ENERGY NEWS - TURKEY
Renewable Energy: Game-Changer in Turkish Energy Market

Renewable energy is a game-changer for the Turkish energy market driven by strong political commitment and a willingness to change the market structure, Energy and Natural Resources Deputy Minister Alparslan Bayraktar said on Thursday.

The Renewable Energy Outlook Conference: Financing, Investment, Regulation, and New Technologies in Turkey, Central Asia, Caucasus and the Western Balkans, of which Anadolu Agency is the global communication partner, kickstarted in Istanbul on Thursday, hosted by a Washington-based think tank, Atlantic Council, and the European Bank for Reconstruction and Development (EBRD).

Speaking at the conference, Bayraktar hailed the success of the major transition that Turkey’s energy market has endured over the last 15 years.

"I call this Transition 1.0. We successfully completed that. It was a pure change of market structure from a vertically integrated market model, with state-owned enterprises privatized and a market model that turned into a functioning competitive market. So this was a big change, a painful change. But the government took the initiative and showed real commitment to it," he explained.

He highlighted the challenges that Turkey’s energy market faces with greater demand that has led to more import dependency.

"The challenges in Turkey’s energy market are so obvious. The demand is growing in this country as well as import dependency. So the biggest challenge we are facing as energy officials and market actors here is to reduce this import dependency," he declared.

To this end, renewables, which has garnered much attention over the past 10 years, has become a necessity for the Turkish market, Bayraktar said. He added that one of the lessons that can be drawn from Turkey's experience is that political commitment is key for utilizing more renewable resources.

Bayraktar said the challenge that Turkey faced almost 10 years ago was in deciding what kind of scheme that Turkey would offer investors. From similar examples in continental Europe, the U.S and other countries, Turkey opted for a feed-in tariff scheme, he explained.

Turkey launched Turkish Renewable Energy Resources Support Mechanism (YEKDEM) in 2011 to use the country's vast clean sources efficiently and support its development.

YEKDEM offers a feed-in tariff of $0.073 per kilowatt-hour (kWh) for wind and hydropower projects, $0.105 for geothermal facilities and $0.133 for solar energy and biomass geothermal plants.

He elaborated that Turkey was able to find an optimal way to support

renewables almost ten years ago.

Bayraktar explained the change that has occurred in the market specifically with natural gas, which has seen its role diminish in just a few years.

He said natural gas played a very significant role in the country and detailed that just a few years back, Turkey was producing its energy, almost 47-50%, from natural gas but last year this dropped to just an 18% share.

“I know last year we had abundant hydropower generation, maybe it is not going to be the same this year but a significant reduction came from gas power generation. So in that sense renewables and some other investments, like local coal, made the reduction in the share of gas to reasonable figures possible," he said.

He cited that Turkey was able to produce 75% of its power only from renewables last June and urged that this trend continues over the next months.

- "Solar capacity alone has grown more than 25 times"

Defne Sadiklar Arslan, Turkey’s representative and director of the Atlantic Council in Turkey delivered the message of a rapid transition in the global energy sector over the next decade with the ramp-up of renewables.

"The last decade saw $2.5 trillion of renewables investment, leading to a major jump in global renewable capacity. Solar capacity alone has grown more than 25 times over the past 10 years," Arslan noted.

He quoted figures from the International Energy Agency (IEA), which reported that Turkey's renewable energy capacity of 42 gigawatts (GW) is expected to increase by a remarkable 50% in the next four years, making Turkey one of the largest markets in the world.

- Turkey already exceeds 2023 renewables target

Nandita Parshad, managing director of the Sustainable Infrastructure Group at the EBRD, considers that the renewable energy discussion is no longer a choice but a necessity in the face of global climate change.

"We think that the challenge of the climate emergency is the most urgent task we face today - the impacts are devastating," she asserted, adding that decisive action to address the issue is needed.

Parshad argued that the role of renewable energy is critical in tackling the climate crisis. "It is clear. We can no longer think of megawatts but gigawatts of clean energy. There is good news, however. The prices for renewables keep falling and in many places, the projects are built without any subsidies," she explained.

