ENERGY EFFICIENCY IN TURKEY (Industry) - · PDF fileENERGY SAVING POTENTIAL According to the GDRE (General Directorate of Renewble Energy) document “Energy Efficiency Status and

ENERGY EFFICIENCY IN TURKEY ENERGY EFFICIENCY IN TURKEY (Industry)

21 October 2014, Nurnberg

A. Naci Işıklı

ENERJİ YÖNETİMİ DERNEĞİ (EYODER)

Energy Management Association Established in May 2010

Objectives:

- To improve the development of the Energy Efficiency sector (EE sector) in Turkey

- To create synergy by bringing energy managers (EM) and energy service companies (EVD-ESCO) together under the roof of a non-governmental organisation.

ENERJİ YÖNETİMİ DERNEĞİ (EYODER) ENERJİ YÖNETİMİ DERNEĞİ (EYODER)


TURKEY’S ENERGY OUTLOOK


• Turkey‘s main energy sources are natural gas and petrol; the country’s import dependency on these sources are 98% and 92% respectively.

• In 2013, Turkey spent almost USD 56 billion on energy imports (total imports app. 252 billion).

• Due to increasing demand, this figure is expected to rise to USD 106 billion by 2023.



Source : GDRE

OPTIONS-SOLUTION

How can energy demand in the Turkey be met? 1- SUPPLY-side approach * Increasing supply = More energy generation; environmental impact * Import sources = Current account deficit (petrol, natural gas, turbines, PV panels, etc.), supply security risk * What can be done: Better (lower) prices for imports, diversification of suppliers 2- DEMAND-side approach * Decreasing demand = Energy efficiency * Local sources = Production, employment, economic activities, R&D * What can be done= State support (short-term leverage effect) 3- SOLUTION * The priority must be a REDUCTION IN ENERGY DEMAND (higher EE) * Renewable energy is no alternative to energy efficiency (EE).

SOLUTION

TURKEY ENERGY CONSUMPTION

Source : GDRE

ENERGY SAVING POTENTIAL

According to the GDRE (General Directorate of Renewble Energy) document “Energy Efficiency Status and Future Planning” of November 2009

The minimum energy saving potentials for selected sectors are as follows: Industrial : %15,

Building :%35

Transport : %15

If these savings can be realised:

Demand forecast for 2020 would decrease by 20% (45 m TOE)

The saved amount corresponds to 2.5 times the annual energy consumption of the 30 m buildings in the country.

ENERGY SAVING POTENTIAL

Saving Potential (%) Saving Potential

(000 TOE/year)

Electricty Fuel

Industry 25% 8,015

Iron-Steel 21 19 1,402

Cement 25 29 1,124

Glass 10 34 261

Paper 22 21 206

Textile 57 30 1,097

Food 18 32 891

Chemical 18 64 2,283

Others No No 729

Building 30% 7,16

Residence 29 46 5,655

Public and Commercial

29 20 1,505

Total 27% 15,152

According to a

study carried

out by World

Bank, 27%

energy saving

potential is

pointed out.

TURKEY ENERGY CONSUMPTİON

• Industry’s share in total final energy consumption is 39%, which make it the biggest energy consumer in Turkey.

• Buildings consumption about 30% of total final energy. • These two sectors also has the highest increase in

energy demand. • Industry’s annual savings potential is USD 3 billion. This

potential corresponds to 8 m TEP per annum or to 25% of industry’s energy consumption in 2007.

• The share of energy costs in energy-intensive industrial sectors amounts to 20-50% of total production costs.

TURKEY ENERGY CONSUMPTİON

ENERGY EFFICIENCY ACT

Efficient

Efficient use of energy

Prevention of Prevention of wasteful

energy use

Protection of the

environment

Reduction of the burden of energy costs

on the economy

To be achieved through efficient use of energy resources and energy.

OBJECTIVE OBJECTIVE

GENERATION TRANSMISSİON DISTRIBUTION CONSUMPTION CONSUMPTION

TRANSMISSION AND

DISTRIBUTION NETWORKS

POWER GENERATING

PLANTS

TRANSPORTATION

HOUSEHOLD APPLIANCES

BUILDINGS INDUSTRY

EFFIENCY

ENERGY EFFICIENCY ACT

TARGET TARGET

ENERGY EFFICIENCY STRATEGY PAPER ENERGY EFFICIENCY STRATEGY PAPER (2012- 2023)

• It is proposed with this document to determine a political set supported with result focused and concrete targets and to define necessary targets together with the enterprises responsible for making these activities; to act in the framework of a collaboration and participatory approach of public and private sector and NGOs.

• It is targeted with this document to decrease at least 20% of amount of energy consumed per GDP of Turkey in the year 2023 (energy intensity).


