Turkey Adopts Limited Feed Law

January 17, 2011
By Paul Gipe

Turkey's parliament has revised its limited feed law with adoption of a
similarly limited policy.

Turkey has had a limited feed-in tariff policy since 2005. The previous
policy paid the equivalent of $0.07 per kWh for wind energy for a period of
seven years. By international standards, the policy was a failure.
Early this year the Turkish parliament adopted a new feed-in tariff policy of
equally limited duration, ten years, and equally limited objectives, 600 MW of
total capacity. As before, tariffs are limited as well.
The tariffs for solar photovoltaics (PV), the most costly of the new
renewable technologies, are only $0.13 per kWh, a third of that in Germany.
One departure from previous policy, Turkey will now offer incentives or bonus
payments for hardware "Made in Turkey". Solar PV systems made in Turkey would
qualify for a bonus payment of nearly $0.07 per kWh.
Industry observers have widely panned the new program as insufficient to
create the volume necessary to attract manufacturing.

Renewable-Energy Cars Heat Up in Turkey

A strange array of vehicles were seen speeding around Izmir, Turkey last week, as the Scientific and Technological Research Council of Turkey (TÜBİTAK) hosted its first Alternative Energy Vehicle Races in the sunny Aegean coastal city. Thirty-eight teams entered the solar car races, while 20 teams brought vehicles to the hydrogen car competition.The event inspired Nihat Ergün, of Turkey’s Ministry for Science, Industry and Technology, to declare that the government will up its investments in renewable vehicles in coming years.Vague promises from the governmentThough Ergün expressed enthusiasm for developing renewable energies at the TÜBİTAK races, the government’s material support for these technologies has been lackluster so far.Ergün’s ministry recently published a Strategy Document for Turkey’s industrial sector between 2011 and 2014. While the paper sets some concrete goals for that time period, such as the development of Turkey’s first automotive brand, it stays vague on renewable energy targets despite frequently mentioning the need for a cleaner energy economy.The document mentions old laws that have been passed to support renewable energy in Turkey, but does not point out that these laws have so far only resulted in subsidies that are too low to make solar and wind power competitive in the wider energy marketplace.Recent reshufflings of the government ministries, though, could improve the prospects for renewable energy in Turkey. In June, Prime Minister Recep Tayyip Erdoğan announced that the former Ministry of Industry and Trade would lose “Trade” and add “Science and Technology” to its name.As a result of this change, Ergün said in Izmir, his ministry will be able to focus on research and development projects more than it used to.Promising activity from international bodies, private sectorWhile the government slowly begins to appreciate Turkey’s abundant renewable resources and technological potential, private companies and international organizations are already taking advantage of them.The United Nations’ International Centre for Hydrogen Energy Technologies, for example, has already been holding competitions for hydrogen vehicles for several years now. Solar power is widely popular at the grassroots level, as evinced by the omnipresence of solar water heaters and small PV arrays on Turkish rooftops. And Turkish investor MetCap Developments recently contracted a renewable integrated combined cycle power plant from General Electric, the world’s first application of this unprecedentedly efficient power-producing technology.The impressive turnout by university teams at the TÜBİTAK races suggests that Turkey’s next generation of scientists and engineers will be actively engaged in bringing their country into a cleaner energy future. Let’s hope the government follows their lead.

Welcome to TIREC

2011TIREC 2011 is 4 days of high level congress and exhibition, where Turkish and international renewable energy experts meet to drive innovation and do business.Over 100 leading Turkish and international renewable energy experts will speak at TIREC 2011, during 4 days of high level keynotes, interactive panel discussions and in-depth training courses. 3 focused conferences and additional seminars will ensure in-depth coverage on Wind, Solar, Geothermal and other renewables.3 leading business conferences, the TIREC exhibition, Academy training courses and the TIREC awards and networking evening.

Renewable Energy Law Unlikely to Tap Turkey’s Potential

Last month the Turkish Parliament passed a long-pending renewable green energy law written by Energy Minister Taner Yildiz. The Energy Minister says this law would create jobs and encourage investments in new sectors. While parliament agrees, environmentalists and members of the renewable-energy industry think the law doesn’t go nearly far enough to help Turkey reach its green-power potential.While Germany is seeking to get 100 percent of its energy from renewable energy by 2050 and England aims to reduce carbon emissions to zero, Turkey’s law should have promoted renewable green energy far more. Turkey, which has great wind and solar energy potential, could do better then this.Investors’ biggest concern is the feed-in tariff, or guaranteed price for energy, set by the Parliament. The renewable green energy law guarantees a price of 7.3 U.S. cents (5.6 euro cents) per kilowatt-hour for wind and hydroelectric power and wind energy, 10.5 U.S. cents (8.1 euro cents) for geothermal energy, and 13.3 U.S cents (10 euro cents) for energy from waste products and solar energy.Environmentalists say that a 24 euro cent feed-in tariff is necessary to launch a strong solar energy market in Turkey. Energy Minister Yildiz disagrees and thinks that investors will do business at those prices.

