IMPORTANT DEVELOPMENTS AND IMPROVEMENT AREAS
SDG 7 is assessed on four focus areas: i. Access to energy
for all; ii. Increasing renewable energy share in total supply;
iii. Improving energy efficiency; and iv. Development of clean
energy technologies and infrastructure.
In the context of access to energy for all, the liberalization
in energy sector gained importance since the early 2000s.
In this context, many of the state owned power plants were
privatised, and new power plants were built by the private
sector. Therefore, the share of private sector in the total
installed power increased substantially, and liberalization
in electricity and commerce has been completed to a large
extent. Natural gas distribution was also transferred to the
private sector. Significant progress was achieved in the fields
of technical and nontechnical loss performance, supply quality
and customer satisfaction. The integration of newly installed
renewable energy power plants to the electricity distribution
system was accelerated; similarly, energy efficiency policies
came to the forefront. In addition, electricity consumption
subsidy programme was offered to low-income citizens to
meet their electric consumption needs since February 2019.
Houses under the electricity consumption subsidy are offered
subsidies up to 150 kWh/month considering the household
population.
Continuous energy supply requires an optimisation of supply,
demand, transmission, distribution and storage systems.
Turkey made a rapid progress especially in electricity access.
Also, to meet the increasing electricity need and to expand/
enhance electricity transmission service, investments continue
in lines and power distribution units so as to expand, renew
and modernise electricity transmission and distribution grid.
Legislative work on electricity storage system is initiated. In
addition, defining Turkey Smart Grid Roadmap and long-term
electricity infrastructure planning are important.
In 2018, the construction began for the first nuclear power
plant of Turkey. Akkuyu Nuclear Power Plant will have 4 units
with 1200 MW of power and with a total capacity of 4800 MW.
The commissioning of the first unit of Akkuyu Nuclear Power
Plant is scheduled for 2023, and each of the other units will
also be commissioned subsequently every year. In July 2018,
for secure and safe operations in the nuclear field, the Nuclear
Regulatory Authority was established to form an autonomous,
strong and competent nuclear supervision and regulation
system.
In the context of increasing renewable energy share in
total supply, Turkey attaches major importance to energy
generation via renewable energy resources to diversify
Turkey’s energy resources, reduce import dependency,
develop domestic manufacturing industry and reduce
greenhouse gas emissions.
Due to the impact of enhanced legislation and incentive
mechanisms, a significant increase has been achieved in the
share of non-hydro resources such as wind and solar in total
supply.
The 2009 Electricity Market and Security of Supply Strategy
aimed to increase the share of renewable energy in electricity
generation to at least 30%. In 2018, the share of renewable
energy increased to 32.5% achieving the set target. In
addition, when compared with other OECD countries, important
progress was achieved in our country in the generation of
electricity via renewable energy resources.
