Turkey’s electricity energy market, which has about 2.5% for the Turkish economy, accounts, in a state of constant change in recent years. the electricity sector in Turkey is attractive to many investors, and shows enormous potential unleashed by economic and population growth in the country. This latest development is the rapid evolution of the rules of the game and pushed the energy sector in the direction of liberalization and market operators to adapt quickly to changing conditions.
With an ever-changing legal infrastructure, the recent liberalization and the creation of an independent regulator, the regulator of the energy market (EMRA), Turkey’s electricity market is changing significantly.
The investments are needed
The effects of global crisis on electricity demand in Turkey has been particularly strong in 2009. Taken place since the first quarter of 2010, an early resumption of the electricity demand of Turkey. With the positive effects of this recovery, the rate of about 24,000 MW of additional capacity is needed to be in the next eight years. Electricity demand in Turkey, which had an annual growth rate of about 4.7% between 2005 and 2009, probably from 6.4% to 7% growth between 2009 and 2018. To meet this growing demand, there is a great need for additional investments (1) yes.
The privatization of electricity generation and distribution segments
The ongoing privatization of power stations in the Public Power Company (electric Rethymno AS, EAS) is changing the energy market by reducing the turkish government involvement present in this segment. This in turn lead to greater competition with the commercial availability and more efficient power plants privatized. The privatization of the production company started in 2008. In 2009, privatization began with the invitation of 52 hydroelectric power plants. Another 45 plants will be privatized in the near future. want to diversify the privatization of the electricity sector offers significant opportunities for local investors, their portfolio of production and for international investors looking to enter the electricity market in Turkey on the rise.
The privatization of electricity distribution in state-owned electricity (electric Dagitim Turkiye AS, TEDAS) to develop and expand the electricity network and the first technical quality, durability, ensure safety and improve operational efficiency and reduce theft and losses. The privatization of 11 sales, the deals have already been made, for a total of about $ 5 billion. The private sector share in the distribution of approximately 46% after completion of the privatization of four distribution companies in the regions of Uludag, Camlibel, Firat and Vangl whose offers have been established in February 2010. Also, distributors of Bogazici race, Dicle, Gediz and Trakya have already completed in 2010, with completion planned privatization of these sectors in the near future. Bidding Toroslar, Istanbul Anadolu Akdeniz and regions began in August 2010. The privatization of the distribution sector should be completed by the end of 2011.
Recent legal developments
An effective regulatory structure is an important prerequisite for an electricity market well organized, reliable and efficient. Thus, the Law on Electricity Market (electric Kanunu Piyasasi, EPK), no. 4628, entered into force on March 3, 2001 has come and has been repeatedly hit a milestone in creating a reliable energy supply and in accordance with the EU acquis has been changed.
One of the recent legislation on the electricity market in Turkey is available for applications for the establishment of a system for the production of wind energy function (Rzgar Enerjisine Rethymno Dayal Tesis Kurmak yapilan zere Lisan Basvurularina Iliskin Yarisma Ynetmeligi) adopted in the licensing September 2010th wind in limbo in Turkey since November 2007, resulting in frustration and delays in investment. EMRA decision to start the wind power project of license to launch a first wave of titles in the coming months, which can display up to USD 1.77 billion. However, the regulatory environment has changed more to attract potential investors. For example, a valuable feed-in tariff legislation is necessary for wind energy.
act with the amendment of the EPC, the change is not. 5784 (5784 Amendment Act), 26, adopted in July 2008, the period of transition in terms of purchase contracts at December 31 was extended 2012th During the transition period, distribution companies, which won a retail store license the exclusive right to produce electricity and / or capacity, not to sell to eligible customers in their region. After the expiry of the transitional period, retail sales of private companies may be of energy and / or ability to sell to customers all over the country with the pricing. In addition, a system of income transfers of cross subsidization in the regions is implemented by EMRA, and pricing structure based on full costs is ongoing. Thus, the transition from a monopoly to a competitive market is expected.
To avoid business licenses, tax law, the 5784 amendment, that the licenses for dealers who have their investments in production facilities implemented within the period referred to in the bill will cancel the membership. This license may not apply to other licenses for three years and can not participate (directly or indirectly) to another entity of the application.
The EPC is an important step in the liberalization of the electricity market in Turkey. Within a decade after its enactment, Turkey has made considerable progress in its electricity market. However, despite the significant structural and legal changes have been made in recent years, an electricity market is well organized, efficient and competitive for a long-term process.