Parshad also lauded what she considers is Turkey's appropriate, renewable policy action, which has proved successful in ensuring the country has reached its 2023 target early of producing 30% of its electricity from renewable energy by the end of 2017.

Frederick Kempe, president and CEO of Atlantic Council, also drew attention to the climate crisis; the effects of which he said have been very costly in monetary and environmental terms.

He described 2019 as the second hottest year ever recorded at a time when globalization and electrification of everything have cemented the economy and the society dependent on rapid economic growth.

"Climate fuelled natural disasters have cost the economy almost $1 trillion over the past five years. The energy transition is driven in part by the quest to avoid these costs. So it makes great environmental sense to go in this direction and huge business sense to go in this direction," he asserted.

Source: AA

Kiyikoy Wind farm to More Than Triple Capacity with $74M Loan

Turkey's Kiyikoy wind farm in the northwest of the country will more than triple its capacity with $74 million in financing from the European Bank for Reconstruction and Development (EBRD) and ICBC Turkey, the EBRD announced late Wednesday.

The EBRD's $37 million loan will be used for the development, construction and operation of a 72-megawatt (MW) extension to the 28 MW wind farm, while ICBC Turkey will provide a loan for the same amount, according to the bank's statement.

The funds will also refinance a leasing facility provided by a local leasing firm for the original wind farm.

"The extension of the Kiyikoy wind farm is a step towards the government's objective of installing 27 gigawatts (GW) of renewable energy capacity other than hydropower by 2023, of which 20 GW is expected to be wind energy," the statement said.

The Kiyikoy extension will also help save approximately 99,700 tons of carbon dioxide emissions per year.

The wind farm developer is Alenka Enerji Uretim ve Yatirim Ltd., which was set up by Borusan EnBW Enerji, a joint venture between the German utility Energie Baden-Wurttemberg and the Turkish conglomerate Borusan Holding.

Borusan EnBW Enerji manages a portfolio of renewable energy projects with a total generation capacity of 505 MW. This includes eight wind farms, two solar power plants and a hydropower plant.

"Renewables in Turkey represent not only a viable, but also a financially attractive, investment opportunity. We are proud to have been a front-runner in the sector – both as an investor and as a partner of the authorities in policy reform," said Aida Sitdikova, EBRD director for energy in the Eurasia region.

"To date we have financed a significant share of Turkey's total installed renewable energy generation capacity and are delighted that in Borusan EnBW Enerji we have found a like-minded partner who shares our ambitions," Sitdikova added.

Supporting Turkey's sustainability goals is among EBRD's priorities in the country. EBRD's 6.7 billion euro portfolio in Turkey is the largest among the 38 economies where the bank invests. To date, the bank has financed, both directly and through local banks, 3 GW of installed capacity, or 7% of the total installed renewable energy capacity in Turkey.

Since 2009, the bank has invested almost 12 billion euros in various sectors of the Turkish economy, half of which are for projects that promote the sustainable use of energy and resources.

Source: Daily Sabah

ENERGY NEWS - WORLD
Defying Expectations of a Rise, Global Carbon Dioxide Emissions Flatline in 2019

Despite widespread expectations of another increase, global energy-related carbon dioxide emissions stopped growing in 2019, according to IEA data.

After two years of growth, global emissions were unchanged at 33 gigatonnes in 2019 even as the world economy expanded by 2.9%. This was primarily due to declining emissions from electricity generation in advanced economies, thanks to the expanding role of renewable sources (mainly wind and solar), fuel switching from coal to natural gas, and higher nuclear power generation. Other factors included milder weather in several countries, and slower economic growth in some emerging markets.

“We now need to work hard to make sure that 2019 is remembered as a definitive peak in global emissions, not just another pause in growth,” said Dr Fatih Birol, the IEA’s Executive Director. “We have the energy technologies to do this, and we have to make use of them all. The IEA is building a grand coalition focused on reducing emissions – encompassing governments, companies, investors and everyone with a genuine commitment to tackling our climate challenge.”

