ENERGY NEWS - TURKEY
Turkish People Favor Foreign Investment in Renewables

The majority of Turkish people want foreign investment in renewable energy resources, according to a survey conducted in April by E3G - an independent climate change think tank that aims to accelerate the global transition to a low carbon economy.

The survey, Clean Energy, not Coal: Citizens views of Foreign Investment highlights that government energy policies and foreign investment packages, which currently favor coal, are at odds with citizen preferences for clean energy.

The survey, considered the first multi-country survey of public opinion on foreign investment in Belt and Road Initiative (BRI) countries, was conducted prior to the second Belt and Road International Cooperation Forum in Beijing on April 25-27 in six BRI countries - Turkey, Vietnam, South Africa, Indonesia, Philippines and Pakistan between April 9 and 17, 2019. E3G, which specializes in climate diplomacy, climate risk, energy policy and climate finance, was ranked the fifth most influential environmental think tank in the world for the third consecutive year in 2018, according to the Go to Think Tank Index. The think tank commissioned YouGov to poll 1,000 countries from each country.

In Turkey's poll, 475 women and 525 men of various ages across the country responded. Of the Turkish respondents, 92% favored foreign investment in renewable energy resources, showing the second highest ranking after Vietnam at 95%.

Solar shone as the most favorable energy resource in Turkey, similar to five other BRI countries. A large majority of Turkish citizens at 83% said they would give priority to solar for the government to encourage investment while 76% would highly prioritize wind energy.

Renewable energy resources are seen as better investment options for 86% of Turkish citizens for long-term development, while 62% said renewables are better in decreasing water and air pollution, and 57% said renewables would mitigate climate change.

Turkish people find coal investments unfavorable - 57% of Turkish respondents said coal should not be given any priority in terms of investment while 56% said that coal investments are related to both water and air pollution.

- 2nd Forum offer opportunity to end coal

The poll results in other countries also show that citizens have strong preferences for clean energy as opposed to coal. The six countries polled are among the top 10 locations for proposed coal power plant construction globally other than China.

"This polling provides clear evidence that the citizens of the BRI countries prefer clean energy investment over coal. China should now work with governments, business and investors at the upcoming Belt and Road Forum to make sure these demands are met," Nick Mabey, chief executive of E3G, said.

The upcoming BRI Forum in Beijing provides an opportunity to signal an end to international support for coal investment, he said.

"Citizens across the member countries know that coal will only continue to exacerbate air pollution, climate change and corruption issues," Mabey underlined.

China has taken a strong stance in tackling climate change, and has developed a series of laws, regulations, and policies to promote reductions in China’s emissions," said Dr. Yang Fuqiang, the National Resources Defense Council senior adviser on Climate and Energy of the China Program at National Resources Defense Council centered in New York.

He said in terms of green development, a series of policy incentives and guidelines are needed to encourage Chinese companies to comply with environmental protection standards and to reduce CO2 emissions.

"At the same time, China and countries along the Belt and Road must build consensus on green development if they wish to tackle climate change," Fuqiang argued.

He acknowledged that Turkey, which has rich renewable resources and is already actively investing in renewable energy at the local and national level, has its own environmental protection and climate change goals that China supports and encourages.

However, he proposed greater cooperation between China and Turkey in renewable energy as "both China and Turkey regard renewable energy as the main source of energy for the future."

He drew attention to China's relatively advanced renewable energy technology, its low production costs and its various renewable energy policies, all of which could contribute to China's cooperation with Turkey.

"Currently, China can support renewable energy equipment manufacturing in Turkey and can introduce Chinese technology through joint ventures. China can also invest in renewable energy project development in Turkey. Both sides should also examine how best to conduct research in policy areas. Given in-depth cooperation in technology, business models, investments, and policies there is great potential for energy conservation and environmental protection," Fuqiang concluded.

Source: AA

Tracking Turkey’s Licensed PV Market

Turkey’s unlicensed solar market has been the powerhouse of new PV capacity. Given the unlicensed segment is coming to an end, investors are questioning the prospects of the licensed alternative. PV magazine has tracked the progress and future potential of Turkey’s licensed PV market.

Turkey’s installed PV capacity has passed 5 GW, with the lion’s share made up of ‘unlicensed’ PV projects – systems up to 1 MW in size or clusters of such systems that amount to larger solar farms.

The licensed market consists of just 600 MW of projects tendered in 2014 and 2015 but with most permits for unlicensed projects expiring and no new applications being accepted, investors are taking a closer look at the prospects of larger schemes.

Of the 600 MW of licensed capacity, only 80 MW has been installed, with around 51 MW added last year, reflecting the increasing interest of investors.

The dominance of Akfen Renewable Energies – the renewables arm of Akfen Holding – is obvious and the Turkish developer made headlines last year when it secured a $363 million loan to build 327 MW of new solar and wind power capacity in Turkey. A spokesperson for the firm told PV magazine the loan will partly finance seven licensed PV farms and two unlicensed projects. Of those facilities, five parks have already been installed and are included in PV magazine’s list. The loan will also support another two licensed projects – the Omicron Ercis project in Van and the Iota SPP scheme in Malatya, each with a 9.95 MW capacity – as well as 15.44 MW of unlicensed capacity: 5 MW in Tokat and 10.44 MW in Amasya.

