Renewable Energy Support Schemes and Feed-in Tariffs in Turkish Electricity Market Nurullah ÇAKMAK Energy Market Regulatory Authority, Turkey İstanbul, 10/05/2017 Installed Capacity of Turkey 2 Installed Power by 30th April 2017 Fuel Installed Power (MW) Share Natural Gas Hydro (Reservoired) 25757 32,3% 19680 24,7% Coal & Lignite Hydro (Runof-River) 18013 22,6% 7239 9,1% 6009 7,5% 851 1,1% 496 0,6% 13 0,0% 1195 1,5% 369 0,5% 79621 100% Wind Geothermal Biomass & Waste Solar Unlycenced Other Total 3 History of YEKDEM YEKDEM: Renewable Energy Sources Support Mechanism (ReSSuM) - Law on Utilization of Renewable Energy Sources for the Purpose of Generating Electrical Energy (RES Law), 10/5/2005 - Regulation on Certification and Support of Renewable Energy Sources (YEKDEM Regulation) 4 RES Supports • 2005 - 2011: at least 8% of supplied energy (5 – 5.5 Euro cent/kWh) • 2011 - : YEKDEM :Schedule I + Schedule II 5 YEKDEM Framework in Law RES Law: • Voluntary for 10 years after comissioning • RES Certification: Ministry • Operation of «mechanism»: EMRA • Feed-in tariffs are paid for generated energy • Total cost is charged to suppliers 6 YEKDEM (2011 – 2016) YEKDEM Regulation: • YEKDEM Portfolio • Portfolio manager: TSO (TEİAŞ) • TSO is responsible for forecasting generation and offering to DAM • Profit goes to suppliers • YEKDEM participants are exempt from BPM, Balance responsibility, ancillary services… • As portfolio grows year by year: Inefficient portfolio 7 management and IMBALANCING YEKDEM (2011 – 2016) Imbalanced Power 8 Market Prices 9 YEKDEM Participants 10 2016 Revision • RES Law, Article 1: The purpose of this law is to expand the utilization of renewable energy sources for generating electric energy, to benefit from these resources in a secure, economic and qualified manner, to increase the diversification of energy resources, to reduce greenhouse gas emissions, to assess waste products, to protect the environment and to develop the related manufacturing industries for realizing these objectives. 11 2016 Revision • RESSuM portfolio is abolished, power plant will remain market participant’s portfolio • Energy is sold by participant in the market Market • No more exemptions Clearing Price • Mechanism in the market YEKBEDi = (UEVM i ,b,u (YEKFi ,b KURu ) PTFt ,u j n l m b=1 t 1 u=1 Total Payment Generation Feed-in Tarif Exchange Rate Tolerance Coefficient (0,98) 12 YEKDEM (2016 Revision) Income from feed-in Imbalanced tarif Power Income from market 13 YEKDEM Costs to Comsumers 14 Experience of Turkey • • • • • • Renewable invetments Reducing the share of imported fuels Market integration Feed-in tariff Unforeseen rises in exchange rate System stability and security 15 Thank you for your attention! [email protected]
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