TECLENERGY

EDUCATION MODULES' DEVELOPMENT FOR TECHNICAL AND LEGAL ISSUES IN

ENERGY SECTOR TECHNOLOGIES

Energy Law Research InstituteTelephone: +90 (312) 474 06 70

Fax: +90 (312) 474 06 72e-mail: info@enerjihukuku.org.tr

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This book has been prepared within the scope of TAUMA Project numbered as 2013-1-TR1-LEO05-47545 and granted by European Union. The concect does

not reflect the wievs of European Union or Center for European Union Education and Youth Programmes- Turkish National Agency in any case.

TECLENERGY

EDUCATION MODULES' DEVELOPMENT FOR TECHNICAL AND LEGAL ISSUES IN

ENERGY SECTOR TECHNOLOGIES

Editör: Ebru YALÇIN CANATAN & Eleftherios GIAKOUMELOS

Isbn:

Copyright: Energy Law Research Institute

October 2015, Ankara

WritersChapter 01

Energy Efficiency Training Moduledr Zsigmond Zétėnyi- University of Oradea, Romania

Ottó Edőcs, Szenzor Hungára Kft., Hungary

Chapter 02Renewable Energy Training Module

Dr. Ferenc Lezsovits, Budapest University of Technology & Economics (BME), Department of Energy Engineering- Hungary

Dr. Ferenc Dénes, Budapest University of Technology & Economics (BME), Department of Energy Engineering-Hungary

Eleftherios Giakoumelos & Dr. Charalampos Malamatenios, Centre for Renewable Energy Sources and Saving (CRES), Training Department-

Greece

Chapter 03Legal Training module of Energy Efficiency and Renewable Energy

Dr. İbrahim ERMENEK, Gazi University Faculty of Law, TurkeyDr. Serdar Ünver, Gazi University Faculty of Law, Turkey

Süleyman BOŞÇA, Energy Law Research Institute, Turkey

Chapter 04Mustafa ERKEÇ, Republic of Turkey Ministry of Energy and Natural

Resourses-General Directorate of Renewable Energy, TurkeyMuhammed Necip ERİM, Republic of Turkey Ministry of Energy and

Natural Resourses-General Directorate of Renewable Energy, TurkeyBurhan GÜLDİBİ, Republic of Turkey Ministry of Energy and Natural

Resourses-General Directorate of Renewable Energy, TurkeyKorkmaz GÜL, Republic of Turkey Ministry of Energy and Natural

Resourses-General Directorate of Renewable Energy, Turkey

Chapter 05Mehmet Buğra Pekuslu, Ostim Organized Industrial Region, Turkey

İNDEX1 Energy Efficiency Training Module 91.1 Energy Efficiency 91.1.1 Energy Efficiency - Introduction 91.1.2 Energy Commodities – Introduction 171.2 Combined Heat and Power plants 201.2.1 Definition of Cogeneration 201.2.2 Features of Cogeneration 201.2.3 Technical Principles of Operation 201.2.4 Technical Aspects having an Impact on Cash Flows 281.2.5 Economics of Cogeneration Plants 321.2.6 Cogeneration Projects Risks 331.2.7 Outlook 331.2.8 References 341.3 Buildings Energy Efficiency 351.3.1 Energy Efficiency Retrofits in Buildings 351.3.2 References 491.4 Energy Efficiency in Industry 511.4.1 Introduction 511.4.2 Technical Principles for Assessing Energy Efficiency Interventions in Industry 541.4.3 Technical Aspects Influencing the Projects Cash-Flows 601.4.4 Investments and other Costs related to Energy Efficiency in Industry Projects 631.4.5 Types of Risks for Energy Efficiency Projects 651.4.6 References 651.5 Energy Efficiency in Transportation 661.5.1 Introduction 661.5.2 Technical Aspects of Energy Efficiency Interventions in Transportation 671.5.3 Factors Influencing the Projects Cash-Flows 721.5.4 Transport Economics 791.5.5 Transport Project Risks 801.5.6 References 812 Renewable Energy Training Module 822.1 Wind Energy Projects 822.1.1 Introduction 822.1.2 Technical principles of operation 822.1.3 Aspects having an impact on cash flows over the whole life of Wind Energy projects 882.1.4 Offshore Wind Energy 922.1.5 Wind Energy projects economics 932.1.6 References 972.2 Photovoltaic Systems 982.2.1 Introduction 982.2.2 Technical Principles of Operation 982.2.3 Technical aspects having an impact on cash flows over the whole life of PV systems 103

