CONFIDENTIAL
FOR INTERNAL USE WITHIN
CLIENT COMPANY ONLY
OPPORTUNITIES IN
TURKISH ELECTRICITY
MARKET
BUSINESS SWEDEN
October 2016
Turkey
SUMMARY
Electricity
Sector
 Electricity production of Turkey increased by 34% between 2009-2015 and reached
262 TWh. Hydro and wind power had a 32% share of total electricity production in 2015.
Renewable sources are expected to increase their shares in total installed capacity
 4 provinces in Western Turkey cover 46% of the distribution grid electricity consumption
 Main transmission structure is designed to feed the electricity need of western Turkey
Electricity
Market
 The government started liberalization of the market in 2001 by introducing the new
electricity market law followed by privatizations in generation, distribution and retail
sectors
 Privatization of all state distribution/retail companies has been completed
 Transmission and distribution grid owners are the main investors in smart grid
technologies
Smart
Grid
 Responsibility of operation and development of a national transmission grid are the
responsibilities of the state company TEİAŞ. The electricity distribution grid is divided
into 21 regions and is operated by distribution companies
*ELECTRICITY
19 OCTOBER, 2016
2
ELECTRICITY PRODUCTION OF TURKEY INCREASED BY
34% BETWEEN 2009-2015
TOTAL ELECTRICITY PRODUCTION 2009 - 2015
ELECTRICITY PRODUCTION BY ENERGY SOURCES
2015, %100= 262TWh
TWh
CAGR
5%
Other*
2%
Hydro
Coal
26%
29%
229
195
239
240
252
Renewable
Sources
262
6% Wind
211
38%
Gas
2009
2010
2011
2012
2013
SOURCE: TEIAŞ, MINISTRY OF ENERGY AND NATURAL RESOURCES
2014
2015
*THERMAL POWER PLANTS WITH OTHER FUELS,
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3
RENEWABLE ENERGY RESOURCES WILL HAVE 49%
SHARE IN TOTAL INSTALLED CAPACITY BY 2023
TOTAL INSTALLED CAPACITY BY SOURCES, 2015-2023
GW
CAGR 7%
73,1
2015
125
Coal
Hydro
Coal
Hydro
27%
28%
6%
Wind
 Installed solar power capacity in 2023 will
increase 25 times compared to 2015 and
reach 5.000 MW from 194 MW
4% Solar
19%
35%
34%
Gas
 Installed wind power is expected to be
more than quadrupled between 2015 –
2023
2023
Other
2%
Renewable
Other
4%
Fossil
21%
 Construction of renewable electricity
generation facilities is encouraged by the
state with incentives and regulations
16%
Gas
Wind
 Other renewable resources include
geothermal and bio mass
 2 nuclear power plants are planned to be
operational and 1 plant is planned to be in
the project stage by 2020
4% Nuclear
2015, 100% = 73,1 GW
2023, 100% = 125 GW
SOURCE: TEIAŞ, MINISTRY OF ENERGY AND NATURAL RESOURCES, BUSINESS SWEDEN ANALYSIS
19 OCTOBER, 2016
4
THE GOVERNMENT’S MAIN GOAL IS TO LIBERALIZE THE
ELECTRICITY MARKET
HISTORICAL DEVELOPMENT OF STATE INVOLVEMENT IN ELECTRICITY MARKET
1970
1994
2001
2004
2008
TEDAŞ
2010
2016
Privatization
TEİAŞ
TEK
TEAŞ
TETAŞ
TRANSMISSION
Increase in number of non-restricted consumers*
EÜAŞ
Partial privatization
SOURCE: TETAŞ, EKONOMIST MAGAZINE
WHOLESALE
GENERATION
REGULATING
AUTHORITY
EPDK
Energy Market Regulatory
Authority is responsible for
approving licenses and
regulating distribution grid
investments
DISTRIBUTION
/RETAIL
TEDAŞ was divided into 21
distribution regions and regions were
privatized between 2008-2013
State is reducing its activities in electricity
wholesale and generation markets via
privatization and regulations**
*RESTRICTED CONSUMERS ARE BOUND TO BUY THE ELECTRICITY FROM A CERTAIN RETAILER COMPANY.
