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25 Ocak 2012 Çarşamba

U.S. Companies See Growth Potential in Turkey



Strategically positioned at the crossroads of Europe, Asia and the Middle East, Turkey has embarked on a major renewable energy and energy efficiency program. The country aims to increase its clean energy share to 30 percent of its power supply by 2023 — the 100th anniversary of the Turkish republic. With over $40 billion in investment expected in this area by 2020, U.S. companies will see major business development opportunities in solar, wind, geothermal, hydro and all elements of energy efficiency. At the U.S. Embassy in Turkey, we’ve seen Turkey’s economic growth firsthand. This growth of 8.9 percent in 2010 and 11 percent in the first quarter of 2011, has caused a sharp increase in energy demand. Furthermore, Turkey forecasts 6 to 8 percent annual growth in energy demand through 2020, with an expected addition of 50,000 MW to the grid. Public and private sector investment will fund many of these projects, and U.S. companies are taking notice.For example, in a major acquisition, the U.S. giant AES acquired a nearly 50 percent share in AES-Entek Electric Company, a joint venture with Koç Group. This new U.S.-Turkish joint venture will focus on existing and new generation opportunities, including renewables. GE also recently announced a 530-megawatt project, with the Turkish MetCap Energy Investments in Karaman, Turkey. The project will feature a 22-megawatt GE wind farm, a 50-megawatt eSolar “power tower” solar thermal system and GE’s new FlexEfficiency turbine technology. A FlexEfficiency natural-gas fired power plant is designed to rapidly increase or decrease power feeds into the grid in response to intermittent production from renewable energy sources such as wind and solar. GE is calling this Turkish power plant the first “integrated renewables combined cycle” system. The U.S. firm Clipper Wind opened a representative office in 2010 in Istanbul, and U.S. geothermal project developers and equipment suppliers are chasing several geothermal projects in Western Turkey. In addition, the U.S. Department of Energy is leading an innovative Near Zero Zone development in Izmir to develop a pilot project in energy efficiency using U.S. technology, in partnership with GE Ecoimagination, Shaw Group and Johnson Controls.Turkish firms are hungry for U.S. equipment and technology in both renewable energy and energy efficiency, particularly important given high energy costs in Turkey and the need to lower production costs to remain competitive internationally. The U.S. Commercial Service at the U.S. Embassy in Turkey receives five to seven inquiries per month for potential U.S. suppliers of renewable energy and energy efficiency equipment, services and technology (see trade mission opportunity below). U.S. exporters can become even more competitive by offering trade finance to their Turkish importer, and U.S. EximBank and the European Bank for Reconstruction and Development offer attractive terms to fund sales of American equipment.Based on recent market research by the U.S. Commercial Service in Turkey, the following areas have significant business opportunities for American firms in the next six to 36 months:Wind turbinesGeothermal exploration, drilling and geophysical engineering servicesGeothermal power plant equipmentBiomass power generationWaste to energy systems and solutionsHydroelectric power plant equipment supplySolar power generation systemsMicroturbines, cogeneration systemsCoal gasification and coal-bed methane systems and solutionsEnergy efficiency systems and solutionsFuel cells, heat pumps

