3. INTERNATIONAL QUALITY IN CONSTRUCTION SUMMIT “GLOBAL COMPETITION and SUSTAINABILITY ”, 22 November 2011, ISTANBUL

Building Sector in Turkey: A summary Importance of energy consumption/efficiency for Turkey and Building Sector Current legislative framework and financial mechanisms – ESCO – Other financial mech. in the market – Credits, loans, grants form EU, TURSEFF, other national banks Foreseen financing opportunities in short and medium term in draft legislation – Energy Efficiency projects – Voluntary agreement Evaluation and Conclusion OUTLINE

Energy Consumption vs Energy Efficiency: Between annual increase rate of o total final energy consumption 3.81% o industrial final energy consumption 3.56% o residential final energy consumption 3.49% o transportation final energy consumption 4.07% o service sector final energy consumption 7.44% 3 Energy Consumption Energy Efficiency Walfare BUILDING SECTOR IN TURKEY

share of total energy consumption  30 % share of electrical energy consumption  45 % energy saving potential  app.30% In Turkey, studies for the industry sector regarding energy efficiency have been conducted since 1980s whereas for the building sector studies started after the constitution of legal framework at The first driving force can be stated as the Law on Energy Efficiency ! 4 2 nd important players after industry Importance of energy consumption / efficiency for Turkey and Building Sector

5 Law on Energy Efficiency (EVK) May, 2007 Regulation on Efficient Utilization of Energy Sources and Energy (En-Ver) October, 2008 /revised in October 2011 Regulation on Building Energy Performance (BEP) December, 2008 / revised in April 2010 Current legislative framework

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7 Current legislative framework and financial mechanisms in the market ESCO activities Service agreement – for determination of saving potential Implementation agreement – EPC – for realization of saving potential o Third party financing ! Target buildings: For commercial buildings – with total construction area equal or greater than m2 / total energy consumption equal or greater than 500 TEP For public/governmental buildings – with construction area equal or greater than m2 / total energy consumption equal or greater than 250 TEP Unfortunately no impelementation agreement so far!!

8 Current legislative framework and financial mechanisms in the market Energy Efficiency Projects (EE Projects) According to your sector, scale, target saving potential, the upper limit changes! Voluntary agreements If you guarantee at least 10% saving in 3 years, the support of 20% of the energy cost in the starting year up to TL ( app EURO) Unfortunately no implementation foreseen for buildings!!

9 Current legislative framework and financial mechanisms in the market - TURSEFF

10 Current legislative framework and financial mechanisms in the market - TURSEFF

11 Current legislative framework and financial mechanisms in the market - TURSEFF

12 Foreseen financing opportunities in short and medium term in draft legislation Draft Energy Efficiency Strategy (2012 – 2023) Strategic objective 1: Reducing energy intensity and energy losses in commercial buildings and insustries. Inceasing the upper limits of both EE Projects and Voluntary agreements to TL ( Euro) not only industires but also commercial buildings giving more attention to decrease in electricity usage as well as renewable energy projects.

13 EVALUATION AND CONCLUSION DECLERATION: A kind of SWOT analysis in financing energy efficiency in building sectors. Every toe of energy you saved can result in a bulk of money in your pocket towards low carbon society After the discussion is over and that is the time for not thinking but acting.