**WITH INCREASING NUMBER OF NON-RESTRICTED CONSUMERS, NUMBER OF WHOLESALER COMPANIES
INCREASED SIGNIFICANTLY
19 OCTOBER, 2016
5
STATE HAS SIGNIFICANTLY REDUCED ITS ROLE IN
ELECTRICITY MARKET SINCE 2001
STRUCTURE OF ELECTRICITY MARKET & MARKET PLAYERS, OCTOBER 2016
1651 licenses
Generation
Auto
producers
BOT1 / BO2
/ TOR3
213 licenses
Wholesale
Private
Wholesale
Companies
1 license
21 licenses
Transmission
213 licenses
Distribution
Retail
Private
Retailer
Companies
30%
70%
2001
TETAŞ
5%
77%
23%
2015
100%
2001
66%
34%
2012
95%
100%
2001-2015
2001
2015
2
Restricted
Consumers
Private
100%
1 BUILD-OPERATE-TRANSFER
SOURCE: OFFICIAL GAZETTE, DELLOITE, TETAŞ, EKONOMIST MAGAZINE
Nonrestricted
Consumers
TEİAŞ
Private Distribution Companies
EÜAŞ
End User
Public
3
TRANSFER OF OPERATION RIGHTS
BUILD-OPERATE
19 OCTOBER, 2016
6
THE MARKET CONSISTS OF PUBLIC AND PRIVATE
MARKET PLAYERS AND AUTONOMOUS INSTITUTIONS
STAKEHOLDER* TREE
Ministry of Energy
and Natural
Resources
Prime Ministry High
Council of Auditing
TEİAŞ
(State Transmission
Company)
TEDAŞ
(State Distribution
Company)
EPDK
(Market Regulatory
Authority)
TETAŞ
(State Wholesale
Company)
EÜAŞ
(State Generation
Company)
EPİAŞ
(Market Operator – on
establishment stage)
Regulating
Auditing
Private Distribution
Companies
ELDER
Public companies
under the ministry
SOURCE: GOVERNMENTAL AND COMPANY WEBSITES
Autonomous
public institutions
affiliated with the ministry
ELDER consists of the
upper management of
private distribution
companies
*SEE APPENDIX C FOR STAKEHOLDER PROFILES
19 OCTOBER, 2016
7
MAIN TRANSMISSION STRUCTURE IS DESIGNED TO
FEED THE ELECTRICITY NEED OF WESTERN TURKEY
TRANSMISSION GRID, 2015
DISTRIBUTION GRID, 2015
Transmission Lines
(380 kV)
19 070 km
Distribution Lines (33 kV, 16 kV, 11 kV, 6 kV, 0,4 kV)
1 070 300 km
No. Of Dist. Transformers
417 440
Transmission Lines
(220 kV, 154 kV, 66kV)
37 674 km
Total Power of Dist. Transformers
144 GVA
No. Of Transmission
Substation
701
No. Of Large Power
Transformer
1 628
Total Transformer Power
139 GVA
Max. Daily Consumption
905 GWh
NET CHARGE FLOW THROUGHOUT TURKEY*
The density of 380 kV
transmission lines are
higher in the directions of
high volume charge flow
SOURCE: TEİAŞ, BUSINESS SWEDEN ANALYSIS
*ARROW SIZE INDICATES THE VOLUME OF THE CHARGE FLOW BETWEEN REGIONS;
REGIONS ARE DEFINED BY TEIAŞ
**TRANSMISSION LINES BETWEEN DIFFERENT COUNTRIES ARE «NAMED INTERCONNECTION LINES»
19 OCTOBER, 2016
8
ALL ELECTRICITY DISTRIBUTION COMPANIES HAVE
BEEN PRIVATIZED
ELECTRICITY DISTRIBUTION COMPANIES
Trakya
Anad. Yak.
Boğaziçi
Sakarya
Uludağ
Yeşilırmak
Başkent
Çoruh
Aras
Çamlıbel
Osmangazi
Gediz
Kayseri
Meram
Aydem
Akdeniz
Fırat
Göksu
Vangölü
Dicle
Toroslar
DISTRIBUTION NETWORK IS DIVIDED INTO 21 REGIONS
SOURCE: TEDAŞ, NEWS
19 OCTOBER, 2016
9
4 PROVINCES IN WESTERN TURKEY COVER 46% OF THE
DISTRIBUTION GRID ELECTRICITY CONSUMPTION
ELECTRICITY CONSUMPTION AND LEAKAGE & LOSS*, TWH - %, 2014
Electricity consumption**
from distribution grid
Total: 180TWh
44 8%
11 7%
14 %8
Leakage & Loss***
from distribution grid
Country Average: 17%
14 8%
15 %13
Istanbul is one of the most populated cities
in the world and hosts a large number of
industrial plants; accountable for 24% of
total electricity consumption of Turkey
SOURCE: EPDK, TEDAŞ, BUSINESS SWEDEN ANALYSIS
20 %75
Very high leakage & loss ratio in
Diyarbakır and neighbour cities
results in excessive usage of
electricity in the region
Ankara, İzmir, Bursa and Adana are the 4 largest cities after
Istanbul and each corresponding city’s region is accountable for
6% to 8% of the total electricity consumption
*ONLY THE MAJOR CONSUMPTION REGIONS ARE MARKED ON THE MAP, REPRESENTING 65% OF ALL THE
ELECTRICITY CONSUMED THROUGH DISTRIBUTION GRID
**ELECTRICITY CONSUMPTION FIGURES REPRESENT THE AMOUNT OF ELECTRICITY DRAINED FROM THE
DISTRIBUTION GRID
***LEAKAGE REFERS TO CONSUMED ELECTRICITY WITHOUT BEING PAID, WHEREAS LOSS MEANS THE
MISSING ELECTRICITY DUE TO DISTRIBUTION GRID INEFFICIENCY. «LEAKAGE & LOSS» TERM
REPRESENTS THE CONSUMED ELECTRICITY THROUGH DISTRIBUTION GRID WITHOUT BEING SOLD
19 OCTOBER, 2016
10
CONTACT US
BUSINESS SWEDEN IN TURKEY
Business Sweden
Levent Çarşı, Karanfil sok. No:4
TR-34330 1. Levent - Istanbul - Turkey
T +90 212 317 90 55
F +90 212 317 90 44
[email protected]
www.business-sweden.se/turkiet