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Turkey Turkey ( tr, Türkiye ), officially the Republic of Türkiye ( tr, Türkiye Cumhuriyeti, links=no ), is a transcontinental country located mainly on the Anatolian Peninsula in Western Asia, with a small portion on the Balkan Peninsula in ...
uses more
electricity Electricity is the set of physical phenomena associated with the presence and motion of matter that has a property of electric charge. Electricity is related to magnetism, both being part of the phenomenon of electromagnetism, as describ ...
per person than the global average, but less than the European average, with demand peaking in summer due to air conditioning. Most electricity is generated from coal, gas and hydropower, with
hydroelectricity Hydroelectricity, or hydroelectric power, is electricity generated from hydropower (water power). Hydropower supplies one sixth of the world's electricity, almost 4500 TWh in 2020, which is more than all other renewable sources combined an ...
from the east transmitted to big cities in the west.
Electricity prices Electricity pricing (also referred to as electricity tariffs or the price of electricity) can vary widely by country or by locality within a country. Electricity prices are dependent on many factors, such as the price of power generation, gover ...
are state-controlled, but wholesale prices are heavily influenced by the cost of imported gas. Each year, about 300 terawatt-hours (TWh) of electricity is used, which is almost a quarter of the total energy used in Turkey. On average, about four hundred grams of
carbon dioxide Carbon dioxide ( chemical formula ) is a chemical compound made up of molecules that each have one carbon atom covalently double bonded to two oxygen atoms. It is found in the gas state at room temperature. In the air, carbon dioxide is trans ...
is emitted per kilowatt-hour of electricity generated (400 gCO2/kWh); this
carbon intensity An emission intensity (also carbon intensity or C.I.) is the emission rate of a given pollutant relative to the intensity of a specific activity, or an industrial production process; for example grams of carbon dioxide released per megajoule o ...
is slightly less than the global average. As there is 100 GW of generating capacity, far more electricity could be produced. Although only a tiny proportion is exported; consumption is forecast to increase, and there are plans for more exports during the 2020s. Turkey's coal-fired power stations are the largest source of the country's greenhouse-gas emissions. Many
brown coal Lignite, often referred to as brown coal, is a soft, brown, combustible, sedimentary rock formed from naturally compressed peat. It has a carbon content around 25–35%, and is considered the lowest rank of coal due to its relatively low heat ...
power stations are subsidized, which increases
air pollution Air pollution is the contamination of air due to the presence of substances in the atmosphere that are harmful to the health of humans and other living beings, or cause damage to the climate or to materials. There are many different typ ...
. Imports of gas, mostly for Turkey's power stations, are one of the main expenses for the country. In winter, electricity generation is vulnerable to reductions in the gas supply from other countries. Solar and
wind power Wind power or wind energy is mostly the use of wind turbines to generate electricity. Wind power is a popular, sustainable, renewable energy source that has a much smaller impact on the environment than burning fossil fuels. Historically ...
are now the cheapest generators of electricity, and more of both are being built. If enough solar and wind power is built, the country's hydroelectric plants should be enough to cover windless cloudy weeks. Renewables generate a third of the country's electricity, and academics have suggested that the target of 32% renewable energy by 2030 be increased to 50%, and that coal power should be phased out by the mid-2030s. Increased use of electric vehicles is expected to increase electricity demand.


Consumption

Each year, about 300 TWh of electricity is used in Turkey: this supplies almost a quarter of the total final energy demand, the rest being from coal, oil and gas. Due to air conditioning demand peaks in summer: with August highest (32 TWh in 2021) and February typically lowest (24 TWh in 2021). Total national consumption divided by the population is under 4,000 kWh a year, much below the average of around 10,000 kWh a year for other
OECD The Organisation for Economic Co-operation and Development (OECD; french: Organisation de coopération et de développement économiques, ''OCDE'') is an intergovernmental organisation with 38 member countries, founded in 1961 to stimulate e ...
countries in Europe, but half as much again as the global average. Shares of energy usage in 2019 totaled 45% for industry, 29% for services and 21% for households. Consumption is forecast to increase. , household electricity consumption is estimated to average 230 kWh a month and is dominated by refrigerators, followed by televisions then washing machines. Space heating and electric vehicles have the biggest potential for demand side response. Between 2019 and 2024, Turkey plans to invest US$11 billion into energy efficiency; and by 2035 replace 80% of electricity meters with smart meters. Electricity's share of energy consumption is expected to increase, from 22% in 2019 to perhaps 28% in 2040, partly due to
electrification Electrification is the process of powering by electricity and, in many contexts, the introduction of such power by changing over from an earlier power source. The broad meaning of the term, such as in the history of technology, economic histor ...
of road transport.


Demand forecasts

Demand forecasting is important, because constructing too much
electricity generation Electricity generation is the process of generating electric power from sources of primary energy. For utilities in the electric power industry, it is the stage prior to its delivery ( transmission, distribution, etc.) to end users or its s ...
capacity can be expensive, both for government
energy subsidies Energy subsidies are measures that keep prices for customers below market levels, or for suppliers above market levels, or reduce costs for customers and suppliers. Energy subsidies may be direct cash transfers to suppliers, customers, or rel ...
and private sector debt interest. Conversely, constructing too little risks delaying the health benefits of electrification, the biggest of which is cleaner air due to fossil fuel phase-out. Distribution companies, some retail companies, and industrial zones send their demand forecasts to the Energy Ministry and the
Turkish Electricity Transmission Corporation Turkish Electricity Transmission Corporation (Turkish: Türkiye Elektrik İletim A. Ş., abbreviated TEİAŞ) is the transmission system operator for electricity in Turkey. It is a government-owned corporation. It is planned for a minority stake ...
(TEIAŞ) every year. TEİAŞ then publishes low, base and high 10 year forecasts, using the "DECADES" model; whereas the Energy Ministry uses the "Model for Analysis of Energy Demand". Some official demand forecasts are overestimated, which could be due to low economic growth. In 2019 actual generation was 76% of firm capacity, and overcapacity continued into the early 2020s.


