ENERGY PROJECTS IN TURKEY

    Consumption 1999   2010 (Estimated)
Natural Gas & LNG   13 billion m3   55 billion m3
Oil   32 million tons   47 million tons
Hard Coal   16,1 million tons   51,8 million tons
Lignite   66,3 millions tons   160,5 million tons
Electric Power   118,5 billion kWh   294,5 billion kWh
Installed E.P. Capacity   26.226 MW   60.490 MW
* Temporary            

As end of 2000, the total primary energy consumption is expected to increase to 87.5 million tons of oil equivalent and per capita consumption will reach 1,339 kg of oil equivalent. It is estimated that production of primary energy will be realised as 28.8 million tons of oil equivalent.
In 2000, total installed and total production capacities of the power plants are going to reach 27,400 MW and 124,2 million kWh respectively.

Studies of long-term electricity demand based on alternative economic growth scenarios indicate that demand will reach 196,6 billion kWh in the year 2005 with an installed capacity of about 40,000 MW. It is anticipated that, in the year 2010, electricity demand will increase to 294,5 billion kWh while installed capacity will be about 60,000 MW. In other words, in order to secure the supply of energy, an additional capacity of 34,000 MW should be installed until 2010. This necessitates investments of approximately USD 3.5 billion per annum.

Turkey seeks private sector's involvement in the energy and infrastructure projects in order to keep up with the rapidly growing demand. Current legal framework allows private companies to construct new power plants either under Build-Operate-Transfer (BOT) or Build-Operate (BO) methods or as auto-producers. Also, private companies are allowed to operate existing power plants and distribution companies by receiving their operational rights through Transfer of Operational Rights (TOR) scheme.

Recent changes in the legislation:

  1. International arbitration is allowed for settlement of disputes.
  2. The authority of the High Council has been limited to giving an advisory opinion about concession contract and agreements within two months, rather than a binding decision.
  3. Electricity production and distribution projects are included the BOT scheme and BOT contracts are not considered as concession contracts, but private law contracts.

Natural Gas Projects

Oil Pipelines

Electric Power Projects

Dam and Hydro Electrical Power Plants MW GWh
Akköprü Dam and HEPP 115 343
Alanya II. Stage (Dim and Dam) 36 126
Alpaslan Dam and HEPP (I) 160 488
Alpaslan Dam and HEPP (II) 200 714
Çine and Gökbel Dam and HEPP 45 143
Manyas Dam and HEPP 19 66
Obruk Dam and HEPP 200 473
Orta Ceyhan Dam and HEPP 54 100
Topçam Dam and HEPP 60 91
Darica - I HEEP 79 292
Uzunçayir Dam and HEPP 74 317
TOTAL 1042 3153

Three gas fired power plants, with the total capacity of 1136 MW that were realised within the framework of BOT model, are in operation since 1999. Meanwhile TEAS's gas fired Bursa Natural Gas Power Plant was also commissioned in 1999. Two new natural gas combined cycle power plants are under construction, under the Build-Own-Operate (BOO) model (Adapazari-770 MW, Gebze-1,540 MW). The construction of the third BOO plant (Izmir-1,540 MW) will be started soon. These three BOO projects are expected to be completed in 2002-2003. The construction of another Coal Fired BOO project 2 X 605 MW Iskenderun Sugözü Thermal Power Plant has also started. Meanwhile, total auto-production capacity has reached to 2632 MW.

The tender for the establishment of Nuclear Power plant has been cancelled because of deficiency in government financial resources.

Supply availability including the ongoing projects will not be enough to meet power demand up to 2002. As an urgent action government decided to buy electricity from mobile plants and in addition to 100 MW mobile plants, recently announced an international tender for 4 X 100 MW mobile plants.

The situation beyond 2000 will be as follows:

Fired 2000-2005 (MW) 2005-2010(MW)
Gas-Fired BO's 4,550 -
Coal-Fired BO's 1,210 -
Lignite 4,150 700
Cogen Project 550 -
Mobile 600  
New Thermal BOT's 3,914 795
Hydroelectiric (DSI+BOT) 5,200 1,300
TOTAL 20,124 2,795

Privatization

Moving in two fronts:

Funding Requirements of Projects

    Beyond 2000
Gas Pipelines   $ 7,4 billion
Oil Pipelines   $ 4 billion
BO's   $ 3 billion
BOT's   $ 10,8 billion
Cogen projects   $ 1 billion*
Lignite   $ 10,1 billion
Nuclear   $ 9,1 billion
Hydro   $ 11 billion
Privatization - PP's (10 PP's)   $ 0,4 billion
Privatization - Distribution (20 regions)   $ 0,5 billion
TOTAL   $ 61,8 billion
* up to 2005