Initial amount of exports to range between 200-400 megawatts, head of Turkish energy traders association says.
Iraq poses a new market for Turkey with potential initial exports ranging between 200 and 400 megawatts (MW) in 2020, head of Turkish Energy Traders Association (ETD) told Anadolu Agency on Thursday.
However, the country has the potential to export up to 2,000 MW providing $1 billion in foreign currency inflow to Turkey, ETD head Burak Kuyan added.
Turkey's Energy and Natural Resources Minister Fatih Donmez announced in August that Turkey and Iraq agreed to start electricity trade as soon as Iraq makes the necessary updates to its infrastructure.
Kuyan advised that Turkey diversify its electricity export countries to reduce Turkey’s electricity oversupply.
Turkey's installed electricity capacity surpassed 90,000 MW by the end of October 2019.
However, as the country's electricity demand has seen only a gradual growth in the last two years, the oversupply problem persists.
"Thus, we need to increase the export capacity so it will help reduce the oversupply and also increase electricity prices in the market which are relatively low and are challenging for electricity producers," Kuyan explained.
Electricity producers are selling their output on the liberalized market in which prices are shaped by market dynamics. When there is an oversupply, prices automatically fall in the market.
"Low market prices are challenging the producers who are in debts to banks. As the producers can not make enough money to pay their debts, they ended up negotiating refinancing with the banks," he noted.
Turkey's energy investors restructured around $7.5 billion out of an approximate $13 billion in non-performing loans (NPLs) while the banks and companies also agreed on initial settlements to restructure a further $2.5 billion by the end of 2019, banking sector sources who asked to remain anonymous told Anadolu Agency in October.
The majority of the NPLs belong to power generating companies.
Turkey currently exports electricity to Greece, Bulgaria and Georgia and its power market is integrated with the European electricity system, ENTSO-E.
"This integration could also help us sell more electricity to Europe via Bulgaria. If we diversify our export capacity, we could reduce our oversupply capacity in the domestic market in two to three years’ time," Kuyan said.
- Natural gas trade directly impacts electricity market
He also recommended that Turkey reform its natural gas trade market to allow market players more predictability in the marketplace, specifically with the pricing mechanism.
"There are some key minor changes that need to be amended by Turkey's Petroleum Pipeline Company (BOTAS). We ask BOTAS to shift to formula-based pricing for combined natural gas power plants that buy the majority of natural gas from BOTAS. When we have formula-based pricing, we can foresee our costs," Kuyan stated.
Turkey meets around 30% of its electricity production from combined natural gas power plants.
He further recommends that private sector players be able to complete annual gas contracts with BOTAS before the last month of the year.
"Companies generally allocate their budgets for the upcoming year during the last couple of months of the year. However, if we cannot sign our contracts with BOTAS before we allocate our budgets, we cannot foresee our costs and cannot adjust our yearly budgets," he explained.
He concluded that these changes in the natural gas sector are minor but could have a systematic impact on improving market functionality and performance.
Source: AA
The collaboration between Turkey and Denmark for offshore wind development will help Turkey in its preparations for its first offshore wind power plant, Energy Sector Counselor of the Royal Danish Embassy in Ankara told Anadolu Agency on Wednesday.
A Danish wind delegation’s three-day visit to Turkey between Nov. 5 and 7 involved a fact-finding mission in which they attended the 8th Turkish Wind Energy Congress in the Turkish capital Ankara, followed by visits to production sites in Izmir, the so-called capital of the wind sector in Turkey.
Organized by the Royal Danish Consulate General in Istanbul together with the Danish Wind Export Association (DWEA) and in close partnership with the Izmir Development Agency (IZKA), seven Danish wind supply chain companies held roundtable discussions and business to business meetings with Turkish companies to explore partnerships and business opportunities.
The Danish Wind Delegation included Danish Wind Power Academy (DWPA), FairWind, Fritz Schur Energy, Martin Bencher Group, Resolux Group, Svendborg Brakes, and United Wind Force (UWF).
Counselor Dennis Holte Skov-Albertsen explained that the trip aimed at showcasing Turkey's wind sector, the ease in which business can be done, the high-level facilities and Turkey's wind energy potential, especially in the Aegean region.
A visit to the Ates Wind Power and LM Wind Power factories located in Bergama confirmed to the Danish representatives that the facilities are of a very high standard.
"Some of these companies are already carrying out activities in Turkey but they are not fully established,” Skov-Albertsen explained, adding that with the trip, they saw the country’s large potential and obtained a well-rounded experience to decide whether to move forward in pursuing business with local partners.
- "Companies want to see long-term prospects"
Skov-Albertsen recalled that the Strategic Sector Cooperation (SSC) signed between Turkey and Denmark in early 2017, in which Turkey and Denmark work closely together to share lessons learned in offshore wind, would shortly be extended for another three years.
Within the scope of the cooperation, he urged that Turkey share its long-term plans for offshore wind energy with foreign investors to attract further investment.
"Companies would like to see plans for the next five, 10 or 15 years,” he said.
