04/24/2014
ENERGY POLICY OF TURKEY
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Towards a Sustainable Future
Country Profile
Renewable Energy Policy
Energy Efficiency Policy
Environmental Policy
Energy R&D and Investments
Turkey’s Foreign Relations in the Energy Issues
Critique and Recommendations
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Contents
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Towards a Sustainable Future
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Where does Turkey stand in the sustainable world?
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 The Ministry of Energy and Natural Resources (MENR)
 Scientific and Technological Research Council of Turkey
(TUBITAK)
 The Electrical Power Resources Survey and Development
Administration (EIE) of MENR
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Country Profile
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In 2013, total energy production was 282192GWh, 52727GWh of
which were from renewable sources and 229465GWh from fossil fuels.
3%
21%
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Country Profile
Coal
Wind
33%
5%
Hydro
Geothermal
Natural Gas
1%
37%
Other
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Turkey does not possess huge fossil fuel reserves. Excluding lignite;
coal, oil and natural gas reserves in the country are few and far from
being able to meet the projected domestic demand.
Sources
Apparent
Probably
Possible
Total
Hard coal
428
449
249
1126
Lignite
7339
626
110
8075
Asphaltite
45
29
8
82
Bituminous
schist
555
1086
269
1641
Oil
36
-
-
36
Natural gas
8.8
-
-
8.8
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Country Profile
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However, Turkey has substantial reserves of renewable energy
sources.
 Hydropower: Turkey has a gross annual hydro potential of
433,000 GWh. Meets 37% of the electricity demand currently.
 Biomass: The total recoverable bioenergy potential is
estimated to be about 16.92 mtoe.
 Geothermal: 31,500 MW of geothermal energy potential is
estimated for direct use in thermal applications while the total
geothermal electricity production potential of Turkey is
estimated as 2000 MWe. 7th in the world.
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Country Profile
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 Solar: The yearly average solar radiation is 3.6 kWh/m2 day, and the
total yearly radiation period is approximately 7.2 hours/day.
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Country Profile
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 Wind: There are a number of regions in Turkey with relatively high
wind speeds. It is estimated that Turkey could install a wind capacity
of 100,000 MW of electricity.
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Country Profile
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By 2023, Turkish Government plans to increase the share of renewable
resources in electricity generation to be at least 30%.
Vision 2023 Programme:
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Increase wind power capacity to 20000MW
Geothermal and solar power capacities to 600MW
Use 100% of hydroelectric potential
Start three nuclear power plants
Smart grid integration
Increase total funding (public and private) for all R&D to 2% of GDP
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Renewable Energy Policy
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In order to promote renewable energy generation, Turkish government
has passed “renewable energy laws” in 2005. Following incentives are
introduced to support prospective renewable energy producer:
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Feed-in Tariffs
Purchase Guarantee
Connection Priority to the Grid
Reduced License Fees
License exemption from renewable energy plants with less than
1MW capacity.
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Renewable Energy Policy
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Renewable Energy Policy
Facility Type Based
on RE Sources
Prices to be applied
(USD cent/kWh)
Incentive for domestic
production
(USD cent/kWh)
Hydroelectric power
7.3
1.0 to 1.3
Wind energy
7.3
0.6 to 1.3
Geothermal energy
10.5
0.7 to 1.3
Biomass production
13.3
0.4 to 2.0
Solar energy
13.3
0.5 to 3.5
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Prices for Renewable Energy Production:
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The 2007 law aims to reduce energy
intensity by 15% by 2020. The law has
four pillars:
 Administrative structure and tasks
for delivering energy efficiency
services across sectors
 Training and awareness
 Penalties for misconduct
 Incentives to increase energy
efficiency
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Energy Efficiency Policy
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 Buildings: Energy performance certificates, energy audits,
annual performance reports
 Appliances: Mandatory energy labelling of domestic
appliances, energy performance standards
 Industry: Improving efficiency of power plants, transmission,
distribution and public lighting; investment support for energy
efficiency projects; energy managers and energy units;
mandatory energy efficiency reports
 Transport: Use of fuel efficient cars, cash-for-clunkers
incentive to remove in-efficient vehicles, increasing road and
railway networks.
 Public Awareness: Schools, media
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Energy Efficiency Policy
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 United Nations Framework Convention on Climate Change (UNFCCC)
since 2004
 Has been a party to the Kyoto Protocol since 2009
 Passed environmental laws to set emission standards for industry
and power plants.
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Environmental Policy
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 Turkey produces twice of the electricity it did 10 years ago.
 100 new power plants, 70% of which are renewable, have begun to
operate in the first half of 2013, an indicator of the fast growth in
energy sector.
 Since 2004, public spending on energy R&D has increased to reach
USD 7.5 million in 2008: Out of that total, USD 3 million was spent
on fossil fuels projects, USD 1.9 million on renewable energy and
USD 1.4 million on hydrogen and fuel cells.
