1. Energy Seminar Turkish-Dutch Energy Cooperation Rotherdam June 2011 Turkey Sustainable Energy Financing Facility Türkiye Sürdürülebilir Enerji Finansman Programı TURSEFF is supported by: TURSEFF was developed by EBRD

2. Seminerin Amacı Turkey is 6th largest electricity market in Europe. Annual consumption growth has been 8% over last 20 years. It is expected that Turkey will double electricity demand as of 2020. Most of the electricity demand is being supplied from fossil fuels The electricity market in Turkey has been liberalized together with several new amended laws since 2001. However the real operation of spot market has been realized since 2009. The new Renewable Energy Law has been issued and brought a visibility to the market. Three Nuclear Power plant construction has been planned. The agreement for the first plant is done with Russia. TURKISH ENERGY MARKET Turkish Energy Market

3. Seminerin Amacı Electricity Sources

4. Seminerin Amacı Security of Energy Supply: Additional generating capacity and increased focus on energy efficiency are required to improve the security of supply. Reduction of Energy Import Cost: Turkey is a major energy importer and a substantial part of these imports, are used for electricity generation. The reduction of CO2 emissions – Turkey’s greenhouse gas (GHG) emissions are growing rapidly. Total GHG emissions rose from about 125 million tons of carbon dioxide (CO2) equivalent in 1990 to about 265 million tCO2 in 2007. In particular, CO2 emissions are projected to continue to increase and exceed 600 mtCO2 by 2020 in the Government’s reference case scenario. Turkey’s emissions are now the 23rd highest in the world at 0.8% of global emissions. Challanges in the Market

5. Seminerin Amacı Renewable Energy Potential in Turkey

6. Seminerin Amacı The New Renewable Energy Law brings guaranteed purchase for renewable sourced electricity. Premiums in purchasing price for Locally Manufactured Renewable Energy Equipments. Turkey has wide Geothermal sources. Turkey has rich Biogas sources. (Garbage Waste, Sludge from Water Treatment, Biological Wastes) High focus on Energy Efficiency. High Electricity prices make feasible projects. Oppurtunities in the Market

7. Seminerin Amacı Unreferenced suppliers causing distortion in prices. High challange in the market. Short Term profit expectation. High focus on Profit. Market Environment

8. Seminerin Amacı z z z z z z z z z z z z z z z z How to “SELL” investment in sustainable energy

9.  Developed by EBRD (European Bank for Reconstruction and Development)  Part of EBRD’s Sustainable Energy Financing Programs. Those Programs:  Started in 2004.  Total Package is 1.3 Billion $.  Currently availible 11countries.  Through 35 partner bank 700 million $ loan has been disbursed.  Supported CTF (Clean Technology Fund) and EU  The ultimate goal is  Enegy Efficiency Projects  Renewable Energy Projects  Reducing Greenhouse Gas Emissions What is TURSEFF and MIDSEFF ?

10. Last of the SEFF program has been launched in Turkey as of 2010 with 265 Million $ The program will start soon in: Poland Belarus Kyrgystan Other SEFF’s

11. More than 1 Billion $ credit line is availible in Turkey TURSEFF EBRD provided 265 Million $ to Five Turkish Commercial Banks (Akbank, Işbank, Garanti Bank, Vakıf Bank, Deniz Bank) MIDSEFF EBRD and EIB jointly provided 700 Million € to four Turkish Commercial Banks (Akbank, Garanti Bank, Vakıf Bank, Deniz Bank) Loan Structure

12. TURSEFF has a wide range of application and finances 100% of the projects TURSEFF* Households (up to 75.000 $) Suplliers (up to 1 Million $ Capacity Increase only) Renewable Energy Projects (up tp 5 Million $) Energy Efficiency Projects (up tp 5 Million $) Loan Target * Companies should be eligible with SME criteria of EU.Production, marketing, distribution of tobacco products, hard liquor, alcohol (other than breweries, wineries, low/medium alcohol beverages), gambling, arms and minitary equipment are excluded.

13. MIDSEFF covers mid sized projects and rehabilitations. MIDSEFF* The range of individual Sub-loan: € 10 - 40 million (Total investment cost < € 50 million. ) Greenfield run-of-river Hydropower Plants (HPPs) or Rehabilitation of Privatised HPPs including dams (5- 40 MW) Wind Power Plants (5 – 50 MW) Geothermal Power Plants (5 – 50 MW) Biomas and Biogas Sub-projects (5 – 50 MW) Solar Power Plants (min 1500 kWp) Loan Target * Production, marketing, distribution of tobacco products, hard liquor, alcohol (other than breweries, wineries, low/medium alcohol beverages), gambling, arms and minitary equipment are excluded.

14. How TURSEFF works PROFITABILITY TechnicalAssistance Implementation Team Commercial/Industrial Energy Efficiency & Renewable Energy Projects Standardised Process Comprehensive Assessment Verification Consultant Residential / Small-Scale Energy Efficiency Loan Facility US$ 260 m

15. Real Companies — Real Benefits Cattle Farm secures energy supply with biogas plant US$ 2 million investment Over 3 million kWh electricity and 3.7 million kWh heat produced per year Waste utilization Annual savings: US$ 620,000 Payback 3.3 years

16. Real Companies — Real Benefits Direct Finance Hotels in Bodrum & Antalya Furniture Factory in Antalya Cement Company in Milas Vendor agreements Under consideratio n

17. Real Companies — Real Benefits Financed US$ 4.1 million State of the art plant 3.46kWh per each US$1 invested Payback period – 10 years Small Hydropower Plant

18. Real Companies — Real Benefits Company invests US$ 2 million in landfill biogas project Annual energy production 9.4 GWh US$ 1.3 million revenue / year Payback period < 2 years

19. A US$ 1.4 million investment in biomass boilers “spices up” savings Savings – US$ 0.6 million per year Payback – 2.8 Years Real Companies — Real Benefits

20. Shopping Mall / İzmir With US$ 3,653,000 investment in micro turbine combined heat and power generation plant 2,000 kWh turbine power generation 1,894 kWh cooling and 2,614 kWh heating US$ 1,092,000 SAVED – EACH YEAR Payback period – 4.6 years IRR – 30%

21. Real Companies — Real Benefits With a US$ 500,000 investment in energy efficient ovens Doubled production capacity Reduced gas consumption by 300,000 M3/year US$ 100,000 SAVED – EACH YEAR IRR – 25%