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Electricity sector in Turkey

February 16, 2024

Turkey uses more electricity per person than the global average, but less than the European average, with demand peaking in summer due to air conditioning. Most electricity is generated from coal, gas and hydropower, with hydroelectricity from the east transmitted to big cities in the west. Electricity prices are state-controlled, but wholesale prices are heavily influenced by the cost of imported gas.

Electricity sector of Turkey
One of the Bosphoros crossings at Istanbul: 154 kV
Data
Installed capacity (2022)100 GW[1]
Production (2021)329 TWh[1]
Share of fossil energy65% generation,[2] 47% capacity[1]
Share of renewable energy35% generation, 53% capacity[1]
GHG emissions from electricity generation (2020)131 Mt CO2e (power stations including heat sold by power stations)[3]: table 1s1 cell B10 
Average electricity use (2021)327 TWh[1]
Distribution losses (2020)9.5%[4]: 42 
Consumption by sector
(% of total)
Residential21% (2018)
Industrial117 TWh [5] (2019)
Agriculture7 TWh [5] (2019)
Commercial and public sector28% (2018)
Traction1 TWh [5] (2019)
Services
Sector unbundlingPartial
Share of private sector in transmission0
Share of private sector in distributionSee text
Competitive supply to large usersYes
Competitive supply to residential usersOnly to those consuming over 1400 kWh per year
Institutions
No. of service providersEÜAŞ, private companies
Responsibility for transmissionTurkish Electricity Transmission Corporation
Responsibility for regulationEnergy Market Regulatory Authority
Responsibility for policy-settingMinistry of Energy and Natural Resources

Each year, about 300 terawatt-hours (TWh) of electricity is used, which is almost a quarter of the total energy used in Turkey. On average, about four hundred grams of carbon dioxide is emitted per kilowatt-hour of electricity generated (400 gCO2/kWh); this carbon intensity is slightly less than the global average. As there is 100 GW of generating capacity, far more electricity could be produced. Although only a tiny proportion is exported; consumption is forecast to increase, and there are plans for more exports during the 2020s.

Turkey's coal-fired power stations are the largest source of the country's greenhouse-gas emissions. Many brown coal power stations are subsidized, which increases air pollution. Imports of gas, mostly for Turkey's power stations, are one of the main expenses for the country. In winter, electricity generation is vulnerable to reductions in the gas supply from other countries.[6][7] Solar and wind power are now the cheapest generators of electricity,[8] and more of both are being built. If enough solar and wind power is built, the country's hydroelectric plants should be enough to cover windless cloudy weeks. Renewables generate a third of the country's electricity, and academics have suggested that the target of 32% renewable energy by 2030 be increased to 50%, and that coal power should be phased out by the mid-2030s. Increased use of electric vehicles is expected to increase electricity demand.

Consumption edit

Each year, about 300 TWh of electricity is used in Turkey: this supplies almost a quarter of the total final energy demand,[9]: 19  the rest being from coal, oil and gas.[10] Due to air conditioning demand peaks in summer:[11] with August highest (32 TWh in 2021) and February typically lowest (24 TWh in 2021).[12] Total national consumption divided by the population is under 4,000 kWh a year, much below the average of around 10,000 kWh a year for other OECD countries in Europe,[13][4]: 17  but half as much again as the global average.[14] Shares of energy usage in 2019 totaled 45% for industry, 29% for services and 21% for households.[4]: 16  Consumption is forecast to increase.[15]

As of 2021, household electricity consumption is estimated to average 230 kWh a month[16] and is dominated by refrigerators, followed by televisions then washing machines.[17] Space heating and electric vehicles have the biggest potential for demand side response.[18]: 51 

Between 2019 and 2024, Turkey plans to invest US$11 billion into energy efficiency;[19] and by 2035 replace 80% of electricity meters with smart meters.[20] Electricity's share of energy consumption is expected to increase, from 22% in 2019 to perhaps 28% in 2040, partly due to electrification of road transport.[21]

Demand forecasts edit

Demand forecasting is important, because constructing too much electricity generation capacity can be expensive, both for government energy subsidies and private sector debt interest.[22][23] Conversely, constructing too little risks delaying the health benefits of electrification, the biggest of which is cleaner air due to fossil fuel phase-out.[24]

Distribution companies, some retail companies, and industrial zones send their demand forecasts to the Energy Ministry and the Turkish Electricity Transmission Corporation (TEIAŞ) every year.[4]: 21  TEİAŞ then publishes low, base and high 10 year forecasts,[4]: 21  using the "DECADES" model; whereas the Energy Ministry uses the "Model for Analysis of Energy Demand".[25]

Year forecast made Forecast year Forecast amount (TWh) Actual amount[26] Forecaster
2018 2019 317[27] 304 government
2020 307
2018 2021 322 to 345[28] 329[1] academics
2020 2030 359, 396, 454[4]: 21  TEİAŞ

Some official demand forecasts are overestimated,[29][30][31] which could be due to low economic growth.[32][33] In 2019 actual generation was 76% of firm capacity, and overcapacity continued into the early 2020s.[33][34]

Industry edit

The share of electricity used in industry is expected to increase at the expense of the fossil fuel share as Turkey moves to more technology manufacturing.[35]: 343  Less coal is being burnt for industry and oil burning remains static.[35]: 343  One projection even shows electricity overtaking gas to become the largest industrial energy source at 30%,[35]: 343  however more efficient lighting and industrial motors, together with policy changes supporting efficiency, could limit demand growth.[35]: 340 

Electrification of transport edit

 
Nostalgic tramway in Istanbul - transport is expected to once again become a major consumer with vehicles such as cars made by Togg, electric buses and trains

In 2021, less than 3000 fully electric cars were sold,[36] however production and use of some types of electric vehicles, such as cars manufactured by Togg, may increase demand during the 2020s.[37]: 10  Shura Energy Transition Center, a think tank, has recommended to automatically charge electric cars when plenty of wind and solar power is available.[37]: 19  The architecture of Turkey means that many city dwellers live in apartment blocks without off-street parking: regulations require at least one charger per 50 new parking spaces in shopping malls and public parking lots.[38] Getting old diesel cars and trucks off the road would have health and environmental benefits, but this would require new pollution control legislation,[39] and as of 2021 the only commercial electric vehicles planned for mass production are vans.[40] The government aims to end sales of fossil fuel cars and lorries by 2040.[41] Ford hopes to build a factory to make batteries for commercial electric vehicles.[42]

Generation edit

 
Although wind and solar are increasing coal is only slowly declining. Gas generation makes up for hydropower during drought years.
Further information: List of power stations in Turkey and Renewable energy in Turkey

Of the total 329 TWh of electricity generated in 2021; natural gas produced 42%, coal 26%, hydropower 13%, and wind 10%.[1] Installed capacity reached 100 GW in 2022.[1] Academics have suggested that the target of 32% from renewables by 2030 should be increased to at least 50%.[43] The state-owned Electricity Generation Company (EÜAŞ) has about 20% of the market,[44]: 8  and there are many private companies.[45] The carbon intensity of generation during the 2010s was slightly over 400 gCO2/kWh,[46] around the global average.[47]

Coal edit

See also: List of active coal-fired power stations in Turkey
This section is an excerpt from Coal power in Turkey.[edit]

Coal in Turkey generates between a quarter and a third of the nation's electricity. There are 54 active coal-fired power stations with a total capacity of 21 gigawatts (GW).[note 1]

Air pollution from coal-fired power stations is damaging public health,[49]: 48  and it is estimated that a coal phase-out by 2030 instead of by the 2050s would save over 100,000 lives.[50] Flue gas emission limits were improved in 2020, but data from mandatory reporting of emission levels is not made public. Turkey has not ratified the Gothenburg Protocol, which limits fine dust polluting other countries.

Turkey's coal is almost all low calorie lignite, but government policy supports its continued use. In contrast, Germany is closing lignite-fired stations under 150 MW.[51] Drought in Turkey is frequent, but thermal power stations use significant amounts of water.[52]

Coal-fired power stations are the largest source of greenhouse gas, at about a tonne each year per person, which is about the world average.[53] Coal-fired stations emit over 1 kg of carbon dioxide for every kilowatt hour generated,[54] over twice that of gas power. Academics suggest that in order to reach Turkey's target of carbon neutrality by 2053, coal power should be phased out by the mid-2030s.[55] In January 2023 the National Energy Plan was published: it forecast a capacity increase to 24.3 GW by 2035,[56]: 23  including 1.7 GW more by 2030.[56]: 15  The plan forecasts coal generation decreasing but capacity payments continuing for flexible and baseload power.[56]: 25 

Gas edit

Further information: List of power stations in Turkey § Natural Gas, and Greenhouse gas emissions by Turkey § Gas-fired stations

In 2020, power plants consumed 29% of natural gas in Turkey.[57] State-owned gas-fired power plants are less efficient than private plants, but can out-compete them, as the state guarantees a price for their electricity.[58] Gas power plants are used more when drought reduces hydropower, such as in 2021[59] which was a record year for gas consumption.[60] The National Energy Plan published in 2023 forecasts 10 GW more gas power plants will be built.[61]

Hydropower edit

 
Atatürk Dam in Turkey is the third largest dam in the world.
Main article: Hydroelectricity in Turkey

Hydropower is a critical source of electricity, and in some years substantial amounts can be generated due to Turkey's mountainous landscape, abundance of rivers, and it being surrounded by three seas. The main river basins are the Euphrates and the Tigris. Many dams have been built throughout the country, and a peak of 28 GW of power can be generated by hydroelectric plants.[62] Almost 90 TWh was generated in 2019, around 30% of the country's electricity.[63] There are many policies that support hydroelectricity. Construction of some dams has been controversial for various reasons: for example environmentalists claiming they damage wildlife such as fish,[64] or downstream countries complaining of reduced water flow.

