ENERGY Efficiency at Turkey

Energy efficiency
Turkeys bid to join the EU has also increased the country’s urge to achieve energy efficiency in line with EU Directives so as to improve admission chances.

Turkey is currently benefiting from two programmes on energy efficiency decided by the European Commission and European Development Bank in co-operation with Kreditanstalt für Wiederaufbau and the European Investment Bank in 2006. These are aimed at providing financial assistance to Bulgaria, Romania, Croatia and Turkey in order to increase investments in energy efficiency.
The main efficiency savings can be made in industry, which accounts for 43% of Turkish primary energy demand. Turkish industry is quite energy intensive, with nearly 50% being in raw material processing, for example steel- and glass-works. Energy intensity in Turkey is also high compared to EU15 averages, suggesting that further efficiency savings can be made.

Ownership
In March 2001, the Turkish government enacted a new Electricity Market Law, which sets the stage for liberalisation of power generation and distribution activities. Under the law, the state-owned Turkish Electricity Generation and Transmission Corporation (TEAS) was split into separate generation, distribution, and trade companies as follows:
• Turkish Electricity Transmission Joint Stock Company (TEIAS, responsible for operating the national grid, www.teias.gov.tr/eng/)
• Turkish Electricity Generation Joint Stock Corporation (EUAS, responsible for operating power-generation facilities, www.euas.gov.tr/), and
• Turkish Electricity Trading Joint Stock Corporation (TETAS, responsible for purchasing electricity, www.tetas.gov.tr/)
EUAS currently holds 60% of the installed generating capacity in Turkey. TEIAS has a legal monopoly on transmission in the country, with legislation in place to ensure fairness of transmission to all entities. The Turkish Electricity Distribution Joint Stock Corporation (TEDAS,www.tedas.gov.tr/ ) is the state-owned distribution company, established in 2004. The company owns a 75% market share across Turkey.

In 2006, the Balancing and Settlement Regulation (BSR) started to be implemented financially. With BSR, a new market is formed where private sector also could take part actively and sell energy to the public sector indirectly under market conditions. By the balancing market rules the market participants had the opportunity to sell/buy the electricity in the balancing market in addition to their bilateral contracts. The balancing market has developed quickly and the share of energy produced through balancing market is 13% (by volume-MWh) on the average of the total electrical energy produced in Turkey.

As result of the passing of the BSR, the EMRA (Turkey's energy regulator) approved the privatization of Turkey’s 20 regional electricity grids. The EMRA has approved a new electricity tariff structure, the final step before Turkey can invite tenders to auction the distribution grids. The power grids are expected to be sold in groupings of up to 6 regional grids at a time to encourage economies of scale and greater efficiency.

The Natural Gas Market Law (Law No. 4646) was adopted in May 2, 2001. The objective of this law was to establish a fair, financially-sound, transparent and competitive natural gas market.
The oil market in Turkey, as per the Oil Market Law (No. 5015) of 2003, is primarily operated by the Turkish Petroleum Refineries Corporation (TUPRAS, www.tupras.com.tr/) and POAS, the major petroleum products distributor. Privatization of these companies has occurred.