A Solar City Tries to Rise in Turkey


Installing PV arrays across one half of one percent of Turkey's landmass could supply the nation's current electrical capacity By Julia Harte, SolveClimate NewsANTALYA, Turkey—Turkey's weak policy support for solar power hasn't stopped the sun-soaked southern city of Antalya from forging ahead with plans to exploit its solar resource — and to encourage other local governments to follow suit.In April, Antalya opened its long-awaited "Solar House," the first step in its push to become Turkey's first and only solar city.The environmental education center and renewable energy showcase boasts 24 one-kilowatt photovoltaic (PV) panels, among other clean energy solutions such as a windmill and a track that generates power from bicycles.The model house cost about $600,000 and was 90 percent funded by Turkish companies and 10 percent by the United Nations Development Program. It will produce and store all the energy it consumes and feed excess power back into the grid — though it won't profit from doing so.The country's energy authority doesn't yet buy surplus electricity from small producers of solar power. This is partly why the cost of installing solar panels remains prohibitive for nearly all Antalya residents, local observers say."We need to show the Turkish people how we can produce solar energy, because it's a very new concept for most Turks," Mustafa Akaydın, the mayor of Antalya, told SolveClimate News in an interview. According to Akaydın, the Solar House is "preparation" for its wider Solar City Green Antalya plan. Over the next decade and a half, the municipality hopes to transform itself into a clean energy dynamo on par with solar cities like Malmö, Sweden and Barcelona, Spain.Though the financial support structure for the program is still fuzzy, the goal, at least, is clear: "We want to be the pioneers here and show the rest of the country about this solar potential," said Akaydın.Massive Untapped PotentialMore than one million terawatt-hours of solar radiation hit Turkey each year. Solar leaders Spain and California, by comparison, receive approximately 0.8 million terrawatt-hours annually.Theoretically, installing PV arrays across some 770 square miles — one half of one percent of Turkey's landmass — could supply the nation's current electrical capacity.At present, PV systems account for just 5 megawatts of installed capacity. Turkey's 8-gigawatt solar thermal capacity is seen as slightly more promising, but still accounts for less than 1 percent of the country's overall energy production.Antalya's municipal government doesn't yet have a goal for how much extra solar power capacity it hopes to add. For now, there is no accepted international definition of what it takes to earn the moniker of "solar city," though several dozen such cities are said to exist throughout the world, including 25 in the United States.The European Solar Cities Initiative, a project of the International Solar Energy Society, defines solar communities by their "large-scale integration of sustainable energy sources into city planning and urban concepts."In that spirit, Antalya is developing other renewable energies besides solar. A new waste management plant, for instance, will collect 60 percent of the city's sewage and turn it into purified mud, which can then be converted into biogas.The biogas-to-energy conversion facility is still under construction — a new component was finished the same week the Solar House opened — but in two months it will have a capacity of 2 megawatts, according to Münevver Ateş, environmental director at the plant. Once the facility is able to collect all the sewage in the city, its capacity will double.More important than its capacity, however, is the fact that Antalya's plant will produce all the energy it consumes, said Ateş, making it the only sustainable waste management plant in Turkey. "Many Turkish visitors come to study our example."Starting with the RooftopsAntalya's effort to boost its solar capacity will begin with a campaign to encourage individuals to install solar panels on their houses, though it won't be easy.The city currently has between 1 and 2 megawatts of solar power atop local residences, according to Ateş Uğurel, chairman of the Turkish Photovoltaic Industry Association, and founder of Temiz Dunya, the eco-architectural firm that designed Antalya's Solar House. They may not be able to add much more because many Antalya residences are tall apartment buildings with small rooftops already full of thermal heaters, he said."There simply isn't enough space."And then there's the cost. The average Turkish house requires 3 kilowatts of electrical capacity. That amount of solar power costs approximately $10,000 to install, Uğurel said.Widespread adoption should have an impact on costs. In about one month, Mayor Akaydın said he expects the passage of a municipal bylaw that would require future apartment buildings to be lit with PV panels.After the residential campaign, the municipality will install solar power in city parks and gardens; increase its use in Antalya's abundant greenhouses; and encourage local hotel owners to install solar power.To date, the municipal government has installed 60 kilowatts of solar power — 24 kilowatts in the Solar House and the remainder in traffic lights.Solar-Powered Tourism"Antalya has the biggest solar potential in its tourism sector," which attracts 50 million visitors a year, said Uğurel.According to him, rooftops on the city's hotels are big enough that installing PV panels would be a wise upfront investment for owners, providing free electricity once the systems pay for themselves. Improving the solar capacity of Antalya's hotels, Akaydın explained, might also draw more eco-tourists."There's a trend in the world where tourists prefer an ecologically aware city as a destination," he said. "Because of this, some hotel owners are now starting to use solar energy in new constructions."During the final stages of Antalya's transformation into a solar city, the municipality intends to construct a solar farm and nurture a homegrown PV production industry.Plans are already underway for a 100-kilowatt solar "forest" near Antalya, with "trees" composed of PV arrays designed by Mehmet Bengü Uluengin, an ecological architect and professor at Bahçeşehir University in Istanbul, who also designed the Solar House.According to Uluengin, any city aiming to clean up its energy portfolio should start by reducing the amount of energy it consumes."That is where the low-hanging fruit are," he said. "It is much cheaper, and more logical, to eliminate a kilowatt of energy use than to cater to its production via solar."Uluengin also pointed out that for solar to become widely used in Turkey the country's entire energy transmission network would need to be upgraded to a smart grid that could accommodate not only millions of consumers, but also millions of producers."Antalya could become a solar city without necessarily using solar energy at high levels," said Uğurel. "It could educate many people about solar, and use solar architecture to reduce the need for heating and cooling."No Political AlliesWith the exception of Antalya's municipal government, solar power has few political allies in Turkey.The central government passed an amendment to Turkey's renewable energy law at the end of 2010, introducing a new feed-in tariff for solar power of $0.133 per kilowatt-hour. That's just under 10 euro cents per kilowatt, far less than the 45.7 and 33 euro cents that Germany and Spain, respectively, offer their solar producers.In addition, the new amendment restricts the amount of solar power that can be added to the grid over the next two years. Only 600 megawatts of solar power can be connected by December 31, 2013, according to the rule."If there is anything positive about the amendment, it has helped to clear out the 'speculative froth' in solar," said Uluengin."The [Turkish] Solar Expo in 2010 was packed with investors ... This year, the place was virtually deserted. The only people remaining were those truly committed to solar — those with longer-term views and more realistic expectations of returns-on-investment."When applications for new solar power projects in Turkey are submitted later this year, it will present a clearer picture of just how much interest there is in developing the country's solar resource. In the meantime, the government's meager solar subsidies are discouraging foreign companies from investing in Antalya, Akaydın argued."There are a lot of people from all over the world, especially in Germany and China, who want to invest in Antalya's solar projects," he said. "The investors are ready, but the legislation is lacking. This isn't just a task for our municipality; this is a national responsibility."The central government's apathy toward solar power is reflected in Turks' general lack of knowledge regarding solar."People still do not know of photovoltaic technology," said Solar House designer Uluengin. "At trade fairs, we have people coming up to us pointing at PV panels and asking, 'Where is the water storage tank for this thing?' In Turkey, people know solar thermal. They don't know PV."'Very Healthy'Still, Uluengin considers Turkey's solar industry "very healthy" because it is being driven by small-scale and grassroots development."Only if an industry is viable on market forces alone will it be able to survive long term," he said. In coming years, Uluengin believes that most PV systems in Turkey will be installed on the rooftops of commercial users, not in utility-scale applications.Uğurel is also highly optimistic that the solar industry in Turkey can flourish without increased government incentives.In a couple of years he expects solar power to reach grid parity, the point at which its price will rival that of conventional grid power. That's largely because of the rising costs of fossil fuel electricity. Between the first half of 2008 and the first half of 2010, electricity prices climbed roughly 30 percent for Turkish households and industry, according to European Commission figures. At the same time, the cost of PV systems is decreasing as more small Turkish entrepreneurs try their hand at producing panels, Uğurel said. "Every day, a new company enters the solar power sector."

