SOLAR MARKET IN TURKEY FARUK TELEMCIOGLU GUNDER (ISES – TR ) info@gunder.org.tr THANK YOU CHAIRMAN, DISTUNGISHED LADIES AND CENTLEMEN, ORGANIZATION COMMITTEE, PARTICIPANTS I WOULD LIKE TO EXPRESS MY SINCERE THANKS TO THE PEOPLE WHO HAVE GIVEN ME THE CHANCE TO BE HERE. My name is FARUK TELEMCIOGLU I AM GENERAL SECRETERY OF TURKISH SOLAR SOCIETY (ISES –TR)

INTERNATIONAL SOLAR ENERGY SOCIETY TURKEY SECTION I will give you short information about total installed power capacity and than give you some information about Turkish solar industry and solar market

GUNDER founded in 1991 in convenience with national laws of Turkey as a legal and independent entity. Afterwards, they had communicated with ISES Headquarter to represent ISES in Turkey in 1992.

REPRESENTING TURKEY IN We represent Turkey Government and Turkey market in INTERNATIONAL ENERGY AGENCY PVPS program and INTERNATIONAL ENERGY AGENCY SOLAR HEATING AND COOLING program. In these programs have a lot of workin group and our industrial members , universty peoples and R&D institues working in this task groups

WE ARE THE MEMBER OF : Now GUNDER is representing not only ISES, but also member of Europian Solar Termal Industry Federation and Europa Photovoltaik Industry Association. We are members of some Turkish groups, one of them Turkish union of chambers and commodity exchanges of Turkey and Turkish havac and r exporters concil

TOTAL INSTALLED POWER CAPACITY IN TURKEY (68 GW ) I THINK, IT WILL BE BETTER TO START MY PRESENTATION BY GIVING YOU SOME BRIEF INFORMATION RELATED TO TOTAL INSTALLED POWER CAPACITIES IN TURKEY. 1. As a country with a rapidly growing economy, Turkey has an increasing energy demand. At the moment, Total installed capacity has reached to 68 GW 3. The energy demand is mostly met by fossil fuels and a large portion of it is imported. 4. The biggest share belongs to natural gas and hydraulic with reservoir currently.

RENEWABLE POWER CAPACITY TOTAL INSTALLED RENEWABLE POWER CAPACITY (11 GW ) 1After the demonstration of total installed capacities in Turkey, I would like to show you the distribution of installed renewable capacities also. Total RE power plant capacities has reached to 11 GW at the moment. As can be seen from the graph, the major portion of renewable capacities belongs to hydro sources for the time being. Renewable energy has been one of the hot topics on Turkey’s energy agenda. Significant progress has been made in the field of renewable energy starting from 2005 in order to increase renewable capacities.

PROJECTION TOTAL CAPACITY: 125 GW TOTAL PRODUCTION: 424 TWh We suppose that installed capacities and electricity productions will probaply reach to 125 GW and 424 TWh in 2023 respectively. Especially, capacities and productions based on renewable energy sources will be expanded untill 2023.

As you see solar installed capaciyt is 3000 MW according to government plan Total installed capacity in 2023’ is 125 GW , and renewable is 60 GW.

Main issue that until 2023 the share of renewable energy in total energy production is %30 Total consuption of electricity on 2023, minimum 424 TWH and renewable is total 125 tw

RENEWABLE ENERGY PRODUCTION PROJECTION 1. Numerous government incentives and funds are available for emerging renewable energy and environmental technologies. Nevertheless, adoption of renewables was accelerated after the amendment of the Renewable Energy Law in 2010, which specifies he feed-in tariffs for different types of technologies. 3. After the revised feed-in tariffs, companies in Turkey have been very eager to integrate renewables into their energy portfolio. 4. In this figure, we can not see any solar capacity. But, I think solar energy utilization rates in Turkey will grow very fast in near future. You can see the development of the renewable electricity production from 2006 to 2013 and also near future development It is estimated that wind, geothermal and also solar investments will be expanded in coming years.