A significant decrease in emissions in advanced economies in 2019 offset continued growth elsewhere. The United States recorded the largest emissions decline on a country basis, with a fall of 140 million tonnes, or 2.9%. US emissions are now down by almost 1 gigatonne from their peak in 2000. Emissions in the European Union fell by 160 million tonnes, or 5%, in 2019 driven by reductions in the power sector. Natural gas produced more electricity than coal for the first time ever, meanwhile wind-powered electricity nearly caught up with coal-fired electricity. Japan’s emissions fell by 45 million tonnes, or around 4%, the fastest pace of decline since 2009, as output from recently restarted nuclear reactors increased. Emissions in the rest of the world grew by close to 400 million tonnes in 2019, with almost 80% of the increase coming from countries in Asia where coal-fired power generation continued to rise. 

Across advanced economies, emissions from the power sector declined to levels last seen in the late 1980s, when electricity demand was one-third lower than today. Coal-fired power generation in advanced economies declined by nearly 15% as a result of growth in renewables, coal-to-gas switching, a rise in nuclear power and weaker electricity demand.

“This welcome halt in emissions growth is grounds for optimism that we can tackle the climate challenge this decade,” said Dr Birol. “It is evidence that clean energy transitions are underway – and it’s also a signal that we have the opportunity to meaningfully move the needle on emissions through more ambitious policies and investments.”

To support these objectives, the IEA will publish a World Energy Outlook Special Report in June that will map out how to cut global energy-related carbon emissions by one-third by 2030 and put the world on track for longer-term climate goals.

The Agency will also hold an IEA Clean Energy TransitionsSummit in Paris on 9 July, bringing together key government ministers, CEOs, investors and other major stakeholders from around the world with the aim of accelerating the pace of change through ambitious and real-world solutions.

Dr Birol will discuss these results and initiatives tomorrow at a special IEASpeaker Series event at IEA Headquarters in Paris with energy and climate ministers from Poland, which hosted COP24 in Katowice; Spain, which hosted COP25 in Madrid; and the United Kingdom, which will host COP26 in Glasgow this year.

Source: International Energy Agency

Annual Market for Energy IT and Cybersecurity Services to Hit $32bn

Navigant Research has released a new report analysing the global market for energy IT and cybersecurity for Software and Services to surpass $19 billion in 2020 and $32 billion in 2028.

Utilities are expected to increase investments in energy IT, analytics and cybersecurity software and services to address challenges presented by digital technologies and new business models.

An influx of data and rapid growth in distributed energy resources is leading utilities to invest in IT solutions that can mitigate the associated disruptive effects.

Consumer demands for improved services will drive utilities into investing in energy IT, analytics and cybersecurity software and services.

Michael Kelly, a research analyst with Navigant Research, said: “Today’s utilities have turned to data as a new source of value in the Energy Cloud future.

“This has led to the expansion of low-cost sensors throughout the transmission and distribution networks and unprecedented levels of data generation. Yet, without advanced IT systems to process this data, true situational awareness and operational insights cannot be achieved.”

However, financial constraints and competing budget items, as well as existing complex homegrown systems, mean utility investment in new IT solutions is likely to remain incremental in most regions.

Source: Smart Energy

Europe Installs a Record 3.6 GW of Offshore Wind in 2019

Europe installed 3.6 GW of new offshore wind capacity in 2019, according to statistics released today by WindEurope. This is a new record in annual installations.

10 new offshore wind farms came online across 5 countries. The UK accounted for nearly half of the new capacity with 1.7 GW. Then came Germany (1.1 GW), Denmark (374 MW) and Belgium (370 MW). And Portugal installed 8 MW of floating offshore wind. Europe now has 22 GW of offshore wind. The UK and Germany account for three-quarters of it. Denmark, Belgium and the Netherlands share nearly all of the rest.
The average size of the offshore turbines installed last year was 7.8 MW. A 12 MW offshore wind turbine was installed in Rotterdam. Offshore wind farms are also getting bigger. The average size doubled – it was 300 MW in 2010. Now it is over 600 MW. The largest is Hornsea 1 in the UK – 1.2 GW.

