TURKISH EXPORTERS EYEING NEW MARKETS IN LATIN AMERICA, AFRICA

SAO PAULO/ANKARA, July 22 Asia Pulse - Latin America and Africa are new bright spots for Turkish exporters after a contraction in conventional markets due to global economic crisis.

Turkish exports fell to an annual volume of around US$100 billion this year from last year's US$132 billion of exports.

Turkish exporters are now seeking new markets to overcome difficulties stemming from market contraction, especially in Europe.

For this purpose, Turkish businessmen led by State Minister for foreign trade Zafer Caglayan, travelled to Latin America last week on a tour covering Chile and Brazil.

Turkey is willing to sign a free trade deal with Mercosur zone which includes Brazil, Argentina, Paraguay and Uruguay, however, Turkish Exporters' Assembly Chairman Mehmet Buyukeksi said talks on a possible deal had not been satisfactory for Turkey.

"There is a 3.5 per cent customs duty on imports from these countries due to customs union deal that Turkey signed. But we are burdened by the 30 per cent duty on Turkish exports to such countries," Buyukeksi said.

Buyukeksi said Turkey could work together with Latin American countries on trade with Central Asia which is considered the new market for the world.

"They have the chance to reach Kazakhstan or Uzbekistan through Istanbul," he said. "This advantage could reflect onto our trade."

Buyukeksi also said that Turkish companies mostly sell automotive and spare parts, iron and steel, textiles and chemical materials to Latin America, especially to Brazil.

"We have to improve trade with Brazil. We aim to increase our bilateral trade volume in three years to US$5 billion from US$1.7 billion," he said.

"Potentially, Africa is an easier and untouched market but Latin America is important too. But it is a much more difficult market for us due to trade balance which is disadvantageous for Turkey," he said.

Dubai-based Emaar eyes new opportunities in Turkey

03.07.2009

Hurriyet Daily News - Emaar Turkey, a local unit of Dubai-based Emaar Properties PJSC, has long-term plans for Turkey, according to Ozan Balaban, CEO of the property firm. Emaar has so far sold 147 of the 174 houses it has built in the Buyukcekmece district of Istanbul and is now planning a new investment in Libadiye.

Emaar Turkey has USD 4 billion worth of plans for Turkey. The company entered the Turkish market in 2006 and has already sold the first phase of Tuscan Valley Houses, its first project in Turkey.

"We have long-term plans for Turkey. We are keeping an open mind with regard to new investment opportunities. We are not fostering a build-and-sell mentality. We are here to stay" said Ozan Balaban. "In the long term, we are planning to turn Emaar into a real estate investment trust and open it to the public" he added.

Gama Enerji Secures Nearly $1 Bln For Water Pipeline Proj-IHA

8 juillet 2009

ISTANBUL (Dow Jones)--

Turkish firm Gama Enerji AS said Wednesday it has secured around $1 billion to build a 325 kilometer water pipeline in Jordan, the Ihlas News Agency, or IHA, reports.

In a press statement the company said U.S. investment firm OPIC, the European Investment Bank and French investment firm Proparco will provide $445 million for the project, while Jordanian Water Ministry will provide $300 million.

It noted that it will provide $190 million from its own capital for the project.

Gama Enerji is a joint venture between Gama Holding and GE Energy Financial Services.