RENEWABLE POTENTIAL OF TURKEY 160,000 GWh/a. ECO. HYDRO 48,000 MW WIND 1,500 kWh/m²-year AGSR 31,500 MWt GEOTHERMAL 8.6 MTEP BIOMASS 1.5-2 MTEP BIOGAS Turkey has substantial amount of renewable energy potential and the utilization rates are growing. Hydro, wind and solar energy resources are the major portions of our renewable portfolio. AVARAGE GLOBAL SOLAR RADIATION

(Provision of the law dated 29/12/2010 and numbered 6094) FEED IN TARIFFS According to Law on Utilization of Renewable Energy Resources for the Purpose of Generating Electrical Energy Schedule I (Provision of the law dated 29/12/2010 and numbered 6094) Type of Production Facility Based on Renewable Energy Resources Prices Applicable (US Dollar cent/kWh) a. Hydroelectric production facility 7.3 b. Wind power based production facility c. Geothermal power based production facility 10.5 d. Biomass based production facility (including landfill gas) 13.3 e. Solar power based production facility There is schedule one in this law. The first column shows the type of production facility and the second column demonstrates the prices applicable. For example when you produce electricity from solar power then you will get thirteen point three US dollar cent per kWh. Turkey’s Renewable Energy Support Mechanism is in place with the Renewable Energy Law. 2. According to the RE Law, Renewable power plants that have come into operation since 18 May 2005 or will come into operation before 31 December 2020 will be eligible to receive the feed-in tariffs for the first 10 years of their operation.

TARGETS FOR 2023 The whole economically feasible hydropower potential of Turkey will be provided for generating electrical energy, 20,000 MW capacity of wind power plant will be in operation Minimum 3000 MW of solar energy capacity will be reached Minimum 600 MWe geothermal will be implemented According to Strategy Paper which prepared in 2009 for 2023, 1500 MWe installed capacity for Biomass energy

SOLAR ENERGY IN TURKEY The biggest renewable energy source in Turkey is solar energy. 2. Turkey offers perfect natural conditions for solar power investments. 3. The country is geographically located in the Mediterranean sun belt. 4. Solar radiation values are similar to Spain and Portugal.

Turkey has higher solar energy potential compared to many European Countries. The South of Turkey and Eastern Anatolia have promising solar energy potential. .

SOLAR WATER HEATING SYSTEMS Turkey is one of the biggest producers of the solar collectors in the world. Some amount of this production is exported. Annual flat-plate solar collector manufacturing capacity is about 1 million m²

SOLAR THERMAL MARKET PRODUCER : MORE THAN 90 COMPANIES RETAILERS: 800 - INSTALLERS : 3000 TOTAL POWER : 18.000.000 M2 PER 1000 INHABITANTS 5TH PLACE IN THE WORLD THIRD BIGGEST PRODUCER IN THE WORLD 2013 PRODUCTION : 1.600.000 M2 FOR 2013 MARKET SHARE: %70 FLAT PLATE - %30 EVACUATED TUBE More than ninety producer (collector and storage tank producer), seller nine hundred and insall company around three thousand On the roof have eighteen milion sqoure meter. Per 1000 inhabitatnts fifth place in the world Third biggest producer in the world Three companies produce evacutated tube.

SOLAR THERMAL PRODUCERS

PV MARKET PV PANEL PRODUCER : 14 COMPANIES (LAMINATION) TOTAL EPC COMPANIES : MORE THAN 100 TOTAL POWER PLANT : 35 MW UNLICENSED UNLICENSE LIMIT : 1 MW LICENSE LIMIT : 50 MW LICENSE APPLICATION : 496 FILES – 7873 MW TOTAL PERMITTED CAPACITY 600 MW LICENSE TIME : BY END OF 2014 With the rapidly growing unlicenced market, both PV and CSP capacities are expected to reach to a competitive level in near future in Turkey Currently, there are not any large scale (more than 1 MW) grid connected solar power plants. A 5 MW of CSP plant (solar tower) was constructed for research purposes. The system has 500 heliostats in Mersin region.

TOP 5 PV MARKET

PHOTOVOLTAIC PRODUCERS

SOLAR INVESTMENTS LICENCED UNLICENCED I WOULD LIKE TO MENTION ABOUT MAIN IMPORTANT STEPS FOR SOLAR INVESTMENTS IN TURKEY. IN TURKEY, SOLAR INVESTMENTS CAN BE DONE UNDER LICENSED OR UN-LICENSED MARKETS.