Industry

The share of electricity used in industry is expected to increase at the expense of the fossil fuel share as Turkey moves to more technology manufacturing. Less coal is being burnt for industry and oil burning remains static. One projection even shows electricity overtaking gas to become the largest industrial energy source at 30%, however more efficient lighting and industrial motors, together with policy changes supporting efficiency, could limit demand growth.


Electrification of transport

In 2021, less than 3000 fully electric cars were sold, however production and use of some types of electric vehicles, such as cars manufactured by Togg, may increase demand during the 2020s.
Shura Energy Transition Center Shura ( ar, شُورَىٰ, translit=shūrā, lit=consultation) can for example take the form of a council or a referendum. The Quran encourages Muslims to decide their affairs in consultation with each other. Shura is mentioned as a praisewort ...
, a
think tank A think tank, or policy institute, is a research institute that performs research and advocacy concerning topics such as social policy, political strategy, economics, military, technology, and culture. Most think tanks are non-governmenta ...
, has recommended to automatically charge electric cars when plenty of wind and solar power is available. The
architecture of Turkey Architecture of Turkey or Turkish architecture in the Republican Period refers to the architecture practised in the territory of present-day Turkey since the foundation of the republic in 1923. In the first years of the republic, Turkish archite ...
means that many city dwellers live in apartment blocks without off-street parking: regulations require at least one charger per 50 new parking spaces in shopping malls and public parking lots. Getting old diesel cars and trucks off the road would have health and environmental benefits, but this would require new pollution control legislation, and the only commercial electric vehicles planned for mass production are vans. The government aims to end sales of fossil fuel cars and lorries by 2040.
Ford Ford commonly refers to: * Ford Motor Company, an automobile manufacturer founded by Henry Ford * Ford (crossing), a shallow crossing on a river Ford may also refer to: Ford Motor Company * Henry Ford, founder of the Ford Motor Company * Ford F ...
hopes to build a factory to make batteries for commercial electric vehicles.


Generation

Of the total 329 TWh of electricity generated in 2021; natural gas produced 42%, coal 26%, hydropower 13%, and wind 10%. Installed capacity reached 100 GW in 2022. Academics have suggested that the target of 32% from renewables by 2030 should be increased to at least 50%. The state-owned Electricity Generation Company (EÜAŞ) has about 20% of the market, and there are many private companies. The
carbon intensity An emission intensity (also carbon intensity or C.I.) is the emission rate of a given pollutant relative to the intensity of a specific activity, or an industrial production process; for example grams of carbon dioxide released per megajoule o ...
of generation during the 2010s was slightly over 400 gCO2/kWh, around the global average.


Coal


Gas

In 2020, power plants consumed 29% of natural gas in Turkey. State-owned gas-fired power plants are less efficient than private plants, but can out-compete them, as the state guarantees a price for their electricity. Gas power plants are used more when drought reduces hydropower, such as in 2021 which was a record year for gas consumption.


Hydropower

Hydropower Hydropower (from el, ὕδωρ, "water"), also known as water power, is the use of falling or fast-running water to produce electricity or to power machines. This is achieved by converting the gravitational potential or kinetic energy of a w ...
is a critical source of electricity, and in some years substantial amounts can be generated due to Turkey's mountainous landscape, abundance of rivers, and it being surrounded by three seas. The main river basins are the
Euphrates The Euphrates () is the longest and one of the most historically important rivers of Western Asia. Together with the Tigris, it is one of the two defining rivers of Mesopotamia ( ''the land between the rivers''). Originating in Turkey, the Eup ...
and the
Tigris The Tigris () is the easternmost of the two great rivers that define Mesopotamia, the other being the Euphrates. The river flows south from the mountains of the Armenian Highlands through the Syrian and Arabian Deserts, and empties into the ...
. Many dams have been built throughout the country, and a peak of 28 GW of power can be generated by hydroelectric plants. Almost 90 TWh was generated in 2019, around 30% of the country's electricity. There are many policies that support hydroelectricity. Construction of some dams has been controversial for various reasons: for example environmentalists claiming they damage
wildlife Wildlife refers to undomesticated animal species, but has come to include all organisms that grow or live wild in an area without being introduced by humans. Wildlife was also synonymous to game: those birds and mammals that were hunted ...
such as fish, or downstream countries complaining of reduced water flow. Due to changes in rainfall, generation varies considerably from year to year. And, according to
S&P Global Platts S&P Global Commodity Insights is a provider of energy and commodities information and a source of benchmark price assessments in the physical commodity markets. The business was started with the foundation in 1909 of the magazine ''National Pet ...
, when there is
drought in Turkey Drought is common in Turkey, especially in the south and center of the country, with 2021 being the driest in 2 decades. Drought events are forecast to occur more frequently due to climate change. Most water loss is due to poor irrigation. In 202 ...
during the peak electricity demand month of August the aim of the
State Hydraulic Works The State Hydraulic Works ( tr, Devlet Su İşleri) is a state agency, under the Ministry of Environment and Forestry of Turkey, responsible for the utilization of all the country's water resources. The institution's four major functions are ene ...
to conserve water for irrigation can conflict with the Turkish Electricity Transmission Corporation aiming to generate electricity. Despite droughts increasing due to
climate change In common usage, climate change describes global warming—the ongoing increase in global average temperature—and its effects on Earth's climate system. Climate change in a broader sense also includes previous long-term changes to ...
, hydropower is predicted to remain important for load balancing. Converting existing dams to
pumped storage Pumping may refer to: * The operation of a pump, for moving a liquid from one location to another **The use of a breast pump for extraction of milk * Pumping (audio), a creative misuse of dynamic range compression * Pumping (computer systems), th ...
has been suggested as more feasible than new pumped storage.