2.2.4 PV systems economics 1072.2.5 References 1102.3 Small Hydropower Plants 1112.3.1 Introduction 1112.3.2 Technical principles of operation for SHP 1132.3.3 Technical aspects having an impact on cash flows in the case of small Hydropower plants 1192.3.4 Economics of small hydropower schemes 1212.3.5 References 1232.4 Bioenergy applications 1242.4.1 Introduction 1242.4.2 Technical principles of operation of biomass applications 1262.4.3 Aspects having an impact on cash flows over the whole life of Bioenergy Applications 1372.4.4 Economics of bioenergy applications 1422.4.5 References 1462.5 Solar Thermal Systems 1472.5.1 Introduction 1472.5.2 Technical principles of operation of Solar thermal systems 1472.5.3 Aspects having an impact on cash flows over the whole life of solar thermal systems 1612.5.4 Financial considerations for solar thermal systems 1642.5.5 References 1652.6 Geothermal energy projects 1662.6.1 Introduction 1662.6.2 Technical Principles of Operation 1662.6.3 Aspects having an impact on cash flows over the whole project life-time 1742.6.4 Financial aspects of geothermal energy exploitation 1762.6.5 References 1792.7 Heat Pumps 1802.7.1 Introduction 1802.7.2 Technical principles of operation 1802.7.3 Technical aspects impacting on the cash flows over the whole life of heat pumps systems 1892.7.4 Economics of heat pumps 1912.7.5 References 1923 Legal Training module of Energy Efficiency and Renewable Energy 1933.1 Legislation on Energy Efficiency 1933.1.1 National Regulations 1933.2 Legislation in Renewable Energy 2063.2.1 International Regulations 2063.2.2 National Legislation 2074 Legal Processes in the Energy Sector 2164.1 Laws and Legislations Promoting Utilization of Renewable Energy Resources 2164.2 Legislation Regarding to Unlicensed Electricity Generation from Wind and Solar Energy 227

4.3 Legislations Regarding to Licensed Electricity Generation from Wind and Solar Energy 2294.4 Laws and Legislations Regarding to Electricity Generation from Geothermal Energy 2314.5 Energy Efficiency Policies in Turkey 2334.5.1 Energy Overview 2334.5.2 Legislative Framework of Energy Efficiency 2364.5.3 Outlines of EE Strategy Paper 2364.6 Energy Intensity of Turkey 2374.7 Energy Saving Potential By Sectors 2394.8 Energy Efficiency Services & Authorization 2404.9 Energy Management 2404.10 Monitoring 2414.11 Audits 2414.12 Energy Efficiency Incentives 2414.13 Building Energy Performance (BEP) Regulation 2424.14 Awareness Programs 2424.15 International Projects 2434.16 Conclusion 2435 Energy Efficiency and Renewable Energy Investment Finance 2455.1 Introduction to term efficiency 2455.1.1 Definition of the relation between energy consumption and productivity 2465.1.2 Affects of global crisis 2008 to reveal the importance of use of energy 2475.1.3 New ways to understand and define productivity and efficiency 2485.2 Know-how to measure efficiency and productivity rates of energy efficiency and renewable energy investments 2485.2.1 Classical efficiency determination approaches and new alternatives 2495.2.2 Introduction to term “exergy” 2525.2.3 Smart efficiency and productivity determination approaches 2545.3 Financial Engineering process so as to develop feasibility analysis methodology 2565.3.1 Introduction to financial instruments and parameters affecting the investment feasibility 2565.3.2 Introduction to financial methods to be used to monitor investment feasibility 2595.3.3 Developing the feasibility tables for energy efficiency and renewable energy investments analysis 2645.4 Introduction to Energy Efficiency Investments Rantability 2655.4.1 Critical parameters affecting the profitability and payback period of time of energy efficiency investments 2655.4.2 Average investment costs of energy efficiency investments 2665.4.3 Expected average reasonable payback periods of energy efficiency investments 2665.4.4 Optimization methods used to balance economic and ecological feasibility 2665.4.5 Noteworthy indicators while implementing an energy efficiency investment 2675.5 Introduction to Renewable Energy Investments Profitability 267

