Energy Market Regulatory Authority, Turkey Renewable Energy Support Schemes and Feed-in Tariffs in Turkish Electricity Market Nurullah ÇAKMAK Energy Market Regulatory Authority, Turkey İstanbul, 10/05/2017

Installed Capacity of Turkey

Installed Power by 30th April 2017 Fuel Installed Power (MW) Share Natural Gas 25757 32,3% Hydro (Reservoired) 19680 24,7% Coal & Lignite 18013 22,6% Hydro (Run-of-River) 7239 9,1% Wind 6009 7,5% Geothermal 851 1,1% Biomass & Waste 496 0,6% Solar 13 0,0% Unlycenced 1195 1,5% Other 369 0,5% Total 79621 100%

History of YEKDEM YEKDEM: Renewable Energy Sources Support Mechanism (ReSSuM) - Law on Utilization of Renewable Energy Sources for the Purpose of Generating Electrical Energy (RES Law), 10/5/2005 - Regulation on Certification and Support of Renewable Energy Sources (YEKDEM Regulation)

RES Supports 2005 - 2011: at least 8% of supplied energy (5 – 5.5 Euro cent/kWh) 2011 - : YEKDEM :Schedule I + Schedule II

YEKDEM Framework in Law RES Law: Voluntary for 10 years after comissioning RES Certification: Ministry Operation of «mechanism»: EMRA Feed-in tariffs are paid for generated energy Total cost is charged to suppliers

YEKDEM (2011 – 2016) YEKDEM Regulation: YEKDEM Portfolio Portfolio manager: TSO (TEİAŞ) TSO is responsible for forecasting generation and offering to DAM Profit goes to suppliers YEKDEM participants are exempt from BPM, Balance responsibility, ancillary services… As portfolio grows year by year: Inefficient portfolio management and IMBALANCING

YEKDEM (2011 – 2016) Imbalanced Power

Market Prices

YEKDEM Participants

2016 Revision RES Law, Article 1: The purpose of this law is to expand the utilization of renewable energy sources for generating electric energy, to benefit from these resources in a secure, economic and qualified manner, to increase the diversification of energy resources, to reduce greenhouse gas emissions, to assess waste products, to protect the environment and to develop the related manufacturing industries for realizing these objectives.

Tolerance Coefficient (0,98) 2016 Revision RESSuM portfolio is abolished, power plant will remain market participant’s portfolio Energy is sold by participant in the market No more exemptions Mechanism in the market Market Clearing Price Total Payment Generation Feed-in Tarif Exchange Rate Tolerance Coefficient (0,98)

YEKDEM (2016 Revision) Imbalanced Power Income from feed-in tarif Income from market

YEKDEM Costs to Comsumers

Experience of Turkey Renewable invetments  Reducing the share of imported fuels  Market integration  Feed-in tariff  Unforeseen rises in exchange rate  System stability and security 

Thank you for your attention! ncakmak@epdk.org.tr