be able to trade electricity with Europe after Spetember 2010.

http://www.yenienerji.info/?pid=23752

Soyutwind to fund wind energy projects with their American business partner

Soyutwind, a company of Soyut Holding, which is also a wind turbine manufacturer, will be funding wind energy investments in Turkey together with their business partner. The USA leg of the business will be an investment company and the pre-agreements have been signed.

http://www.guneshaber.net/haber/770-sirket-haberleri-abd39li-ortagiyla-ruzgar-yatirimlarini-fonlayacak.html

Minister of Energy expecting a wind turbine industry in Turkey

Minister of Energy Hilmi Güler says that the wind turbine industry already has a market in Turkey and it can become as strong as automotive industry in Turkey.

http://www.haberler.com/ruzgar-tribunu-ile-yeni-bir-otomotiv-sektoru-haberi/

Wind will make coffee

Starbucks coffee will use renewable based energy in their 63 shops throughout Turkey. Starbucks will be buying their electricity from Akenerji through an interconnected system.

http://www.gazete5.com/haber/starbucks-ruzgar-enerjisini-kullanacak-12-agustos-201-34742.htm

Renewable energy investments to ramp up

Hyped up interest in renewable energy investments may be perceived as a sign of Turkish business world attaching importance to climate change. Next year, the Energy Market Regulatory Authority expects to see private sector investments worth 3.5 billion Turkish Liras to renewable energy. The energy ministry aims to increase renewable energy’s share in Turkey’s total energy resources to at least 30 percent by 2023.

his year some 5 billion Turkish Liras worth of private sector investments will be added to Turkey’s energy market, said Hasan Köktaş, chairman of the Energy Market Regulatory Authority, or EMRA.

Facilities generating 2,833 megawatts energy stepped into the local energy market last year, said Köktaş on Sunday. Some 1,400 megawatts of that figure was from natural gas, while 1,000 megawatts was from renewable energy sources, including hydroelectric and wind. “This figure is the highest attained for the past seven years. In 2010 we aim to surpass the 2009 figure.”

Based on the reports received by the authority, some 3.5 billion liras out of the total 5 billion liras investment, which will be implemented by the private sector, will be on renewable energy, Köktaş said, adding that the remaining 1.4 billion will be on natural gas resources.

In 2010, 3,400 megawatts of installed capacity is expected to step in to the market, said Köktaş. The annual energy production of the facilities will be 21 billion kilowatt per hour, he added. Besides providing energy, newly established facilities will also help increase employment opportunities, Köktaş said.

“We have started on sight inspection for the energy investments last year. We will continue to do so starting April. We will visit the development sites of the companies that have received licenses. The licenses of the companies that have not made the investments they have promised will be canceled,” said Köktaş.

At a separate meeting in Ankara on Sunday, Energy Minister Taner Yıldız, told the members of the Parliament that the ministry was aiming to increase renewable energy’s share in Turkey’s energy resources to at least 30 percent by 2023. Natural gas’ share in the country’s energy recourses is foreseen to be lowered to below 30 percent, he added.

EMRA provided licenses for wind turbines that will have 3,350 megawatts of installed capacity, Yıldız said. In 2002, Turkey had next to none wind energy recourses, he said. In 2009, wind energy capacity of the country reached 802 megawatts, Yıldız said and added that figure will increase to 2,200 megawatts within the next two years.

As per November 2009, Turkey added wind turbines with installed capacity of 374 megawatts. Hydroelectric power plants with 564 megawatts installed capacity also stepped in by that time and geothermal energy plants with installed capacity of 47.4 megawatts were added to the country’s energy resources by November 2009.

Turkey’s installed capacity of electrical energy was 31,845 megawatts in 2002. That’s figure rose to 44,782 megawatts by 2009. Some 7,087 megawatts of that comes from projects launched and completed in that period.

Turkey's energy dependency to be solved with renewable energy

Energy investments in Turkey are increasing but the country needs $100 billion more in investments by 2020, the chairman of the Istanbul Chamber of Industry said Monday.

“New investments mean new employment opportunities,” Chairman Erdal Bahçıvan said in a speech at a summit organized by the Energy Commission of the Young Businessmen Association of Turkey, or TÜGİAD, and the Istanbul Technical University-TÜGİAD Renewable Energy Platform, or TİYEP, which focused on improving collaboration between universities and industry players on energy technology.

The trend toward renewable energy is increasing, Bahçivan said, adding that fossil fuel resources have a short life span, and that price increases in oil and natural gas have forced investors toward environmentally-friendly and renewable energy resources.

The European Union aims to obtain 12 percent of its energy need from renewable energy resources, Bahçıvan said.

Meanwhile, Turkey’s energy import dependency has been increasing constantly, he said. “Turkey’s import dependency in the energy sector rose above 75 percent. Therefore, it is very important to activate local energy resources and diversify those local resources. With its seasonal and natural resources, Turkey is a good candidate to become a center of green and clean energy,” he said.

“It is claimed Turkey fails to use 55 percent its hydro-energy potential, the same way it fails to use 85 percent of its wind-energy potential. The country is also failing to benefit from its geothermal energy potential by up to 95 percent,” Bahçıvan said.

“In using local energy resources, the government, investors and universities have important tasks to complete. Public resources are not enough to maintain clean and sustainable local energy production. The government is working on important policies to increase private sector investments,” he said.

“The industry needs investments worth $100 billion by 2020. These investments will also be new opportunities in terms of providing employment,” Bahçivan said.

Turkey’s crude oil imports are expected to equal $12 billion or $13 billion in 2010, said Lütfü Küçük, chairman of TÜGİAD. In 2012 this figure is expected to become $15 billion or $16 billion, he said.

“The overall energy import costs are $34 to $35 billion this year. This figure will become about $44 in 2012 with a $10 billion increase. The budget deficit for 2010 is expected to be $50 billion. On the other hand, energy resources such as, solar, wind, geothermal and water in Turkey, are clean energy resources and are waiting to be used,” said Küçük.

“We believe the solutions to problems, such as budget deficits, borrowing need and unemployment problems, lie with the development of the renewable energy sector,” he said.

Noting that Turkish business people are eager to invest in the energy sector, Küçük said: “However, this process is about to stop because of legal incompetence and ambiguities. When the rules are not certain and there is ambiguity, it is understandable not to invest in such a sector.”

Turkish minister sees no obstacle to green EMRA projects

ANKARA – Anatolia News Agency

There is no obstacle before the Energy Market Regulatory Authority, or EMRA, in licensing the renewable energy projects, according to Energy Minister Taner Yıldız, who gave a speech at the International Energy Conference in Ankara Thursday.

EMRA presented a portfolio of 1698 renewable energy projects capable in total of 31.555 MW-power-generation to the Turkish Electricity Transmission Company, or TEİAŞ and to General Directorate of Electrical Power Resources Survey and Development Administration or, EİE.

Taner Yıldız focused on ongoing renewable energy projects in his speech underlining that the ministry attached paramount importance to green energy.

“Some 27 percent of all the 207 billion KW per hour electricity consumed by Turkey comes from national and renewable energy resources,” he said, mostly referring to hydropower. He also said that the rate should be 30 percent in order to catch up with Turkey’s rapid growth.

The minister also said that in the following weeks the parliament was to take the renewable energy law discussions to its agenda and the draft was to be given the final form as quickly as possible.

Investments in energy peak

Private sector investments in Turkey’s energy sector reached 3,200 megawatts by the end of October this year, according to Hasan Köktaş, chairman of the Energy Market Regulatory Authority, or EMRA.