Due to changes in rainfall, generation varies considerably from year to year.[a] And, according to S&P Global Platts, when there is drought in Turkey during the peak electricity demand month of August the aim of the State Hydraulic Works to conserve water for irrigation can conflict with the Turkish Electricity Transmission Corporation aiming to generate electricity.[66] Despite droughts increasing due to climate change, hydropower is predicted to remain important for load balancing.[35]: 72  Converting existing dams to pumped storage has been suggested as more feasible than new pumped storage.[67]

Wind edit

This section is an excerpt from Wind power in Turkey.[edit]
 
Wind turbines on the island of Gökçeada in the far west

Wind power generates about 10% of Turkey's electricity, mainly in the west in the Aegean and Marmara regions, and is gradually becoming a larger share of renewable energy in the country. As of 2023, Turkey has 11 gigawatts (GW) of wind turbines. The Energy Ministry plans to have almost 30 GW by 2035, including 5 GW offshore.[68]

The state-owned Electricity Generation Company (EÜAŞ) has about 20% of the market,[69] and there are many private companies.[70] The highest ever daily share of wind power was 25%, in 2022.[71]

Building new wind farms is cheaper than running existing coal plants which depend on imported coal.[72] According to modelling by Carbon Tracker, new wind will be cheaper than all existing coal plants by 2027.[73][74]

Solar edit

Main article: Solar power in Turkey
 
Greenway Solar power tower in Mersin is the only generator using concentrated solar, the rest are photovoltaic

Turkey is located in an advantageous position in the Middle East and Southeast Europe for solar energy, and it is a growing part of renewable energy in the country, with almost 8 GW generating about 4% of the country's electricity. Solar potential is high in Turkey, especially in the south-east and Mediterranean provinces.[75] Conditions for solar power generation are comparable to Spain. In 2020 Turkey ranked 8th in Europe for solar power,[4]: 49  but it could increase far more quickly if subsidies for coal were abolished[76] and the auction system was improved.[77] Every gigawatt of solar power installed would save over US$100 million in gas import costs.[78]

Peak daily generation in 2020 was over 1 TWh in September.[79] According to modelling by Carbon Tracker, new solar power became cheaper than new coal power in 2020,[80] and will become cheaper than existing coal plants in 2023.[81] According to think tank Ember, building new solar and wind power in Turkey is cheaper than running existing coal plants which depend on imported coal.[82] But they say that there are obstacles to building utility-scale solar, such as: lack of new capacity for solar power at transformers, a 50 MW cap on any single solar power plant’s installed capacity, and large consumers being unable to sign long term power purchase agreements for new solar installations.[82] Unlicensed power plants, which are mostly solar, generated about 4% of electricity in 2021.[44]: 13 

Geothermal edit

Main article: Geothermal power in Turkey
 
Kızıldere Geothermal Power Plant in western Turkey

There are almost 2 gigawatts of electrical geothermal power in Turkey, which is a significant part of renewable energy in Turkey. Geothermal power in Turkey began in the 1970s, in a prototype plant, following systematic exploration of geothermal fields. In the 1980s the pilot facility became the first geothermal power plant. The small-sized geothermal power plant was expanded to the country's biggest in 2013. Over 60 power plants operate in Turkey as of 2020,[83] with potential for more.[84] As well as contributing to electricity generation, geothermal energy is also used in direct heating applications. At the end of 2021 Turkey had 1.7 GW installed capacity, the fourth largest in the world after the United States, Indonesia and the Philippines.[85]

There is almost 2 GW of geothermal and sites for much more including enhanced geothermal systems.[86] However carbon dioxide emissions can be high, especially for new plants, so to prevent carbon dioxide dissolved out of the rocks being released into the atmosphere the fluid is sometimes completely reinjected after its heat is used.[87]

Nuclear edit

Main article: Nuclear power in Turkey
 
 
 
 
İğneada
class=notpageimage|
Nuclear power stations in Turkey (view)
  Under construction
  Proposed

Turkey's first nuclear power plant, at Akkuyu, is planned to start generation in 2023, and is expected to last for at least 60 years.[88] The nuclear power debate has a long history, with the 2018 construction start in Mersin Province being the sixth major attempt to build a nuclear power plant since 1960.[89] Nuclear power has been criticised, as being very expensive to taxpayers.[90]

Plans for a nuclear power plant at Sinop and another at İğneada have stalled.[91]

Hybrid, distributed and virtual generation edit

Hybrid generation became more popular in the early 2020s.[92] If distributed generation installed power is under 11 kW, it is only allowed to be connected to the low voltage network, not the high voltage network.[93] The first virtual power plant was created in 2017 with wind, solar and hydropower; and geothermal was added in 2020.[94]

Transmission and storage edit

The transmission system operator is the Turkish Electricity Transmission Corporation (TEİAŞ),[95] which is a state-owned monopoly as of 2022.[4]: 11  It is planned to sell a minority share to the private sector in 2022.[96] Transmission is regulated by the Energy Market Regulatory Authority (EMRA).[97] The first long-distance transmission line was from Zonguldak to Istanbul in 1952,[98] and as of 2021 there are 72,000 km.[99] The grid runs at 400 kV and 154 kV,[100] and there are over 700 transmission grid substations.[101] Transmission costs, including losses and operation costs, are shared equally between producer and consumer.[102]: 70 

Reducing grid losses and outages is important, as is improving grid quality.[103] Power consumption is often distant from generation, so grid improvements are needed to prevent bottlenecks and increase flexibility.[104] There are 11 international interconnectors,[4] including all of Turkey's neighbours by land except Armenia (although relations are improving).[105] Although TEİAŞ is no longer an observer member of ENTSO-E it continues to attend technical discussions of working groups.[106]: 105  As of 2020, links with the European Union allow 500 MW export and 650 MW import, whereas trade with other countries is possible but difficult to automate as they do not meet ENTSO-E synchronisation requirements.[107] In 2020 total exports were 2.5 GWh, mostly to Greece, and imports 1.9 GWh, mostly from Bulgaria.[4]: 39 

According to a 2018 study by Sabancı University, 20% of Turkey's electricity may be generated from wind and solar by 2026 with no extra transmission costs, and 30% with a minor increase in grid investment.[108] With the increase in electricity generated by solar panels, energy storage may become more important. A pumped hydropower plant is planned to be completed by 2022.[109] Converting existing dams to pumped storage has been suggested as more feasible than new pumped storage.[67] Mobile 10 MW batteries may be useful in the future for reducing temporary transmission congestion between regions, or larger ones for frequency regulation.[110] Adding ice thermal storage to hypermarket cooling systems is estimated to be economically viable.[111]

The nationwide blackout in 2015 was not caused by a natural disaster, but by the limited capacity and lack of resilience of the main east-west connection whilst it was being maintenanced - leaving it unable to redistribute enough of the eastern hydroelectricity to the high consuming west. It did not greatly affect Van Province as it was supplied from Iran,[112] and the EU interconnection helped restore power.[113] More integration with other countries would increase resilience.[114] New wind and solar in the west and centre of the country is closer to demand and is thus reducing the dependance on high voltage transmission.[115]

Distribution edit

 
"Danger of death" sign on transformer belonging to the Bosphoros distribution company BEDAŞ (D = dağıtım = distribution).[116]

As part of electricity industry reforms between 2009 and 2013, the ownership of all electricity distribution infrastructure was retained by state owned Turkish Electricity Distribution Corporation (TEDAŞ), but responsibility for operation, maintenance and new investment in distribution networks was transferred to 21 privately owned regional entities under licences from EMRA. Electricity at voltages up to 36 kV is distributed by regional companies and many organized industrial zones.[117]