Wind


Solar

Turkey Turkey ( tr, Türkiye ), officially the Republic of Türkiye ( tr, Türkiye Cumhuriyeti, links=no ), is a transcontinental country located mainly on the Anatolian Peninsula in Western Asia, with a small portion on the Balkan Peninsula in ...
is located in an advantageous position in the
Middle East The Middle East ( ar, الشرق الأوسط, ISO 233: ) is a geopolitical region commonly encompassing Arabia (including the Arabian Peninsula and Bahrain), Asia Minor (Asian part of Turkey except Hatay Province), East Thrace (Europ ...
and
Southeast Europe Southeast Europe or Southeastern Europe (SEE) is a geographical subregion of Europe, consisting primarily of the Balkans. Sovereign states and territories that are included in the region are Albania, Bosnia and Herzegovina, Bulgaria, Croatia (a ...
for solar energy, and it is a growing part of renewable energy in the country, with almost 8 GW generating about 4% of the country's electricity. Solar potential is high in Turkey, especially in the south-east and Mediterranean provinces. Conditions for solar power generation are comparable to
Spain , image_flag = Bandera de España.svg , image_coat = Escudo de España (mazonado).svg , national_motto = ''Plus ultra'' (Latin)(English: "Further Beyond") , national_anthem = (English: "Royal March") , i ...
. In 2020 Turkey ranked 8th in Europe for solar power, but it could increase far more quickly if subsidies for coal were abolishedOECD (2019), page 36 and the auction system was improved. Every gigawatt of solar power installed would save over US$100 million in gas import costs. Peak daily generation in 2020 was over 1 TWh in September. According to modelling by Carbon Tracker, new solar power became cheaper than new coal power in 2020, and will become cheaper than existing coal plants in 2023. According to think tank Ember, building new solar and wind power in Turkey is cheaper than running existing coal plants which depend on imported coal. But they say that there are obstacles to building
utility-scale solar Utility-scale solar is large scale (sometimes defined as greater than 1 MW or sometimes 4 MWAC ) solar power either from: A photovoltaic power station at a scale large enough to be classified as 'utility-scale'; or Concentrated solar power whereas ...
, such as: lack of new capacity for solar power at
transformer A transformer is a passive component that transfers electrical energy from one electrical circuit to another circuit, or multiple circuits. A varying current in any coil of the transformer produces a varying magnetic flux in the transformer' ...
s, a 50 MW cap on any single solar power plant’s installed capacity, and large consumers being unable to sign long term power purchase agreements for new solar installations. Unlicensed power plants, which are mostly solar, generated about 4% of electricity in 2021.


Geothermal

There are almost 2 gigawatts of electrical geothermal power in Turkey, which is a significant part of renewable energy in Turkey. Geothermal power in Turkey began in the 1970s, in a prototype plant, following systematic exploration of geothermal fields. In the 1980s the pilot facility became the first geothermal power plant. The small-sized geothermal power plant was expanded to the country's biggest in 2013. Over 60 power plants operate in Turkey , with potential for more. As well as contributing to electricity generation, geothermal energy is also used in direct heating applications. At the end of 2021 Turkey had 1.7 GW installed capacity, the fourth largest in the world after the United States, Indonesia and the Philippines. There is almost 2 GW of geothermal and sites for much more including enhanced geothermal systems. However carbon dioxide emissions can be high, especially for new plants, so to prevent carbon dioxide dissolved out of the rocks being released into the atmosphere the fluid is sometimes completely reinjected after its heat is used.


Nuclear

Turkey's first nuclear power plant, at Akkuyu, is planned to start generation in 2023, and is expected to last for at least 60 years. The
nuclear power debate The nuclear power debate is a long-running controversy about the risks and benefits of using nuclear reactors to generate electricity for civilian purposes. The debate about nuclear power peaked during the 1970s and 1980s, as more and more reac ...
has a long history, with the 2018 construction start in
Mersin Province Mersin Province ( tr, ), formerly İçel Province ( tr, ), is a province in southern Turkey, on the Mediterranean coast between Antalya and Adana. The provincial capital and the biggest city in the province is Mersin, which is composed of f ...
being the sixth major attempt to build a nuclear power plant since 1960.
Nuclear power Nuclear power is the use of nuclear reactions to produce electricity. Nuclear power can be obtained from nuclear fission, nuclear decay and nuclear fusion reactions. Presently, the vast majority of electricity from nuclear power is produced ...
has been criticised, as being very expensive to taxpayers. Plans for a nuclear power plant at Sinop and another at
İğneada İğneada (Greek: Thynias) is a small town within the district of Demirköy, Kırklareli, Demirköy in Turkey's Kırklareli Province. It lies on the Black Sea coast and is approximately south of the Rezovo River, Mutludere river which forms the b ...
have stalled.