Investors in Turkey have recently begun to show great interest in the energy sector, adding that Turkey has become a prime site for energy production. “The private sector broke a record last year by investing 2,800 megawatts in the Turkish energy sector. However, that record has been passed this year, while in the first 10 months of the year investments made by the private sector have increased to 3,200 megawatts.”

"We beat our own record," Köktaş said. “The private sector has installed additional power nearly one and half times more than the power of the Atatürk Dam, on the Euphrates River, in southeastern Anatolian Turkey,” Köktaş said. The total power of the Atatürk Dam is 2,400 megawatts.

Renewable energy resources such as hydroelectric power plants, wind farms and geothermal power constitute 40 percent of the total investments, he said.

Noting that they had licensed the private sector to install up 42,000 megawatts all over Turkey, Köktaş said that during the last two years nearly 6,000 megawatts had been added to the Turkey’s installed power, which amounts to investments worth 15 billion Turkish Liras.

Investments in İzmir

Many large energy investments are made in İzmir, Köktaş said. The Aegean region is probably Turkey’s best area to harness the energy of wind, he said. It is also the site of a new $5 billion refinery investment from Petkim, the nation’s leading petrochemical company, he said.

“We saw wind plant investments from Dost Enerji, Bilgin Enerji and Turkey’s only liquefied natural gas terminal Ege Gaz. İzmir Doğalgaz, a natural gas distribution company, invested nearly $110 million.”

Dost Enerji, a renewable energy company, aims to invest 210 million euros in wind energy. The company has a 42.5-megawatt wind farm in the İzmir district of Bergama district and a 15-megawatt facility in Urla.

“The capacity of our investment in Bergama will be increased to 57.5 megawatts. We are aiming to achieve production of 250 megawatts in the short term,” said Muzaffer Akpınar, chairman of Dost Enerji. “We also plan to construct a 400-megawatt natural gas cycle plant.”

“We want to diversify our energy portfolio,” said Vehbi Bilgin, head of the Bilgin Energy, a group active in hydro- and wind power. “We will invest nearly 250 million euros to build a 425-megawatt natural gas cycle plant in the Marmara region.”

Bilgin Eenrji has already implemented a 250-megawatt hydroelectric power plant investment strategy. “We will also invest in wind farms in the İzmir district of Çeşme,” Bilgin said.

Petkim has started $5 billion refinery investment, according to Kenan Yavuz, director general of the company. “The investment will be completed in four years. This refinery will produce Petkim’s whole raw material requirement.”

Noting that wind efficiency in the district of Aliağa is high, Yavuz said, “We have applied for a 25-megawatt investment license. Just near our dam in Petkim, in Aliağa, we will add our port, refinery and wind farms. We will produce our own water, energy and raw material.”

EUR 3.5 billion in Turkey’s renewable energy industry planned by German-Turkish Consortium

The German electric utility company EnBW will invest EUR 3.5 billion in Turkey’s renewable energy industry. EnBW and its Turkish partner Borusan Holding will establish a 2,000 MW-installed power capacity to address the country’s growing power needs.

“Renewable energy sources such as wind and hydro are our current priorities”, said EnBW’s CEO Hans-Peter Villis, giving an interview to the press about their investments in Turkey. “Our wind energy plant in Bandirma has recently become operational, and the hydro plant over the Firat river will come into stream in a couple of months”, Villis told reporters, adding that Turkey’s Southeastern Anatolia region offers various investment opportunities. While EnBW is focused primarily on power production in Turkey, the company may also assess opportunities in high-voltage and power grids, according to Villis. Source: Invest in Turkey

Turkey says to make $20 bln renewable energy licensing in 4 years

The Turkish energy minister said on Tuesday that Turkey would carry out a nearly 20 billion USD renewable energy licensing in the next 4 years.

Releasing a written statement on Tuesday, Turkey's energy ministry said that Energy & Natural Resources Minister Taner Yildiz had attended an informal meeting of EU's energy ministers in Brussels on September 6-7, and held a series of talks with European officials on the sidelines of the meeting.

According to the statement, during his talks with European Investment Bank (EIB) President Philippe Maystadt, Yildiz said that Turkey was eager to improve its cooperation with EIB particularly in energy projects.

Pointing to the licensings to be conducted by Turkey in upcoming years, Yildiz said EIB could make a remarkable contribution to such process.

During his talks with Nabucco Gas Pipeline International's Managing Director Reinhard Mitschek, OMV's CEO Werner Auli and Hungarian National Development Minister Tamas Fellegi, Minister Yildiz discussed the latest developments on Nabucco project and expressed his appreciation over the letter of intent recently signed as part of the project, the statement said.

Holding a bilateral meeting with the European Commissioner for Energy Guenter Ottinger as well, Yildiz said that there were no more technical obstacles hindering the opening of the energy chapter in Turkey's negotiation process with the EU.

The minister also stated during the gathering that the liberalization process in Turkey's energy sector was much better than many European countries, the statement noted.

Turkey yet to harness huge solar energy potential

Turkey’s demand for electricity is increasing steadily and Turkish policymakers are eager to decrease the country’s dependence on foreign nations for the gas and oil that, among other things, fuel Turkish electricity power plants. But Turkey has yet to harness its renewable energy potential due to a lack of legislation on the issue. Only 17 percent of the 198 billion kilowatt-hours (kWh) of electrical energy generated in Turkey in 2008 came from renewable energy sources. As for its ability to make use of its solar energy potential, the country’s total established solar energy power is less than 1 megawatt (MW).“The solar energy potential of Turkey itself is enough to meet Turkey’s overall energy needs threefold,” says Tanay Sidki Uyar, the director of Marmara University’s New Technologies Research and Application Center and vice president of the European Association for Renewable Energy (EUROSOLAR) Turkey. He stresses that there are three things needed in making use of solar energy: the source, the technology to make use of it and decision mechanisms that see renewable energy as useful and believe that it is the best solution to energy needs. “We have the sun. It shines every day, everywhere. Turkey is very lucky in this way. There is also the technology. Solar energy-related technologies have advanced in the world since the ‘80s. Now, we just lack the third step,” he says. He recalls that the renewable energy legislation that was approved by the parliamentary Energy Commission last summer has yet to be approved by Parliament.

The government characterizes the Renewable Energy Law (YEK), prepared by the parliamentary Energy Commission, as revolutionary, asserting that YEK will transform Turkey into a base for energy investment. The most important innovation brought about by the new YEK proposal is that the areas of investment in energy have been identified one by one rather than being lumped together, as was the case in the past.

Turkey currently obtains more than half of all its electricity needs from natural gas plants. With investment in renewable energy arenas, the variety of supply options would be secured.

The most recent New Energy Strategy Document states the goal of having five different sources to supply the 100,000 MW of electrical energy Turkey is predicted to need by 2023. The goal of the country is 20,000 MW in renewable energy sources in Turkey. So Turkey is aiming to reduce its dependence on natural gas and outside sources to a minimum.

However, the bill, which was expected to be on Parliament’s agenda this summer, was delayed again, which many fear may lead to Turkey missing the renewable energy train.
Kemal Ibis from the Konya-based Solimpeks Solar Energy Systems Co. -- Turkey’s top exporter of solar technologies in 2008 -- compares Turkey and Germany in their solar energy potential and their ability to harness their potential. “Turkey’s northernmost reaches receive more sunrays than Germany’s southernmost region. While Germany’s target is to meet 20 percent of its energy needs from solar energy by 2015, Turkey does not have such a serious goal. The leading reason behind this is a lack of awareness on the issue,” Ibis says.
He says Turkey’s biggest deficiency in making use of solar energy is a lack of incentives for the sector, which leads to high costs for investments in electricity-generating systems in particular.
Solimpeks emphasizes innovation in solar technologies and is hoping to sell hybrid PV-T collector solar panels (Solimpeks is the second-largest global manufacturer of the technology) to the Turkish market if the new legislation passes.

