Solar Investment Potential in Turkey

GUNESE SOLAR ELECTRICITY PRODUCERS & PHOTOVOLTAIC INDUSTRY ASSOCIATION

President, Mehmet Özer CEO, Tuncmatik Group [email protected]

Photovoltaic In Turkey 7 April 2010 - Frankfurt

Solar Investment Potential in Turkey

Established September 2008, Istanbul – Turkey An EPIA Member

Photovoltaic In Turkey 7 April 2010 - Frankfurt

Solar Investment Potential in Turkey

Target To grow the Turkish PV market To educate the public and goverment for PV electricity production To motivate the goverment for PV Electricity production Try to help the goverment to finish the feed-in tariff law and to help them for the publishing of legal and technical regulations Working closely with media for PV awareness on public and goverment

Photovoltaic In Turkey 7 April 2010 - Frankfurt

Solar Investment Potential in Turkey

Target

Coordinate with European and international associations, exchanging of data and try to work together for a better and larger Turkish PV market Train local installers and system designers Try to set the quality and system standarts for good PV systems Publishing of monthly newsletter on the Turkish PV Industry, white papers, guides and education booklets for endusers.

Photovoltaic In Turkey 7 April 2010 - Frankfurt

Solar Investment Potential in Turkey

An Overview of Turkish Energy Production

Total Installed Capacity : 43,896 MW (Q3,2009) Hydroelectric

: 14,277 MW

Natural Gas

: 14,419 MW

Coal + Fuel

: 14,515 MW

Wind

: 524 MW

Others

: 158 MW Source : EMRA

Photovoltaic In Turkey 7 April 2010 - Frankfurt

Solar Investment Potential in Turkey

An Overview of Turkish Energy Production

To Summarize ; (capacity) 66% Thermal Power Plants 32,5% Hydro Power Plants 1.5 % Renewables and others

Photovoltaic In Turkey 7 April 2010 - Frankfurt

Solar Investment Potential in Turkey

An Overview of Turkish Energy Production

Total Production : 194 TWh Thermal Others

: 156,2 TWh : 37,8 TWh

Natural Gas Power Plants represent more than 50 % of total production More than 75% of the production by thermal power plants

Photovoltaic In Turkey 7 April 2010 - Frankfurt

Solar Investment Potential in Turkey

Problems for Turkish Energy Policy

1.

Heavy Dependency on Russia and Iran due to Natural Gas

2.

Majority of the production by Thermal plants, not a green solution ! lots of CO2 problems, (Turkey has signed KYOTO protocol)

3.

Loosing of Hyro Capacity due to Global Warming

4.

Capacity problems, due to lack of investment on time Turkish demand for electricity has increase by 8% on average in the last 10 years. One of the fastest growing market in the world and has a lot of potantial to grow.

Photovoltaic In Turkey 7 April 2010 - Frankfurt

Solar Investment Potential in Turkey

Solar Revolution Eco friendly No Fuel Cost Fastest Growing Energy Sector Still R&D going on = ENERGY OF FUTURE Photovoltaic In Turkey 7 April 2010 - Frankfurt

Solar Investment Potential in Turkey

Solar Investments One of the main reasons why this industry is growing so fast ! A secure investment as Sun is a predictable resource Goverment guarantess on pricing and purchase agreements Photovoltaic In Turkey 7 April 2010 - Frankfurt

Solar Investment Potential in Turkey

Solar Investments

Photovoltaic In Turkey 7 April 2010 - Frankfurt

Solar Investment Potential in Turkey

Photovoltaic In Turkey 7 April 2010 - Frankfurt

Solar Investment Potential in Turkey

Photovoltaic In Turkey 7 April 2010 - Frankfurt

Solar Investment Potential in Turkey

Photovoltaic In Turkey 7 April 2010 - Frankfurt

Solar Investment Potential in Turkey

Photovoltaic In Turkey 7 April 2010 - Frankfurt

Solar Investment Potential in Turkey Turkish Market Turkey can be a fantastic market for PV as it has one of best irradiation levels in Europe

As a comparison, The worst part of Turkey for Solar is Northern Turkey which is better than the best German Solar location

Photovoltaic In Turkey 7 April 2010 - Frankfurt

Solar Investment Potential in Turkey Turkish Solar Map

Photovoltaic In Turkey 7 April 2010 - Frankfurt

Solar Investment Potential in Turkey

Challenges Turkish Market for Q2 - 2010

Market for Today is very limited as there is no feed-in tariff Delays in market regulation and FIT Still cloudy, needs time ; but big hopes

Photovoltaic In Turkey 7 April 2010 - Frankfurt

Solar Investment Potential in Turkey Future Turkish Market for 2012 and Future Potential Coming law ainly supports large scale installations with a price around 20€ cents (expexted to be reduced) Many large scale companies are interested in solar park investments There are couple of companies who are planning of local production of modules in Turkey With Todays feed in tariff, the market will be 99% megawatt scale projects, so there is a great potential for thin film and also crystalline modules with the falling prices.

Photovoltaic In Turkey 7 April 2010 - Frankfurt

Solar Investment Potential in Turkey Turkish Solar Map Turkish Market for 2012 and Future Potential After the law there other other steps such as technical regulations and licensing regulation. Licence applications will be accepted in one single day.

Market size for 2012-2013 is expected to be around 200 to 300 MWs.

Photovoltaic In Turkey 7 April 2010 - Frankfurt

Solar Investment Potential in Turkey

Why it is not happening ?  EMRA (licencing authority) is blocked by 75,000 MW wind licence applications which couldn’t be granted licences since November 2007. (land conflicts, grid connection, mine licencing, green issues)

 Technically the licence applications for solar is closed.  Lots of speculative licence applications in wind making goverment officials to get freightened by the risk of receiving huge applications in solar  There fore, the rules for solar has to be rewritten by taking in consideration the bad experience for wind

Photovoltaic In Turkey 7 April 2010 - Frankfurt

Solar Investment Potential in Turkey

Why it is not happening ?  Ministery doesn’t have the right awareness for Solar (2010-2014 Strategy Plan for the ministery has no single word of solar in it) Solar seems to be at the end of the priority list for Energy Ministery Solar is considered to be an expensive method to produce energy Huge price decreases in 2009 has caused the goverment to think that we will similar price reductions every year  Goverment has the tendency to support local production of PV panels Turkey has long term agreements with Russia and Iran for natural gas and if Turkey doesn’t fulfill the promised capacity, we are still being charged for the unused gas amount.

Photovoltaic In Turkey 7 April 2010 - Frankfurt

Solar Investment Potential in Turkey

Way to the Solar investment

•It’s a long trip •Full of challenges

Photovoltaic In Turkey 7 April 2010 - Frankfurt

Solar Investment Potential in Turkey

Sun is everywhere  Turkey represents great opportunity for investors for solar investments For further information; President, Mehmet Özer CEO, Tuncmatik Group [email protected]

Photovoltaic In Turkey 7 April 2010 - Frankfurt

Solar Investment Potential in Turkey

For more detailed information on Turkish Market www.gunese.org [email protected] President, Mehmet Özer [email protected]

Thank You Very Much Photovoltaic In Turkey 7 April 2010 - Frankfurt