Foreign firms investing in Iraq

By Jim Michaels, USA TODAY WASHINGTON — European and Asian companies are beating their American rivals into Iraq now that security has improved the investment climate, Iraq and U.S. officials say. "It's starting to turn … and the people who are getting in on the ground floor are not American," said Paul Brinkley, the Pentagon official who is leading U.S. efforts to help Iraq rebuild its economy. "It's ironic." Foreign companies, including U.S. investors, have committed to deals worth about $500 million so far this year and Brinkley expects at least $1 billion in foreign investment by the end of the year. So far, Romanian consortium and a Lebanese company have signed revenue-sharing deals with Iraqi state-owned cement factories. Each group will invest about $150 million. China has also aggressively pursued the Iraqi market, selling machinery to the government and electronic products to consumers. Iraqi Foreign Minister Hoshiyar Zebari, in Washington on an official visit, said Monday that larger U.S. firms were waiting for more security before entering the market. Zebari noted that Turkish and Russian companies were already active in Iraq. "They take risks," he told USA TODAY in an interview. "No pain, no gain." Many of the companies active in Iraq now are from countries, including France, Russia and Turkey, that did not send combat troops to back the U.S.-led invasion. Some U.S. and Iraqi officials say American companies risk losing an early opportunity to establish long-term strategic ties with Iraq. "My question is, 'Where are you guys in terms of investment, in terms of economic engagement?' " said Naufel al-Hassan, Iraq's commercial counselor in Washington. "Iraqis need your support. Why let someone else do that?" There are no reliable historic numbers, but the deals this year are among the first major investment opportunities outside U.S.-funded reconstruction projects and they signal new confidence in Iraq's economy. The activity by non-U.S. companies is not a cause for concern, said Charles Reis, the U.S. counselor for economic transition in Iraq. "This is a normalization of Iraq's relationship with the rest of the world," he said. Large U.S. companies won the bulk of the $20 billion worth of reconstruction contracts funded by the military. Now, however, opportunities are riskier and require more local understanding. That has favored non-U.S. investors who have had prewar experience in Iraq, said Timothy Mills, president of the American Chamber of Commerce in Iraq. American companies may also be reluctant to invest in Iraq because the war has generated so much controversy at home, Brinkley said. The private investments that come from the USA are generally individual or institutional investors — not American corporations, Brinkley said. U.S. investors, for example, are part of a $120 million deal to build a hotel in the heavily fortified Green Zone, where U.S. and Iraqi government offices are located. Americans lead other nations in the number of exports to Iraq, but other nations have ramped up trade. China doubled the number of exports to Iraq this year. China is now Iraq's third-largest trade partner behind the USA and Turkey, according to Global Trade Information Services, a firm that tracks trade statistics.

Find this article at: USA Today

Turkish Petroleum Corporation

Turkish Petroleum Corporation - Business Description

4 mai 2009

Global Markets Direct Company Profiles

Anglais

(c)2009, Global Markets Direct.

Overview

Turkish Petroleum Corporation Business Description

TPAO is engaged in hydrocarbon exploration, drilling, production, refinery and marketing business as Turkey's solitary national company. The company offers natural gas storage, and participates in oil and natural gas pipeline projects. It is also engaged in oil trade and transportation of hydrocarbon products.

Currently, the company’s wholly owned subsidiaries are Turkish Petroleum International Company Ltd. (TPIC), Turkish Petroleum Overseas Company Ltd. (TPOC), Turkish Petroleum Btc Ltd. (TPBTC), Turkish Petroleum Scp Ltd. (TPSCP) and Kazakturkmunai (KTM) Ltd. Joint company (Kazakturkmunay).

The company operates through domestic exploration and international exploration activities.

Domestic exploration consists of domestic production, drilling, joint exploration, production, and exploration of offshore fields in Turkiye. The company conducts exploration and drilling activities to determine hydrocarbon potential of new fields such as Pervari (Siirt), Silopi, Erzurum, Bafra, Ayvalik and Yuvakoy (Burdur-Isparta).

During the year 2007, the company drilled 74 wells. The oil discoveries were realized and exploration wells Gokce 1 and Gogeli 1 were drilled in Adiyaman-Gaziantep. Natural gas discoveries in Fidanlik-1 exploration well drilled in Thrace region and Yolacan-C1 well drilled in Siirt were realized. Akcakoca-4, Guluc-1, Alapli-1 and B.Eskikale-1 wells drilled by TPAO-Toreador-Stratic joint venture were completed as gas wells in the year 2007.

In the year 2007, the company produced 10,297,955 barrels of crude oil from its fields. The total production wells of the company were 823 in 2007. In 2007, the company’s total domestic and international oil production reached over 70.000 bpd.