Hybrid, distributed and virtual generation

Hybrid generation became more popular in the early 2020s. If
distributed generation Distributed generation, also distributed energy, on-site generation (OSG), or district/decentralized energy, is electrical generation and storage performed by a variety of small, grid-connected or distribution system-connected devices referred to ...
installed power is under 11 kW, it is only allowed to be connected to the low voltage network, not the high voltage network. The first
virtual power plant A virtual power plant (VPP) is a Cloud computing, cloud-based distributed power plant that aggregates the capacities of heterogeneous distributed energy resources (DER) for the purposes of enhancing power generation, trading or selling power on the ...
was created in 2017 with wind, solar and hydropower; and geothermal was added in 2020.


Transmission and storage

The
transmission system operator File:Electricity grid simple- North America.svg, 380px, Simplified diagram of AC electricity grid from generation stations to consumers rect 2 243 235 438 Power station rect 276 317 412 556 Transformer rect 412 121 781 400 Electric power transmis ...
is the Turkish Electricity Transmission Corporation (TEİAŞ), which is a state-owned monopoly as of 2022. It is planned to sell a minority share to the private sector in 2022. Transmission is regulated by the Energy Market Regulatory Authority (EMRA). The first long-distance transmission line was from
Zonguldak Zonguldak () is a city and the capital of Zonguldak Province in the Black Sea region of Turkey. It was established in 1849 as a port town for the nearby coal mines in Ereğli and the coal trade remains its main economic activity. According to the ...
to Istanbul in 1952, and there are 72,000km. The grid runs at 400kV and 154kV, and there are over 700 transmission grid substations. Transmission costs, including losses and operation costs, are shared equally between producer and consumer. Reducing grid losses and outages is important, as is improving grid quality. Power consumption is often distant from generation, so grid improvements are needed to prevent bottlenecks and increase flexibility. There are 11 international interconnectors, including all of Turkey's neighbours by land except
Armenia Armenia (), , group=pron officially the Republic of Armenia,, is a landlocked country in the Armenian Highlands of Western Asia.The UNbr>classification of world regions places Armenia in Western Asia; the CIA World Factbook , , and ' ...
(although relations are improving). Although TEİAŞ is no longer an observer member of
ENTSO-E ENTSO-E, the European Network of Transmission System Operators, represents 39 electricity transmission system operators (TSOs) from 35 countries across Europe, thus extending beyond EU borders. ENTSO-E was established and given legal mandates b ...
it continues to attend technical discussions of working groups. , links with the European Union allow 500 MW export and 650 MW import, whereas trade with other countries is possible but difficult to automate as they do not meet ENTSO-E synchronisation requirements. In 2020 total exports were 2.5 GWh, mostly to Greece, and imports 1.9 GWh, mostly from Bulgaria. According to a 2018 study by
Sabancı University Sabancı University ( tr, Sabancı Üniversitesi), established in 1994, is a young foundation university located on a 1.26 million squaremeter campus which is about 40 km from Istanbul's city center. Its first students matriculated in 1999. ...
, 20% of Turkey's electricity may be generated from wind and solar by 2026 with no extra transmission costs, and 30% with a minor increase in grid investment. With the increase in electricity generated by solar panels, energy storage may become more important. A
pumped hydropower Pumped-storage hydroelectricity (PSH), or pumped hydroelectric energy storage (PHES), is a type of hydroelectric energy storage used by electric power systems for load balancing. The method stores energy in the form of gravitational potenti ...
plant is planned to be completed by 2022. Converting existing dams to pumped storage has been suggested as more feasible than new pumped storage. Mobile 10 MW batteries may be useful in the future for reducing temporary
transmission congestion Electricity transmission congestion is a condition of the electrical grid that prevents the accepted or forecasted load schedules from being implemented due to the grid configuration and equipment performance limitations. In simple terms, congestion ...
between regions, or larger ones for frequency regulation. Adding ice thermal storage to hypermarket cooling systems is estimated to be economically viable. The nationwide blackout in 2015 was not caused by a natural disaster, but by the limited capacity and lack of resilience of the main east-west connection whilst it was being maintenanced - leaving it unable to redistribute enough of the eastern hydroelectricity to the high consuming west. It did not greatly affect
Van Province Van Province ( tr, Van ili, ku, Parezgêha Wanê, Armenian: Վանի մարզ) is a province in the Eastern Anatolian region of Turkey, between Lake Van and the Iranian border. It is 19,069 km2 in area and had a population of 1,035,418 a ...
as it was supplied from Iran, and the EU interconnection helped restore power. More integration with other countries would increase resilience.


Distribution

As part of electricity industry reforms between 2009 and 2013, the ownership of all electricity distribution infrastructure was retained by state owned Turkish Electricity Distribution Corporation (TEDAŞ), but responsibility for operation, maintenance and new investment in distribution networks was transferred to 21 privately owned regional entities under licences from EMRA. Electricity at voltages up to 36kV is
distributed Distribution may refer to: Mathematics *Distribution (mathematics), generalized functions used to formulate solutions of partial differential equations *Probability distribution, the probability of a particular value or value range of a varia ...
by regional companies and many organized industrial zones. There are over a million kilometres of distribution lines, of which about 80% are overhead lines and the rest are underground cables. The average losses across all distribution networks (including both technical and non-technical losses) are around 12%. In 2019 TEDAŞ estimated the System Average Interruption Duration Index (OKSÜRE in Turkish) at 1308, which is much worse than neighbouring European countries: however no estimate has been published since then. Nevertheless at least one distribution company measures it, together with the related frequency index (OKSIK in Turkish). There are plans for a smart grid. According to the Shura Energy Center, increasing Turkey's proportion of electric cars to 10% by 2030 would smooth distribution, amongst many other benefits. According to the Chamber of Electrical Engineers, the regional monopolies make excess profits. Their income is determined by EMRA, as distribution charges are set annually by EMRA.