Source Generation 2013 Generation 2017 Ranking 2017 Ranking 2017 Comparison Group Hydroelectricity 59.4 TWh 58.2 TWh 7 6 OECD Geothermal 1.4 TWh 6.1 TWh 7 4 OECD Solar 0.017 TWh 2.9 TWh 27 14 OECD Wind 7.6 TWh 17.9 TWh 12 7 OECD 78 TURKEY’s 2nd VNR 2019 SUSTAINABLE DEVELOPMENT GOALS “Strong Ground towards Common Goals”
In 2005, legal framework for renewable energy resources in Turkey enacted tariff supports (Feed-In Tariffs, FIT) for purchase guarantee to use renewable energy resources in electrical energy generation; however, since the technology cost was high, tariffs proved insufficient and investments were not realised at the expected level. With an amendment in 2011, the Renewable Energy Resources Support Mechanism (YEKDEM) that defined guaranteed purchase tariff prices according to the facility type in generation based on renewable energy resources was established. Purchase guarantee tariff is 7.3 USD cents/kWh for generation based on hydroelectricity and wind energies, 10.5 USD cents/kWh for generation based on geothermal energy and 13.3 USD cents/ kWh for generation based on biomass (including landfill gas) and solar energies. The generation licensees, whose facilities having operated or to be operated by the end of 2020, will benefit FIT support mechanism for a 10-year period. Purchase-guarantee is crucial for domestic and foreign investors. Therefore, uncertainties are cleared and investors are protected from market risks for 10 years. At the same time, this is an additional assurance for project financing. 13.9 billion TL (3.81 billion USD) was paid to facilities with installed power of 17,400 MW generating 70 billion kWh electricity under YEKDEM by the end of 2017. Accordingly, in recent years, YEKDEM become very attractive for renewable energy investors. Along with the support mechanism arranged on the basis of resource, an additional incentive mechanism was established for domestic machinery and equipment to be used in facilities generating electricity based on renewable energy resources. If domestically manufactured mechanical and/or electro- mechanical equipment is used in the installation of renewable energy facility, then additional price subsidy for each piece is offered for 5-year period. Similarly, there are incentives intended on R&D activities that are crucial for the development of renewable energy and on enhancement of domestic generation. In 2016, to increase the use of renewable energy resources, an incentive mechanism for Renewable Energy Resource Areas (YEKA) was implemented. State, treasury-owned and privately-owned immovable properties with high potential for at least one renewable energy resource began to be defined as large-scale YEKAs. YEKAs would contribute to effective and efficient renewable energy generation at economy of scale. The prospective burdens for the bidding processes are reduced for investors receiving licenses. By an integrated approach of YEKAs, it is expected to promote R&D capacities, support domestic equipment use and create additional employment. RENEWABLE ENERGY RESOURCE AREAS (YEKA) SDG Targets 7.2 - 7.a Executing Entity Ministry of Energy and National Resources Start & End Dates 2017 - Ongoing The project aims to install 2 solar and wind plants and promote renewable energy. Other components of the project involve manufacturing domestic equipment in Turkey and establishing R&D specialisation zones for renewable energy. A tender was completed for the construction of a solar power plant with installed power of 1,000 MW in Karapınar, Konya and a solar panel factory with an annual production capacity of 500 MW photovoltaic modules. The tender concluded with a purchase guarantee of power generated at the plant for 15 years at the price support of 6.99 USD cents/kWh. For wind YEKA, a manufacturing and R&D centre will be established with a wind power capacity of 1,000 MW and an annual wind turbine manufacturing capacity of 400 MW. In the wind YEKA tender held in 2017, it was decided that the power generated in the plant for 15 years would be delivered to system at the price of 3.48 USD cents/kWh. In the context of the mentioned developments, the installed power of Turkey’s renewable energy rose to 42.5 GW by the end of 2018. It is expected that the installed power of Turkey’s renewable energy power plants will increase by 34% compared 2018 levels. 79 TURKEY’s 2nd VNR 2019 SUSTAINABLE DEVELOPMENT GOALS “Strong Ground towards Common Goals”
In addition, as part of the Renewable Energy Action Plan, steps taken towards increasing the share of renewable energy in energy consumed at transport, industry and houses will also contribute towards increasing the share of renewable energy. After the completion of YEKDEM in 2020, the support for renewable energy resources without interfering with market operation, development of domestic manufacturing capabilities and capacities are deemed important. In addition, the required transmission infrastructure investment plans must be set according to the integration of the increased renewable energy generation to the transmission system. In the context of improving energy efficiency, by National Energy Efficiency Action Plan , a cumulative 23.9 Mtoe of primary energy consumption reduction was targeted in the period of 2017-2023. There