29 Kasım 2011 Salı

Why don't we like solar energy?

Tunç Korun is the second generation boss of Form Group (Form Şirketler Grubu), which has specialized in productive use of energy since 1965.His group created a cooling system for hotels using seawater. He also focuses on heating homes using a system installed underground and, more recently, producing solar powered electricity.Korun has dedicated much of his energy to produce his own electricity by installing solar panels of 2 kwh to the roof of his own house. He is very right to do so in a country like Turkey where there is plenty of sunshine. However, the data he submits demonstrates how far behind Turkey is in this field.Germany, which does not even have one tenth of our sun, is the world leader in solar energy, having installed an 18,000 megawatt capacity. The runners-up include Spain, Japan, the U.S., Italy, China and France. As of the end of 2010, installed solar energy capacity in the world has reached 35,730 megawatts.According to International Energy Agency calculations, by 2020, solar energy capacity will be up to 390,000 megawatts.Looking at Turkey we see that installed power capacity is only 3 megawatts.In short, we have seriously missed a free energy source that nature has awarded us with only “one in 10,000” of the world’s installed power.In a conversation with Korun two and a half years ago, he said that the newly appointed Energy and Natural Resources Minister Taner Yıldız was enthusiastic about “renewable energy including solar power.”Today, Korun is pessimistic about the policy the energy minister has adopted. “Yıldız has pushed aside renewable energy. One or two companies like us that defend solar energy were full of hope for two years but not now. We were saying that Turkey was dependent on foreign natural gas and now, dependency on nuclear energy is increasing. The resources we have in hand are being ignored,” he said.Compared to two years ago, the cost of producing electricity from the sun has decreased to 2,000 euros per kwh from 5,000 euros. This is good news.The bad news is the incentive payments the state grants for electricity production from the sun. According to Korun, this is a “negative incentive” because the $0.13 incentive per kwh the state has declared past January is below the present grid price. Consequently, it is obvious Ankara has a dim view on solar energy.At a time when governments focus more on “low carbon” economies and opt for all kinds of renewable energy, Turkey can take small steps forward only with the efforts of the private sector.The photovoltaic panel system that produces electricity from the sun developed by the Form Group has been installed in some buildings of major companies such as Arçelik, Migros, Özdilek, Toyota and Perfetti. Demand for the photovoltaic panel system is gradually increasing, Korun said, and companies favor this system because of prestige of obtaining a “green building” certificate.I have not quite heard that public buildings have had solar energy systems installed despite the fact that they should be the ones pioneering in this field.I wonder if Turkey’s Housing and Development Administration ever considers solar energy when it launches major projects within the context of “urban transformation” due to the risk of earthquakes.

9 Kasım 2010 Salı

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

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.