Association of Solar Electricity Producers and Photovoltaic Industrialists and Businessmen (Günese Dernegi) President Mehmet Özer also agrees that the lack of legislation deals a severe blow to the Turkish solar energy sector. Özer said, in a written statement he recently released to criticize Parliament’s failure to pass YEK, that it is difficult to understand Turkey’s failure even though the world is leaning towards renewable energy sources. Stating that Turkey relies on foreign countries for about 70 percent of its energy needs, Özer, whose association works in partnership with the European PhotoVoltaic Industry Association (EPIA) to increase solar electricity production in Turkey, said the delay in the passage of the bill discouraged players in the solar energy sector.
He also has concerns that the law will not be able to boost investments even if passed. Noting that Turkey will be still behind European Mediterranean countries such as Italy and Greece, he said the possibility that the law might born dead as well as its delay causes fear in the sector.
Sule Kulu

US Ex-Im Bank to Finance Turkish Renewable Energy Sector

Under the agreement, Ex-Im Bank and the Ministry of Energy and Natural Resources have agreed to share information on trade and business opportunities to facilitate sales of US goods and services offering environmental benefits to Turkey’s energy sector, including renewable energy and energy efficiency exports.
Turkey is one of nine priority countries being targeted for financing by Ex-Im Bank because of the opportunities it offers to US exporters, the bank said.

Fred Hochberg, chairman and president of Ex-Im Bank, said, ‘This agreement strengthens the long-standing partnership between Ex-Im Bank and Turkey.

‘Our goal is to finance US exports to facilitate Turkey’s economic and technological growth while supporting US jobs. Recently we have supported US exports for a Turkish scrap metal plant that produces electricity, and for a hydroelectric dam project. We want to participate in more such environmentally beneficial projects in Turkey.’
Ex-Im Bank, an independent, self-sustaining federal-government agency, provides export financing and a variety of financing mechanisms to help small- and medium-sized US businesses, export-credit insurance to protect against non-payment by foreign buyers, and loans to assist foreign companies buy US goods and services.

In fiscal 2009, Ex-Im Bank’d financing totalled $21bn. The bank has also recently provided a loan guarantee to New Jersey small business Chinook Sciences that sells equipment and technology to Turkish buyer DT Metal Geri Kazanim Teknolojileri Sanayi ve Ticaret to build an innovative plant that recycles metal and in the process recovers gas and produces electricity.

Turkey to invest $20 bln in renewable energy in 5 years

Turkish energy minister said on Saturday Turkey would make investments worth 20 billion U.S. dollars in the renewable energy within five years.

Energy and Natural Resources Minister Taner Yildiz attended a meeting in central province of Kayseri.
Replying to questions of reporters, Yildiz said that they had talks with officials from Islamic Development Bank and bank officials said they could provide loans for energy investments in Turkey.

"We held talks with countries in the south of Mediterranean region on investments in the sector of energy. Other countries proposed that Turkey should plan investments to be made in the region," he said.

Yildiz said, "Turkey will make investments of 20 billion U.S. dollars in the renewable energy area within five years. The loans that will be granted by Islamic Development Bank will be of great importance."

Limak Gets 350 Million Dollars in Credit for Alkumru HEPP

Limak Hydroelectric Power Plants Investments, Inc, a subsidiary of Limak Group, signed a contract for a 350 million dollar loan from two Turkish banks, Yapy Kredi and Y? Bank. This credit has a four year grace period and an eight year time loan.Limak will use this credit for the Alkumru Dam and Hydroelectric Power Plant (HEPP) investment which is located on the Botan Creek within the boundaries of the city of Siirt in the southeastern Anatolia region.

This HEPP has a total installed capacity of 267 MW and an annual power generation of 1 billion KW is projected.
Limak Chairman Nihat Özdemir stated that energy production will begin in December 2010 and the entire project is expected to be completed by May 2011. He continued to say that Limak Group has 3 HEPPs in operation and an enterprise of 9 other projects. With its 1200 MW installed capacity and 4.3 billion KW/h annual power generation, Limak will be one of the first 3 energy companies in Turkey of this scale.

Chairman Özdemir also explained that Limak Group is interested in investing in different kinds of energy undertakings in coal, natural gas, wind and solar. Additionally, they would like to have an energy distribution area to exercise their potential.

At the credit loan execution, Y? Bank’s CEO Ersin Özince said that energy projects are the banks priority. A total loan amount of 1.25 billion dollars was lent to 17 different projects undergoing at energy companies and this number will increase to 1.65 billion dollars in the next six months. Is Bank has negotiations with other companies seeking financing for energy deals.

Yapy Kredi CEO Faik Açykalyn said that until now they financed 3500 MW projects with 2.5 billion dollars and 85 percent of their loans were issued to renewable energy companies.

Turkey will be able to obtain 50% of its energy from renewable energy by 2023!

According to Soner Aksoy, the president of the Turkish Parliament Industrial, Commercial, Energy, Natural Sources, Information and Technology Commission, and also the deputy who proposed the Bill of Renewable Energy, Turkey can obtain 50% of its energy consumption from renewable energy by 2023.
Soner Aksoy stated that the current law of “Renewable Energy” had been drafted in 2005 and in accordance to the knowledge of 2004, and that they drew a new bill in order to update the original bill because it did not address 2009 matters.

In contrast to the current law, this bill of renewable energy supports many different fields. In addition, different incentive systems are brought for each field, and guarantees of purchase are constituted at different rates.
Aksoy posits that this law is anticipated to be given incentives in the field of renewable energy and despite that it may be thwarted by Minister of Economy Ali Babacan on the pretense that it will upset the Turkish economic equilibrium, the law will be discussed in parliament again this August. He expressed his hopes of this law proposal being approved by parliament in the following months and then legalized.

Aksoy stated that during the same time period that the renewable energy law is expected to be issued, an extensive incentive law is also anticipated to be issued and that from this a synergy will be created. This synergy will materialize investments from domestic and foreign companies alike in Turkey in various fields of renewable energy. Thus, numerous investors in Turkey and around the world are anticipating this proposal’s approval by parliament.

The European Union raised objections to this law proposal, Aksoy said, and the reason for this objection was that, as stated in the law proposal, domestic manufacturers in the fields that will be given incentive will be supported and in addition the energy production will be supported. He stated that they could solve this matter by either obtaining approval from the EU or changing the word “domestic” to “that which is produced in Turkey” in the context of the proposal.

According to Aksoy, Turkey has a very high potential in the field of renewable energy. Turkey has a 49,000 MW potential in wind energy, and particularly in solar and hydroelectric energy, it is a country with high returns on renewable energy investments. He said by supporting this sector in Turkey, 30% of Turkey’s energy consumption could be obtained by renewable energy sources by 2023 and that 50% of energy demand can be met by renewable energy, except from large water sources.