5.5.1 Critical parameters affecting the profitability and payback period of time of renewable energy application investments 2675.5.2 Average investment and operation & management costs of renewable energy investments 2685.5.3 Expected average reasonable payback periods of renewable energy investments 2685.5.4 Optimization methods used to balance economic and ecological feasibility 2685.5.5 Noteworthy indicators while implementing an renewable energy investment 2695.6 Possible Investment Financial plans by Using Funds and Credits 2705.6.1 Introduction to governmental and non-profit organizations supported funds 2705.6.2 Advices about how to use governmental and non-profit organizations supported funds 2715.6.3 Financial engineering approach while deciding to use governmental and non-profit organizations supported funds 2725.6.4 References 272

List of figures Figure 1 1: Energy Hierarchy and Waste Hierarchy 10Figure 1 2 Pyramid of Energy Efficiency Indicators [8] 13Figure 1 3 Cogeneration with Backpressure Steam Turbine [1] 22Figure 1 4 Equivalent Separate Heat and Power Efficiency [4] 31Figure 1 5: The Structure of the Residential Sector [7] 36Figure 1 6 Evolution of Building Stock between 2010 and 2050 [3] 38Figure 1 7 Project Risks Dimensions [1] 47Figure 1 8 Adopted Label for Tyres - Source: European Union (2009b) 74Figure 1 9 Limit Value Curve of the Passenger Car Regulation [1] 76Figure 2 1: Wind flow through a WT [1] 83Figure 2 2: Power extraction per rotor disk area versus wind speed [1] 83Figure 2 3: Some drag type rotors (vertical axis, plan view) 85Figure 2 4: Some lift type horizontal axis rotors 85Figure 2 5: Various lift type vertical axis rotors 86Figure 2 6: Horizontal axis wind turbine schematic [2] 86Figure 2 7: Schematic representation of a WT nacelle 87Figure 2 8: Measured typical wind speed profile 88Figure 2 9: Annual wind speed histogram (vk=10.25 m/s; tk=275 h) 91Figure 2 10: Power curve of a 500 kW wind turbine (Pk=345 kW; vk=10.25 m/s) 91Figure 2 11: Example of estimated energy in bin k (Ek=95 MWh) 92Figure 2 12: Built in 1991, Vindeby in Denmark was the world's first offshore wind farm 92Figure 2 13: Development of additional costs as a percentage of total investment costs for German WTs [5] 94Figure 2 14: Total investment cost (including turbine, foundation,grid-connection, etc.) shown for different turbine sizes and countries of installation (€/kW) 95Figure 2 15: O&M costs for German turbines as an average over the period 1997-2001 [6] 96