The Akfen Renewables spokesperson added, the firm holds licenses for 78 MW of the licensed capacity awarded in the tenders of 2014 and 2015. Akfen said $210 million of the $363 million loan had come from Germany’s state-owned KfW development bank for wind power projects, with $51.5 million each from the European Bank for Reconstruction and Development (EBRD) and Turkey’s İşbankası for PV and the EBRD providing a further $50 million for wind power.

Although there is renewed interest in larger projects, investors in Turkish solar are racing against the clock and an unfolding economic crisis.

Licensed PV plants must be developed this year, although investors may be able to extend that deadline due to changing terrain, according to Andreas Schuenhoff, director of Asunim Group, an EPC firm active in Turkey. Umut Gurbuz, of Asunim Turkey, told PV magazine around 100 MW of projects have applied for terrain changes, with some approved by regulator the EMRA.

Red tape, however, remains a substantial hurdle for PV investors. Yusuf Bahadir Turhan, founder of YBT Energy – which has a 20 MW installed portfolio in the country – said: “Acquiring the necessary permits from countless local and central governmental authorities is rather too difficult. It takes too much time, and people working for government [and] responsible [for] the necessary permits have little knowledge about what to do. Since they do not know much, they are not very eager to do anything, to sign anything.”

Asunim’s Gurbuz appeared hopeful about financing licensed solar projects, and told PV magazine “the capital requirements [for the projects] are clarified in the electricity market law. You need to increase the capital to a certain level of the system value and this is it. The capital of the project remains fixed and the money generated is paid to the banks as credit payments.”

Developer Turhan was more skeptical, and said YBT Energy “definitely has plans to develop more licensed PV plants in Turkey. Not now, but when [the] investment atmosphere becomes better and the government decides to open more capacity for bidding.”

Turhan argued there are two main financial problems when developing the 600 MW of tendered, licensed PV capacity. The first concerns a one-off contribution fee per installed megawatt that arose from the tender process. Turhan argued the fee is often prohibitively high. YBT Energy is paying TRY 1.888.008 ($325.000) per MW for its 9 MW Sivas Project. “There are projects which were tendered for [a contribution fee of] TRY 2.960.000 per megawatt,” he said.

The second problem concerns a regulatory decision six months after the last tender for licensed projects, which set the requirements for bank guarantees with regards to the contribution fee. Before that, said Turhan, the regulation concerning bank guarantees was vague and investors assumed they needed to provide guarantees for 10-20% of the contribution fee tendered for each project. The regulator instead asked for the entire amount to be underwritten.

As a result, said Turhan, “most investors who applied and won the bid had to resign, since they did not take into account that they needed to have such a line of credit in the banks … They thought: ‘we can build the plant first, then the PV plant can pay this contribution fee with the funds it self-generates’. However, you need to find both the necessary capital to build the plant and the necessary line of credit in the banks to secure the bank letter at [the] very beginning of the process.” EMRA’s regulation means investors need to find 30-40% more capital than that needed to build the plant, said Turhan.

Add in the fact Turkey’s trade deficit has deteriorated, inflation has escalated and the currency has fallen sharply, and it is not hard to understand why developing licensed PV in the country is not straightforward.

Headaches for domestic investors, however, could provide a golden opportunity for foreign investors to take advantage of cheap equipment to develop Turkish projects. But they will have to be fast.

Source: pv magazine

ENERGY NEWS - WORLD
US Cooperative First to Offer Free Home EV Charging

US electric cooperative Cobb EMC has launched the Niteflex initiative to provide consumers free overnight home charging for electric vehicles.

The aim is to reduce consumer costs for owning an EV to increase the adoption of electric cars in northwest metro Atlanta, a city long known for heavy commuter traffic.

Cobb EMC's NiteFlex initiative will offer consumers up to 400 kWh a month at no cost from midnight to 6 a.m. Peter Heintzelman, CEO of Cobb EMC, said: "We're proud to be the first in the nation to offer consumers free overnight home charging for electric vehicles.

"We've invested significant resources into market research to better align our rates with the lifestyle our consumers want and the affordable and flexible commutes they need, all at a price that makes sense for everybody."

"EVs have gone mainstream – more than 100 plug-in models will be on the market by 2020.

"We'll continue to see more on roadways now that huge leaps in battery technology have made range anxiety and affordability non-issues. Locally, we'll continue the momentum by installing charging stations on our corporate campus, replacing retired fleet vehicles with EVs, offering mobile car shows and test drives for our consumers and helping facilitate workplace and public charging."

The demand response initiative will also help accelerate consumer adoption of smart appliances. The programme will ensure grid reliability and help customers save money by shifting heavy energy use during times when demand and tariffs are high to off peak periods.

FutureSource Consulting predicts the smart appliances market will grow by 36% by 2023. Cobb EMC serves 200,000 residential and commercial electric customers.