The Only Missing Factor for Bio-ethanol Production is a Turkish Incentive Law

The Bio-ethanol Manufacturers' Association of Turkey Vice President and Tezkim Agricultural Chemical Construction CEO Ahmet Tezcan declared that in order to initiate activity in the bio-ethanol sector, Tezkim (of which he is the proprietor) in Adana, Tarkim in Bursa and Çumra ?eker Factory in Konya invested approximately 125 million dollars total. However, before going into operation, they are waiting for the state to decide on the Bio-ethanol Usage Necessity Act.

Expressing that the aforementioned facilities are waiting in the wings for the Renewable Energy Law in drafting to be issued in order to move out of its present inactive state, Tezcan asserted: “When the facilities are put into operation, we will be in the position to replace 5 percent of Turkey's total gasoline consumption. If the usage share is 5 percent, we will provide an annual net contribution of 700 million lira to the state budget.”

Tezcan explained that the alternative to bio-ethanol is imported gasoline, which creates only a limited amount of employment in Turkey. However, since bio-ethanol is a product manufactured in Turkey, numerous jobs are created at all stages of its production, from the initial raw materials to its final transportation to consumers. Therefore, supporting bio-ethanol production contributes favorably to employment in Turkey.

While he was discussing that among the items on the agenda of Turkey's EU membership process that are about to be disclosed is energy, Tezcan added: “The 5.75 percent target of renewable energy set for 2020 has risen to 10 percent and this target has been made compulsory for all EU members. Moreover, in the context that we were a signing party of the KYOTO protocol, the green fuel bio-ethanol must absolutely be supported.” (AA)

Turkey's Energy Flowing into the Sea

Speaking at a conference, Dogus Insaat Inc. Chairman Gönül Talu stated that renewable and indigenous energy sources such as solar, wind and geothermal should be given top priority, calling attention to the fact that currently 75 percent of Turkey’s energy is dependent on foreign suppliers.

In order to increase energy investments, Talu proposed an acceleration of privatization and said that to narrow Turkey’s energy deficit, 8 Atatürk dams, 9 Afsin-Elbistan thermal power plants and 9,700 megawatt-hour natural gas plants must be implemented within the next 8 years.

Talu posited that because river water sources have not been tapped into yet, 13 billion Euros worth of electrical energy is flowing into the sea annually. He said that they believe government subsidized pricing for electrical energy is favorable and that they expect a policy to be put into effect promptly.

Talu also noted that the much passed-due establishment of Turkey's nuclear power plants has become mandatory and, should it be necessary, that the state be involved in the development of the first power plants. (AA)

Sabanci Invests 5.5 Billion Euros to Achieve 5000 MW Capacity

Sabancı Holding Energy Group Chairman Selahattin Hakman, expressing their objective of increasing their market shares in their sectors from reaching 10 percent by 2015 and then to 20 percent, stated that this will include owning at least 5 thousand megawatts of installed capacity and electricity distribution networks that can operate 6 million subscriptions.

Hakman expressed that to believe that environmental problems are alleviated because of the fall in demand of electricity during the recession would be a mistake. He explained that the decline of demand reduces prices and investments and the decrease of financial resources remove the competitiveness of renewable energy investments.

He continued to say that Turkey has not been able to create the necessary environment for investments that respond to the annual increase of demand by 6-8 percent since 2001 and, consequently, last summer Turkey seriously struggled to meet its energy demand. Moreover, since Turkey is a country with high rates of population growth and urbanization, the energy demand is ever increasing. There is a serious deficiency of supply to meet these demands, he added, and if the recession never occurred, then the demands between December and January of this year would not have been met.

Hakman underscored that there is no possibility for Turkey's supply of electricity to languish. There is an urgent need for investments in Turkey's energy production and energy plants and in order to meet the growing demand, renewable and indigenous resources must be developed immediately.

Despite the recession, Hakman said that Sabanci Holding is determinedly advancing toward its energy objectives without making any changes of plan. He stated: “EnerjiSa has energy plants working at 455 megawatts. This year we are expecting a turnover of energy production of 600 million lira. With the establishment of our planned 5 thousand megawatt power installation, starting in 2015 our turnover level will reach 6 million lira. In our capitol city this year the expected turnover from distribution is approximately 2 billion lira.”

Turkey, US could cooperate in renewable energy

Sharing his views on the issue with the Anatolia news agency, Pataki, also a former New York governor, said Turkey is looking to finalize projects worth $80 billion for electricity generation within the next 10 years. Underlining that demand for energy is increasing in Turkey every passing year, he said electricity generation has come to the fore as one of the most prominent issues to be addressed in the short run.

Noting that some firms from the US are keen to enter the Turkish energy market, Pataki said the two countries could further cooperate in this field. “Both nations have intensified their quest to make better use of clean energy and we are going through an exciting period in this regard … and we have numerous opportunities ahead.”

Mentioning a recent meeting with Prime Minister Recep Tayyip Erdoğan, Pataki said Erdoğan was also aware of the current shortcomings in renewable energy. The Turkish government is enthusiastic about reducing its dependency on foreign energy sources. He emphasized that future clean energy projects will benefit both the environment and the economy in Turkey.