Figure 2 16: O&M costs as reported for selected types and vintages of WTs [7] 96Figure 2 17: Scheme of semiconductor layers 99Figure 2 18: Photovoltaic effect in a solar cell 99Figure 2 19: PV cell, module and array 100Figure 2 20: Cross section of a typical photovoltaic module 100Figure 2 21: Scheme of PV system configuration 101Figure 2 22: Scheme of a grid-connected PV system and components typically required 102Figure 2 23: Diagram of a typical stand-alone PV system powering DC and AC loads 102Figure 2 24: I-V curve for a typical crystalline silicon cell under STC [1] 103Figure 2 25: Current and voltage output of a solar cell at different light intensities [1] 104Figure 2 26: Temperature variation of I-V curves for a typical crystalline silicon cell 105Figure 2 27: Wavelength and energy of solar radiation 106Figure 2 28: Development of PV module prices 108Figure 2 29: Small hydro system schematic [5] 113Figure 2 30: Definition of head [6] 114Figure 2 31: High-head small hydropower scheme [7] 115Figure 2 32: Low-head small hydropower configurations [8] 116Figure 2 33: Supplemental micro-hydropower plant [9] 116Figure 2 34: Schematic view of a Francis (left) and a Kaplan turbine (right) 118Figure 2 35: Vertical Pelton turbine [10] 118Figure 2 36: The Banki turbine [10] 118Figure 2 37: Turbine’s cross-section (left) and Turbine’s blades (right) [10] 119Figure 2 38: Small-hydro turbine selection chart 119Figure 2 39: Flow duration curve (FDC) [8] 120Figure 2 40: Mean efficiency of different types of turbines [5] 121Figure 2 41: Relation of photosynthesis and combustion 124Figure 2 42: Schematic representation of the global carbon cycle [2] 125Figure 2 43: Scheme of the biomass conversion processes [7] 129Figure 2 44: Scheme of the gasification process 130Figure 2 45: Reaction equation of re-esterification [8] 132Figure 2 46: Scheme of the Organic Rankine Cycle 134Figure 2 47: Evolution of the LHV of wood as the function of the moisture content [6] 138Figure 2 48: Typical layout of a flat plate collector 148Figure 2 49: Schematic view of an evacuated tube collector [1] 149Figure 2 50: Concentrating collector [2] 150Figure 2 51: A solar collector heating an antifreeze solution for domestic water 152Figure 2 52: Solar pool heating system [3] 153Figure 2 53: Solar radiant in-floor system (P-1 to 4 denote circulating pumps or fans) [4] 153Figure 2 54: Air-conditioning with the aid of an active solar system [4] 154Figure 2 55: Schematic configuration of a parabolic trough Solar/Rankine plant [4] 156Figure 2 56: Schematic diagram of linear Fresnel reflector [6] 157Figure 2 57: Molten-salt power tower system [4] 158Figure 2 58: Dish/engine system section [5] 159Figure 2 59: Model of a geothermal system [1] 166

Figure 2 60: McKelvey-diagram for classifying resources [2] 168Figure 2 61: Geothermal resources of Europe – distribution of rock temperatures at 5000 m depth [3] 169Figure 2 62: Geothermal power plants by power range and characteristic reservoir temperatures [2] 170Figure 2 63: Dry steam geothermal power plant [2] 171Figure 2 64: Flash steam geothermal power plant [2] 171Figure 2 65: Binary type geothermal power plant [2] 172Figure 2 66: Investment costs for typical geothermal electric projects [5] 178Figure 2 67: LCOE for geothermal electricity production [5] 178Figure 2 68: Vapour compression heat pump [1] 181Figure 2 69: Absorption heat pump [1] 182Figure 3 1: Energy Efficiency Awareness Poster 200Figure 3 2: Energy Performance Certificate 202Figure 3 3: Energy Labels (for refrigerators, washing machines, televisions) 203Figure 3 4: Energy Efficiency Brochure (“Are you efficient or extravagant?”) 206Figure 3 5: Bozcada Wind Turbines 212Figure 4 1: Final Energy Consumption By Sectors 234Figure 4 2: Annual Electricity Demand 234Figure 4 3: Annual Natural Gas Demand 235Figure 4 4: Primary Energy Resources-Dependency Ratio 236Figure 4 5: Primary Energy Intensity 238Figure 4 6: Energy Intensity and Energy Consumption Per Capita 239Figure 4 7: Energy Saving Potential by Sectors 239Figure 4 8: Energy Efficiency Bodies and Services 240Figure 5 1: Ideally expected relation for efficiency in aspect of energy and time 250Figure 5 2: Tolerated relation for efficiency in aspect of energy and time 251Figure 5 4: Breakeven point analysis graphic [8] 259Figure 5 9: Graphical presentation of IRR [8] 263