In 2007, TPAO‘s cumulative natural gas production was 421,464,200 sm3. The cumulative hydrocarbon production was realized as 12,777,156 barrels at the end of the year.

The company started many new ventures in the Middle East, Syria, Iran, Iraq, Turkmenistan, North Africa and other countries during the year. Under Onshore, the company operates four joint venture agreements.

In 2006, the company jointly with Toreador produced around 410 thousand barrels of crude oil at the Cendere field (Adiyaman) in South Eastern Anatolia Region.

The company under its joint venture agreement with Perenco to produces oil from Kastel, Karaali and Yalankoz fields in South Eastern Anatolia Region. Further, the company transferred 50% interest in some specific area to Perenco.

The company also operates Western Black Sea Exploration, Production and Development project under partner ship with Toreador and Stratic. In addition the company operates four projects namely Bati Raman field enhanced oil recovery project, Raman field production enhancement project, Bati Kozluca field water alternating gas (wag) project and Garzan field water injection project.

The company conducts its international activities mainly in Caspian Region, North Africa and Middle East. It also carries out its exploration and production activities in Azerbaijan, Kazakhstan and Libya.

In Azerbaijan, the company is engaged in three exploration, development and production projects. These are; Azeri-Chirag-Guneshli (ACG, 6,75%), Shah Deniz (9%) and Alov (10%) projects. In addition, the company has a share of 6,53 % in the BTC Co. and owns 9% share in South Caucasus Natural Gas Pipeline Project, which would transport Shah Deniz gas to Turkey-Georgia border.

In Kazakhstan, the company conducts its activities under a Joint Venture KazakhTurkMunai (KTM) Ltd. in which the company holds a 49% share and KazMunaiGas owns 51%. This joint company owns one concession in Aktau Region and two in Aktubinsk Region. Further, in Libya, the company carries out activities in block NC188, block NC189, 147/3 and 147/4.

Turkey forms 3 consortiums for Iraq oil tenders

* Turkey eyeing all big oilfield deals

* Iraq restricts bidding to only large oil firms

By Orhan Coskun

ANKARA, May 15 (Reuters) - Turkey has formed three consortiums with an eye to bid for oil exploration rights for nearly all big oilfields in Iraq at the end of June, the head of Turkey's state-owned oil firm TPAO said on Friday.

TPAO General Manager Mehmet Uysal also said TPAO would plan on bidding in Iraq oil tenders alone if the possibility were given to small companies in the tender process.

Oil-revenue dependent Iraq has given oil companies a chance to bid for the rights to explore some of its larger oilfields, but currently only large oil firms can participate in the exploration tenders due at the end of June.

Uysal did not say what companies they would be working with in consortium.

"We've formed three consortia for exploration tenders in Iraq. Talks are continuing with two others. We are working on bids for nearly all the large oilfields at the end of June," Uysal said in an interview with Reuters.

He also said that net energy importer Turkey had ended its farming out period for exploration rights in the Black Sea, but that more partnerships could be formed for exploration in the region if a very attractive offer came.

Uysal said on Thursday talks with Chevron had stalled after failure to agree on several issues in the deal.

Exxon and Petrobras are continuing work on exploration in the Black Sea.

He also said production in the Black Sea would start in 2017-2018 after a three-year drilling period, later than an earlier estimate of 2015-2016.

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Turkey, EU countries sign deal for gas pipeline to reduce European dependence on Russia

ANKARA, Turkey (AP) -

European countries on Monday sealed an important agreement aimed at diversifying the continent's energy sources -- but their pipeline project to bring natural gas from Central Asia and the Middle East to Europe can't entirely break Russia's dominance.

The Nabucco pipeline is still seeking gas supplies -- in particular, from Azerbaijan -- despite promising words by Iraq, Turkmenistan, Egypt and Syria. It may even need Russian supplies to fill its 31 billion cubic meters of capacity -- although Moscow would be likely to be reluctant to ship gas through Nabucco as it competes with rival Russian pipeline projects running to Europe.