Renewable Energy Opportunities in Turkey

Former New
York Governor George Pataki, currently counsel at
the international law firm of Chadbourne & Parke,
said that the Turkish renewable energy sector has
significant potential.
Speaking at New York’s Rockefeller Plaza, the
headquarters of the international law firm, which
has about 500 attorneys and 12 offices including
three in the U.S., Governor Pataki answered Anatolia
news agency’s questions about renewable energy
opportunities in Turkey and around the world.
Governor Pataki said that a successful panel on
“Renewable Energy Opportunities in Turkey” was
organized by the American Turkish Society and
sponsored by Chadbourne & Parke and added that
Turkey possessed significant potential in the
renewable energy sector.
Noting the need to invest $80 billion for energy
generation within the next 10 years in Turkey,
Pataki said, “as Turkey’s population grows, its
economy is also expanding and it is securing a more
important place among other countries. In this
context, electricity generation is one of Turkey’s
most significant problems.”
Governor Pataki emphasized that Turkey had
significant hydroelectric, solar and wind energy
potential, and said, “I know that Western
companies operating in the U.S. wind and solar
energy sectors are keen on renewable energy
opportunities in Turkey.”
Noting the similarities of the energy sectors in
Turkey and the U.S., Pataki emphasized that Turkey
imports 70% of its energy, especially natural gas,
from Russia and Iran, while the U.S. similarly
obtains almost 60% of its oil from external resources.
“When I consider Turkey and the U.S. in this respect,
I view renewable energy as a great opportunity
from an economic, environmental and national
security perspective,’’ Pataki said.
Governor Pataki mentioned that renewable
energy resources would encourage economic
growth, and that Turkey would benefit
environmentally from such resources as these
resources generate almost no carbon emissions.
Emphasizing the importance of renewable
energy resources for national security, Pataki stated
that, instead of depending on foreign resources for
heating and electricity (such as the U.S.’s
dependency on external sources for oil), developing
and using domestic alternative energy resources
enhances a country’s geopolitical safety.
Pataki said, “Turkey’s economy is growing and I
am very optimistic about its future. While the U.S.
still has work to do on advancing its clean energy
production, Turkey would like to do the same. For
that reason, we are experiencing a very exciting
period.”
Meeting with Prime Minister Erdogan
Mentioning a meeting with Turkish Prime
Minister Recep Tayyip Erdogan about 1.5 years ago
in Istanbul’s Dolmabahçe Palace, Pataki said that he
had a great conversation with the Prime Minister
about Turkey’s future and global political issues.
Pataki added that when he asked Prime Minister
Erdogan what the biggest issue he was facing as the
Prime Minister of Turkey was, Erdogan responded
“energy,” and stated that Turkey needed its own
resources to generate energy instead of depending
on foreign countries.
Pataki mentioned that not only Turkey, but also
countries like the U.S., Germany and other Central
Europe nations were concerned about excessive
dependence on Russian natural gas. He said, “But in
Turkey you have these resources. You rank second in
Europe for solar energy capacity. You have incredibly
strong wind resources and geothermal energy
opportunities on the Aegean and Mediterranean
coasts. Moreover, the Turkish government has
announced its support in initiating hydropower
projects. All these will advance Turkey’s
environmental adaption, economic growth and
lower dependence on foreign energy resources. For
all these reasons, we are going through an exciting
period and we have opportunities ahead.”
Renewable Energy Law Draft
Governor Pataki, indicating that Turkey’s
renewable energy law amendment is still in
progress, said the amended law should provide
sufficient incentives for investors to attract them to
this sector. Pataki added that, during the process of
amending the law, he hopes to see a discussion
between the Turkish government and the global
business community to identify the necessary steps
for attracting investors into this field.
Emphasizing that Turkey can also become a
major manufacturer of solar panels, Governor Pataki
said, “Turkey is already a manufacturing country, so
there is no reason for Turkey not to become a major
manufacturer in the solar panel sector.”
In response to a question regarding the
economic profitability of renewable energy
resources, Governor Pataki said that in the
renewable energy field, as seen specifically in the
U.S. and Germany, government incentives are
crucial in the initial phases, and that only with such
support can the businesses function economically.
Pataki gave the example that the U.S.
government can provide “cash assistance” for the
30% of the projects in the renewable energy sector,
and federal loan guarantee for the 80% of the
remaining part of the projects, thus reducing the
overall costs. Pataki mentioned that with such
government support, the energy produced from
renewable resources in different states of the U.S. is
thus priced reasonably, and that the solar energy
industry in Germany is economically advanced
through similar incentives.
Pataki noted that while the Turkish
government and parliament were aware of the
necessities of providing such incentives, and while
the renewable energy law of 2005 included certain
incentives, certain investors did not find them to be
satisfactory. Pataki further stated that he hoped to
see the new draft of the law providing the necessary
incentives to drive investments into Turkey, leading
to the growth of the renewable energy sector.
Pataki said that he served as the Governor of
New York for three consecutive terms for a total of
twelve years, and after his service, he decided to join
an international firm that had an active practice in
the ‘‘renewable energy’’ industry, with global
experience particularly in emerging markets, and
that Chadbourne & Parke is especially strong in this
business.
Governor Pataki stated that Ayse Yüksel, head of
Chadbourne & Parke’s “Turkey, Middle East and
North Africa (Turkey/MENA) Group” was highly
successful, that the firm had 5 Turkish lawyers, and
that the firm was involved in important projects in
Turkey.
In response to a question relating to the use of
renewable energy resources in the struggle against
global climate change, Pataki indicated that the use
of such resources is a significant and positive step
towards “a reduction in the dependency on the old
and dirty technology.” Former Governor of New York
said that while countries grow their economies and
expand their energy resources, such countries and
the international communities will benefit from
the usage of zero-carbon emission energy options
such as solar, wind, and other renewable energy
resources.
Pataki also expressed that renewable energy
resources help maintain a resource balance around
the world, such that by using these new resources,
the world can prevent certain countries from having
a energy-exporting monopoly and earning excessive
profits from the countries that lack the domestic
energy resources.

Turkey's interest in renewable energy

Istanbul Chamber of Commerce head Murat Yalcintas says that Turkey should enter the renewable energy equipment manufacturing sector.

Hurriyet reported Wednesday that Yalcintas, addressing a panel organized by Istanbul Kultur University, said that manufacturing renewable energy equipment would allow Turkey to obtain a share in a growing global marketplace that would expand significantly in the near future.

Yalcintas told his audience, "The expected investment for wind energy in Turkey is $30 billion, whereas this number is $60 billion for solar energy," with most of the investment based on equipment costs.

"If we can start from now on focusing on the production of equipment, then Turkey can be a worldwide player," he said.

Turning to the country's larger energy needs Yalcintas added that if Turkey can maintain a yearly growth rate of 6 percent, the country would need to invest $120 billion in the energy sector by 2020, an amount far beyond state resources.

Turkey’s Energy Reforms Make Way for Renewable Future

Over the last decade, with the support of the World Bank, Turkey’s energy sector has transformed from a monolithic, state-run entity to a commercially-run, liberalized market, with significant private investment and ownership.

Today, the electricity supply is more reliable. For example, from 2004 to 2007, blackouts decreased by more than half, from 26,675 hours to 10,280 hours. More people have access to secure energy; transmission expansion and upgrades have enabled an estimated additional 4.6 million households to receive improved power supply. And an international transmission link has been established with Greece, enabling the exchange of electricity.

In the last ten years, Turkey has also improved the efficiency of its electricity market while increasing private sector participation in power distribution and generation. In the wholesale market, more than 100 private generation companies have been registered.

Four distribution companies have been privatized so far, out of a total of 20. Now, around 40 percent of consumers can choose their supplier – something that was scarcely available in 2002.

New Market Established

“Over the last few years, we have achieved significant results in terms of reforming the sector,” said Budak Dilli, General Manager of Energy Affairs at the Ministry of Energy. “An electricity market has been established; distribution companies have been privatized; several important legislations – on the electricity market, renewable energy, and energy efficiency – have been enacted and are now being implemented.”

What Turkey now faces is an increase in domestic energy demand and rapidly growing greenhouse gas emissions, a large portion of which come from energy production and usage. To meet energy demand with the least negative environmental impacts, the country seeks to increase its reliance on renewable energy while promoting energy efficiency among power consumers.

The energy efficiency market is also expected to deepen further, with increasing private ownership and investment. It is expected that the sector will rely more and more on clean, renewable resources.

With financing support from the World Bank through the Industrial Development Bank of Turkey (TSKB), small business owner Ali Kantur managed to convert a landfill into a garbage recycling station that creates heat and energy for local greenhouses.

“Two years ago, it was difficult to drive past this place because of the noxious smell and the unpleasant view,” he said. “Today it is an industrial facility that processes the garbage and produces energy from it in a completely environmentally sustainable way. It is hard to believe that the bitter odor is gone, the environment is protected, and on top of this we get energy out of this process.”

Today, the power and heat produced at the station is enough to power 31,000 households in Turkey.

Bank Supports Reforms

The Bank has supported Turkey’s energy reforms through lending and technical advice, in ways that reinforce the goals of each. The Bank’s program includes energy restructuring, liberalization, and privatization; introduction of competitive markets; financing of key rehabilitation and expansion works; and promoting private investment.

A new Development Policy Loan is under consideration to support Turkey’s energy sector reforms and their link to environmental improvement.
The Bank’s work in renewable energy has demonstrated the viability of financing private renewable projects, which have grown in Turkey from negligible levels in 2004 to about 1500 megawatts today. As a result of privately sourced renewable energy generation, the country has been able to avoid emissions of about 1.01 million tons of carbon dioxide a year.

The Bank has also helped Turkey attract large-scale private investment, particularly in renewable resources. New investments have targeted energy generation and privatized distribution.

Based on country priorities, the Bank and the Turkish government are expected to continue their partnership, with the International Bank for Reconstruction and Development (IBRD) providing policy advice as well as investment financing for renewable energy, energy efficiency, infrastructure, climate change, and overall supply security.