Turkey's Renewed Clean Energy Hopes

In 2004, the government of Turkey made a bet on the future: To take advantage of its solar power potential and reduce dependence on imported fossil fuels, the liberal Muslim nation at the crossroads of Europe and Asia passed a renewable energy law, something officials thought would spark a wave of clean energy projects.Several years later, Turkey's feed-in tariffs, which are widely thought to be inadequate, have helped increase domestic investment in alternatives, but they still haven't significantly boosted solar, wind, hydro and geothermal production—coal and gas still dominate its national energy mix.
Undeterred, last month the Turkish parliament more than doubled tariffs for PV installations, while also increasing subsidies for wind, hydro, geothermal and waste-from-energy projects. Istanbul also set an ambitious target of Turkey receiving 30% of its total power capacity from renewables by 2023.But even with the most recent moves, industry experts and environmentalists say the government is still not doing enough, insisting that new program has created bureaucratic barriers likely to deter investment in related sectors. The government itself acknowledges that more work is needed for the country to reach its long-term goals.Although multinational PepsiCo, which is committed to environmental sustainability, uses solar power in its Turkish operations, others haven't waited for the country to do more. Homegrown energy giant Senas Group has instead turned its attention to pursuing solar projects in cleantech-friendly Germany.

RENEWABLE ENERGY IN TURKEY

Turkey has abundant reserves of renewable energy, such as solar, wind and geothermal. The
benefits of exploiting these sources would be enormous:
by relying completely on indigenous resources, renewables would reduce
reliance on imported fuels and enhance Turkey's energy security.
the environmental impact of renewable technologies is far less than that of
nuclear and fossil fuel power plants. There are no emissions of greenhouse gases
or toxic wastes;
the cost of electricity from some renewable energy sources is already
competitive with many conventional technologies, and is dropping rapidly;
renewable technologies have no fuel costs and are virtually inexhaustible;
Solar
It has been calculated that Turkey receives sunlight equivalent to roughly 11
thousand times the amount of electricity generated in Turkey in 1996. Clearly,
both photovoltaic and solar-thermal systems could be used to great effect. Use
of solar thermal is already widespread. In 1995 it was calculated that solar
thermal generated 52,000 tonnes-of-oil-equivalent of heat. Indications suggest
that this could increase six-fold in the next 15 years. The potential for PV is
virtually unlimited, and the price for these systems is declining rapidly.
Wind
Wind energy is already in use in many parts of the world at a price
competitive with conventional technologies. The latest technologies can produce
electricity at 4.4c/kWh, comparable to many conventional sources1. In Turkey, w ind energy has great potential. Figures
from the Organisation for Economic Cooperation and Development (OECD) show that
Turkey theoretically has 160 TerraWatt hours a year of wind potential, which is
equivalent to twice the country's electricity productio n in 1996.
Geothermal
Turkey has one eighth of the world's geothermal potential and is ranked 7th
in the world. The cost of electricity generated from geothermal reserves is
between 3-10c/kWh. The bottom end of this range is competitive with conventional
systems. The Turkish G overnment has already recognised the potential of
geothermal and in 1972 began to implement a program of construction which would
have seen nearly 710 Megawatts installed by now. Unfortunately, the program was
not fully implemented and this rich resource remains unexploited. Recently some
local authorities have announced plans to utilise geothermal, but there is still
a lack of coordinated support from the central Government2.
NOTES:1) Elsam Power Pool Report, Denmark, , Jan 1997.
2) Yeni asir, 19.2.98.

US companies seek local energy accords

Turkey’s goal to become one of the world’s top 10 economies by 2023 may falter if it fails to invest enough in energy, a U.S. official said yesterday as he led a delegation of American businessmen looking for energy deals in Turkey.“Turkey has set a very ambitious aspiration to be a top 10 economy by 2023, the 100th anniversary of the modern Republic,” U.S. Assistant Secretary of Commerce for Market Access and Compliance (MAC) Michael Camunez said in a speech at the Ankara Industry Chamber (ASO). “To achieve this goal, Turkey will have to triple the size of its economy, which will require significant foreign investment. Investments in the energy sector are one of the key factors for Turkey to achieve that goal.”He said Turkey would need $200 billion in foreign investment in order to draw 30 percent of its electricity supply from renewable sources in the next 12 years, in addition to using the best technology available worldwide.Camunez visited Ankara at the helm of a delegation made up of representatives of 16 leading U.S. companies in the renewable energy sector interested in investment partnerships in Turkey, as well as government officials from U.S. financing agencies. “It is a very special time in the relationship between the U.S. and Turkey,” he said. “Much credit is owed to our leaders, President Barack Obama, President Abdullah Gül and Prime Minister Recep Tayyip Erdoğan for the vision and model they put forward of a strategic partnership between the two countries. Their vision was to ensure economic bilateral relations were as strong as the strategic and political relationships.”ASO chairman Nurettin Özdebir said Turkey’s urgent interest lay in renewable energy given global climate changes and the country’s above-average energy consumption. “We are in a region that will be affected the most from climate changes due to global warming. Anatolia is faced with the risk of desertification,” said Özdebir. He said Turkey was using 30 percent more energy compared to country average in the Organization for Economic Co-operation and Development (OECD). “In comparison, Japan uses one third of the energy we use,” he said. “As the need for energy rises, the price of energy will also rise, while having a negative effect on the climate.”The companies whose representatives attended the meeting included General Electric, Abound Solar, WorldBusiness Capital Inc. and Dow Energy of the United States, as well as Nurol, Güriş, Yüksel Enerji, GAMA, OSTİM and Aksu Mining of Turkey.