A Global Look To Turkish Energy Market

A Global Look to Turkish Energy Market
The Turkish electricity market was opened to competition in 2001 when the Turkish Grand National Assembly passed the Electricity Market Law, which unbundled its generation, transmission, and wholesale power
sales activities.
One of the goals of the law was to make Turkey's power market compatible with those of the European Union (EU), although EU membership negotiations continues to move slowly. The state-owned generation and transmission company was split into three separate companies: generation, transmission, and wholesale power sales.
The state owned distribution company was also divided into 21 regional companies that were subsequently privatized. The private sector owned about
65% of the installed power generation capacityby the end of 2014.
The Electricity Market Law laid a solid foundation for a competitive power market,and independent power producers (IPPs)have found a receptive climate.
The market seems to be functioning well, as electricity prices for midsize industrials, for example,were ~€0.02/kWh less than the average rate found in the EU (28) in 2014. Cogeneration capacity in Turkey has also soared since 2001,rising from 3,200 MW to 8,300 MW in 2013,the last year for which data are available.
According to Turkey's Ministry of Foreign Affairs, Turkey "has become one of the fastest growing energy markets in the world."Electricity demand rose by an average 5.7%per year between 2000 and 2011 and approximately
8.8% per year during the period 2010to 2014 alone.
At the end of 2014, the country's total installed generating capacity was
68 GW, up over 70% from a decade before.
The Turkish government has set an ambitious goal of reaching 110 GW of installed capacity and production of 440 TWh (more than twice current production) to meet anticipated power demand by 2023, which happensto correspond to the 100th anniversary of the founding of the Turkish Republic.
The International Energy Agency agrees with this assessment, predicting that electricity consumption will double by 2020.
Turkey's power mix is balanced between hydro (~34.7%) and natural gas (~33.5%, mostly imported from Russia), with about 500 MW of new wind generation added each year.
Rounding out the country's generation portfolio are a number of coal-fired power plants. Turkey has ambitious construction goals to meet its future power needs.
By 2023, the country will commission 10 GW of nuclear power (now under construction), increase wind capacity to 20 GW, and instal600 MW of geothermal and 3 GW of solar.
The plan also includes building 18.5 GW of new coal-fired capacity, burning domestic and imported coal.

The key challenges for Turkey in building this new fleet of plants is fueling and paying for the plants. Only 26% of generationtoday is fueled by domestic energy sources, although the stated goal is to reduce the country's dependency on foreign fuel supplies; hence, the country's strong emphasis on building high-efficiency power plants and using domestic energy sources.
The Ministry of Foreign Affairs also notes that, "in order to meet such an immense growth in energy demand, huge levels of investment
is required."
The rapid growth in power demand and privatized energy markets
has made the Turkish power market a more attractive investment than the stagnant European power markets. 
Sources;
Dr.Robert Peltier,PE
Power Enginnering September 2015 Issue
EMRA Statistics

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