Turkey’s Ministry of Energy and Treasury will take the lead in determining overall strategic direction.

Turkey Benefits From Third World Bank Loan under the Energy Community of South East Europe Program

The World Bank’s Board of Executive Directors today approved the third loan for Turkey under the Energy Community of South East Europe Program in the amount of EUR 169.2 million (US$ 220 million equivalent). The project financed by the loan will be implemented by the Turkish Electricity Transmission Corporation (TEIAS).

The countries of South East Europe (SEE) including Turkey and the European Union are cooperating to develop a regional energy market - the European Community of South East Europe (ESCEE), and integrate it into the internal energy market of the European Union¹ through the implementation of priority investments supporting electricity market and power system operations in electricity generation, transmission and distribution and technical assistance for institutional/systems development and project preparation and implementation.

The project, financed by this third adaptable programmatic loan (APL) for Turkey in the sixth phase of the ECSEE program (ECSEE APL 6), aims to increase the reliability and capacity of the power transmission system in Turkey and improve its ability to integrate renewable energy into the system. The project will thus help TEIAS and Turkey’s electricity systems to supply low cost, clean and high quality electricity reliably to consumers across the country.

The project includes two sub-components:

• Component 1: Transmission System Strengthening and Expansion: This component will help finance some investments by TEIAS in the transmission system. It comprises sub-project investments to help expand the capacity and increase the reliability of the power transmission system and enhance the ability of the transmission system to integrate renewable energy, including investments in substations, cables and related systems.
• Component 2: Institutional Strengthening: This component encompasses technical assistance, training and goods to strengthen the institutional and operation capacity of TEIAS, including in the areas of financial and operation management, accounting, auditing, enterprise resource planning (ERP), wholesale markets (balancing and day-ahead markets).

“This third World Bank loan to Turkey under the Energy Community of South East Europe Program recognizes the major steps that Turkey has taken toward the liberalization of its electricity market and its integration with the regional market of South Eastern Europe,” said Ulrich Zachau, Country Director for Turkey. “As the largest player in the South Eastern European market, Turkey continues to be among the leaders in electricity market development in the region. The project will enable the population in Turkey to benefit from a more reliable electricity supply, and will thus help spur economic growth and employment opportunities. I also particularly welcome the growing focus of Turkey’s energy program on energy efficiency and clean energy, to which the project financed by this loan contributes.”

ECSEE is a regional program and the World Bank’s investment support is being provided on a regional basis, using the adaptable program lending (APL) instrument to support ECSEE’s Regional Members (Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Macedonia, Romania, Serbia and Montenegro, Turkey and Kosovo).

Turkey’s Energy and Environment Policy Program

The World Bank’s Board of Executive Directors today approved a Second Environmental Sustainability and Energy Sector Development Policy Loan (ESES-DPL 2) for Turkey in the amount of Euro 519.6 million (US$ 700 million equivalent).

Turkey’s energy and environment program, supported by the ESES DPL 2, aims to enhance energy security by promoting private sector clean technology investments and operations; to integrate principles of environmental sustainability, including climate change considerations in key sectoral policies and programs; and to improve the effectiveness and efficiency of environmental management in the context of harmonization with the Environmental Acquis of the European Union.

The Program has three components: Pillar I supports the energy program, covering energy pricing, electricity markets, renewable energy, energy efficiency, electricity distribution and generation privatization, and gas supply security and wholesale gas market development. Pillar II supports Turkey's National Climate Change Strategy following the ratification of the Kyoto Protocol in February 2009. Pillar III supports sustainable environmental management and is focused on the transposition of the EU Environmental Acquis and sectors/sub-sectors where environmental degradation could hamper sustainable development.

“Turkey continues implementing an ambitious energy sector program with a view to meeting the country’s growing energy demand in an efficient and sustainable manner,” said Ulrich Zachau, World Bank Country Director for Turkey. “Turkey has also begun stepping up its international and domestic engagement on environmental management and climate change. These actions and programs will help sustain economic growth, create more jobs, raise incomes, and reduce poverty; and will contribute to containing emissions, protecting the environment in Turkey, and improving the quality of life and health of its citizens. We in the World Bank are proud to be Turkey’s partner as the country advances this agenda.”

The ESES DPL2 is the continuation of the Programmatic Electricity Development Policy Loan (PEDPL1) dating back to 2009 in the amount of Euro 548.4 million (US$800 million equivalent) which supported the Government’s program for energy security, energy efficiency, and clean energy. The ESES DPL2 is an IBRD Flexible Loan in Euro with an interest rate equal to 6 months LIBOR term plus a variable spread, with a final maturity of 21.5 years, including a 14 year grace period.

Focusing on renewable energy for Turkey

The unique nature of this city where 37 percent of its residents commute on bicycles is a combination of many factors, which may not be easy to replicate in other capitals of the world. “We cycle because it is a mode of transportation for us, not a leisure activity or exercise,” stresses Inge Nilsson, who works for the city’s environmental department. She explained all about how the municipality plans to reach the ambitious goal of making the city carbon neutral by 2025.

In a city where buying, maintaining and parking a car is much too expensive, no wonder a sizable portion of its half a million residents opts to use bicycles to commute from home to work every day. I guess it is also part of the culture in which many Danes feel very conscientious when it comes to protecting the environment. The Copenhagen City Council has launched more than 50 initiatives to make the city greener, encourage more bicycle commuting and offer free advice on conserving energy.

With the exception of cycling, I think we can copy the Copenhagen experience in most parts of Turkey’s cities. It remains certain that pedaling in the streets of Ankara is a dream that may never come true. It is also true that Turkey’s stance that its special circumstances must be taken into consideration when it comes to climate change is not a sustainable approach in the long run.

Out of concern that its fast developing manufacturing base may lose its competitive edge, Turkey kept insisting on having a guarantee that its special circumstances would be included in the final agreement of the failed 15th Conference of the Parties (COP15) to the UN Framework Convention on Climate Change held in Copenhagen last year -- a provision appended to its portion of the Kyoto Protocol recalling “the special national circumstances of parties undergoing the process of transition to a market economy.”

Turkey’s exception was recognized in the 2001 COP 7 conference in Marrakech, where its name was deleted from Annex II of the convention. That meant that an unjust situation in which Turkey was included in the category as a developed country was corrected. But Turkey remained in Annex I of the convention because it is a member of the Organization for Economic Cooperation and Development (OECD).

Yet while this may have bought some time for Turkey by still using old coal-fired plants to fuel the engine of growth, I believe it is not a sustainable policy in the long run. Especially considering the fact that we have recently opened the environment chapter in negotiations with Brussels, the policy may need some revisions. The chapter will demand new environmental considerations affecting every business and municipality in Turkey, with a hefty price tag I might add.

For example, Turkey’s emission reduction target of 7 percent in the energy sector by 2020 is way below the 20 percent target set by the EU over the same time period. Therefore, Ankara may need to revise its national strategy document to reflect better alignment with EU standards and invest more in renewable energy technologies. Some environmental advocacy groups go further by saying that Turkey’s target should be to reduce emissions by at least 30 percent by 2020 in light of the fact that its emissions have risen quickly, from 170 million tons in 1990 to 372 million tons in 2007 as its annual per capita income rose from $3,000 in 1990 to $10,000 in 2007.

Though it may have warranted a place for Turkey in the category of “middle-income developing country” based on social and economic figures such as per capita income, per capita primary energy consumption and greenhouse gas emissions, the policy will take its toll on Turkey’s climate, which stands in one of the regions most vulnerable to the adverse effects of climate change.