LICENSED INVESTMENT PROCESS SOLAR MEASUREMENT INSIDE THE PROJECT SITE PRE-LICENSE APPLICATION TO EMRA TECHNICAL EVALUATION BY THE MENR COMPETITION TENDER GRANTED PRE-LICENSE Solar power plants that have an installed capacity greater than 1 MW are required to obtain a generation license from the EMRA. Grid connection is the most critical step for solar power investments. So, first of all, TEIAS announces substations and connection capacities in suitable regipons. Before obtaining a license, applicants must make solar measurements inside the project site and shall then make application to EMRA with such measurement results. 4. After application, technical evaluations by the MENR and a tender by TEIAS will be done respectively. 5. A tender based on a «contribution fee per MW capacity» payable to the Transmission System Operator for the first 3 years following commissioning is mandatory for solar investments whose application cover overlapping or intersecting areas aiming for the same substation. Applicants who win the tender get pre-licensed and get all related allowances, and then granted license. PERMISSIONS FROM RELATED AUTHORITIES GRANTED LICENSE INSTALLATION & PROJECT ACCEPTANCE FROM THE MENR OPERATION

ANNOUNCED REGIONAL CAPACITY (MW) REGION NO REGION ANNOUNCED REGIONAL CAPACITY (MW) NUMBER OF APPLICATION TOTAL CAPACITY (MW) 1 4. ANTALYA 29 12 155,26 2 5. ANTALYA 10 147,4 3 ADANA-OSMANİYE 9 5 45 4 BİTLİS 16 6 65,2 BURDUR 26 24 402,44 DENİZLİ 18 20 228,24 7 ELAZIĞ 8 36,2 ERZURUM 9,9 HAKKARİ 21 ISPARTA - AFYON 30 420,04 11 KAHRAMANMARAŞ – ADIYAMAN 27 28 442,9 KARAMAN 38 62 1128,12 13 KAYSERİ 25 31 521,97 14 KONYA - 1 46 36 657,94 15 KONYA - 2 67 1266,03 MALATYA - ADIYAMAN 22 427,15 17 MERSİN 35 197,5 MUĞLA - AYDIN 264,75 19 MUŞ NİĞDE – NEVŞEHİR -AKSARAY 51 794,1 SİİRT – BATMAN - MARDİN 32 SİVAS 54 23 ŞANLIURFA - DİYARBAKIR 58 ŞIRNAK VAN - AĞRI 77 538,67 BİNGÖL - TUNCELİ ERZİNCAN   TOTAL 600 496 7929,79 1. ACCORDING TO THE RE LAW, TOTAL INTEGRATED SOLAR POWER PLANT CAPACITY MUST BE 600 MW FOR THE BEGINNING. 2. IN ORDER TO REALIZE THIS CAPACITY, FIRST OF ALL, TEIAS has announced 121 electrical substations where the solar power plants may be connected to, as well as the available interconnection capacities in 27 regions. And then 3. 496 companies made solar mesurements and applied for pre-license in the annunced regions in June 2013. All pre-license applications evaluated thechnically by the DG of RE. Applications except Elazığ and Erzurum regions are still evaluation stage in the EMRA. 6. TEIAS will organise a tender for applicants, which have applied for the same land or electrical substation. The applicants who offer to pay the maximum price per MW capacity will likely win the tenders.

LOCATIONS APPLIED FOR LICENSE You can see the locations applied for pre-license based on solar energy in 2013. 2. The Central Anatolian and Konya are the leading applied provinces. IN THE 2015 NEW CAPACITIES WILL BE ANONCED AND WE ARE WAITING 1200 MW NEW LICENCE CPACITY. The Central Anatolian region and Konya are the leading applied provinces.