There are over a million kilometres of distribution lines, of which about 80% are overhead lines and the rest are underground cables. The average losses across all distribution networks (including both technical and non-technical losses) are around 12%.[118] but in Dicle and Vangölü are over 20%.(cite EPDK 2022) In 2019 TEDAŞ estimated the System Average Interruption Duration Index (OKSÜRE in Turkish) at 1308, which is much worse than neighbouring European countries: however no estimate has been published since then.[119]: 27  Nevertheless at least one distribution company measures it, together with the related frequency index (OKSIK in Turkish).[120]: 73 

There are plans for a smart grid.[121] According to the Shura Energy Center, increasing Turkey's proportion of electric cars to 10% by 2030 would smooth distribution, amongst many other benefits.[122]

According to the Chamber of Electrical Engineers, the regional monopolies make excess profits.[123][124][125] Their income is determined by EMRA,[126] as distribution charges are set annually by EMRA.[117]

Resilience edit

Earthquakes in Turkey are common and sometimes cut transmission lines and destroy substations.[127] If the permanent supervisory control centre of a distribution grid is destroyed in a disaster a mobile centre may take control.[128] The installation of more local solar power with batteries, and microgrids in vulnerable places, might help vital buildings such as hospitals retain power after a natural disaster, such as earthquake or flood. Academics suggest that cost–benefit analysis of such emergency power systems should take into account any benefits of resilience and also the cost of installing an islandable system.[129][130]

Market edit

Energy Exchange Istanbul (EXIST), is the electricity market operator company responsible for the day-ahead and intra-day markets. EXIST was established in 2015 and operates under a license from the Energy Markets Regulatory Authority (EMRA).[131] As of 2022 the wholesale price is the same across the country,[132][b] but it has been suggested that price zones should be defined to reflect network congestion, for example in getting run-of-the river hydropower to consumers.[135] The wholesale price is generally lowest in spring, due to moderate temperatures and abundant hydropower.[136]: ? 

Although the wholesale market is operated by EXIST;[137] prices are controlled by EUAŞ, the state electricity generation company.[138] Gas-fired power stations set the market price.[139] The National Load and Dispatch Centre prepares forward estimates of demand for each hour, and these are used to guide scheduling of generation 24 hours in advance.[117]

The Turkish Electricity Transmission Company (TEİAŞ) is the physical operator of the balancing power market and the ancillary services market.[117] Because price is determined at the margin the electricity price is very dependent on the natural gas price.[140] The government has capped the wholesale electricity price at thrice the average of the previous 12 months,[140] which is high enough for gas and imported coal plants to remain in operation even when their fuel costs are high.[44]: 14 

Because gas-fired power plants are often the price setters, wholesale electricity prices are strongly influenced by wholesale natural gas prices, which are themselves influenced by the USD exchange rate.[4]: 64  Owning over 20% of capacity,[4]: 24  the state Electricity Generation Company is a key player in the market along with private wholesalers (such as Enerjisa, Cengiz, Eren, Limak and Çelikler[4]: 52 ) and an over the counter market.[4]: 9  In 2019 150 TWh, about half of the electricity generated, was traded on the day ahead spot market.[141] Market pricing is not completely transparent, cost reflective and non-discriminatory.[142] When the lira falls bilateral contracts are sometimes unable to compete with regulated tariffs: but when the exchange rate is stable industrial customers prefer bilateral contracts (almost no households are on those).[143] In 2021 EXIST launched an electricity futures market.[144]

Although, as of 2021, there is a lot of excess generation capacity[145] very little is exported.[107] In 2021, Turkey exported 4.1 TWh and imported 2.3 TWh.[12] International trade with some countries is hampered by geopolitical difficulties such as the Cyprus dispute; for example, Turkey will be bypassed by the EuroAsia Interconnector.[146] Because TEIAŞ is not unbundled, it cannot become a full member of the European Network of Transmission System Operators for Electricity (ENTSO-E), but the grids are synchronised and there is technical co-operation.[147] The grid is linked across most land borders, and about 1% of electricity is imported or exported.[148] Technical studies are being done on increasing connections with the European grid.[149] In 2022 export capacity to Iraq was increased from 150 MW to 500 MW.[150]

Some power barges supplying other countries burn heavy fuel oil but plan to convert to LNG.[151] For exports to the EU the Carbon Border Adjustment Mechanism (CBAM) will be phased in from 2023 to 2026.[152] Although Turkish electricity is likely to be cheaper than that generated in the EU, the impact of the CBAM is unclear as of 2021.[153] More linking transmission is needed, and becoming a full member of ENTSO-E would help exports.[153]

Retailing edit

Although the 2013 Electricity Market Law says that distribution companies cannot retail, most customers buy from retail "arms" of their local distribution companies.[154] Households that consume over a certain amount, and all non-household customers, can switch suppliers.[155] Retail price increases have often been due to depreciation of the lira.[4]: 143  Pricing can vary by region,[102]: 70  but there is some redistribution,[4]: 43  and electricity is subsidized for about 2 million households.[4]: 20  An example of a regional retail company is YEPAŞ (P = perakende = retail).[156]

European wiring color codes are used.[157] Schuko plugs (plug type C with 2 round pins, and type F with 2 round pins and 2 earth clips[158]) and sockets are standard, at 230 V[159] and 50 Hz.[160] For public charging of electric vehicles, the European standard Combined Charging System is used.[161] As of 2022, there are no Tesla superchargers.[162]

After purchasing a property in an urban area, earthquake insurance is compulsory before electricity is connected.[163] In case of natural disasters or pandemics the Ministry of Energy and Natural Resources may cover the financial costs resulting from the postponement (up to one year) of electricity bills, but not the bill amount itself.[164] As of 2022 the VAT rate for residential customers and agricultural irrigation is 8%.[165]

Economics and finance edit

See also: Coal in Turkey § Subsidies

As elsewhere, new renewables are auctioned.[166] In 2019 the value-adjusted levelized cost of energy (VALCOE - the cost including power system value but not environmental externalities) of onshore wind was slightly less than solar PV,[167] but solar PV is expected to become the most cost-competitive power generation technology by the late 2020s.[168] According to the Chamber of Engineers 75% of electricity in 2021 was dollar indexed.[169] In 2021 new wind and solar became cheaper than existing power stations burning imported coal.[170] As of 2018, if all currently economic renewable projects were developed, the added electricity generation would be sufficient to reduce Turkey's natural gas imports by 20%,[171][172] and every GW of solar power installed would save over $100 million on the gas bill.[173] According to EMRA exports to the EU accompanied by YEK-G will be exempt from the electricity CBAM.[4]: 88 

As of 2019, about 15% of power was generated by the public sector.[174] During the 2010s, power companies borrowed heavily in dollars, but economic growth was overestimated and they overbuilt generating capacity.[174] This resulted in bank debts of $34 billion by 2019 and revenues declining in dollar terms due to the fall in the lira; furthermore, 7% of debts were non-performing.[175][176] In the early 2020s, Turkish electricity companies still owe much foreign currency,[177][178] debt is being restructured[179] and plants are changing ownership.[180][181] In 2021 BOTAŞ charged more for gas than before, leaving gas-fired power stations at a disadvantage to coal-fired power stations.[182]

About half the electricity used in 2019 was generated from local resources.[183] Total import dependency in the power sector was over 50% in 2019.[29] It has, for example, been predicted that more trade would benefit electricity in Bulgaria by stabilizing its price.[184]

The main growth in solar and wind during the 2020s is predicted to be in Renewable Energy Resource Areas(YEKA): these use auctions and include a requirement to manufacture mostly in Turkey.[185] The EU has complained that local content requirements are against trade agreements.[186] Build Own Operate is being used to construct Akkuyu nuclear plant to ensure that responsibility for cost overruns is with Rosatom.[185] Power purchase agreements are offered by the government both for nuclear and local coal.[187] [142] The financing of the National Energy Efficiency Action Plan and continuation beyond 2023 is unclear.[142]

Capacity payments edit

The capacity mechanism regulation says that the purpose of the payments to create sufficient installed power capacity, including the spare capacity required for supply security in the electricity market, and/or to maintain reliable installed power capacity for long-term system security.[188][189] The 2021 capacity mechanism budget was 2.6 billion lira (US$ 460 million).[36] Some hydropower plants, plants burning local coal, and plants older than 13 years burning imported fuel are eligible.[44] In 2022 ten hydro plants, several gas power plants and many lignite-fired plants were eligible for the capacity mechanism:[190] and capacity payments included variable cost components and the market exchange price, as well as fixed cost components and the total installed power capacity by source.[189] These payments have been criticised by some economists.[139] A study published in 2023 surveyed experts and found that most wanted the capacity mechanism to be reformed, for example by including demand response or zonal pricing: however policymakers were not keen on raising the price cap.[191]

Feed-in-tariffs edit

As of 2021, feed-in-tariffs in lira per MWh are: wind and solar 320, hydro 400, geothermal 540, and various rates for different types of biomass: for all these there is also a bonus of 80 per MWh if local components are used.[192] Tariffs will apply for 10 years and the local bonus for 5 years.[192] Rates are determined by the presidency,[193] and the scheme replaced the previous USD-denominated feed-in-tariffs for renewable energy.[194] Thus, as in some other countries, the wholesale price of renewable electricity is much less volatile in local currency than the price of fossil fuelled electricity.