List of tablesTable 1 1: Summary of CHP Technology Advantages and Disadvantages [4] 29Table 1 2: Overview of Intensity indicators, as well as Activity and Structural Indicators at Sector and Sub-sector Level used in the IEA Energy Indicator Project [9] 37Table 1 3: Key Drivers for the Buildings Sector [3] 38Table 1 4: Building Envelope Technologies according to Economy, Climate and Construction Type [3] 39Table 1 5 Insulation R&D Roadmap [3] 41Table 1 6 Air Sealing R&D Roadmap [3] 41Table 1 7 Windows R&D Roadmap [3] 42Table 1 8 Priority Actions Needed to Deliver the Outcomes of the 2DS Scenario [3] 42Table 1 9 Cost and Performance Goals for Building Envelope Technologies, 2020-30 [3] 43Table 1 10: Technology Maturity Phase, Market Barriers and Policies for Buildings [3] 44

Table 1 11: Cost-Effectiveness: Perspectives for Energy-Efficient Building Envelope Measures [3] 45Table 1 12: Cash Flow Components of a Typical Energy Efficiency Retrofit Project [1] 46Table 1 13: Summary of Indicators for each Industry Sector [3] 52Table 1 14: Savings from Adoption of Best Practice Commercial Technologies in Manufacturing Industries (Primary Energy Equivalents) [6] 53Table 1 15: IEA Intensity Indicators as well Activity and Structural Indicators at Sector and Sub-Sector Level in Transportation [4] 67Table 2 1: The four regions of the wind turbine power curve 84Table 2 2: Cost structure of a typical 2 MW wind turbine installed in Europe (€ 2006) [4] 94Table 2 3: Indicative installed PV system prices in selected countries (in 2013) [2] 108Table 2 4: Indicative PV module prices per Wp in selected EU countries [2] 109Table 2 5: Classification of hydropower by size 111Table 2 6: Present SHP situation [3] 112Table 2 7: Classification of turbine types 118Table 2 8: Qualitative comparison of technologies for the production of electricity, heat and/or power from biomass 136Table 2 9: Application range of combustion technologies 140Table 2 10: Heat production plants capacity and investment costs ranges 143Table 2 11: Capital costs and efficiencies of principal bioelectricity and competing conversion technologies [10] 143Table 2 12: Overview of investment costs and production costs [11] 144Table 2 13: Characteristics of solar thermal electric power systems [7] 159Table 2 14: Comparison of major power producing solar thermal technologies 160Table 2 15: Solar collector efficiencies for insolation typical for Central Europe at noon during summer day - 800 W/m2 162Table 2 16: Typical characteristics of different types of solar collectors (according to the German ministry of economy) 163Table 2 17: Utilizing geothermal resources with temperature distribution [3] 168Table 2 18: Estimated cost of geothermal electricity production [4] 177Table 2 19: LCOH for geothermal heat production [5] 178Table 2 20: Typical temperatures for heat and cold distribution systems [3] 186Table 2 21: Typical temperature ranges of different heat sources [3] 190Table 3 1: Milestones in Energy Efficiency Legislation 193Table 3 2: Functioning of The Energy Efficiency Coordination Board 195Table 3 3: Energy Intensity Indicators in Turkey 199Table 3 4: Energy Efficiency / CO2 Indicators in Turkey 200Table 3 5: Renewable Energy Resources Potential in Turkey 207Table 3 6: Number of Wind Power Plants Participating in YEKDEM 209Table 3 7: Annex Table I of the Renewable Energy Law 209Table 3 8: Annex Table II of the Renewable Energy Law 210Table 3 9: Installed PV Capacity in Turkey 213Table 3 10: Electricity generation and shares by energy resources 214Table 4 1: Feed-in Tariff Prices for Different Renewable Energy Based Generation Facilities 218

Table 4 2: Local Content Support for Different Renewable Energy Based Generation Facilities 219Table 4 3: List of Locally Manufactured Equipment and Integrative Parts 221Table 4 4: International Projects 243Table 5 1: Payback period analysis table [8]. 257Table 5 2: Interest rate table for a 10 year span 260Table 5 3: Net annual savings lists for 3 probable project samples [8] 260Table 5 4: NPV Calculation list [8] 261Table 5 5: Calculated NPV for 3 probable sample projects for 3 different discount rates [8] 262Table 5 6: Actual money savings calculation table [8] 264Table 5 7: Complete feasibility table with real saving values [8] 265