Resilience

Earthquakes in Turkey This is a list of earthquakes in Turkey, including any notable historical earthquakes that have epicenters within the current boundaries of Turkey, or which caused significant effects in this area. Overall, the population in major cities like Ist ...
are common and sometimes cut transmission lines and destroy substations. If the permanent supervisory control centre of a distribution grid is destroyed in a disaster a mobile centre may take control. The installation of more local solar power with batteries, and microgrids in vulnerable places, might help vital buildings such as hospitals retain power after a natural disaster, such as earthquake or flood. Academics suggest that
cost–benefit analysis Cost–benefit analysis (CBA), sometimes also called benefit–cost analysis, is a systematic approach to estimating the strengths and weaknesses of alternatives. It is used to determine options which provide the best approach to achieving benefits ...
of such
emergency power system An emergency power system is an independent source of electrical power that supports important electrical systems on loss of normal power supply. A standby power system may include a standby generator, batteries and other apparatus. Emergency p ...
s should take into account any benefits of resilience and also the cost of installing an islandable system.


Market

Energy Exchange Istanbul (EXIST), is the
electricity market In a broad sense, an electricity market is a system that facilitates the exchange of electricity-related goods and services. During more than a century of evolution of the electric power industry, the economics of the electricity markets had un ...
operator company responsible for the day-ahead and intra-day markets. EXIST was established in 2015 and operates under a license from the Energy Markets Regulatory Authority (EMRA). the wholesale price is the same across the country, but it has been suggested that price zones should be defined to reflect network congestion, for example in getting run-of-the river hydropower to consumers. Although the wholesale market is operated by EXIST; prices are controlled by EUAŞ, the state electricity generation company. Gas-fired power stations set the market price. The National Load and Dispatch Centre prepares forward estimates of demand for each hour, and these are used to guide scheduling of generation 24 hours in advance. The Turkish Electricity Transmission Company (TEİAŞ) is the physical operator of the balancing power market and the ancillary services market. Because price is determined at the margin the electricity price is very dependent on the natural gas price. The government has capped the wholesale electricity price at thrice the average of the previous 12 months, which is high enough for gas and imported coal plants to remain in operation even when their fuel costs are high. Because gas-fired power plants are often the price setters, wholesale electricity prices are strongly influenced by wholesale natural gas prices, which are themselves influenced by the USD exchange rate. Owning over 20% of capacity, the state Electricity Generation Company is a key player in the market along with private wholesalers (such as Enerjisa, Cengiz,
Eren Eren is a Turkish name which in today's Turkish has the meaning of "Saint". Given name * Ali Eren Beşerler (born 1975), Turkish footballer * Ali Eren Demirezen (born 1990), Turkish amateur boxer * Ali Eren İyican (born 1999), Turkish footbal ...
, Limak and Çelikler) and an over the counter market. In 2019 150 TWh, about half of the electricity generated, was traded on the day ahead
spot market The spot market or cash market is a public financial market in which financial instruments or commodities are traded for immediate delivery. It contrasts with a futures market, in which delivery is due at a later date. In a spot market, settle ...
. Market pricing is not completely transparent, cost reflective and non-discriminatory. When the lira falls bilateral contracts are sometimes unable to compete with regulated tariffs: but when the exchange rate is stable industrial customers prefer bilateral contracts (almost no households are on those). In 2021 EXIST launched an electricity futures market. Although, , there is a lot of excess generation capacity very little is exported. In 2021, Turkey exported 4.1 TWh and imported 2.3 TWh. International trade with some countries is hampered by geopolitical difficulties such as the Cyprus dispute; for example, Turkey will be bypassed by the
EuroAsia Interconnector The EuroAsia Interconnector is a HVDC interconnector between the Greek, Cypriot, and Israeli power grids via the world's longest submarine power cable ( from Israel to Cyprus and from Cyprus to Greece, for a total of ). Connecting Kofinou, Cyp ...
. Because TEIAŞ is not unbundled, it cannot become a full member of the European Network of Transmission System Operators for Electricity (ENTSO-E), but the grids are synchronised and there is technical co-operation. The grid is linked across most land borders, and about 1% of electricity is imported or exported. Technical studies are being done on increasing connections with the
European grid The European grid is a proposed, multipurpose Pan-European mapping standard. It is based on the ETRS89 coordinate reference system and the Lambert Azimuthal Equal-Area projection, with the centre of the projection at the point 52° N, 10° E ...
. In 2022 export capacity to Iraq was increased from 150 MW to 500 MW. Some power barges supplying other countries burn heavy fuel oil but plan to convert to LNG. For exports to the EU the
Carbon Border Adjustment Mechanism The Carbon Border Adjustment Mechanism (CBAM) is a carbon tariff on carbon intensive products, such as cement and some electricity, imported by the European Union. Currently being legislated as part of the European Green Deal it will to take effec ...
(CBAM) will be phased in from 2023 to 2026. Although Turkish electricity is likely to be cheaper than that generated in the EU, the impact of the CBAM is unclear as of 2021. More linking transmission is needed, and becoming a full member of ENTSO-E would help exports.