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Energy R&D and Investments
There are no comprehensive data on private sector spending on
energy R&D. Public spending on R&D is expected to continue to grow,
as the Vision 2023 Program, which contains several energy R&D
priorities, is supported by an increase in financing.
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Compared to other developed countries, public funding for energy
R&D remains low in Turkey.
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Energy R&D and Investments
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While sustaining the growth, the country puts forth an effort to improve
its’ technology. Turkey has several government institutions to manage
science and research activities. The highest level decisions on science
and research policy are made by:
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Grand National Assembly of Turkey
Council of Ministers
State Planning Organization (DPT)
Supreme Council of Science and Technology (BTYK)
Scientific and Technological Research Council of Turkey (TUBITAK)
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Energy R&D and Investments
DPT and TUBITAK are the two main responsible institutions regarding
the science and research policy development process.
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Energy R&D and Investments
 The ministry of Finance provides tax reduction for the R&D expenditures
of private firms by a ratio of 40%.
 TUBITAK provides grant funds for the private sector and the universities
 The Technology Development Foundation of Turkey (TTGV) provides soft
loans for R&D projects in the private sector in the fields of renewable
energy, energy efficiency and cleaner energy production. TTGV has a
new program for commercialization of advanced technologies
 The under-secretariat of Foreign Trade (DTM) provides grant funds for
the private sector. The support is on project base.
 The Ministry of Industry and Trade, through its bounded institution
KOSGEB, provides funds for small and medium-sized enterprises (SMEs)
 The Ministry of Energy and Natural Resources provides funding for
energy related R&D projects within its ENAR Program.
 The Credit Guarantee Fund (KGF) provides guarantees on loans to SMEs
for facilitating risk-sharing and lending among Turkish banks.
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The following government bodies provide funding or financial incentives
for R&D:
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Universities: Clean energy is a very active research topic in Turkish
Universities. Turkey is ranked 13th in number of published clean
energy R&D papers while ranked 4th in specialization index and
scientific impact.
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Energy R&D and Investments
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Energy R&D and Investments
 TUBITAK Funds
 DPT Funds
 Individual Funds
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Research projects are supported by:
The largest such infrastructures are:
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Solar Energy Research Centre at the Middle East Technical University
Solar Energy Institute of the Ege University.
Lignite R&D Lab at the Gazi University
Solar Energy Laboratory at the Harran University
Hydro Electric Power Research Laboratory at the Istanbul Technical
University
 Hydrogen Production Technologies Laboratory at the Bogazici University
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Energy R&D and Investments
 Bilateral agreements with 19 countries to-cooperate in the field of science and
technology.
 Participation in R&D projects under the sixth and seventh EU Framework
Programs for Research and Technological Development (FP6 and FP7).
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International R&D collaborations:
TUBITAK Marmara Research Centre’s Energy Institution participates in:
 MC-WAP(FP6): Molten-Carbonate Fuel Cells for Water Borne applications
 MCFC-CONTEX: Effects of contaminants in biogenous fuels on MCFC catalyst and
stack component degradation and lifetime and extraction strategies,
 TYGRE(FP7): High added value materials from waste tyre gasification residues,
 EPHESTUS (FP7): Enhanced energy production of heat and electricity by a
combined solar thermionic-thermoelectric unit system.
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Energy R&D and Investments
 Hydropower: Recently 600 new small-scale hydroelectric power
plants are being constructed. 15,400MWe production is aimed via
the operation of these plants, equal to the 1/4 of electricity
production all over the country.
 Solar: In 2013, construction of a 500KW PV power plant has begun.
This will be the largest PV plant installed in Turkey. In the same year,
the country’s first rooftop solar power stations began to operate
having capacities 1.15MW, 2.3MW respectively.
 Wind: In 2013, OSTIM, announced MILRES project to design and
produce Turkey’s first wind turbine. Currently, 9 new wind farms,
490MW capacity in total, are being constructed by a number of
private companies.
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Current Projects and Investments by Sector:
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 Geothermal Energy: One of the biggest private companies in energy
sector in Turkey, Zorlu Group, has a growing interest in Geothermal
Energy and has been working on building a 45MWe geothermal
power plant in Alaşehir, Turkey.
 Nuclear Energy: In year 2010, an agreement between Turkey and
Russia has been signed in order to build a nuclear power plant in
Akkuyu, Turkey. The plant will start operating by 2019. In 2013, an
agreement between Republic of Turkey and Japan has been signed
in order to build a Nuclear Power plant in Sinop, Turkey.
 Electric Vehicles: Minister of Science, Industry and Technology
stated that, in 2013, TUBITAK will grant money and R&D support for
EV research projects to companies and universities. Accepted
projects have already been started and are due 2017. The
government aims to have companies begun production of EV’s or EV
components by this year.