The European Union and the United States -- key backers of Nabucco -- say they are confident that gas supplies will now be found after Monday's agreement signed by Turkey and four EU countries -- Austria, Bulgaria, Romania and Hungary -- to allow the pipeline to cross their countries.

The 2,050-mile (3,300 kilometer) projected pipeline would run from the Caspian Sea across Turkey to Austria and involves investments of euro8 billion ($10.26 billion), according to EU data. Still, Nabucco's impact can't end Europe's need for large amounts of Russian gas, as it can carry no more than 5 percent of Europe's consumption.

Moscow, meanwhile, is pushing hard for alternative pipelines to Europe for its own gas -- the so-called "Nord Stream" through the Baltic Sea to Germany and the "South Stream" through Bulgaria.

And there are serious political and structural obstacles ahead for Nabucco.

Russia just two weeks ago clinched a new major natural gas deal with Azerbaijan to buy 500 million cubic meters of gas annually, gas that could have supplied the European effort. Azerbaijan's Energy Minister Natiq Aliev on Monday refrained from any clear commitment to Nabucco. The deal with Russia is small but reveals the influence of Moscow over former Soviet republics.

"We support all directions concerning gas pipelines," he said. "A certain amount of flexibility is required. It's the profitability regarding trade that is important."

Turkmenistan's President Gurbanguli Berdymukhamedov on Friday signaled a desire to break Russia's lock on most of the nation's gas exports since the Soviet collapse in 1991, saying the desert nation has "colossal natural gas reserves," and could support Nabucco.

But to feed Nabucco, Turkmen gas would have to be brought across the Caspian Sea to its western shore in Azerbaijan and there is no existing pipeline. In addition, Turkmenistan and Azerbaijan are at odds over Caspian Sea rights.

Iraq's Prime Minister Nouri Al-Maliki on Monday surprised many by saying "Iraq can provide around 15 billion cubic meters for EU countries via Turkish territory."

Two Nabucco partners are exploring northern Iraq gas fields adjacent to Turkey but the regional Kurdish authority has to work out export details with the central government in Baghdad. Iraq also would need the construction of new pipelines through Syria and Turkey to join Nabucco.

Qatar could export liquefied natural gas to a projected facility in Turkey which can convert it and pump the gas to Europe through the Nabucco pipeline, Turkey's Prime Minister Recep Tayyip Erdogan said.

In an obvious reference to Nabucco, Prime Minister Vladimir Putin said in May that Russia has nothing against alternatives to its planned pipelines but added acidly: "Before putting millions of dollars into a pipeline and burying it in the ground, you have to know where the gas for this pipeline is going to come from."

Alexey Gromov, deputy director of Russia's State Institute of Energy Strategy, said Nabucco pits backers of Nabucco against Russia in a "political struggle."

Russia provides over a quarter of Europe's gas, and 80 percent of that moves over Ukrainian pipelines. By diversifying imports and redirecting some of the Russian shipments through Nabucco, Europe could prevent a repeat of the January crisis in which all deliveries through Ukraine were suddenly cut off because of a price dispute.

The United States and Turkey do not object to Russia's participation in Nabucco as a business partner but Washington says Iran should be excluded until it improves its ties with the West.

The Nabucco would not only make Turkey an alternative energy route between Central Asia and the Middle East to Europe but could potentially enhance Turkey's hand in overcoming EU resistance to letting it join the union.

"I believe that with the arrival of the first gas -- and some experts have said this will be as early as 2014 -- this agreement will open to door to a new era between the EU and Turkey," EU President Jose Manuel Barroso said. "Gas pipes may be made of steel, but Nabucco can cement the links between our people."

TURKISH GSM TURKCELL TO SUBMIT BID FOR LIBYAN SERVICES

ISTANBUL, July 14;

A Turkish GSM operator will submit bids for Libyan communication services, a company statement said on Monday.

Turkey's Turkcell GSM operator will join a licence tender for landline and mobile telecommunication services in Libya.

