TURKISH ENVIRONMENTAL TECHNOLOGIES & RENEWABLE ENERGY INDUSTRY

TURKISH ENVIRONMENTAL TECHNOLOGIES & RENEWABLE ENERGY INDUSTRY
"Deloitte"
Environmental concerns are becoming a priority issue in Turkey mainly due to economic growth as a result of the increased energy demand, industrialization and urbanization of Turkey. Local firms are seeking foreign partnerships to undertake larger projects and the regulations have been modified to favor investments. Environmental companies engaged in consultancy, engineering or equipment aspects of hazardous/medical waste treatment are likely to be very active in Turkey in the near future. Waste-to-energy projects have been initiated in order to generate alternative energy at some landfills in Turkey. Development of municipal water/wastewater treatment is developing faster than the other areas of the sector.
Turkey hosts significant direct investment opportunities in environmental technologies, as well as in advanced conventional energy generation and renewable energy. Foreign consultancy or equipment manufacturers are likely to find major business opportunities in this area.
Total environmental expenditures in Turkey were USD 9.9 billion in 2008. The majority of the expenditure was municipality expenditures corresponding to 78.2 percent of the total, whereas the private companies’ environmental expenditures were 9 percent of the total amounting to USD 872 million1.
Since the amendment of the Environment Law no. 2872 in 2006, the municipalities have been further required to build and establish waste management centers and protocols. The last five-year period, which was seen as a progress phase, experienced a significant growth in waste management and recycling efforts. According to the Environment Law, as an incentive to reduce and prevent industrial pollution, the government plans to offer significant support and incentives to industrial plants if they set up their own waste treatment facilities.
In 2008, in order to have a more organized waste management policy and speed up the investment process, a “Solid Waste Action Plan” was approved by the Ministry of Environment and Forestry. In accordance with the action plan, the number of waste management centers and the municipalities’ efforts are expected to increase.
The decreasing oil, natural gas and hard coal resources together with the pollution that is caused by these primary energy resources are leading the world to search for alternative energy sources. Turkey has significant potential for solar, geothermal and wind energy but still has not taken sufficient steps towards utilizing these potential.
Currently, the largest share of the installed capacity in Turkey is still attributable to thermal power plants. As of the end of 2008, 66 percent of the total installed capacity consists of thermal power plants, 33 percent of hydro power plants, 0.1 percent of geothermal and 0.9 percent of wind power plants2. Although there is currently a low level of non-thermal installed capacity, there is an environment conducive to renewable investments due to substantial renewable energy resources and recent developments in renewable legislation and liberalization in the electricity market. There are numerous projects undergoing license approvals mainly for HEPPs and WPPs. 77 percent of the total number of new licenses (176) granted to the private sector in the year 2009 was for the construction of new HEPPs3. As of September 2009, there are a total of 105 WPP given and approved licenses, with a capacity of 4,237 MW. There are 727 licenses awaits evaluation, corresponding to 31,957 MW3.