Retailing

Although the 2013 Electricity Market Law says that distribution companies cannot retail, most customers buy from retail "arms" of their local distribution companies. Households that consume over a certain amount, and all non-household customers, can switch suppliers. Retail price increases have often been due to depreciation of the lira. Pricing can vary by region, but there is some redistribution, and electricity is subsidized for about 2 million households. An example of a regional retail company is YEPAŞ (P = perakende = retail). European wiring color codes are used.
Schuko "Schuko" () is a registered trademark referring to a system of AC power plugs and sockets that is defined as " CEE 7/3" (sockets) and "CEE 7/4" (plugs). A Schuko plug features two round pins of 4.8 mm diameter (19 mm long, centers 19&n ...
plugs (plug type C with 2 round pins, and type F with 2 round pins and 2 earth clips) and sockets are standard, at 230 V and 50 Hz. For public charging of electric vehicles, the European standard
Combined Charging System The Combined Charging System (CCS) is a standard for charging electric vehicles. It can use or connectors to provide power at up to . These two connectors are extensions of the IEC 62196 Type 1 and Type 2 connectors, with two additional d ...
is used. As of 2022, there are no Tesla superchargers. After purchasing a property in an urban area, earthquake insurance is compulsory before electricity is connected. In case of natural disasters or pandemics the Ministry of Energy and Natural Resources may cover the financial costs resulting from the postponement (up to one year) of electricity bills, but not the bill amount itself. the VAT rate for residential customers and agricultural irrigation is 8%.


Economics and finance

As elsewhere, new renewables are auctioned. In 2019 the value-adjusted levelized cost of energy (VALCOE - the cost including power system value but not environmental externalities) of onshore wind was slightly less than solar PV, but solar PV is expected to become the most cost-competitive power generation technology by the late 2020s. According to the Chamber of Engineers 75% of electricity in 2021 was dollar indexed. In 2021 new wind and solar became cheaper than existing power stations burning imported coal. , if all currently economic renewable projects were developed, the added electricity generation would be sufficient to reduce Turkey's natural gas imports by 20%, and every GW of solar power installed would save over $100million on the gas bill. According to EMRA exports to the EU accompanied by YEK-G will be exempt from the electricity CBAM. , about 15% of power was generated by the public sector. During the 2010s, power companies borrowed heavily in dollars, but economic growth was overestimated and they overbuilt generating capacity. This resulted in bank debts of $34 billion by 2019 and revenues declining in dollar terms due to the fall in the lira; furthermore, 7% of debts were non-performing. In the early 2020s, Turkish electricity companies still owe much foreign currency, debt is being restructured and plants are changing ownership. In 2021 BOTAŞ charged more for gas than before, leaving gas-fired power stations at a disadvantage to coal-fired power stations. About half the electricity used in 2019 was generated from local resources. Total import dependency in the power sector was over 50% in 2019. It has, for example, been predicted that more trade would benefit electricity in Bulgaria by stabilizing its price. The main growth in solar and wind during the 2020s is predicted to be in Renewable Energy Resource Areas(YEKA): these use auctions and include a requirement to manufacture mostly in Turkey. The EU has complained that local content requirements are against trade agreements. Build Own Operate is being used to construct Akkuyu nuclear plant to ensure that responsibility for cost overruns is with
Rosatom Rosatom, ( rus, Росатом, p=rɐsˈatəm}) also known as Rosatom State Nuclear Energy Corporation, the State Atomic Energy Corporation Rosatom or Rosatom State Corporation, is a Russian state corporation headquartered in Moscow that speciali ...
. Power purchase agreements are offered by the government both for nuclear and local coal. The financing of the National Energy Efficiency Action Plan and continuation beyond 2023 is unclear.


Capacity payments

The capacity mechanism regulation says that the purpose of the payments to create sufficient installed power capacity, including the spare capacity required for supply security in the electricity market, and/or to maintain reliable installed power capacity for long-term system security. The 2021 capacity mechanism budget was 2.6 billion lira (US$ million). Some hydropower plants, plants burning local coal, and plants older than 13 years burning imported fuel are eligible. In 2022 ten hydro plants, several gas power plants and many lignite-fired plants were eligible for the capacity mechanism: and capacity payments included variable cost components and the market exchange price, as well as fixed cost components and the total installed power capacity by source. These payments have been criticised by some economists.


Feed-in-tariffs

, feed-in-tariffs in lira per MWh are: wind and solar 320, hydro 400, geothermal 540, and various rates for different types of biomass: for all these there is also a bonus of 80 per MWh if local components are used. Tariffs will apply for 10 years and the local bonus for 5 years. Rates are determined by the presidency, and the scheme replaced the previous USD-denominated feed-in-tariffs for renewable energy. Thus, as in some other countries, the wholesale price of renewable electricity is much less volatile in local currency than the price of fossil fuelled electricity.