While I was cycling on the streets of Copenhagen sightseeing last week, I wondered if it would be possible to ride on one of the steep streets in Ankara, for instance, to reach the top of the hill in Çankaya. I said, “No way.

I suggest that policymakers take another look at the policy developed by the state agencies and come up with a more realistic and human approach to national interests. Then maybe we will see a more sensible policy aired by Turkey’s representatives at the UN ministerial talks in Mexico at the end of this year. We should invest more in renewable energy options and pass the draft law that has been waiting in Parliament for more than two years. An abundance of domestic and international investors have lined up already to take advantage of the booming renewables market in Turkey.

The meeting in Mexico will build on the Copenhagen Accord, which seeks to limit the increase in temperature to no more than 2 degrees Celsius above levels recorded in pre-industrial times. But the compromise face-saving agreement does not spell out how to achieve that goal and is not legally binding on parties. We do hope the international community will fare much better in Mexico.

Pratt & Whitney and Turkish Technic Strengthen Partnership with an Advanced CFM56 and V2500 Center of Excellence

Pratt & Whitney, a United Technologies Corp. (NYSE: UTX | PowerRating) company, and its joint venture partner, Turkish Technic, a subsidiary of Turkish Airlines (ISE: THYAO), celebrated with an official grand opening ceremony this weekend for its advanced CFM56(R) engine and V2500(R) engine overhaul facility in Istanbul, Turkey.
Positioning itself as the Center of Excellence for CFM56 and V2500 maintenance, repair and overhauls within the region, the 25,000-square-meter (269,000-square-foot) Turkish Engine Center is located adjacent to the Sabiha Gokcen International Airport in the Anatolian peninsula. The facility has the capacity to service more than 250 engines annually.
"Turkey and its surrounding region are very strategic markets for Pratt & Whitney," said Pratt & Whitney President David Hess. "The opening of the Turkish Engine Center and our expanding partnership with Turkish Technic, which has 76 years of experience in the MRO market, is a testament to our commitment to forging a stronger presence in Turkey."
"This is an exciting phase for both Turkish Technic and Pratt & Whitney," said Dr. Ismail Demir, Turkish Technic general manager and Turkish Engine Center chairman of the board. "We are extremely pleased to be embarking on this journey with Pratt & Whitney."
Designed to meet the Gold standards of the United States Green Building Council's Leadership in Energy and Environmental Design (LEED(R)) Rating System, the Turkish Engine Center is built with recycled material and uses renewable energy sources for a portion of its energy load. In addition the site is anticipated to reduce its overall water usage by 40 percent compared with conventional facility designs.
"Pratt & Whitney and Turkish Technic have strong commitments to environmental policies," said Todd Kallman, Pratt & Whitney Commercial Engines & Global Services president. "Therefore, we continuously focus on integrating operational and sustainable practices that help conserve energy while minimizing waste."
"The combined expertise and shared learning of Pratt & Whitney and Turkish Technic will ensure the success of the Turkish Engine Center," said Daniel Tennant, Turkish Engine Center general manager. "Our experienced and competent team is dedicated to deliver only first-class quality products and services to our customers in the region."
Turkish Technic is the leading maintenance service organization in its region, providing MRO services for Boeing and Airbus airframes, engines, auxiliary power units, landing gear and components. Turkish Technic serves airlines in Europe, the Middle East, Northern Africa, Turkey and the Commonwealth of Independent States, with its maintenance base in Istanbul and highly qualified workforce of more than 3,000 personnel.
In recent years, Pratt & Whitney has significantly increased business activities in Turkey: in 2005, both Alp Aviation and Kalekalip (now part of Kale Aero) were awarded manufacturing contracts for critical components of the Joint Strike Fighter's (JSF) F135. In June 2009, Pratt & Whitney and Kale Havacilik San, A.S. (Kale Aero), signed a memorandum of understanding with the intent to develop a joint venture located in Istanbul to produce aircraft engine components.
Pratt & Whitney Global Service Partners (GSP) is a total service provider for engines made by Pratt & Whitney, International Aero Engines, General Electric, Rolls-Royce and CFMI. In addition to engine overhaul and repair services, GSP provides customers with improved engine performance and increased asset value through a portfolio of services including line maintenance, engine monitoring and diagnostics, environmentally friendly on-wing water washes, leased engines, custom engine service programs, and new and repaired parts.
Pratt & Whitney is a world leader in the design, manufacture and service of aircraft engines, space propulsion systems and industrial gas turbines. United Technologies, based in Hartford, Conn., is a diversified company providing high technology products and services to the global aerospace and commercial building industries.
This release includes "forward looking statements" concerning anticipated business opportunities that are subject to risks and uncertainties, including pre-conditions to a fully functioning shop that have not yet been met. Important factors that could cause actual results to differ materially from those anticipated or implied in forward looking statements include changes in the health of the global economy and the aerospace industry. For information identifying other important economic, political, regulatory, legal, technological, competitive and other uncertainties, see UTC's 10-K, 10-Q and other reports filed with the SEC.

ISTANBUL: The city too big to fail

Istanbul is a city as beautiful as Venice or San Francisco, and, once you are away from the water, as brutal and ugly as any metropolis undergoing the trauma of warp speed urbanisation. It is a place in which to sit under the shade of ancient pines and palm trees for a leisurely afternoon watching sun on water, looking out over the Bosporus. But also, in some parts, to tread very carefully. Istanbul has as many layers of history beneath the foundations of its buildings as any city in Europe. In 2010, it will become the European Cultural Capital. Depending on how you count, Istanbul has been the capital city of three, or perhaps four, empires. It is still shaped by the surviving fragments of Greek, Roman, Byzantine, Venetian and Ottoman civilisations. It has Orthodox Christian churches, Sunni mosques, and Sephardic synagogues. It has vast classical cisterns, ring upon ring of ancient fortifications, souks and palaces. It also has desolate concrete suburbs of extraordinary bleakness, urban terrorism, and a rootless, dispossessed underclass struggling to come to terms with city life.

It is the largest city in a state that emerged in 1923 from the chaos of World War I and the Versailles treaty, and the vision of modern Turkey’s founder, Kemal Ataturk, who, though he was born in what is now Salonika, and so unmistakably a European, moved his capital to Ankara, a city created almost from nothing. For the first few decades of modern Turkey’s existence, the state devoted most of its resources to the new capital and its infrastructure. For a while it looked as if Ankara and Istanbul might become twin poles: one a European gate, the other a counterbalance in the heartland of Anatolia. As Turkey’s urbanisation started to accelerate in the 1950s, the balance shifted overwhelmingly towards Istanbul. The rural poor poured into the big city and what used to be considered a cosmopolitan enclave, a demonstration of Turkey’s tolerance of other ethnic groups and faiths, has also become the heartland of its most conservative constituency. It is a city in which 3,500 dispossessed gypsies, descendants of a community that has lived in the Sulukule district in the shadow of the Byzantine city walls for centuries, are being systematically being moved out of sight and out of mind in an operation that recalls Robert Moses’ determination to drive federally funded highways through the black and Puerto Rican neighbourhoods of New York City.

