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Turkish Power Market -The Renewables

June 6, 2011

2 |OMV Gas & Power Turkey

Turkish Power Market - Demand

Turkey’s electricity consumption was 210 TWh in 2010 with annual demand increase of 7.9%.

For 2011, 225 TWh of energy demand is expected which is corresponding to 7.1% increase.

2007 2008 2009 2010January 15.686 17.948 16.851 17.344February 14.548 16.504 15.010 15.720March 15.623 16.245 15.984 17.041April 14.786 15.652 14.849 16.262May 15.113 16.284 15.298 16.574June 15.560 16.527 15.900 17.118July 17.492 18.309 17.744 19.344August 17.579 18.392 17.705 20.368September 15.636 16.045 15.379 17.117October 15.071 14.917 15.990 17.161November 16.103 15.446 15.779 16.318December 16.803 15.816 17.591 19.127TOTAL 190.000 198.085 194.079 209.494


Turkish Power Market – Installed Capacity

Turkey’s installed power capacity is 50,644 MW as of May 2011.

MW Thermal GENERALTOTAL Dam River Wind Geo. TOTAL Rate

EÜAŞ 8.690,9 11.211,7 422,0 20.324,7 40,1%

EÜAŞ Subs. 3.834,0 3.834,0 7,6%TOR PPs 620,0 69,0 689,0 1,4%

Mobile PPs 262,7 262,7 0,5%BO PPs 6.101,8 6.101,8 12,0%BOT PPs 1.449,6 772,0 200,4 17,4 2.439,4 4,8%

Generation Co. 8.952,5 1.003,4 2.502,6 1.387,4 94,2 13.940,1 27,5%Autoproducers 2.507,3 540,0 4,2 1,2 3.052,7 6,0%TOTAL 32.418,8 13.527,2 3.198,2 1.406,0 94,2

Rate 64,0% 26,7% 6,3% 2,8% 0,2%50.644,3

HydroTURKEY'S INSTALLED POWER CAPACITY


Renewables in Turkey

As renewable sources, mainly 2 sources are dominant in Turkish power generation: Hydro & Wind.


Renewables in Turkey – Share in Generation

Inst. CapacityHydro 15.525 MW 51.401 GWh 24,5%Natural Gas 16.081 MW 95.403 GWh 45,5%Lignite 8.140 MW 35.499 GWh 16,9%Imp. Coal+Hard Coal+Asp. 3.151 MW 18.311 GWh 8,7%Liquid Fuel 1.584 MW 5.143 GWh 2,5%Wind 1.266 MW 2.827 GWh 1,3%Other Renewables+Waste 98 MW 358 GWh 0,2%Geothermal 94 MW 642 GWh 0,3%TOTAL 48.591 MW 209.583 GWh

As of 30.12.2010Generation


Renewables in Turkey – Strategy Paper

Electricity Market and Supply Security Strategy Paper was published by Ministry of Energy on 21st of May, 2009.

Main target is to ensure the share of renewable resources in electricity generation increasing up to at least 30% by 2023.

By 2023, technically and economically available hydroelectricpotential will be entirely put into use in electricity generation.

Main target is to increase installed wind energy power to 20.000 MW by 2023.

Geothermal potential of 600 MW, which is presently established as suitable for electricity generation will be entirely commissioned by 2023.

Target is to generalize the use of solar energy for generating electricity, ensuring maximum utilization of country potential.


Renewables in Turkey - Hydroelectric Energy

Turkey’s current installed hydroelectric capacity is 16,725.4 MW.

In 2010, 51.4 TWh of energy was generated from hydroelectric power plants. This corresponds to 24.5% of total generation.

Turkey’s economically feasible hydroelectric potential is 127.6 TWh/year. This potential corresponds to ca 36,000 MW.


Renewables in Turkey - Wind Energy

Turkey’s current installed wind capacity is 1,406 MW.

In 2010, 2.8 TWh of energy was generated from wind power plants. This corresponds to 1.3% of total generation.

Turkey’s economically feasible wind potential is 50 TWh/year. This potential corresponds to ca 20,000 MW.

By legislation, the investors are allowed to apply for a generation license for wind and solar power projects on the day EMRA (Energy Market Regulatory Authority) announces.

On 01.11.2007 EMRA received 759 wind power plant applications corresponding to 78,000 MW in total. Ca 7,000-8,000 MW is expected to be licensed.


Renewables in Turkey - Wind Energy Potential


Renewables in Turkey – Solar Energy

Not any commercial solar power plant under operation in Turkey. Economically feasible potential for concentrated solar power plants in

Turkey is estimated as 131 TWh/year.


Renewables in Turkey - Solar Energy Potential

Global Solar Irradiation in Turkey (kWh/m2-year)


Renewables in Turkey – Geothermal Energy

Turkey having the potential of 31,500 MWt geothermal energy is the 5thin the world and the 1st in Continental Europe.

Turkey’s geothermal potential is estimated 2000 MWe and 31,500 MWt. Currently 94.2 MWe and 4000 MWt can be utilized.