End user pricing edit

The complicated system[195] of prices to end consumers is regulated by the government.[196] A green tariff called YETA (the certificates are called YEK-G) to allow consumers to buy only sustainable electricity was introduced in 2021.[197] The YETA price[4]: 88  is higher than the regular price[4]: 89  by a certain amount per kWh (about 1 lira in 2022).[44]: 35 

Electricity prices were greatly increased in early 2022 following a large depreciation of the lira in 2021.[198] Household consumption under 210 kWh a month is priced at a cheaper rate.[17][199] There is some time based pricing: with 2200 to 0600 being cheapest followed by 0600 to 1700, and 1700 to 2200 being the most expensive.[17] According to Shura Energy Center moving to more time-based end user pricing would be beneficial: with prices being somewhat higher in the early morning and a lot higher in the late afternoon, as there is plenty of sunshine to meet demand in the middle of the day (see also duck curve).[102] Shura suggested in 2020 that future pricing should be more competitive and better reflect costs, with low-income families being continued to be supported with direct payments.[21] Vulnerable families are supported with direct payments for their electricity consumption up to 150 kWh/month.[200] In early 2022, prices for small businesses became a political issue, as they had risen a lot due to global energy prices rises and the depreciation of the lira.[201] There were street protests, and the main opposition Republican People’s Party leader Kemal Kılıçdaroğlu refused to pay his own bill in support.[202][125] The president said that businesses would also be moved to a tiered pricing system, the number of households supported would be almost doubled to four million, and civil society organisations would be moved to the household rate.[16]

In 2023 Shura suggested that the electricity consumption tax [tr] (ETV or BTV) of 5% residential, was unfairly disadvantaging electricity over gas, for example by taxing electricity powering heat pumps more than gas for heating. They said that taxes and subsidies for residential gas and electricity should at least be equalized.[203]: 17–18 

Greenhouse-gas emissions edit

See also: Greenhouse gas emissions by Turkey § Path to net zero

Turkey's coal-fired power stations (many of which are subsidized) are the largest source of greenhouse-gas emissions by Turkey.[204] Production of public heat and electricity emitted 131 megatonnes of CO2 equivalent (CO2e) in 2020,[3]: table 1s1 cell B10  mainly through coal burning.[c] Almost all coal burnt in power stations is local lignite or imported hard coal. Coal analysis of Turkish lignite compared to other lignites shows that it is high in ash and moisture, low in energy value and high in emission intensity (that is Turkish lignite emits more CO2 than other countries' lignites per unit of energy when burnt).[207] Although imported hard coal has a lower emission intensity when burnt, as it is transported much further its life-cycle greenhouse-gas emissions are similar to lignite.[208]: 177 

Unlike other European countries emission intensity has not improved since 1990 and remains over 400 gm of CO2/kWh,[2] around the average for G20 countries.[209] Investment in wind and solar is hampered by subsidies for coal.[210]: 10  According to a 2021 study by several NGOs if coal power subsidies were completely abolished and a carbon price introduced at around US$40 (which is much cheaper than the EU Allowance) then no coal power plants would be profitable and all would close down before 2030.[211] A 2021 decarbonization plan by Istanbul Policy Center, a thinktank, has almost all coal power shutdown by 2035; whereas natural gas plants would continue to run to provide flexibility for greatly increased wind and solar, but at a much lower capacity factor.[212]

The Turkish Solar İndustry Association suggests that building solar plants next to hydropower would help to stabilize output in times of drought. Shura also suggest that excess renewable electricity could be used to produce green hydrogen.[213] Turkey is not aligned with the EU carbon capture and storage directive.[214]

Policy and regulation edit

See also: Energy in Turkey § Policy and regulation

As of 2020 Turkey's three main policy objectives are to meet forecast increased demand, a predictable market, and to reduce import costs.[215][9] To meet these objectives policy includes increasing generation from solar, wind and domestic coal;[216] and starting to produce nuclear energy. As of 2022 some of these generation methods are subsidized - for example EÜAŞ will purchase the forthcoming nuclear power at an agreed price.[154] Coal is heavily subsidized in Turkey. Storage and transmission improvements are also supported - for example increasing the amount of pumped hydro.[217]

The government aims for half of electricity to be from renewable energy by 2023;[175] with capacity targets of 32 GW for hydropower, 12 GW for wind, 10 GW for solar, and 3 GW for biomass and geothermal combined.[9] Shura Energy Transition Center have suggested that longer-term plans and targets would also be useful, together with a policy on distributed generation,[218] market design to incentivize grid flexibility was also suggested.[218] The objectives are developing local manufacturing capacity such as wind turbines,[219] technology transfer and creating a competitive domestic market for low-cost renewable energy.[220] For wind and solar tenders, there is a high domestic content requirement, and imported solar modules are taxed. According to the European Commission the domestic content requirements contradict World Trade Organization and EU-Turkey Customs Union rules.[142] A solar PV factory was opened in 2020.[221] Developing regulation to specify the role of aggregators in providing flexibility, and including energy storage systems and demand side management within ancillary services, has been suggested.[222]

In 2023 the Chamber of Mechanical Engineers criticised the just published National Energy plan as amateurish: they said that it forecast generation of 174 TWh in 2035 with 57 GW of fossil fuel power plants but that, in 2021, 215 TWh was generated from 46 GW installed.[223] Shura Energy Center said in 2023 that the electricity sector should take the lead in decarbonisation to the 2053 net zero goal.[224]: 3 

History edit

See also: Railway electrification in Turkey
 
Control room of 1914 Silahtarağa coal-fired power station, now in a museum
 
Control room of 2016 Zetes-3 coal-fired power station, which environmentalists would like to put in a museum

In 1875 a French company was awarded a 5 year concession to power Istanbul's Üsküdar district, Thessaloniki and Edirne, and was awarded a 4-year concession for electric lighting of several other cities. However, despite the agreement, no progress was made.[225]: 3  The first power station in the Ottoman Empire was a small hydroelectric power station built in 1902 outside Tarsus.[226] Electricity was transmitted to the city centre at high voltage, then distributed to customers at low voltage for their lighting.[225] During this period tenders for power were generally awarded to foreigners, due to lack of Ottoman finance and expertise.[227]: 72, 73 

Generating power in Istanbul for tramlines, lighting and the telephone network from 1914, Silahtarağa Power Station (now a museum that is part of SantralIstanbul) was the first large power station.[228][229] By the start of the Turkish Republic in 1923, one in twenty people was supplied with electricity.[228] Between 1925 and 1933, many cities built diesel fired power stations, and a couple were powered by wood gas.[225]: 4 

The electricity sector was nationalized in the late 1930s and early 1940s, and by the end of nationalization, almost a quarter of the population was supplied with electricity.[230] However only big cities such as Istanbul, Ankara and Izmir received continuous electricity in the 1950s; other cities were electrified only between dusk and 10 or 11 in the evening.[231]: 243 

The Turkish Electricity Authority was created in 1970 and consolidated almost all of the sector.[230] By the end of the 20th century, almost all the population was supplied with electricity.[232] Privatization of the electricity sector started in 1984[230] and began "in earnest" in 2004[233] after the Electricity Market Law was passed in 2001.[234]

In 2009 electricity demand fell due to the Great Recession.[4]: 14  In 2015, there was a one day national blackout, and an independent energy exchange was created.[234] Also in the 2010s, the grid was synchronized with continental Europe,[235] and the Turkish Electricity Transmission Corporation (TEİAŞ) joined the European Network of Transmission System Operators (ENTSO-E) as an observer - although they later left.[106][236] Energy efficiency and generation goals were set for 2023, the centenary of the establishment of modern Turkey.[237]

Notes edit

  1. ^ The table on page iii of the 2022 EMRA report totals 15 + 23 + 14 = 52 coal power licences - but as ZETES 1 2 and 3 have the same licence if counted as separate power stations the total would be 54, which matches the total on the Turkish version of the Wikipedia list.[48]: iii 
  1. ^ For example, drought in 2020 caused a generation drop of over 10% compared to the previous year.[65]
  2. ^ PTF means the Day ahead Market Clearing Price and SMF means the Real time System Marginal Price and AOF means the hourly Weighted Average Price all in (TL/MWh)[133][134]
  3. ^ The 2019 carbon content (t/TJ), oxidation factor and CO2 emission intensity (t/TJ NCV), respectively, of the main fossil fuels burnt in Turkish power stations were:[205]: 49 & 50, table 3.5, 3.6, 3.7  These figures are unremarkable except for the extremely low-quality lignite, which is explained in detail in Coal in Turkey. The CO2 emission intensity (or emission factor) shown above is the mass of CO2 emitted for each unit of heat produced by burning a fuel. In contrast, the grid emission intensity is the mass of CO2e produced per unit of electricity supplied to the electrical grid. Because thermal power stations generally convert less than half of the heat energy into electrical energy,[206] their numbers for grid emission intensity are much greater than those shown above.