Istanbul is the largest and most febrile urban centre in a country with an army committed to secularism, which, in some extreme cases, shades away from Ataturk’s ideals towards authoritarianism. If the generals miscalculate, it has the potential for an insurgency that could make Turkey a kind of Algeria and Istanbul its Algiers. But Istanbul is also what is driving Turkey, toward Brazil, Russia, India and China, the new economic powerhouses. The collapse of the Soviet Union made Turkey in general, and Istanbul in particular, a vital new centre for services and expertise profiting from a rapid growth in the energy-rich former Soviet republics. It is a phenomenon which is reflected in the array of carriers at Istanbul’s greatly enlarged airport, from Uzbekistan Airways, and Dniproavia, Tajikistan Airlines, Air Astana, Donbassaero and Tatarstan Airlines, their hulls painted in gaudy colours, more like busses than Boeings.

It is also visible in the stream of ships that clogs the Bosporus day and night, a continuous double file of tankers and freighters flows past the minarets and the suspension bridges that define the city. Istanbul is the base for the architects, the construction companies, the advertising agencies, and the banks that are reshaping Kazakhstan and Azerbaijan, and the Ukraine and even Russia. It has banks and television stations; it has manufacturers that are shooting rapidly up the value chain from generic products to designer label kitchen sinks.

Istanbul is Turkey’s passport into the European Union. It sees itself as part of a group of cities on an axis running from Dubai to St. Petersburg. If London is Europe’s first global city, Istanbul sees itself as its second. It’s a city whose influence is shaped by both culture and commerce. Istanbul has a thriving approach to contemporary art, although surprisingly perhaps, given the close personal interest that Ataturk himself took in architectural issues, importing Austrians to plan Ankara, it has not as yet developed a distinctive architectural culture of its own in the way that Mexico or Australia have. Its geographic size and population mean that Istanbul has a strong claim to being regarded as the largest city in Europe, even if it partly lies in Asia, where a third of its citizens now live. In the European suburb of Levent, one of Istanbul’s main business districts where banks cluster, you can find facsimiles of smart London Chinese restaurants and mega shopping centres. But Istanbul is also a place with settlements within its limits, in which Kurdish migrants from rural Anatolia tend flocks of sheep under the gaze of prefabricated concrete apartment blocks.

It is a city like no other and yet it is a city that has things in common with many other cities, even if it does not always recognise it. While Cairo’s population has doubled, Istanbul’s population, like Lagos, has quadrupled since 1980. It straddles two continents, in a way that is very different from, but inevitably also reminiscent of, the twin cities of El Paso and Ciudad Juarez straddling the Rio Grande, blurring Mexico with the United States.

Istanbul is home to nearly 13 million people, governed in a recently created unitary jurisdiction, which saw the city’s land area nearly tripled from approximately 1,800 km2 to 5,300 km2. Even now, it still pulls in another 1.5 million workers every day, swelling its peak time population to 15 million. The city administration is attempting to limit its population to 16 million, fearing that if it is allowed to spread unchecked it will reach an impossible 25 million, in a country that has currently 71 million people. But this is really in the hands of the national government, rather than the city, given that the GDP of the poorest regions in Turkey is just 20 per cent of that of the richest areas of the country. With such an imbalance, it is no wonder that Istanbul has become a magnet for the rural poor. Turkey’s internal migration has had the effect of making the inequalities of Istanbul grow more acute, rather than less, even as it has prospered over the last decades. And it is not the master of its own fate. There is the TOKI state housing programme, run by the Prime Minister.

Very few cities have such a compartmentalised geography. The vast majority of Istanbul’s citizens never make the crossing from one continent to the other. But the 10 per cent who do cross from one half of the city to the other every day amount to a still huge total of 1.2 million. And to accommodate them, there is a plan to build a third bridge across the straits. However, it is feared by some that this will destroy the reservoirs that feed the city. Ask civic leaders if there is an environmental problem for Istanbul. The first thing that they talk about is August 17, 1999, when a serious earthquake hit the city, causing 20,000 deaths. Natural resources, population growth, and civil equity barely figure.

But there are ambitious plans to create linear sub centres, both on the east and the west sides of the city, allowing the two sections to function better. The one on the Asian side of the city, at Kartal, is being shaped in its early stages by a dynamic masterplan prepared by Zaha Hadid. Among such privately financed developments, Istanbul has been investing heavily in its infrastructure. A metro system is gradually taking shape, the trams are being revitalised. There is a new rail tunnel under the Bosporus which will allow the realisation of the ancient goal of one of Europe’s empires, to create a direct rail link from Berlin to Baghdad.

In a world in which an accommodation between competing power blocks is essential for both cultural and political reasons, Istanbul is a key bridge between them. It is a city with more than enough of the usual urban problems, but that also the energy and the resources to stand a chance of addressing them. It’s in nobody’s interest that they should fail.

Green Building Turkey

Rising of sustainable architecture in Turkey is on everyone’s lips now. The world turned towards the country of two continents, already planning the greatest green building future there. But more and more voices in Turkey say – to build this future, they should watch at the past.
Sustainable architecture is not new fashion trend. Several hundred years ago in Emperor’s capital Istanbul, and till now on – in small South villages living without time – architecture was green. Turkish architects were living in peace with land and water much more than they do now. To find the most beautiful examples you don’t have to leave former hub of the world – Golden Horn in Bosporus. The most historical part of Istanbul, former home of Sultans, this place is offers you excursion to wise past.
Beginning with Topkapi Palace, huge territory with palaces, harem, libraries, courtyards, the main tourist attraction today and the site of UNESCO World Heritage. Covered with trees giving everlasting shadow, beautiful palaces of Topkapi gives you cool and serene feeling. Big windows orientated to get more sunshine but not heat. They also create flow of fresh air. Water system takes care of water used in the kitchen and in fountains. Spacious yards and court-yards teach how to manage the space.

Sultan Mehmed II chose old Byzantine acropolis for a New Palace. His biographies say that: “he took care to summon the very best workmen from everywhere - masons and stonecutters and carpenters. For he was constructing great edifices which were to be worth seeing and should in every respect vie with the greatest and best of the past. For this reason he needed to give them the most careful oversight as to workmen and materials of many kinds and the best quality”.

That was the reason why, coming to Istanbul for the first time, developers of Atasehir Project, the biggest and the greenest construction in Istanbul now, they first were led to Topkapi palace. To see Future in the most beautiful example of the past.

Hagia Sofia and the Blue Mosque stay right in front of each other and seem competing in grace and mastery. They are like two oases in summer heat. When you come inside you meet never-changing temperature in 20 degree. Natural ventilation system and wide walls of stone gives cool fresh atmosphere so needed is these holy places.

Right under mosques there is Basilica Cisterns – roman genius invention for keeping water. Between columns in the high ceiling from the very beginning you can find holes, providing a natural conditioner. Going through soil these pipes deliver cooled air. Forgotten and lost for centuries, rediscovered Basilica Cisterns now give her lessons.

Leaving Istanbul and moving more and more to the South and South East. In old villages of the Aegean Sea – from Izmir to Antalya – you find low stone houses. Huge stones from near sites under roof have small round halls going over perimeter of the building. “Here comes the air, - explains owner of the house in the village Altinoluk, - it’s kind of this modern conditioner. Air comes, moving here, going out. Air inside is very important. Why are the holes under the roof? It’s healthier”.

Houses in old villages closer to Diyarbakir on South-West can proudly claim to be built completely of renewable resources of near sites. Main materials are wood, sand, cow manure and mud. Manure is mixed with certain mud and doesn’t afraid of rain (at least for one year). These low one-floor houses are called “breathing houses”. Walls are breathing. They let the air inside and let it out and keep the air inside their porous structure. The walls are warm if you touch it and keep this warmth for the nights.