He also advised that the completion of one tender is not enough, but to propel momentum in this sector and develop a supply chain, more is needed.
The key, he remarked, is to work now and look at the experience from other countries and apply what can be used in Turkey.
“I do not know when but I personally believe that offshore will eventually be developed in Turkey. But it is not important that it is fast, but rather that it will be done in the right way," he said.
The Danish cooperation partner, the Danish Energy Agency, which is part of the Danish Ministry of Climate, Energy and Utilities – supported by the Royal Danish Embassy in Ankara - works with the Turkish Ministry of Energy and Natural Resources.
This work includes sharing Denmark’s experience in this sector, detailing the preparation of tenders and infrastructure and other related topics. It also involves applying what Denmark has learned to possibly implement in Turkey.
“We aim to ensure our Turkish colleagues do not make the same mistakes we made in Denmark thereby ensuring faster progress," Skov-Albertsen said.
- What can Turkey learn from Denmark in offshore wind
Skov-Albertsen described the process that Denmark undertakes before a tender is issued to decrease investor risks. This involves running many tests and analyses on-site, including wind measurements, seabed analyses and environmental impact assessments.
In Turkey’s case, uneven sea depth is an issue, which can be solved by choosing the correct foundation, either fixed or floating, he said.
He surmised that the development for the Port of Esbjerg, on the southwest coast of Jutland that has become Europe's leading port for shipping offshore wind turbines, could be used as a blueprint for development in Izmir.
Seda Kayrak Bilgen, senior trade manager and team leader of the Energy & Environment Department at the Trade Council of Denmark in Istanbul, also reiterated both countries’ intent to form partnerships in the wind sector.
She remarked that it has not gone unnoticed that Turkey’s location could allow it to become a regional hub, adding that the success of Turkey’s Renewable Energy Resources Zones (YEKA) wind energy tenders is important internationally in bringing sub-suppliers to the country.
Bilgen hailed Denmark’s offshore wind players as very experienced dating back from 1991 and successful in ensuring the biggest project developers and investors have been globalized from Denmark.
"These people have come to Turkey and spoke with stakeholders. We believe that this project will be realized sooner or later with Turkey’s great potential," she concluded.
Source: AA
Deep disparities define today’s energy world. The dissonance between well-supplied oil markets and growing geopolitical tensions and uncertainties.
The gap between the ever-higher amounts of greenhouse gas emissions being produced and the insufficiency of stated policies to curb those emissions in line with international climate targets. The gap between the promise of energy for all and the lack of electricity access for 850 million people around the world.
The World Energy Outlook 2019, the International Energy Agency’s flagship publication, explores these widening fractures in detail. It explains the impact of today’s decisions on tomorrow’s energy systems, and describes a pathway that enables the world to meet climate, energy access and air quality goals while maintaining a strong focus on the reliability and affordability of energy for a growing global population.
The path the world is on right now is shown by the Current Policies Scenario, which provides a baseline picture of how global energy systems would evolve if governments make no changes to their existing policies. In this scenario, energy demand rises by 1.3% a year to 2040, resulting in strains across all aspects of energy markets and a continued strong upward march in energy-related emissions.
The Stated Policies Scenario, formerly known as the New Policies Scenario, incorporates today’s policy intentions and targets in addition to existing measures. The aim is to hold up a mirror to today’s plans and illustrate their consequences. The future outlined in this scenario is still well off track from the aim of a secure and sustainable energy future. It describes a world in 2040 where hundreds of millions of people still go without access to electricity, where pollution-related premature deaths remain around today’s elevated levels, and where CO2 emissions would lock in severe impacts from climate change.
The Sustainable Development Scenario indicates what needs to be done differently to fully achieve climate and other energy goals that policy makers around the world have set themselves. Achieving this scenario – a path fully aligned with the Paris Agreement aim of holding the rise in global temperatures to well below 2°C and pursuing efforts to limit it to 1.5°C – requires rapid and widespread changes across all parts of the energy system. Sharp emission cuts are achieved thanks to multiple fuels and technologies providing efficient and cost-effective energy services for all.
“What comes through with crystal clarity in this year’s World Energy Outlook is there is no single or simple solution to transforming global energy systems,” said Dr Fatih Birol, the IEA’s Executive Director. “Many technologies and fuels have a part to play across all sectors of the economy. For this to happen, we need strong leadership from policy makers, as governments hold the clearest responsibility to act and have the greatest scope to shape the future.”
Source: International Energy Agency
The site of the most recent high-profile nuclear disaster is reinventing itself as a renewable energy leader in Japan. Land that became too toxic for people to farm and live on after the 2011 meltdown at the Fukushima Dai-ichi Nuclear Power Station will soon be dotted with windmills and solar panels.