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Sources edit

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  • Saygın, Değer; Tör, Osman Bülent; Teimourzadeh, Saeed; Koç, Mehmet; Hildermeier, Julia; Kolokathis, Christos (December 2019). Transport sector transformation: Integrating electric vehicles into Turkey's distribution grids (PDF). SHURA Energy Transition Center (Report).
  • Turkey 2021 Report (see chapters: 15 Energy, 27 Environment and Climate change) (Report). European Commission. 2021.
  • Turkey's Energy Transition: Milestones and Challenges (PDF) (Report). World Bank. 2015.
  • Turkey Smart Grid 2023 Vision and Strategy Roadmap Summary Report (Report). ELDER, Association of Distribution System Operators. 2018.
  • Akyazı, Pınar Ertör; Sperfeld, Franziska; Helgenberger, Sebastian; Şahin, Ümit; Nagel, Laura, eds. (December 2020). Cobenefits Policy Report: Unlocking the co-benefits of decarbonising Turkey's power sector (Report). IASS IPC/UfU.

Further reading edit

  • National Energy Plan to 2035 published 2022

External links edit

  • Markets, generation and consumption short term statistics Energy Exchange Istanbul
  • Hourly generation by source for selected day Turkish Electricity Transmission Corporation
  • Annual generation statistics (in Turkish) Turkish Electricity Transmission Corporation
  • Retail prices
  • Power flow simulator
  • Association of Distribution System Operators
  • Smart Grid Turkey
  • Live carbon emissions from electricity generation electricityMap Live built by Tomorrow