Source: Smart Energy International

Straightforward Strides: Distribution Operators Moving on Towards DSO 2.0

The European associations representing the distribution system operators (DSOs) – CEDEC, E.DSO for Smart Grids, Eurelectric and GEODE - as well as ENTSO-E, representing the transmission system operators (TSOs), launch a report on the development and integration of new flexibility services in the electricity system and market. These services could support system operators to manage congestions in their grids caused by increased electrification and shares of decentralised resources.

Since the same resources can also be used by TSOs, the interaction between congestion management and balancing is discussed in the report. Therefore, TSOs and DSOs propose a vision in their common report “An integrated approach to Active System Management”.

Why did TSOs and DSOs work on Active System Management (ASM)?

The TSO-DSO Data Management report from 2016 concluded that it is necessary for TSOs and DSOs to agree on mutual processes and data exchanges to guarantee the reliable, efficient and affordable operation of the electricity system and grid, and to secure non-discriminatory and efficient markets.

Furthermore, the recently adopted Clean Energy Package (in Article 32.1 of the Electricity Directive) gives the possibility for DSOs to procure flexibility services, including for congestion management, in their service area. As a consequence, in 2017 European TSO and DSO associations decided to focus on the use of flexibility for grid and system purposes, as well as on the interaction of different market processes.

What is ASM?

ASM is a key set of strategies and tools performed and used by DSOs and TSOs for the cost-efficient and secure management of the electricity system and grid. It entails the use of flexibility for congestion management, balancing and their coordination when needed by involving market parties. It encompasses the operational processes, the necessary information and data exchange, as well as the interaction with market parties.

The integrated electricity system approach recognises and respects the roles and responsibilities of TSOs and DSOs as system operators and neutral market facilitators. The level playing field for market parties is crucial to foster and value flexibility services.

The objective of the report is to share views and to increase mutual understanding by identifying core questions and outlining possible solutions on ASM. It also elaborates on the principles and guidelines for congestion management and its interaction with balancing and aims at a market-based approach.

On 16th April, the five associations convened an event to release the report that they drafted together, with the support of the European Commission and the useful dialogue with stakeholders.

Source: Eurelectric

EPRI and E.DSO Sign MOU to Collaborate on R&D for Advanced Electric Grid Technologies

The Electric Power Research Institute (EPRI) and the European Association of Distribution System Operators (E.DSO) will now collaborate on critical research, development, and innovation initiatives to modernize the electric power grid.

The collaborative work included in this agreement will focus on:

  • Advanced distribution system planning;
  • Data analytics and artificial intelligence;
  • Communication and information network model management; and,
  • Cyber security and resilience.

“The challenges the electric power sector face will only be solved through a collaborative and global approach. Our new working agreement with E.DSO will target discussion and exchanges on new technologies and best practices that will enable a more decarbonized and optimally integrated power system – for the benefit of customers and society,” said EPRI Vice President of Integrated Grid R&D Mark McGranaghan.

“Together we look to facilitate greater understanding of the needs of electric distribution system operators and owners, electric power customers, and the public in pursuit of the EU2050 Climate Change targets” said Roberto Zangrandi, E.DSO Secretary General.

EPRI and E.DSO signed a Memorandum of Understanding at EPRI’s European Workshop Week in Milan on March 27.

Source: EDSO For Smart Grids

Dutch Plans for CO2 Capture Technology to Get EU Aidc

The measure is expected to reduce emissions by 2.4 kiloton of CO2 per year.

Dutch plans to grant €706,000 of public support to the company De Meerlanden Holding for the installation of CO2 capture technology in its biomass digester located in Rijsenhout, in the province of Noord-Holland, were approved by the European Commission on 23 April.

The captured CO2 will be then fed into a pipeline network owned by the company OCAP CO2 and transported by OCAP to greenhouses situated in the horticultural area of PrimA4a in the Greenport of Aalsmeer. The measure is expected to reduce emissions by 2.4 kilotons of CO2 per year. Currently, the greenhouses in the horticultural PrimA4A area produce their own CO2 using heating systems such as cogeneration systems or gas-fired boilers.

In summer, when heating is not needed, the greenhouses nevertheless use their heating systems for the sole purpose of CO2 generation, the Commission said, adding that thanks to this measure, these greenhouses will be able to use excess waste CO2 instead. This will benefit the environment by reducing the use of primary energy sources that produce CO2, with an annual energy saving of 65 000 m3 of natural gas, as well as by disposing of the waste CO2 from Meerlanden.

The Commission said the EC assessed the measure under EU State aid rules, in particular, the Guidelines on State aid for Environmental protection and Energy. It found that the measure will contribute to the EU’s environmental and climate goals, without unduly distorting competition.

Source:  New Europe

REPORT OF THE WEEK

The Belt and Road Initiative Progress, Contributions and Prospects 2019

Since 2013, the Belt and Road Initiative, with policy coordination, connectivity of infrastructure, unimpeded trade, financial integration and closer people-to-people ties as its main goals, has advanced in solid steps. Significant progress has been made, including a number of landmark early results. Participating countries have obtained tangible benefits, and their appreciation of and participation in the initiative is growing.

Please click here to read the full report.

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