By 2024, 11 solar and 10 wind power plants on abandoned land in Fukushima Prefecture will generate 600 megawatts, which is roughly two-thirds of the energy output of a typical nuclear plant, Nikkei Asian Review and Yale Environment 360 reported. It’s still far less power than the nearly 4,700 megawatts its nuclear reactors were capable of generating before. But a 2017 prefecture survey found that 54 percent of residents wanted renewable energy, compared to 14 percent who didn’t, according to the Japan Times. The shift is beginning to take shape, thanks to $2.75 billion in financing from groups including the Development Bank of Japan (which is government-owned) and Mizuho Bank (privately owned). A new power grid will connect to the Tokyo Electric Power Company’s transmission lines, which will transfer energy to Japan’s capital city, a three- to four-hour drive away.
Fukushima’s transition from nuclear energy to solar and wind comes as policymakers and scientists around the world debate the role of nuclear energy in efforts to stop the climate crisis. Some look to nuclear energy as an important way to generate energy without burning planet-heating fossil fuels. Yet, despite advances in nuclear technology since notorious meltdowns of the past, others are still concerned about the risks associated with nuclear power.
Fukushima Prefecture, an area encompassing 59 municipalities and a population of over 1.8 million people, is still recovering from rounds of disasters. Eight years ago, a magnitude 9.0 earthquake triggered a tsunami, which led to three reactor core meltdowns at the nuclear power station. In October 2019, Typhoon Hagibis took another swipe at the prefecture, wiping out homes and businesses that had been rebuilt since 2011.Source: Verge
Global solar power capacity will grow by 9% every year between 2018 and 2050, according to a new study released by the International Renewable Energy Agency (IRENA).
The study Future of Solar Photovoltaic states the global solar capacity will increase from 480GW in 2018 to over 8,000GW by 2050. As new markets emerge worldwide, IRENA forecasts solar power to cover one-quarter of global power by 2050.
The market in Latin America and the Caribbean is expected to grow by more than 40 times by 2050.Annual investments exceeding seven billion would see the region's solar PV capacity rise from 7GW today, to more than 280 GW by mid-century.
Other key study findings include:
- Accelerating solar power deployment can cut energy-related carbon emissions by 21% in 2050.
- Asia will account for over 50% of the global installed solar capacity by 2050, North America 20%, Europe 10%.
- Annual investments in solar need to increase from $114 billion in 2018 to $192 billion in 2050 to reach the forecasted statistics.
- Global levelised cost of electricity (LCOE) for solar PV will continue to fall from an average of $0,85 cents per kWh in 2018 to between 5-14 cents per kWh by 2050.
- The solar market remains a fast-evolving industry owing to innovations within the industry.
-The global solar industry has the potential to employ over 18 million people by 2050, four times more than the 4.4 million jobs today.
- Over the last decade, installed capacity of off-grid solar PV has grown more than tenfold, from roughly 0.25 GW in 2008 to almost 3 GW in 2018 around the world.
Source: Smart Energy International
ENTSO-E and ENTSOG have published the draft joint Scenario Report for TYNDP 2020 to support the 5th PCI selection process by European Commission.
A formal public consultation will be launched in the coming days until January.
Regulation (EU) 347/2013 requires that the ENTSOs use scenarios for their respective Ten-Year Network Development Plans (TYNDPs) and for the second time the ENTSOs have worked together to develop these scenarios jointly, on this occasion for the TYNDP 2020. Scenario work is not only undertaken to test future electricity and gas infrastructure needs and projects but captures the interactions between the gas and electricity systems to assess the infrastructure of a hybrid energy system.
Supply and demand data collected from both gas and electricity TSOs are used to build “National Trends”, the central policy-based scenario, reflecting Member States’ draft National Energy and Climate Plans (NECPs) and recognising EU climate targets. The global ambition and distributed energy scenarios are developed as full energy scenarios (not limited to gas and electricity) and are built in line with the Paris Agreement target of limiting the increase in the global average temperature to 1,5 °C and are cognisant of the efforts of the EU-28 to reduce emissions to net-zero by 2050s.
Jan Ingwersen, ENTSOG General Director, commented, “Work on the TYNDP 2020 Scenarios commenced in 2018 and has involved significant engagement with a wide range of stakeholders throughout the process. The joint work has presented the ENTSOs with unique opportunities to identify solutions together in meeting the decarbonization challenges.”
“Innovation, integration and efficiency are key to achieving EU decarbonisation goals and meeting European energy consumers’ needs. A hybrid energy infrastructure of both electricity and gas systems is part of that vision. These scenarios represent a comprehensive, reliable and contrasted set of possible energy futures that will allow the ENTSOs to perform a sound assessment of European infrastructure projects in the TYNDPs,” said Laurent Schmitt, secretary general of ENTSO-E.
The ENTSOs will now progress to develop their TYNDPs, to continue their assessment of the needs of the European gas and electricity infrastructures.
Source: ENTSO-E
World Energy View 2019
World Energy Outlook 2019 explores these widening fractures in detail. It explains the impact of today’s decisions on tomorrow’s energy systems, and describes a pathway that enables the world to meet climate, energy access and air quality goals while maintaining a strong focus on the reliability and affordability of energy for a growing global population.
Please click here to read the full report.