The company decided on July 10 to submit bids for the tenders. Turkcell defined Libya, with a population of almost seven million, as a stable macro-economic medium with US$15,000 of high income per capita, and a good opportunity for entering the North African market.

GSM-based mobile communication started in Turkey when Turkcell started its operations in February 1994. Turkcell signed a 25-year GSM license contract on April 27, 1998 with the Ministry of Transportation of Turkey. Since then, it has continuously increased the variety of its services based on mobile audio and data communication, its quality levels and as a result, number of subscribers.

As of December 31, 2008, Turkcell has made US$7.7 billion worth of investment in Turkey. Again as of December 31, 2008, with its 37 million subscribers, Turkcell is not only the leading operator in Turkey, but is also the third biggest GSM operator in Europe in terms of number of subscribers. Turkcell's shares have been traded on Istanbul Stock Exchange (IMKB) and New York Stock Exchange (NYSE) since July 11, 2000 and it is the first and only Turkish company ever to be listed on NYSE.

Turkey Is Getting Ready to Harvest Its Renewable Energy Potential.

When we talk about wind, solar and geothermal power, geographical conditions such as surface areas and sunny latitudes are very important. Turkey offers excellent conditions for all of these renewable energy sources. Its young population of 70 million - 61% are under the age of 35 - and its strategic location between Europe and the Middle East, add to Turkey’s potential for a leading green power nation.

As Turkey aims at taking its place among the top-ten biggest economies by 2050, an increase in its energy consumption is inevitable. Electricity demand has been growing with an annual rate of 6.5% since 2002, up to current levels of 198,000 GWh/y. Scenarios forecast a 6% growth rate until 2020, compared to growth rates of 1-3% in developed countries. However, Turkey’s growth of electricity supply barely matches its fast growth of demand. The country began experiencing shortages already, and power has become a more popular daily topic. Total installed capacity is at 42,000 MW, with foreign natural gas (48%), coal (29%) and hydro power (17%) providing the biggest shares of resources. So far, the share of renewable energy is close to 1% of the total installed capacity.

In 2006, the government passed a set of incentives to stimulate the renewable energy sector. The efforts successfully resulted in substantial increases in the wind power capacity to 433 MW in 2009 from 50 MW levels in 2006. From 2007 to 2008, the capacity almost quadrupled. Currently, there is additional 450 MW construction to be completed by the end of 2009. Roof-top solar panels, which are commonly used for water heating in the Mediterranean region, produce energy equivalent to almost 4800 GWh/y, however installed photovoltaic capacity is only 2 MW. Turkey is the 5th in the World in operating geothermal energy applications with equivalence of 1380 MW capacity used in direct district heating and tourism industry. Geothermal power production capacity is currently 30 MW. So far, only modest steps have been taken since the government has not set clear targets or competitive incentives on new technologies yet.

According to studies, Turkey has around 48,000 MW of wind power potential (see REPA) with speeds higher than 7 m/s. The geothermal energy potential of the country is around 31,500 MW -one of the highest in Europe- which could be used for both heating and electricity production purposes. As Turkey is the second sunniest country in Europe after Spain, it can draw 380,000 GWh/y of solar energy - almost double the total electricity consumption of the country in 2008.

Turkey has signed the UNFCCC Kyoto Protocol this year, and the country is going to be assigned a reduction of greenhouse gases for the post-2012-phase, which will eventually turn into clearer targets in its renewable energy sector.

It is expected that the Parliamentary General Assembly will pass an amendment to “Renewable Energy Resources Law 4628″ in July, effectively setting a purchase price, or feed-in-tariff, for renewable energy. While the renewable energy can be sold to the public at rates shown in Graph-1, the prices are still not competitive enough to make solar favorable against natural gas. The tariffs for photovoltaics are set at EUR 0.25/kWh only for the first 10 years of operation, and then decrease to EUR 0.20 for the next 10 years.