February 16, 2024
electricity, sector, turkey, turkey, uses, more, electricity, person, than, global, average, less, than, european, average, with, demand, peaking, summer, conditioning, most, electricity, generated, from, coal, hydropower, with, hydroelectricity, from, east, t. Turkey uses more electricity per person than the global average but less than the European average with demand peaking in summer due to air conditioning Most electricity is generated from coal gas and hydropower with hydroelectricity from the east transmitted to big cities in the west Electricity prices are state controlled but wholesale prices are heavily influenced by the cost of imported gas Electricity sector of TurkeyOne of the Bosphoros crossings at Istanbul 154 kVDataInstalled capacity 2022 100 GW 1 Production 2021 329 TWh 1 Share of fossil energy65 generation 2 47 capacity 1 Share of renewable energy35 generation 53 capacity 1 GHG emissions from electricity generation 2020 131 Mt CO2e power stations including heat sold by power stations 3 table 1s1 cell B10 Average electricity use 2021 327 TWh 1 Distribution losses 2020 9 5 4 42 Consumption by sector of total Residential21 2018 Industrial117 TWh 5 2019 Agriculture7 TWh 5 2019 Commercial and public sector28 2018 Traction1 TWh 5 2019 ServicesSector unbundlingPartialShare of private sector in transmission0Share of private sector in distributionSee textCompetitive supply to large usersYesCompetitive supply to residential usersOnly to those consuming over 1400 kWh per yearInstitutionsNo of service providersEUAS private companiesResponsibility for transmissionTurkish Electricity Transmission CorporationResponsibility for regulationEnergy Market Regulatory AuthorityResponsibility for policy settingMinistry of Energy and Natural ResourcesEach year about 300 terawatt hours TWh of electricity is used which is almost a quarter of the total energy used in Turkey On average about four hundred grams of carbon dioxide is emitted per kilowatt hour of electricity generated 400 gCO2 kWh this carbon intensity is slightly less than the global average As there is 100 GW of generating capacity far more electricity could be produced Although only a tiny proportion is exported consumption is forecast to increase and there are plans for more exports during the 2020s Turkey s coal fired power stations are the largest source of the country s greenhouse gas emissions Many brown coal power stations are subsidized which increases air pollution Imports of gas mostly for Turkey s power stations are one of the main expenses for the country In winter electricity generation is vulnerable to reductions in the gas supply from other countries 6 7 Solar and wind power are now the cheapest generators of electricity 8 and more of both are being built If enough solar and wind power is built the country s hydroelectric plants should be enough to cover windless cloudy weeks Renewables generate a third of the country s electricity and academics have suggested that the target of 32 renewable energy by 2030 be increased to 50 and that coal power should be phased out by the mid 2030s Increased use of electric vehicles is expected to increase electricity demand Contents 1 Consumption 1 1 Demand forecasts 1 2 Industry 1 3 Electrification of transport 2 Generation 2 1 Coal 2 2 Gas 2 3 Hydropower 2 4 Wind 2 5 Solar 2 6 Geothermal 2 7 Nuclear 2 8 Hybrid distributed and virtual generation 3 Transmission and storage 4 Distribution 5 Resilience 6 Market 7 Retailing 8 Economics and finance 8 1 Capacity payments 8 2 Feed in tariffs 8 3 End user pricing 9 Greenhouse gas emissions 10 Policy and regulation 11 History 12 Notes 13 References 14 Sources 15 Further reading 16 External linksConsumption editEach year about 300 TWh of electricity is used in Turkey this supplies almost a quarter of the total final energy demand 9 19 the rest being from coal oil and gas 10 Due to air conditioning demand peaks in summer 11 with August highest 32 TWh in 2021 and February typically lowest 24 TWh in 2021 12 Total national consumption divided by the population is under 4 000 kWh a year much below the average of around 10 000 kWh a year for other OECD countries in Europe 13 4 17 but half as much again as the global average 14 Shares of energy usage in 2019 totaled 45 for industry 29 for services and 21 for households 4 16 Consumption is forecast to increase 15 As of 2021 update household electricity consumption is estimated to average 230 kWh a month 16 and is dominated by refrigerators followed by televisions then washing machines 17 Space heating and electric vehicles have the biggest potential for demand side response 18 51 Between 2019 and 2024 Turkey plans to invest US 11 billion into energy efficiency 19 and by 2035 replace 80 of electricity meters with smart meters 20 Electricity s share of energy consumption is expected to increase from 22 in 2019 to perhaps 28 in 2040 partly due to electrification of road transport 21 Demand forecasts edit Demand forecasting is important because constructing too much electricity generation capacity can be expensive both for government energy subsidies and private sector debt interest 22 23 Conversely constructing too little risks delaying the health benefits of electrification the biggest of which is cleaner air due to fossil fuel phase out 24 Distribution companies some retail companies and industrial zones send their demand forecasts to the Energy Ministry and the Turkish Electricity Transmission Corporation TEIAS every year 4 21 TEIAS then publishes low base and high 10 year forecasts 4 21 using the DECADES model whereas the Energy Ministry uses the Model for Analysis of Energy Demand 25 Year forecast made Forecast year Forecast amount TWh Actual amount 26 Forecaster2018 2019 317 27 304 government2020 3072018 2021 322 to 345 28 329 1 academics2020 2030 359 396 454 4 21 TEIASSome official demand forecasts are overestimated 29 30 31 which could be due to low economic growth 32 33 In 2019 actual generation was 76 of firm capacity and overcapacity continued into the early 2020s 33 34 Industry edit The share of electricity used in industry is expected to increase at the expense of the fossil fuel share as Turkey moves to more technology manufacturing 35 343 Less coal is being burnt for industry and oil burning remains static 35 343 One projection even shows electricity overtaking gas to become the largest industrial energy source at 30 35 343 however more efficient lighting and industrial motors together with policy changes supporting efficiency could limit demand growth 35 340 Electrification of transport edit nbsp Nostalgic tramway in Istanbul transport is expected to once again become a major consumer with vehicles such as cars made by Togg electric buses and trainsIn 2021 less than 3000 fully electric cars were sold 36 however production and use of some types of electric vehicles such as cars manufactured by Togg may increase demand during the 2020s 37 10 Shura Energy Transition Center a think tank has recommended to automatically charge electric cars when plenty of wind and solar power is available 37 19 The architecture of Turkey means that many city dwellers live in apartment blocks without off street parking regulations require at least one charger per 50 new parking spaces in shopping malls and public parking lots 38 Getting old diesel cars and trucks off the road would have health and environmental benefits but this would require new pollution control legislation 39 and as of 2021 update the only commercial electric vehicles planned for mass production are vans 40 The government aims to end sales of fossil fuel cars and lorries by 2040 41 Ford hopes to build a factory to make batteries for commercial electric vehicles 42 Generation edit nbsp Although wind and solar are increasing coal is only slowly declining Gas generation makes up for hydropower during drought years Further information List of power stations in Turkey and Renewable energy in Turkey Of the total 329 TWh of electricity generated in 2021 natural gas produced 42 coal 26 hydropower 13 and wind 10 1 Installed capacity reached 100 GW in 2022 1 Academics have suggested that the target of 32 from renewables by 2030 should be increased to at least 50 43 The state owned Electricity Generation Company EUAS has about 20 of the market 44 8 and there are many private companies 45 The carbon intensity of generation during the 2010s was slightly over 400 gCO2 kWh 46 around the global average 47 Coal edit See also List of active coal fired power stations in Turkey This section is an excerpt from Coal power in Turkey edit Coal in Turkey generates between a quarter and a third of the nation s electricity There are 54 active coal fired power stations with a total capacity of 21 gigawatts GW note 1 Air pollution from coal fired power stations is damaging public health 49 48 and it is estimated that a coal phase out by 2030 instead of by the 2050s would save over 100 000 lives 50 Flue gas emission limits were improved in 2020 but data from mandatory reporting of emission levels is not made public Turkey has not ratified the Gothenburg Protocol which limits fine dust polluting other countries Turkey s coal is almost all low calorie lignite but government policy supports its continued use In contrast Germany is closing lignite fired stations under 150 MW 51 Drought in Turkey is frequent but thermal power stations use significant amounts of water 52 Coal fired power stations are the largest source of greenhouse gas at about a tonne each year per person which is about the world average 53 Coal fired stations emit over 1 kg of carbon dioxide for every kilowatt hour generated 54 over twice that of gas power Academics suggest that in order to reach Turkey s target of carbon neutrality by 2053 coal power should be phased out by the mid 2030s 55 In January 2023 the National Energy Plan was published it forecast a capacity increase to 24 3 GW by 2035 56 23 including 1 7 GW more by 2030 56 15 The plan forecasts coal generation decreasing but capacity payments continuing for flexible and baseload power 56 25 Gas edit Further information List of power stations in Turkey Natural Gas and Greenhouse gas emissions by Turkey Gas fired stations In 2020 power plants consumed 29 of natural gas in Turkey 57 State owned gas fired power plants are less efficient than private plants but can out compete them as the state guarantees a price for their electricity 58 Gas power plants are used more when drought reduces hydropower such as in 2021 59 which was a record year for gas consumption 60 The National Energy Plan published in 2023 forecasts 10 GW more gas power plants will be built 61 Hydropower edit nbsp Ataturk Dam in Turkey is the third largest dam in the world Main article Hydroelectricity in Turkey Hydropower is a critical source of electricity and in some years substantial amounts can be generated due to Turkey s mountainous landscape abundance of rivers and it being surrounded by three seas The main river basins are the Euphrates and the Tigris Many dams have been built throughout the country and a peak of 28 GW of power can be generated by hydroelectric plants 62 Almost 90 TWh was generated in 2019 around 30 of the country s electricity 63 There are many policies that support hydroelectricity Construction of some dams has been controversial for various reasons for example environmentalists claiming they damage wildlife such as fish 64 or downstream countries complaining of reduced water flow Due to changes in rainfall generation varies considerably from year to year a And according to S amp P Global Platts when there is drought in Turkey during the peak electricity demand month of August the aim of the State Hydraulic Works to conserve water for irrigation can conflict with the Turkish Electricity Transmission Corporation aiming to generate electricity 66 Despite droughts increasing due to climate change hydropower is predicted to remain important for load balancing 35 72 Converting existing dams to pumped storage has been suggested as more feasible than new pumped storage 67 Wind edit This section is an excerpt from Wind power in Turkey edit nbsp Wind turbines on the island of Gokceada in the far westWind power generates about 10 of Turkey s electricity mainly in the west in the Aegean and Marmara regions and is gradually becoming a larger share of renewable energy in the country As of 2023 update Turkey has 11 gigawatts GW of wind turbines The Energy Ministry plans to have almost 30 GW by 2035 including 5 GW offshore 68 The state owned Electricity Generation Company EUAS has about 20 of the market 69 and there are many private companies 70 The highest ever daily share of wind power was 25 in 2022 71 Building new wind farms is cheaper than running existing coal plants which depend on imported coal 72 According to modelling by Carbon Tracker new wind will be cheaper than all existing coal plants by 2027 73 74 Solar edit Main article Solar power in Turkey nbsp Greenway Solar power tower in Mersin is the only generator using concentrated solar the rest are photovoltaicTurkey is located in an advantageous position in the Middle East and Southeast Europe for solar energy and it is a growing part of renewable energy in the country with almost 8 GW generating about 4 of the country s electricity Solar potential is high in Turkey