The launch of the new Portuguese floating project – WindFloat Atlantic, funded by the EU’s NER300 programme, means Europe now has 45 MW of floating offshore wind. France, the UK, Norway and Portugal are all developing new floating projects. France plans to auction a large-scale floating wind farm in 2021.

Offshore wind costs continue to fall significantly. Last year’s auctions – in the UK, France and the Netherlands – delivered prices for consumers in the range of €40-50/MWh. This is cheaper than building new gas, coal or nuclear.

2019 also saw investment decisions in 4 new offshore wind farms, representing 1.4 GW in capacity and €6bn in investments.

The European Commission says Europe needs between 230 and 450 GW of offshore wind by 2050 to decarbonise the energy system and deliver the Green Deal. This requires Europe to build 7 GW of new offshore wind a year by 2030 and ramp up to 18 GW a year by 2050. But the current level of new installations and investments is a long way behind that.

WindEurope CEO Giles Dickson said: “Europe really embraced offshore wind in 2019. Auction prices showed it’s now cheaper to build offshore wind than new gas or coal plants. Several Governments raised the amount they want to build. This time last year we were looking at 76 GW by 2030. Now it’s 100 GW.”

“But we’re not currently building enough to deliver on that, let alone the more ambitious volumes needed to deliver the Green Deal. The EU Commission says we need up to 450 GW of offshore by 2050. That means 7 GW new offshore wind every year by 2030 and 18 GW by 2050. Last year we built a record amount, but only 3 GW.”

“The bigger numbers are doable and affordable. The new EU Offshore Wind Strategy in the Green Deal should map out clearly how to mobilise the investments needed for 450 GW. Crucially it should provide a masterplan (a) to develop the offshore and onshore grid connections and (b) to get the maritime spatial planning right. This will require ever closer cooperation between Governments in the North Sea and the Baltic. And this should also include the UK – they were half of Europe’s investment in offshore wind in the last decade and will remain by far the biggest market.”

Source: Wind Europe

Innogy to Trade 770 MW of Renewable Energy to Corporate Buyers

Innogy SE (ETR:IGY) plans to trade power from 770 MW of its renewables portfolio to corporate buyers using the Instatrust digital marketplace by DNV GL. 

This specific energy trading platform facilitates the signing of renewable energy power purchase agreements (PPAs) by serving as a link between companies willing to buy clean energy and suppliers.

The assets that Innogy will make available through the platform include solar photovoltaic (PV) and onshore wind projects in seven countries.

All of them are currently in advanced development or are already under construction, the German group said on Monday. 

“Renewable energy usage is becoming more and more a service over a commodity according to us and digitalization enables us to connect easier and earlier with the right partners,” said Roland Kok, head of customer solutions at Innogy’s renewables segment. 

As of end-August, 2019, Innogy had around 3,600 MW of renewables assets in 10 countries, plus some under-construction plants, as well as some 6,900 MW of additional wind and solar projects in the pipeline.

Source: Renewables Now

REPORT OF THE WEEK

Energy Policy Lighthouses: The Little Green Book

By many measures, the world is still in the early stages of a deep and profound transformation in energy, and industrial and agricultural processes. The aim of that transition is to achieve new policy goals for modern societies – among them, deep cuts in carbon dioxide and other warming gases. Success will require a reduction in emissions from current levels – more than 50 billion tons of carbon dioxide equivalents today, rising at nearly 2% per year in recent years – to essentially zero over the next few decades, while delivering the energy the world needs at affordable costs. This transformation will not be easy, for mobilizing meaningful economic change is rarely a simple process that proceeds without opposition. It is hard to pin down how quickly it may be occurring already. However, with smart policy strategies and profound technological change, the process can run faster, at lower cost and with more benefits to society.

Please click here to read the full report.

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