While rates in other European countries are much more attractive (see Graph-2), particularly in countries like Greece and Italy trying to catch up to their western neighbors, it is the first serious step towards setting a long-term purchase price incentive for renewable energy producers. The mechanism is expected to increase developments in the Turkish renewable energy sector, and investors are already beginning to position themselves in the market.

There are still many unclear issues regarding regulations and their execution. While this problem is not unique to Turkey, the country’s transmission grid needs extensive upgrades. Despite this and other much needed developments, EU directives, feed-in-tariffs, Kyoto mechanism obligations, and technological developments in the solar and wind industries are pushing the country onto the right track. Setting up and achieving goals may need more time than planned, but it is clear that Turkey is becoming more aware of its natural conditions.

[photo credit: UweBKK]

Related Links :

Ministry of Energy and Natural Ressources (Enerji ve Tabi Kaynaklar Bakanlığı)
http://www.enerji.gov.tr

General Directorate of Electrical Power Ressources Survey (Elektril İşleri Etüt İdaresi Genel Müdürlüğü)
http://www.eie.gov.tr

EPDK (Enerji Piyasası Düzenleme Kurumu)
http://www.epdk.gov.tr

TEIAS (Türkiye Elektrik İletim A. Ş. Genel Müdürlüğü)
http://www.teias.gov.tr

Union of Chambers of Turkish engineers and architects, TMMOB
http://www.tmmob.org.tr/

Wind Power and Hydropower Plants Businessmen's Association (Rüzgar Enerjisi ve Su Santralleri İşadamları Derneği)

http://www.ressiad.org.tr

The Chamber of Electrical Engineer (Dünya Enerji Konseyi Türk Milli Komitesi)

http://www.emo.org.tr/genel/bizden_detay.php?kod=50979&tipi=50&sube=0

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Sweden shows support for Turkiye's EU bid as it takes over bloc's helm

Sweden, who took over the rotating EU presidency from the Czech Republic, will continue to support Turkey until the day it becomes a full member of the European Union, the country's ambassador in Ankara Christer Asp told the state-run Anatolian Agency.

"I think that it is wrong to only look at how many chapters have been opened for negotiations," Asp said. "What is crucial is the continuation of negotiations. It is important to meet the conditions and criteria in order to open new chapters of negotiations."

Turkey, which began accession talks in 2005, on Tuesday opened talks on taxation, one of the 35 policy negotiating areas – or chapters – all would-be members have to complete before joining.

Ankara has now formally opened 11 chapters. Eight other chapters have been frozen since 2006 due to a customs dispute with Greek Cypriots. France is blocking another five chapters directly linked to EU membership.

Asp said Sweden is ready to open all negotiating areas with Turkey, but added the chapters remaining to be opened are the most difficult ones.

He also said he has no doubt that Turkey will become a full member of the EU, adding it would be a strategic error not to let Turkey into the bloc.

Swedish officials recently expressed support for Turkey's long-running membership bid, as the Nordic country has said it is determined to continue progress in Turkey’s accession negotiations.

Related links:

Turkey to 'never give up' EU bid, BBC

Turkey has urged France and Germany to back its bid to join the EU, rejecting calls for a special partnership rather than full membership.

Ankara takes slow step forward in EU accession talks, Today's Zaman

At a regular ministerial conference held Tuesday in Brussels, Turkey and the European Union officially opened membership negotiations on the taxation chapter, bringing the number of areas currently under consideration to 11, out of 35 chapters in total.

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Turkey Is Getting Ready To Harvest Its Renewable Energy Potential.

When we talk about wind, solar and geothermal power, geographical conditions such as surface areas and sunny latitudes are very important. Turkey offers excellent conditions for all of these renewable energy sources. Its young population of 70 million - 61% are under the age of 35 - and its strategic location between Europe and the Middle East, add to Turkey’s potential for a leading green power nation.