End user pricing

The complicated system of prices to end consumers is regulated by the government. In 2020, residential consumers paid about 75 lira (US$) per 100 kWh, of which 39 lira (US$) went to generating companies and 21 lira (US$) to distribution companies; the rest was tax. A green tariff called YETA (the certificates are called YEK-G) to allow consumers to buy only sustainable electricity was introduced in 2021. The YETA price is higher than the regular price by a certain amount per kWh (about 1 lira in 2022).
Electricity prices Electricity pricing (also referred to as electricity tariffs or the price of electricity) can vary widely by country or by locality within a country. Electricity prices are dependent on many factors, such as the price of power generation, gover ...
were greatly increased in early 2022 following a large depreciation of the lira in 2021. Household consumption under 210 kWh a month is priced at a cheaper rate. There is some time based pricing: with 2200 to 0600 being cheapest followed by 0600 to 1700, and 1700 to 2200 being the most expensive. According to Shura Energy Center moving to more time-based end user pricing would be beneficial: with prices being somewhat higher in the early morning and a lot higher in the late afternoon, as there is plenty of sunshine to meet demand in the middle of the day (see also
duck curve The duck curve is a graph of power production over the course of a day that shows the timing imbalance between peak demand and renewable energy production. Used in utility-scale electricity generation, the term was coined in 2012 by the Cali ...
). Shura suggested in 2020 that future pricing should be more competitive and better reflect costs, with low-income families being continued to be supported with direct payments. Vulnerable families are supported with direct payments for their electricity consumption up to 150 kWh/month. In early 2022, prices for small businesses became a political issue, as they had risen a lot due to global energy prices rises and the depreciation of the lira. There were street protests, and the main opposition Republican People’s Party leader
Kemal Kılıçdaroğlu Kemal Kılıçdaroğlu (born Kemal Karabulut, 17 December 1948) is a Turkish economist, retired civil servant and social democratic politician. He is leader of the Republican People's Party (CHP) and has been Leader of the Main Opposition in ...
refused to pay his own bill in support. The president said that businesses would also be moved to a tiered pricing system, the number of households supported would be almost doubled to four million, and
civil society organisations A non-governmental organization (NGO) or non-governmental organisation (see spelling differences) is an organization that generally is formed independent from government. They are typically nonprofit entities, and many of them are active in h ...
would be moved to the household rate.


Greenhouse-gas emissions

Turkey's coal-fired power stations (many of which are subsidized) are the largest source of greenhouse-gas emissions by Turkey. Production of public heat and electricity emitted 131
megatonnes The tonne ( or ; symbol: t) is a unit of mass equal to 1000  kilograms. It is a non-SI unit accepted for use with SI. It is also referred to as a metric ton to distinguish it from the non-metric units of the short ton ( United State ...
of equivalent (e) in 2020, mainly through coal burning. Almost all coal burnt in power stations is local lignite or imported hard coal. Coal analysis of Turkish lignite compared to other lignites shows that it is high in ash and moisture, low in energy value and high in
emission intensity An emission intensity (also carbon intensity or C.I.) is the emission rate of a given pollutant relative to the intensity of a specific activity, or an industrial production process; for example grams of carbon dioxide released per megajoule o ...
(that is Turkish lignite emits more than other countries' lignites per unit of energy when burnt). Although imported hard coal has a lower emission intensity when burnt, as it is transported much further its life-cycle greenhouse-gas emissions are similar to lignite. Unlike other European countries emission intensity has not improved since 1990 and remains over 400 gm of /kWh, around the average for
G20 The G20 or Group of Twenty is an intergovernmental forum comprising 19 countries and the European Union (EU). It works to address major issues related to the global economy, such as international financial stability, climate change mitigatio ...
countries. Investment in wind and solar is hampered by subsidies for coal. According to a 2021 study by several NGOs if coal power subsidies were completely abolished and a
carbon price Carbon pricing (or pricing), also known as cap and trade (CAT) or emissions trading scheme (ETS), is a method for nations to reduce global warming. The cost is applied to greenhouse gas emissions in order to encourage polluters to reduce the co ...
introduced at around US$40 (which is much cheaper than the
EU Allowance EU Allowances (EUA) are climate credits (or carbon credits) used in the European Union Emissions Trading Scheme (EU ETS). EU Allowances are issued by the EU Member States into Member State Registry accounts. By April 30 of each year, operators of ...
) then no coal power plants would be profitable and all would close down before 2030. A 2021
decarbonization Climate change mitigation is action to limit climate change by reducing emissions of greenhouse gases or removing those gases from the atmosphere. The recent rise in global average temperature is mostly caused by emissions from fossil fuels b ...
plan by Istanbul Policy Center, a thinktank, has almost all coal power shutdown by 2035; whereas natural gas plants would continue to run to provide flexibility for greatly increased wind and solar, but at a much lower capacity factor. The Turkish Solar İndustry Association suggests that building solar plants next to hydropower would help to stabilize output in times of drought. Shura also suggest that excess renewable electricity could be used to produce
green hydrogen Green hydrogen (GH2 or GH2) is hydrogen generated by renewable energy or from low-carbon power. Green hydrogen has significantly lower carbon emissions than grey hydrogen, which is produced by steam reforming of natural gas, which makes up the b ...
. Turkey is not aligned with the EU carbon capture and storage directive.