Renewables in Turkey – Law

Renewable Energy Law (REL) was published in 2005. According to law,the feed-in-tariff (FIT) was 5 to 5.5 €cent/kWh for 10 years after COD for all renewable energy sources.

On 29th of December 2010, an amendment was published in the official gazette including major changes in the FITs:

So far, not any kWh of energy could be sold with the old and new FITssince Turkish Power Market prices were always above the incentives, on the average.

10 years

Hydro 7,3 ¢/kWhWind 7,3 ¢/kWh

Geothermal 10,5 ¢/kWhBiomass (including LFG) 13,3 ¢/kWhSolar 13,3 ¢/kWh

New REL_29.12.10



Important items in the amended law are: FITs will be valid for the projects that come into commercial

operation before 31.12.2015. The incentive is valid for 10 years after COD.

Local manufactured portion will be additionally subsidized for 5 years after COD.

The solar power plants that will come into operation until 31.12.2013 will not be more than 600 MW, in total.

Renewable power plants will have the priority in terms of connection approval at license applications. 85% discount shall be applied to the fees regarding permit, lease, easement right and the right to use with respect to the plant, access roads and the energy transmission line up to the grid connection point during the first 10 years of operation.

With the approval of Ministry (Energy and/or Environmental) it will be allowed to invest in national parks, natural parks, protected areas, etc.



5 years Max. Total

Turbine 1,3 ¢/kWhGenerator and power electronics 1,0 ¢/kWh

Blade 0,8 ¢/kWhGenerator and power electronics 1,0 ¢/kWhTower 0,6 ¢/kWh

Mechanical parts of nacelle and the rotor 1,3 ¢/kWhPV panel integration, solar panel structural mechanics 0,8 ¢/kWh

PV modules 1,3 ¢/kWhCells of PV modules 3,5 ¢/kWhInvertor 0,6 ¢/kWh

Sun beam focuser on the PV module 0,5 ¢/kWhRadiation Collecting Tube (Receiver) 2,4 ¢/kWhReflector Plate 0,6 ¢/kWh

Sun tracking mechanism 0,6 ¢/kWhMechanical part of heat storage system 1,3 ¢/kWh

Mechanical part of steam generation system for Solar Tower 2,4 ¢/kWhStirling Engine 1,3 ¢/kWhPV panel integration, solar panel structural mechanics 0,6 ¢/kWh

Fluidized Bed Steam Boiler 0,8 ¢/kWhLiquid or gas fired steam boiler 0,4 ¢/kWhGasification and gas cleaning group 0,6 ¢/kWh

Steam and gas turbine 2,0 ¢/kWhIC engine or stirling engine 0,9 ¢/kWhGenerator and power electronics 0,5 ¢/kWh

Cogeneration system 0,4 ¢/kWhSteam and gas turbine 1,3 ¢/kWh

Generator and power electronics 0,7 ¢/kWhSteam injector and vacuum compressor 0,7 ¢/kWh

HEPP

Geothermal

Wind

Photovoltaic

CSP

Biomass 5,6 ¢/kWh

2,7 ¢/kWh

New REL_Local Manufacturing Additional FIT_29.12.10

2,3 ¢/kWh

3,7 ¢/kWh

6,7 ¢/kWh

9,2 ¢/kWh


OMV Power Turkey

OMV Gas & Power was established in Turkey in 2007. The main activities are:

Gas Sales & Trading- Having 40% share in Enerco which has 2.5 bn m3 natural gas.

Power Generation- CCGT

– 870 MW CCGT in Samsun under construction. COD is mid 2012.

– Additional 800 MW-class CCGT investments are planned.- Hydro

– 759 MW HEPP in Hakkari is under licensing process.- Wind Project Development- Concentrated Solar Power (CSP) Project Development


OMV Power Turkey – Renewables – Doğanlı & ÇukurcaDam & HEPPs

Capacity 759 MW consisting of 4 dams:

Doğanlı 1 – 118 MW Doğanlı 2 – 39 MW Doğanlı 3 – 314 MW Çukurca – 288 MW

Annual Generation: 2165 GWh Planned start of construction: 2013 Expected COD: 2018

Current Status Applied to EMRA for generation license

on 28.07.2010. It’s expected to be awarded for the

generation license by the end of 2012.


OMV Power Turkey – Renewables – Wind Projects

OMV had evaluated potential project acquisitions, so far.

Developing a greenfield project is not possible due to the limitations in the legislations.


OMV Power Turkey – Renewables – Solar Projects

Prefeasibility study for determining promising sites are finalized. Feasibility study for the short-listed sites are on-going. It will be hardly

feasible with the latest FIT of 13.3 US¢/kWh. Solar measurements in the southeast part of Turkey are ongoing with

very promising results.


Sources

www.epdk.org.tr www.dsi.gov.tr www.eie.gov.tr

omv_dönmez.pdf

Documents

installed wind energy

turkish power generation

hydroelectric power

omv gas powermove

electricity generation

total generation

natural gas

twh of energy demand