As Turkey aims at taking its place among the top-ten biggest economies by 2050, an increase in its energy consumption is inevitable. Electricity demand has been growing with an annual rate of 6.5% since 2002, up to current levels of 198,000 GWh/y. Scenarios forecast a 6% growth rate until 2020, compared to growth rates of 1-3% in developed countries. However, Turkey’s growth of electricity supply barely matches its fast growth of demand. The country began experiencing shortages already, and power has become a more popular daily topic. Total installed capacity is at 42,000 MW, with foreign natural gas (48%), coal (29%) and hydro power (17%) providing the biggest shares of resources. So far, the share of renewable energy is close to 1% of the total installed capacity.

In 2006, the government passed a set of incentives to stimulate the renewable energy sector. The efforts successfully resulted in substantial increases in the wind power capacity to 433 MW in 2009 from 50 MW levels in 2006. From 2007 to 2008, the capacity almost quadrupled. Currently, there is additional 450 MW construction to be completed by the end of 2009. Roof-top solar panels, which are commonly used for water heating in the Mediterranean region, produce energy equivalent to almost 4800 GWh/y, however installed photovoltaic capacity is only 2 MW. Turkey is the 5th in the World in operating geothermal energy applications with equivalence of 1380 MW capacity used in direct district heating and tourism industry. Geothermal power production capacity is currently 30 MW. So far, only modest steps have been taken since the government has not set clear targets or competitive incentives on new technologies yet.

According to studies, Turkey has around 48,000 MW of wind power potential (see REPA) with speeds higher than 7 m/s. The geothermal energy potential of the country is around 31,500 MW -one of the highest in Europe- which could be used for both heating and electricity production purposes. As Turkey is the second sunniest country in Europe after Spain, it can draw 380,000 GWh/y of solar energy - almost double the total electricity consumption of the country in 2008.

Turkey has signed the UNFCCC Kyoto Protocol this year, and the country is going to be assigned a reduction of greenhouse gases for the post-2012-phase, which will eventually turn into clearer targets in its renewable energy sector.

It is expected that the Parliamentary General Assembly will pass an amendment to “Renewable Energy Resources Law 4628″ in July, effectively setting a purchase price, or feed-in-tariff, for renewable energy. While the renewable energy can be sold to the public at rates shown in Graph-1, the prices are still not competitive enough to make solar favorable against natural gas. The tariffs for photovoltaics are set at EUR 0.25/kWh only for the first 10 years of operation, and then decrease to EUR 0.20 for the next 10 years.

While rates in other European countries are much more attractive (see Graph-2), particularly in countries like Greece and Italy trying to catch up to their western neighbors, it is the first serious step towards setting a long-term purchase price incentive for renewable energy producers. The mechanism is expected to increase developments in the Turkish renewable energy sector, and investors are already beginning to position themselves in the market.

There are still many unclear issues regarding regulations and their execution. While this problem is not unique to Turkey, the country’s transmission grid needs extensive upgrades. Despite this and other much needed developments, EU directives, feed-in-tariffs, Kyoto mechanism obligations, and technological developments in the solar and wind industries are pushing the country onto the right track. Setting up and achieving goals may need more time than planned, but it is clear that Turkey is becoming more aware of its natural conditions.

[photo credit: UweBKK]

Related Links :

Ministry of Energy and Natural Ressources (Enerji ve Tabi Kaynaklar Bakanlığı)
http://www.enerji.gov.tr

General Directorate of Electrical Power Ressources Survey (Elektril İşleri Etüt İdaresi Genel Müdürlüğü)
http://www.eie.gov.tr

EPDK (Enerji Piyasası Düzenleme Kurumu)
http://www.epdk.gov.tr

TEIAS (Türkiye Elektrik İletim A. Ş. Genel Müdürlüğü)
http://www.teias.gov.tr

Union of Chambers of Turkish engineers and architects, TMMOB
http://www.tmmob.org.tr/

Wind Power and Hydropower Plants Businessmen's Association (Rüzgar Enerjisi ve Su Santralleri İşadamları Derneği)

http://www.ressiad.org.tr

The Chamber of Electrical Engineer (Dünya Enerji Konseyi Türk Milli Komitesi)

http://www.emo.org.tr/genel/bizden_detay.php?kod=50979&tipi=50&sube=0

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