are several ongoing efforts in fields of process/ structure/system renewal, awareness-raising activities, energy efficiency consultancy services and energy management developments to increase energy efficiency at industry, public and service buildings. An obligation of conducting energy efficiency audits and forming energy management systems were introduced for industrial enterprises of certain size. Various support mechanisms are introduced such as Efficiency Improvement Projects and Voluntary Agreements. Work is proceeding to improve energy efficiency classes of new and existing buildings, improve public buildings through Energy Performance Contracts, and promote the use of on-site generation and renewable energy in buildings. In Turkey, the annual primary energy intensity index decreased by 1.3%, and the final energy intensity index by 1.4% in 2000-2017. Another factor that contributed to the reduction of energy intensity was the reduction of the energy intense manufacturing industry’s share in GDP, while there was an increase in the share of the service sectors. Also, despite its limited impact, transition from low and medium-low technologies to medium-high technologies with lower energy consumption seems to have impact on reducing the energy intensity. The activities in energy efficiency, enhancement investments especially in the manufacturing industry, new houses that are added to the stock with better thermal insulation and the extensive use of high-efficiency electrical appliances were also effective in this development. In the context of the National Energy Efficiency Action Plan, approximately 1 million TOE of energy saved through 1.2 billion USD investment up to date. The loss in the grid recently reduced to 12% through energy efficiency efforts and expanding distributed generation. A total of 23.1 million TL was granted by MENR through 210 efficiency improvement projects which ultimately resulted in annual savings of 84 million TL up to date. Under the Support for Individual Irrigation Systems in the 2002 2005 2010 2015 2016 2017 2018 Share of Renewable Energy Resources in Electricity Generation (%) 0 22.500 45.000 67.500 90.000 Installed Power of Renewable Energy (MW) Share of Renewable Energy Resources in Electricity Generation (%) 26.3% 24.6% 26.4% 32.2% 33.2% 29.6% 32.5% Installed Electricity Power (MW) 88,551 85,200 78,497 73,147 49,524 38,820 31,846 42,453 38,908 34,574 31,606 17,342 12,977 12,305 80 TURKEY’s 2nd VNR 2019 SUSTAINABLE DEVELOPMENT GOALS “Strong Ground towards Common Goals”
context of Rural Development Support, the Ministry of Agriculture and Forestry granted approximately 200 million TL to 9,093 projects providing the installation of energy-efficient irrigation systems on 865,000 decares of land. By a regulation issued in February 2019, the threshold of 80% specified against value of a home offered as security against a home mortgage was raised to 90% for class A energy-efficient homes, and 85% for class B energy-efficient. In the context of developing clean energy technologies and infrastructure, seeking international energy collaboration via YEKAs, bringing Turkish energy industry together with foreign technologies and regulations towards transfer of accumulated knowledge are in line with the target of developing international collaboration regarding clean energy technologies. Establishment of R&D facilities and the planning of technology transfer developed by these technologies are improvements for Turkey that imports renewable energy technologies substantially. Increased clean energy resources usage and energy efficient solutions in the heating and transport sectors beside to electricity generation, will decrease rate of energy consumption increase, which will significantly contribute to achieving the goals. In this context, work is underway to provide natural gas for administrative districts and OIZs without natural gas distribution network. To achieve targets in the context of accessible and clean energy, it is important to raise awareness in all segments of the society. NEXT STEPS: The following policies will be implemented in the upcoming years to achieve SDG 7: • Developing the required grid structure for continuous energy supply concerning efficiency and technology, • Increasing practices towards smart grid development, • Creating long-term grid infrastructure plans, • Defining long-term national energy and climate strategy roadmap, • Establishing legal infrastructure regarding energy storage systems, • Evaluating alternative finance mechanisms for domestic equipment incentives, • Establishing market infrastructure to increase public awareness regarding energy efficiency and to practice demand-side participation, • Scaling up energy efficiency practices in public buildings through Energy Performance Contracts (EPC) model, • Providing incentives for fuel efficient vehicles, • Increasing the share of district heating and cooling systems with high energy efficiency in the total inventory of heating and cooling systems, • Defining energy efficiency targets for public buildings, • Introducing incentives to scale up the use of efficient vehicles in transport and agriculture. 81 TURKEY’s 2nd VNR 2019 SUSTAINABLE DEVELOPMENT GOALS “Strong Ground towards Common Goals”