UN LICENSEDINVESTMENT PROCESS CONNECTION APPLICATION TO DISTRUBITION COMPANY TECHNICAL EVALUATION BY THE MENR INVITATION LETTER PERMISSIONS FROM RELATED AUTHORITIES UN-LICENSED GENERATION DIFFER GREATLY FROM LICENSED GENERATION PROCESS. 1. Any natural or legal entity can install a renewable enegry plant with a capacity of less than 1 MW in its facility for their consumptions and sell the excees electricity without getting a license under the Un-license facility. The power plants are not obliged to be owned by a company. Real persons might own these plants without establishing a company. CONSUMPTION AND PRODUCTION MUST BE THE SAME DISTRIBUTION REGION. 4. FIRST OFF ALL, a company or a real persons must apply for the distribution company for the connection right. 5. Plants are entitled to direct their excess energy to the grid and to be considered as YEKDEM participants, to be paid for this excess energy. 6. This kind of generation benefits from the feed-in tariff defined by the Renewable Energy Support Mechanism. Further, renewable energy power plants that are installed at the point of consumption without grid connection are regarded as unlicensed, regardless of their installed capacity. PROJECT ACCEPTANCE FROM THE MENR OPERATION

THE PREDICTIONS FOR PV MARKET 2023 TARGET : OFFICALLY 3 GW EXPECTATION : 10 – 12 GW UNLICENSE LIMIT : 1 MW NEW LICENSE APP. DATE : APRIL 2015 MEASUREMENT : MIN 6 MONTHS TOTAL PERMITTED CAPACITY : 1,2 GW IN 2015

RENEWABLE ENERGY SUPPORT MECHANISM Renewable power plants that have come into operation since 18 May 2005 or will come into operation before 31 December 2020 will be eligible to receive the feed-in tariffs for the first 10 years of their operation. In addition, if the mechanical or electro-mechanical equipment of the power plant is produced locally, a premium shall be added to the feed-in tariffs during the first five years of operation. Turkey’s Renewable Energy Support Mechanism is in place with the Renewable Energy Law. 2. According to the RE Law, Renewable power plants that have come into operation since 18 May 2005 or will come into operation before 31 December 2020 will be eligible to receive the feed-in tariffs for the first 10 years of their operation. Interesting topic for foreign investors on renewable energy sources in Turkey is the use of domestic mechanical or electro-mechanical equipment. The Turkish Governement also promotes domestic manufacturing of the mechanical or electro-mechanical equipment to be used in renewable power plants. 4. If the mechanical or electro-mechanical equipment of the power plant is produced locally, a premium shall be added to the feed-in tariffs during the first five years of operation.

FEED-IN TARRIF AND LOCAL EQUIPMENT BONUS In Turkey, renewable electricity production is mainly promoted through a guaranteed feed-in tariff mechanism. 2. The Turkish Governement guarantees, via a feed-in tariff, to buy electricity from licensed renewable plants for a fixed price depending on the type of renewable plant facility in case of involving in the RE Support Mechanism. Any natural or legal entities with a capacity of less than 1 MW in its facility has also the opportunuty to benefit from the same prices for all excess electricity generated by the unlicensed renewable energy generators and then added to the distrubition system. Maximum guaranteed price has been given for solar and biomass energies as seen on the graph. The price is 13.3 USD cents/kWh for the first 10 years of operation for solar PV or solar CSP plants. 6. Feed-in tariff amounts and duration for renewable plants to be build after 2020 will be decided by the Turkish Council of Ministers.

If an investor use locally manufactured mechanical or electro-mechanical components listed on the tables in a PV or CSP solar power plant, different bonus can be added to the fedd-in tarriffs during the first five years of operation. 2. Total amout would be 20 euro-cent/kWh for PV plants and 22,5 euro-cent/kWh for CSP plants in case all components produce locally.

SOCIAL PROJECTS ORKOY ILBANK IPRAD 1 AND IPRAD 2 PROJECTS TURSEFF RE COOPERATIVE

At the end of my presentation, I would like to announce two important events held in near future in TURKEY. We are pleased to invite you TWO Solar Conferences and Exhibition Solar Conference and Exhibition (SOLAR-TR 2014) will be organized in İzmir with the support of International Solar Energy Society (ISES) and under the organization by the Turkish Solar Energy Association (GUNDER ) in this week

SHC CONFERENCE 2015 İstanbul Let’s meet where the continents meet... SHC 2015 will be organized in Istanbul with the support of IEA under the organization by the GUNDER (ISES-TR) in November 2015. I think, these events would be very useful for all the participants. Please save the dates.

THANK YOU FOR YOUR ATTENTION…. Faruk TELEMCİOĞLU info@gunder.org.tr