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Energy R&D and Investments
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 Energy Transfer: Nabucco-West Pipeline Project, is a proposed
natural gas pipeline from the Turkey to Austria to be completed in
2018. TANAP will transfer natural gas from Azerbaijan through
Turkey to Europe. It is to be completed in 2018 as well.
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Energy R&D and Investments
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Geographical proximity to the 70% of the world’s proven energy
resources gives Turkey a place on the game board of energy
politics.
Turkey’s international energy policy is based on:
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Foreign Relations in the Energy Issues
 Having regional and global influence in the area of energy.
 An energy hub and terminal for oil and gas flowing from the
Caspian Basin and Middle East to world markets.
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Foreign Relations in the Energy Issues
 Energy pipelines are prominent indicators for future prospects for
Turkey and the EU.
 The projections show that the EU’s dependency rate on gas will be
70% by 2020 compared to that rate of 40% in 1995.
 Being highly dependent on the imported natural gas, the EU has
decided to take action to overcome this energy dependency through
secured and diversified external energy lines.
 In this respect, Turkey’s closeness to the most important gas fields of
Central Asia, the Persian Gulf, Iran and Russia has made Turkish
option as one of the most attractive gateways for the “fourth artery”
of the EU’s energy supply.
 TAP, TANAP, Nabucco West Pipelines
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Turkey and EU:
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Foreign Relations in the Energy Issues
 Economic relationship, a growing trade ties particularly in energy
sector
 Turkey imports more than half its gas consumption from Russia (2nd
importer)
 Russian exports to Turkey were nearly 23 billion USD, of which 17.9
Billion USD related to fossil fuels.
 Bilateral meetings between on various economic projects,
particularly relating to energy.
 A growing number of major projects (such as the Turkish nuclear
program and Blue Stream Pipeline)
 Each in their own way have factored the idea of diversifying foreign
economic relations into their strategic plans.
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Turkey and Russia:
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Water Issues:
 Turkey’s Dams on Euphrates and Tigris rivers have brought huge
strain to relationships with Iraq and Syria for decades.
 New dam construction on Kura River has created new problems with
another neighbor, Georgia.
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Foreign Relations in the Energy Issues
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The developments in energy sector in the past 10 years has been quite
impressive yet there are still big obstacles on the way.
Turkish government set a goal to observe 30% of the country’s energy
from renewable energy sources, the current measures are not ample
enough to support such growth.
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Critique and Recommendations
Recommendations:
 Renewable energy policy must be re-arranged to attract producers,
pricing and incentives must be regulated.
 Improving the grid should be done simultaneously with renewable
energy investments
 More government support for geothermal and biogas investors
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The hydropower and nuclear energy policies need a major revision,
the fast growth with such technologies will only bring short term
success. Sustainability of the environment should be the priority and
the starting point of all development plans.
Recommendations:
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Critique and Recommendations
Cancellation of all nuclear programs or a plebiscite
Cancellation of hydropower plant constructions
Stronger environmental laws and policies
Increasing public awareness
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Biggest burden on Turkish economy is dependence on fossil fuels
especially in transportation. However, there’s no comprehensive
planning to reduce this dependence.
Recommendations:
 Instead of inclining towards the conventional automotive
technologies, Turkey should direct this flow into the way of
producing alternative vehicle technologies like fuel cell, biogas and
electric vehicles.
 Sub-industries that produce car parts should be supported more
 Laws and taxation to encourage customers to buy EV’s must be rearranged simultaneously with production.
 A bigger and a better public transportation service
 Increase of railroad network capacity, high speed trains
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Critique and Recommendations
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Reforms and political stability during the past 10 years have proven
their positive affects on Turkey’s energy sector. In order to keep the
development at this pace, it is essential for the country to maintain a
balance in internal and external politics. Solutions to problems with
neighbors, continuity of negotiations for Turkey’s accession to EU,
mutual economic partnership with Russia are all vital to achieve an
optimum result.
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Critique and Recommendations
Recommendations:
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Sustaining the political stability and economic growth
Carrying out reforms to harmonize with EU criterias
Avoiding a greater level of dependence to Russia
Turkish investments to underdeveloped countries
Collaboration with neighbors
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Turkey does not have natural resources to generate large incomes thus
the best solution lies in successful R&D strategies. In some sense, this
is the only way to the ultimate success. Developed nations have
ascended to the highest level of civilization through successful
technological developments. If Turkey can achieve developing its’ own
energy technology further into a state of creating world class energy
companies, then with successful marketing strategies it can become a
global player.
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Critique and Recommendations
Recommendations:
 A comprehensive R&D strategy with specific plans
 A higher share of GDP must be spared for R&D expenditure
 More funding for training specialized personnel
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