Policy and regulation

Turkey's three main policy objectives are to meet forecast increased demand, a predictable market, and to reduce import costs. To meet these objectives policy includes increasing generation from solar, wind and domestic coal; and starting to produce nuclear energy. some of these generation methods are subsidized - for example EÜAŞ will purchase the forthcoming nuclear power at an agreed price. Coal is heavily subsidized in Turkey. Storage and transmission improvements are also supported - for example increasing the amount of pumped hydro. The government aims for half of electricity to be from renewable energy by 2023; with capacity targets of 32 GW for hydropower, 12 GW for wind, 10 GW for solar, and 3 GW for biomass and geothermal combined. Shura Energy Transition Center have suggested that longer-term plans and targets would also be useful, together with a policy on distributed generation, market design to incentivize grid flexibility was also suggested. The objectives are developing local manufacturing capacity such as wind turbines, technology transfer and creating a competitive domestic market for low-cost renewable energy. For wind and solar tenders, there is a high domestic content requirement, and imported solar modules are taxed. According to the European Commission the domestic content requirements contradict
World Trade Organization The World Trade Organization (WTO) is an intergovernmental organization that regulates and facilitates international trade. With effective cooperation in the United Nations System, governments use the organization to establish, revise, and ...
and EU-Turkey Customs Union rules. A
solar PV A photovoltaic system, also PV system or solar power system, is an electric power system designed to supply usable solar power by means of photovoltaics. It consists of an arrangement of several components, including solar panels to absorb and co ...
factory was opened in 2020. Developing regulation to specify the role of aggregators in providing flexibility, and including energy storage systems and
demand side management Energy demand management, also known as demand-side management (DSM) or demand-side response (DSR), is the modification of consumer demand for energy through various methods such as financial incentives and behavioral change through education. Us ...
within
ancillary services Ancillary services are the services necessary to support the transmission of electric power from generators to consumers given the obligations of control areas and transmission utilities within those control areas to maintain reliable operations of ...
, has been suggested.


History

In 1875 a French company was awarded a 5 year concession to power Istanbul's
Üsküdar Üsküdar () is a large and densely populated district of Istanbul, Turkey, on the Anatolian shore of the Bosphorus. It is bordered to the north by Beykoz, to the east by Ümraniye, to the southeast by Ataşehir and to the south by Kadıköy; ...
district,
Thessaloniki Thessaloniki (; el, Θεσσαλονίκη, , also known as Thessalonica (), Saloniki, or Salonica (), is the second-largest city in Greece, with over one million inhabitants in its metropolitan area, and the capital of the geographic region of ...
and
Edirne Edirne (, ), formerly known as Adrianople or Hadrianopolis ( Greek: Άδριανούπολις), is a city in Turkey, in the northwestern part of the province of Edirne in Eastern Thrace. Situated from the Greek and from the Bulgarian borders ...
, and was awarded a 4-year concession for electric lighting of several other cities. However, despite the agreement, no progress was made. The first power station in the
Ottoman Empire The Ottoman Empire, * ; is an archaic version. The definite article forms and were synonymous * and el, Оθωμανική Αυτοκρατορία, Othōmanikē Avtokratoria, label=none * info page on book at Martin Luther University) ...
was a small hydroelectric power station built in 1902 outside Tarsus. Electricity was transmitted to the city centre at high voltage, then distributed to customers at low voltage for their lighting. During this period tenders for power were generally awarded to foreigners, due to lack of Ottoman finance and expertise. Generating power in
Istanbul ) , postal_code_type = Postal code , postal_code = 34000 to 34990 , area_code = +90 212 (European side) +90 216 (Asian side) , registration_plate = 34 , blank_name_sec2 = GeoTLD , blank_i ...
for tramlines, lighting and the telephone network from 1914, Silahtarağa Power Station (now a museum that is part of SantralIstanbul) was the first large power station. By the start of the
Turkish Republic Turkey ( tr, Türkiye ), officially the Republic of Türkiye ( tr, Türkiye Cumhuriyeti, links=no ), is a transcontinental country located mainly on the Anatolian Peninsula in Western Asia, with a small portion on the Balkan Peninsula in ...
in 1923, one in twenty people was supplied with electricity. Between 1925 and 1933, many cities built diesel fired power stations, and a couple were powered by
wood gas Wood gas is a fuel gas that can be used for furnaces, stoves, and vehicles. During the production process, biomass or related carbon-containing materials are gasified within the oxygen-limited environment of a wood gas generator to produce a c ...
. The electricity sector was nationalized in the late 1930s and early 1940s, and by the end of nationalization, almost a quarter of the population was supplied with electricity. However only big cities such as Istanbul, Ankara and Izmir received continuous electricity in the 1950s; other cities were electrified only between dusk and 10 or 11 in the evening. The Turkish Electricity Authority was created in 1970 and consolidated almost all of the sector. By the end of the 20th century, almost all the population was supplied with electricity. Privatization of the electricity sector started in 1984 and began "in earnest" in 2004 after the Electricity Market Law was passed in 2001. In 2009 electricity demand fell due to the
Great Recession The Great Recession was a period of marked general decline, i.e. a recession, observed in national economies globally that occurred from late 2007 into 2009. The scale and timing of the recession varied from country to country (see map). At ...
. In 2015, there was a one day national blackout, and an independent energy exchange was created. Also in the 2010s, the grid was synchronized with continental Europe, and the Turkish Electricity Transmission Corporation (TEİAŞ) joined the European Network of Transmission System Operators (ENTSO-E) as an observer - although they later left. Energy efficiency and generation goals were set for 2023, the centenary of the establishment of modern Turkey.


Notes


References


Sources

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Further reading

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External links


Markets, generation and consumption short term statistics
Energy Exchange Istanbul
Hourly generation by source for selected day
Turkish Electricity Transmission Corporation
Annual generation statistics (in Turkish)
Turkish Electricity Transmission Corporation
Retail prices

Association of Distribution System Operators

Smart Grid Turkey

Live carbon emissions from electricity generation
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