especially in the south east and Mediterranean provinces 75 Conditions for solar power generation are comparable to Spain In 2020 Turkey ranked 8th in Europe for solar power 4 49 but it could increase far more quickly if subsidies for coal were abolished 76 and the auction system was improved 77 Every gigawatt of solar power installed would save over US 100 million in gas import costs 78 Peak daily generation in 2020 was over 1 TWh in September 79 According to modelling by Carbon Tracker new solar power became cheaper than new coal power in 2020 80 and will become cheaper than existing coal plants in 2023 81 According to think tank Ember building new solar and wind power in Turkey is cheaper than running existing coal plants which depend on imported coal 82 But they say that there are obstacles to building utility scale solar such as lack of new capacity for solar power at transformers a 50 MW cap on any single solar power plant s installed capacity and large consumers being unable to sign long term power purchase agreements for new solar installations 82 Unlicensed power plants which are mostly solar generated about 4 of electricity in 2021 44 13 Geothermal edit Main article Geothermal power in Turkey nbsp Kizildere Geothermal Power Plant in western TurkeyThere are almost 2 gigawatts of electrical geothermal power in Turkey which is a significant part of renewable energy in Turkey Geothermal power in Turkey began in the 1970s in a prototype plant following systematic exploration of geothermal fields In the 1980s the pilot facility became the first geothermal power plant The small sized geothermal power plant was expanded to the country s biggest in 2013 Over 60 power plants operate in Turkey as of 2020 update 83 with potential for more 84 As well as contributing to electricity generation geothermal energy is also used in direct heating applications At the end of 2021 Turkey had 1 7 GW installed capacity the fourth largest in the world after the United States Indonesia and the Philippines 85 There is almost 2 GW of geothermal and sites for much more including enhanced geothermal systems 86 However carbon dioxide emissions can be high especially for new plants so to prevent carbon dioxide dissolved out of the rocks being released into the atmosphere the fluid is sometimes completely reinjected after its heat is used 87 Nuclear edit Main article Nuclear power in Turkey nbsp nbsp Akkuyu nbsp Sinop nbsp Igneadaclass notpageimage Nuclear power stations in Turkey view nbsp Under construction nbsp Proposed Turkey s first nuclear power plant at Akkuyu is planned to start generation in 2023 and is expected to last for at least 60 years 88 The nuclear power debate has a long history with the 2018 construction start in Mersin Province being the sixth major attempt to build a nuclear power plant since 1960 89 Nuclear power has been criticised as being very expensive to taxpayers 90 Plans for a nuclear power plant at Sinop and another at Igneada have stalled 91 Hybrid distributed and virtual generation edit Hybrid generation became more popular in the early 2020s 92 If distributed generation installed power is under 11 kW it is only allowed to be connected to the low voltage network not the high voltage network 93 The first virtual power plant was created in 2017 with wind solar and hydropower and geothermal was added in 2020 94 Transmission and storage editThe transmission system operator is the Turkish Electricity Transmission Corporation TEIAS 95 which is a state owned monopoly as of 2022 4 11 It is planned to sell a minority share to the private sector in 2022 96 Transmission is regulated by the Energy Market Regulatory Authority EMRA 97 The first long distance transmission line was from Zonguldak to Istanbul in 1952 98 and as of 2021 update there are 72 000 km 99 The grid runs at 400 kV and 154 kV 100 and there are over 700 transmission grid substations 101 Transmission costs including losses and operation costs are shared equally between producer and consumer 102 70 Reducing grid losses and outages is important as is improving grid quality 103 Power consumption is often distant from generation so grid improvements are needed to prevent bottlenecks and increase flexibility 104 There are 11 international interconnectors 4 including all of Turkey s neighbours by land except Armenia although relations are improving 105 Although TEIAS is no longer an observer member of ENTSO E it continues to attend technical discussions of working groups 106 105 As of 2020 update links with the European Union allow 500 MW export and 650 MW import whereas trade with other countries is possible but difficult to automate as they do not meet ENTSO E synchronisation requirements 107 In 2020 total exports were 2 5 GWh mostly to Greece and imports 1 9 GWh mostly from Bulgaria 4 39 According to a 2018 study by Sabanci University 20 of Turkey s electricity may be generated from wind and solar by 2026 with no extra transmission costs and 30 with a minor increase in grid investment 108 With the increase in electricity generated by solar panels energy storage may become more important A pumped hydropower plant is planned to be completed by 2022 109 Converting existing dams to pumped storage has been suggested as more feasible than new pumped storage 67 Mobile 10 MW batteries may be useful in the future for reducing temporary transmission congestion between regions or larger ones for frequency regulation 110 Adding ice thermal storage to hypermarket cooling systems is estimated to be economically viable 111 The nationwide blackout in 2015 was not caused by a natural disaster but by the limited capacity and lack of resilience of the main east west connection whilst it was being maintenanced leaving it unable to redistribute enough of the eastern hydroelectricity to the high consuming west It did not greatly affect Van Province as it was supplied from Iran 112 and the EU interconnection helped restore power 113 More integration with other countries would increase resilience 114 New wind and solar in the west and centre of the country is closer to demand and is thus reducing the dependance on high voltage transmission 115 Distribution edit nbsp Danger of death sign on transformer belonging to the Bosphoros distribution company BEDAS D dagitim distribution 116 As part of electricity industry reforms between 2009 and 2013 the ownership of all electricity distribution infrastructure was retained by state owned Turkish Electricity Distribution Corporation TEDAS but responsibility for operation maintenance and new investment in distribution networks was transferred to 21 privately owned regional entities under licences from EMRA Electricity at voltages up to 36 kV is distributed by regional companies and many organized industrial zones 117 There are over a million kilometres of distribution lines of which about 80 are overhead lines and the rest are underground cables The average losses across all distribution networks including both technical and non technical losses are around 12 118 but in Dicle and Vangolu are over 20 cite EPDK 2022 In 2019 TEDAS estimated the System Average Interruption Duration Index OKSURE in Turkish at 1308 which is much worse than neighbouring European countries however no estimate has been published since then 119 27 Nevertheless at least one distribution company measures it together with the related frequency index OKSIK in Turkish 120 73 There are plans for a smart grid 121 According to the Shura Energy Center increasing Turkey s proportion of electric cars to 10 by 2030 would smooth distribution amongst many other benefits 122 According to the Chamber of Electrical Engineers the regional monopolies make excess profits 123 124 125 Their income is determined by EMRA 126 as distribution charges are set annually by EMRA 117 Resilience editEarthquakes in Turkey are common and sometimes cut transmission lines and destroy substations 127 If the permanent supervisory control centre of a distribution grid is destroyed in a disaster a mobile centre may take control 128 The installation of more local solar power with batteries and microgrids in vulnerable places might help vital buildings such as hospitals retain power after a natural disaster such as earthquake or flood Academics suggest that cost benefit analysis of such emergency power systems should take into account any benefits of resilience and also the cost of installing an islandable system 129 130 Market editEnergy Exchange Istanbul EXIST is the electricity market operator company responsible for the day ahead and intra day markets EXIST was established in 2015 and operates under a license from the Energy Markets Regulatory Authority EMRA 131 As of 2022 update the wholesale price is the same across the country 132 b but it has been suggested that price zones should be defined to reflect network congestion for example in getting run of the river hydropower to consumers 135 The wholesale price is generally lowest in spring due to moderate temperatures and abundant hydropower 136 Although the wholesale market is operated by EXIST 137 prices are controlled by EUAS the state electricity generation company 138 Gas fired power stations set the market price 139 The National Load and Dispatch Centre prepares forward estimates of demand for each hour and these are used to guide scheduling of generation 24 hours in advance 117 The Turkish Electricity Transmission Company TEIAS is the physical operator of the balancing power market and the ancillary services market 117 Because price is determined at the margin the electricity price is very dependent on the natural gas price 140 The government has capped the wholesale electricity price at thrice the average of the previous 12 months 140 which is high enough for gas and imported coal plants to remain in operation even when their fuel costs are high 44 14 Because gas fired power plants are often the price setters wholesale electricity prices are strongly influenced by wholesale natural gas prices which are themselves influenced by the USD exchange rate 4 64 Owning over 20 of capacity 4 24 the state Electricity Generation Company is a key player in the market along with private wholesalers such as Enerjisa Cengiz Eren Limak and Celikler 4 52 and an over the counter market 4 9 In 2019 150 TWh about half of the electricity generated was traded on the day ahead spot market 141 Market pricing is not completely transparent cost reflective and non discriminatory 142 When the lira falls bilateral contracts are sometimes unable to compete with regulated tariffs but when the exchange rate is stable industrial customers prefer bilateral contracts almost no households are on those 143 In 2021 EXIST launched an electricity futures market 144 Although as of 2021 update there is a lot of excess generation capacity 145 very little is exported 107 In 2021 Turkey exported 4 1 TWh and imported 2 3 TWh 12 International trade with some countries is hampered by geopolitical difficulties such as the Cyprus dispute for example Turkey will be bypassed by the EuroAsia Interconnector 146 Because TEIAS is not unbundled it cannot become a full member of the European Network of Transmission System Operators for Electricity ENTSO E but the grids are synchronised and there is technical co operation 147 The grid is linked across most land borders and about 1 of electricity is imported or exported 148 Technical studies are being done on increasing connections with the European grid 149 In 2022 export capacity to Iraq was increased from 150 MW to 500 MW 150 Some power barges supplying other countries burn heavy fuel oil but plan to convert to LNG 151 For exports to the EU the Carbon Border Adjustment Mechanism CBAM will be phased in from 2023 to 2026 152 Although Turkish electricity is likely to be cheaper than that generated in the EU the impact of the CBAM is unclear as of 2021 153 More linking transmission is needed and becoming a full member of ENTSO E would help exports 153 Retailing editAlthough the 2013 Electricity Market Law says that distribution companies cannot retail most customers buy from retail arms of their local distribution companies 154 Households that consume over a certain amount and all non household customers can switch suppliers 155 Retail price increases have often been due to depreciation of the lira 4 143 Pricing can vary by region 102 70 but there is some redistribution 4 43 and electricity is subsidized for about 2 million households 4 20 An example of a regional retail company is YEPAS P perakende retail 156 European wiring color codes are used 157 Schuko plugs plug type C with 2 round pins and type F with 2 round pins and 2 earth clips 158 and sockets are standard at 230 V 159 and 50 Hz 160 For public charging of electric vehicles the European standard Combined Charging System is used 161 As of 2022 there are no Tesla superchargers 162 After purchasing a property in an urban area earthquake insurance is compulsory before electricity is connected 163 In case of natural disasters or pandemics the Ministry of Energy and Natural Resources may cover the financial costs resulting from the postponement up to one year of electricity bills but not the bill amount itself 164 As of 2022 update the VAT rate for residential customers and agricultural irrigation is 8 165 Economics and finance editSee also Coal in Turkey