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."

FIT in Turkey

After months of speculation surrounding the country’s solar feed-in tariff, Turkey has now made photovoltaic power generation subsidy payments law. Under the regulation, payments for renewable energy generation will be determined as dollar cent, as opposed to Euro cent, in Turkish Parliament.Accordingly, prices for RES plants are as follows:Solar: US$13.3 cents,Biomass (including landfill gas): US$13.3 centsGeothermal: US$10.5 centsHydroelectric: US$7.3 centsWind energy: US$7.3 centsThe feed-in tariff will also support concentrated solar power (CSP) and hybrid power plants.These prices will be applied for ten years to those which apply for RES between May 18, 2005 and December 31, 2015. For companies beginning operation later than December 31, 2015, the FiT rates will be determined by the Council of Ministers.The licensing will be arranged by the supervisory Energy Market Regulatory Board, taking into consideration of Interior Ministry, Energy and Natural Resources Ministry, and also State Hydraulic Works’ opinions.Further, if the products utilized for the plants carry the ‘Made in Turkey’ stamp, additional credit will be given for five years after the facility’s establishing date. This support will be applied from US$0.4 to 2.4/kWh.There is however a 600MW cap in place up until December 31, 2013. For applications later than that date, the Council of Ministers will be authorized to determine total installed power.For the first decade, 85% discount will be applied for the power grid permission, lease, easement and certificate of occupancy fees for the facilities which will be established until December 31, 2015.

23 Ocak 2012 Pazartesi

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.