1. Dr. Yüksel MALKOÇ TWEA Vice President

2. Turkey’s current financial outlook, Demand growth and supply development, Wind potential and capacity development, Policy and regulatory environment of the renewable energy market, Current wind projects and other investment areas in the wind market.

6. Turkey has substantial amount of renewable energy potential and the utilization rates are growing. Hydro, wind and solar energy resources are the major portions of our renewable portfolio. Turkey has at least; 160000 GWh/a. economic hydro, 48000 MW wind capacity 380000 GWh/a. solar (*) 31500 MW t geothermal capacity 8,6 MTOE biomass 1,5-2 MTOE biogas (*) Considering the parabolic CSP technologies.

7. Wind speed distribution, 50 m agl

8. ON-SHORE (MW) OFF-SHORE (MW) 37.83610.013 Resource potential Wind class Annual wind power density (W/m 2 ) Annual wind speed (m/s) Total capacity (MW) Good4400 – 5007,0 – 7,529.259,36 Excellent5500 – 6007,5 – 8,012.994,32 Outstanding6600 – 8008,0 – 9,05.399,92 Superb7> 800> 9,0195,84 TOTAL CAPACITY47.849,44 Wind energy potential (annual average wind speed>7 m/s), 50 m a.g.l.

10. WPPs in Operation WPPs in Construction Licenced WPPs

11. Competitive Market Structure State: - Macro scale policy development through Ministry of Energy and Natural Resources (MENR) - Regulations, control, supervision of markets through Energy Market Regulatory Authority (EMRA) Private Sector: Generation, distribution, trade

12. Energy security and sustainable energy supply are among the main policy concerns of Turkey. Turkey attributes significant importance to; encouraging the energy production from renewables in a secure, economic and cost effective manner, expanding the utilization of our renewable resources for generating electrical energy, increasing the diversification of energy resources, reducing greenhouse gas emissions, making use of waste products and protecting the environment, developing the related mechanical and/or electro-mechanical manufacturing sector.

13. Turkish Government revised the “Electricity Energy Market and Supply Security Strategy Paper” in 2009. In this paper, some targets defined related with renewables until 2023 are as follows; At least 30% of total electricity production from renewables, The whole economically feasible hydropower potential of Turkey will be provided for generating electrical energy, 600 MWe geothermal energy will be implemented, 20,000 MW capacity of wind power plant will be in operation, Utilization of solar energy for generating electrical energy will be expanded.

14. Until now, TEIAS has confirmed connection of around 12.5 GW WPPs. TEIAS announced investments in transmission infrastructure and thus will be able to deliver 1 GW each year starting from 2013 until 2020. All in all, TEIAS has declared that the grid connection will be able to support the “20 GW WPP by 2023” target of Supply Security Strategy Paper.

17. Currently Turkey has interconnections with Greece, Bulgaria, Georgia, Armenia, Iran, Iraq, and Syria; however, so far import and export fi gures are almost negligible in comparison to Turkey’s overall electricity demand Eventually, ENTSO-E synchronization will increase the amount traded. In 2010, Turkey imported 1,883 GWh and exported 2,674 GWh of electricity. The map below illustrates the existing interconnection capacities and the table indicates seasonal capacities.

18. The New Law provides a Renewable Energy Support Mechanism ("Mechanism") which covers different incentives and benefits for renewable energy projects including feed-in tariffs (fixed minimum electricity sale prices). The New Law covers different feed-in tariffs depending on the type of the renewable energy projects as follows: –Turkish Lira equivalent of USD 0.073 per kWh for hydroelectric power plants, –Turkish Lira equivalent of USD 0.073 per kWh for wind power plants, –Turkish Lira equivalent of USD 0.105 per kWh for geothermal power plants, –Turkish Lira equivalent of USD 0.133 per kWh for biomass power plants, and –Turkish Lira equivalent of USD 0.133 per kWh for solar power plants. The above mentioned feed-in tariffs will be applicable for the legal entities holding generation licenses which start operations during the period from 18 May 2005 to 31 December 2015 and for a period of ten years from the operation date. The New Law also features further price incentives from 0,004 to 0,024 kWh for the license holders which use locally produced mechanical and/or electro-mechanical equipment/components in renewable energy facilities, for a five-year term provided that they start producing energy before the end of 2015.

19. Table 1 Type of Facility $ cent/ kWh Hidro7,3 Wind7,3 Jeothermal10,5 Biomass13,3 Solar13,3 Table 2 (For wind) Local Component Additional Local Content $ cent/ kWh Blade0,8 Generator and Power electronics 1,0 Tower0,6 Rotor, Nacel all part of the mechanical components 1,3

20. Purchase guarantee and guaranteed feed price, An option to make use of forested land and state-owned land to construct a renewable energy plant, A 99 per cent reduction in the license application fees, Exemption from annual license fee payments, Ability to purchase electricity from private wholesale and generation companies, Promote the manufacturing of renewable energy plant equipment in Turkey, Priority for system connection, Purchasing priority, Eligible consumers (>25000 kWh/year), Renewable energy plant investments up to 500kW and micro-cogeneration plant investments are exempt from license and company establishment requirements and they can be connected to the grid, WPPs lower than 10 MW capacity are exempt from EIA report liability, Additional revenue generation for renewable power projects exists in Turkey through voluntary or verified emission reduction credits (VERs), Others (local and other ministries)…

21. Before 1 st November 2007 Up to 2023 3527 MW (93 Projects) 7571 MW 8902 MW ++ = 20.000 MW 1800 MW Operation 600 MW Under Construction 2027 MW Single Application (61 Projects) 5544 MW TEİAŞ Races (147 Projects) 11.098 MW

23. THANK YOU FOR YOUR ATTENTION…. Dr. Yüksel MALKOÇ TÜREB/TWEC Vice President yuksel.malkoc@tureb.com.tr