Subsidies As elsewhere new renewables are auctioned 166 In 2019 the value adjusted levelized cost of energy VALCOE the cost including power system value but not environmental externalities of onshore wind was slightly less than solar PV 167 but solar PV is expected to become the most cost competitive power generation technology by the late 2020s 168 According to the Chamber of Engineers 75 of electricity in 2021 was dollar indexed 169 In 2021 new wind and solar became cheaper than existing power stations burning imported coal 170 As of 2018 update if all currently economic renewable projects were developed the added electricity generation would be sufficient to reduce Turkey s natural gas imports by 20 171 172 and every GW of solar power installed would save over 100 million on the gas bill 173 According to EMRA exports to the EU accompanied by YEK G will be exempt from the electricity CBAM 4 88 As of 2019 update about 15 of power was generated by the public sector 174 During the 2010s power companies borrowed heavily in dollars but economic growth was overestimated and they overbuilt generating capacity 174 This resulted in bank debts of 34 billion by 2019 and revenues declining in dollar terms due to the fall in the lira furthermore 7 of debts were non performing 175 176 In the early 2020s Turkish electricity companies still owe much foreign currency 177 178 debt is being restructured 179 and plants are changing ownership 180 181 In 2021 BOTAS charged more for gas than before leaving gas fired power stations at a disadvantage to coal fired power stations 182 About half the electricity used in 2019 was generated from local resources 183 Total import dependency in the power sector was over 50 in 2019 29 It has for example been predicted that more trade would benefit electricity in Bulgaria by stabilizing its price 184 The main growth in solar and wind during the 2020s is predicted to be in Renewable Energy Resource Areas YEKA these use auctions and include a requirement to manufacture mostly in Turkey 185 The EU has complained that local content requirements are against trade agreements 186 Build Own Operate is being used to construct Akkuyu nuclear plant to ensure that responsibility for cost overruns is with Rosatom 185 Power purchase agreements are offered by the government both for nuclear and local coal 187 142 The financing of the National Energy Efficiency Action Plan and continuation beyond 2023 is unclear 142 Capacity payments edit The capacity mechanism regulation says that the purpose of the payments to create sufficient installed power capacity including the spare capacity required for supply security in the electricity market and or to maintain reliable installed power capacity for long term system security 188 189 The 2021 capacity mechanism budget was 2 6 billion lira US 460 million 36 Some hydropower plants plants burning local coal and plants older than 13 years burning imported fuel are eligible 44 In 2022 ten hydro plants several gas power plants and many lignite fired plants were eligible for the capacity mechanism 190 and capacity payments included variable cost components and the market exchange price as well as fixed cost components and the total installed power capacity by source 189 These payments have been criticised by some economists 139 A study published in 2023 surveyed experts and found that most wanted the capacity mechanism to be reformed for example by including demand response or zonal pricing however policymakers were not keen on raising the price cap 191 Feed in tariffs edit As of 2021 update feed in tariffs in lira per MWh are wind and solar 320 hydro 400 geothermal 540 and various rates for different types of biomass for all these there is also a bonus of 80 per MWh if local components are used 192 Tariffs will apply for 10 years and the local bonus for 5 years 192 Rates are determined by the presidency 193 and the scheme replaced the previous USD denominated feed in tariffs for renewable energy 194 Thus as in some other countries the wholesale price of renewable electricity is much less volatile in local currency than the price of fossil fuelled electricity End user pricing edit The complicated system 195 of prices to end consumers is regulated by the government 196 A green tariff called YETA the certificates are called YEK G to allow consumers to buy only sustainable electricity was introduced in 2021 197 The YETA price 4 88 is higher than the regular price 4 89 by a certain amount per kWh about 1 lira in 2022 44 35 Electricity prices were greatly increased in early 2022 following a large depreciation of the lira in 2021 198 Household consumption under 210 kWh a month is priced at a cheaper rate 17 199 There is some time based pricing with 2200 to 0600 being cheapest followed by 0600 to 1700 and 1700 to 2200 being the most expensive 17 According to Shura Energy Center moving to more time based end user pricing would be beneficial with prices being somewhat higher in the early morning and a lot higher in the late afternoon as there is plenty of sunshine to meet demand in the middle of the day see also duck curve 102 Shura suggested in 2020 that future pricing should be more competitive and better reflect costs with low income families being continued to be supported with direct payments 21 Vulnerable families are supported with direct payments for their electricity consumption up to 150 kWh month 200 In early 2022 prices for small businesses became a political issue as they had risen a lot due to global energy prices rises and the depreciation of the lira 201 There were street protests and the main opposition Republican People s Party leader Kemal Kilicdaroglu refused to pay his own bill in support 202 125 The president said that businesses would also be moved to a tiered pricing system the number of households supported would be almost doubled to four million and civil society organisations would be moved to the household rate 16 In 2023 Shura suggested that the electricity consumption tax tr ETV or BTV of 5 residential was unfairly disadvantaging electricity over gas for example by taxing electricity powering heat pumps more than gas for heating They said that taxes and subsidies for residential gas and electricity should at least be equalized 203 17 18 Greenhouse gas emissions editSee also Greenhouse gas emissions by Turkey Path to net zero Turkey s coal fired power stations many of which are subsidized are the largest source of greenhouse gas emissions by Turkey 204 Production of public heat and electricity emitted 131 megatonnes of CO2 equivalent CO2e in 2020 3 table 1s1 cell B10 mainly through coal burning c Almost all coal burnt in power stations is local lignite or imported hard coal Coal analysis of Turkish lignite compared to other lignites shows that it is high in ash and moisture low in energy value and high in emission intensity that is Turkish lignite emits more CO2 than other countries lignites per unit of energy when burnt 207 Although imported hard coal has a lower emission intensity when burnt as it is transported much further its life cycle greenhouse gas emissions are similar to lignite 208 177 Unlike other European countries emission intensity has not improved since 1990 and remains over 400 gm of CO2 kWh 2 around the average for G20 countries 209 Investment in wind and solar is hampered by subsidies for coal 210 10 According to a 2021 study by several NGOs if coal power subsidies were completely abolished and a carbon price introduced at around US 40 which is much cheaper than the EU Allowance then no coal power plants would be profitable and all would close down before 2030 211 A 2021 decarbonization plan by Istanbul Policy Center a thinktank has almost all coal power shutdown by 2035 whereas natural gas plants would continue to run to provide flexibility for greatly increased wind and solar but at a much lower capacity factor 212 The Turkish Solar Industry Association suggests that building solar plants next to hydropower would help to stabilize output in times of drought Shura also suggest that excess renewable electricity could be used to produce green hydrogen 213 Turkey is not aligned with the EU carbon capture and storage directive 214 Policy and regulation editSee also Energy in Turkey Policy and regulation As of 2020 update Turkey s three main policy objectives are to meet forecast increased demand a predictable market and to reduce import costs 215 9 To meet these objectives policy includes increasing generation from solar wind and domestic coal 216 and starting to produce nuclear energy As of 2022 update some of these generation methods are subsidized for example EUAS will purchase the forthcoming nuclear power at an agreed price 154 Coal is heavily subsidized in Turkey Storage and transmission improvements are also supported for example increasing the amount of pumped hydro 217 The government aims for half of electricity to be from renewable energy by 2023 175 with capacity targets of 32 GW for hydropower 12 GW for wind 10 GW for solar and 3 GW for biomass and geothermal combined 9 Shura Energy Transition Center have suggested that longer term plans and targets would also be useful together with a policy on distributed generation 218 market design to incentivize grid flexibility was also suggested 218 The objectives are developing local manufacturing capacity such as wind turbines 219 technology transfer and creating a competitive domestic market for low cost renewable energy 220 For wind and solar tenders there is a high domestic content requirement and imported solar modules are taxed According to the European Commission the domestic content requirements contradict World Trade Organization and EU Turkey Customs Union rules 142 A solar PV factory was opened in 2020 221 Developing regulation to specify the role of aggregators in providing flexibility and including energy storage systems and demand side management within ancillary services has been suggested 222 In 2023 the Chamber of Mechanical Engineers criticised the just published National Energy plan as amateurish they said that it forecast generation of 174 TWh in 2035 with 57 GW of fossil fuel power plants but that in 2021 215 TWh was generated from 46 GW installed 223 Shura Energy Center said in 2023 that the electricity sector should take the lead in decarbonisation to the 2053 net zero goal 224 3 History editSee also Railway electrification in Turkey nbsp Control room of 1914 Silahtaraga coal fired power station now in a museum nbsp Control room of 2016 Zetes 3 coal fired power station which environmentalists would like to put in a museumIn 1875 a French company was awarded a 5 year concession to power Istanbul s Uskudar district Thessaloniki and Edirne and was awarded a 4 year concession for electric lighting of several other cities However despite the agreement no progress was made 225 3 The first power station in the Ottoman Empire was a small hydroelectric power station built in 1902 outside Tarsus 226 Electricity was transmitted to the city centre at high voltage then distributed to customers at low voltage for their lighting 225 During this period tenders for power were generally awarded to foreigners due to lack of Ottoman finance and expertise 227 72 73 Generating power in Istanbul for tramlines lighting and the telephone network from 1914 Silahtaraga Power Station now a museum that is part of SantralIstanbul was the first large power station 228 229 By the start of the Turkish Republic in 1923 one in twenty people was supplied with electricity 228 Between 1925 and 1933 many cities built diesel fired power stations and a couple were powered by wood gas 225 4 The electricity sector was nationalized in the late 1930s and early 1940s and by the end of nationalization almost a quarter of the population was supplied with electricity 230 However only big cities such as Istanbul Ankara and Izmir received continuous electricity in the 1950s other cities were electrified only between dusk and 10 or 11 in the evening 231 243 The Turkish Electricity Authority was created in 1970 and consolidated almost all of the sector 230 By the end of the 20th century almost all the population was supplied with electricity 232 Privatization of the electricity sector started in 1984 230 and began in earnest in 2004 233 after the Electricity Market Law was passed in 2001 234 In 2009 electricity demand fell due to the Great Recession 4 14 In 2015 there was a one day national blackout and an independent energy exchange was created 234 Also in the 2010s the grid was synchronized with continental Europe 235 and the Turkish Electricity Transmission Corporation TEIAS joined the European Network of Transmission System Operators ENTSO E as an observer although they later left 106 236 Energy efficiency and generation goals were set for 2023 the centenary of the establishment of modern Turkey 237 Notes edit The table on page iii of the 2022 EMRA report totals 15 23 14 52 coal power licences but as ZETES 1 2 and 3 have the same licence if counted as separate power stations the total would be 54 which matches the total on the Turkish version of the Wikipedia list 48 iii For example drought in 2020 caused a generation drop of over 10 compared to the previous year 65 PTF means the Day ahead Market Clearing Price 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