STRATEGICAL PURPOSES

• SP-01: To reduce energy intensity and energy losses in industry and services sectors

• SP-02: To decrease energy demand and carbon emissions of the buildings; to promote sustainable environment friendly buildings using renewable energy sources

• SP-03: To provide market transformation of energy efficient products

• SP-04: To increase efficiency in production, transmission and distribution of electricity, to decrease energy losses and harmful environment emissions


STRATEGICAL PURPOSES (continiued)

• SP-05: To reduce unit fossil fuel consumption of motorized vehicles, to increase share of public transportation in highway, sea road and railroad and to prevent unnecessary fuel consumption in urban transportation

• SP-06: To use energy effectively and efficiently in public sector

• SP-07: To strengthen institutional capacities and collaborations, to increase use of state of the art technology and awareness activities, to develop financial mechanisms


STRATEGICAL PURPOSES, TARGETS AND ACTIVITIES

SP-01/ST-01 : The reduced energy intensities in each industry sub sector shall be decreased in the rates determined with the sector collaborations without being at least 10% for each sub sector within the 10 years after the publication of the Document.

• SP-01/ST-01/A-01 : To define applicable measures in energy efficiency with the savings potential in industry sub sectors.

• SP-01/ST-01/A-02 : To require the business enterprises, obliged to establish an energy management unit or nominate energy manager in the industry and services sectors, and the industrial zones to have ISO 50001 Energy Management Systems Standard paper in the relations of them with the public enterprises.

10th Five Year Development Plan 10th Five Year Development Plan (2014-2018)

Tenth Development Plan were formed under four main headings; "Qualified

People- Strong Communities", "Innovative Manufacturing-Stable High

Growth", "Livable Spaces, Sustainable Environment" and "international

cooperation for development"

This economic road-map for the period up to 2018 forecasts a 5.5 percent annual

growth rate in the economy, increase in annual exports to $277 billion, an

increase in Turkey's per-capita income to $16,000, reducing unemployment to

7.2%, as well as lowering inflation to 4.5 %.

With the plan; Energy Efficiency target stipulated Energy Efficiency Strategy

Document published in 2012, on reducing energy intensity al least 20 percent

until the year 2023 has been confirmed.

To increase Energy Efficiency in Industry following actions were defined

Replacing low efficient AC electric motors, which consume more than 70 percent of the

electricity used in industry, with the high-efficient ones.

Improving mechanisms for supporting SMEs on energy efficiency training, studies and consultancy services

Medium Term Program Medium Term Program (2014-2016)

The Medium Term Program (MTP) (2014-2016) includes measures for both energy,

environment and SMEs. Energy efficiency is highlighted as one of the measures to

reduce production cost in industry. Also to decrease energy intensity of the

economy, current energy efficiency studies and activities will be continued.

Natural resources to be used efficiently , wastes will be recovered to contribute to the

economy Trough environment-friendly approaches those have new business

opportunities ad, income sources, opportunities for development of new products and

technologies the green growth the will be supported.

According to the Sustainable cities approach, environmental sensitivity and quality of life will

be increased with applications such as; waste and emission reduction in cities, increase

energy, water and resource efficiency, recycling, noise and visual pollution prevention, use

eco-friendly materials.

In manufacturing and services, renewable energy, eco-efficiency, eco-friendly

practices such as clean production technologies will be supported and

environmentally friendly development of new products and branding will be

encouraged

PROJECTS

Projects on Energy Efficiency and Clean Production implementations in SMEs • KOSGEB involved or carried out 3 projects which contribute Green Growth for SMEs trough Energy

Efficiency and Environment actions covered by these projects

• Project Duration: 2 years

• Project Budget: 1.7 m. TL

• Implementing Partners: KOSGEB

• Project Objective: The general objective of the project is to improve the capacity building of KOSGEB and prepare the KOSGEB’s environment road map (including specific support models for SMEs).

To achieve this objective, the Project has four main components as follows:

• To increase the qualifications of KOSGEB’s staff,

• To develop national methodologies, support mechanism from the international best practices and learned experiences,

• To implement site applications especially on waste treatment, eco-efficiency and industrial symbiosis and

• To disseminate the learned results.

Project is still going on.

PROJECTS

▶Energy Efficiency Project in the SMEs in Turkey

▶Project Duration: 3 years

▶Project Budget: 3 m. Euro

▶Implementing Partners: French Development Agency (AFD), KOSGEB

▶Project Objective: The ultimate objective of the project is to contribute t

o improve energy efficiency in Turkish SMEs (industry and services).

▶The project intermediate objectives are to support KOSGEB in fulfilling its

new mandate on EE through the two following main objectives:.

▶Strengthen the institutional and incentive framework for promoting ener

gy efficiency to SME

▶Contribute to develop an energy efficiency market in the SME sector

▶The project activities have been started June 2013 .

PROJECTS

Improving Energy Efficiency in Industry in Turkey • Project Duration: 5 years

• Project Budget: 35.058.400 USD (KOSGEB 1.377.400 USD)

• Implementing Partners: GEF, UNIDO, UNDP, KOSGEB, General Directorate Renewable Energy, Technology Development Foundation of Turkey (TTGV) and Turkish Standards Institution (TSE)

• Project Objective: The Project Objective is to improve energy efficiency of the Turkish industry by enabling and encouraging companies in the industrial sector for efficient management of energy use by different energy conservation measures and energy efficient technologies.

The project‘s objective is to be achieved through delivery of the following components:

– Institutional-regulatory framework and national energy management standard (EnMS)

– Capacity building and awareness-raising among industry and energy service providers

– Supporting an auditing program

– Demonstration of system optimization and energy efficiency interventions

– Monitoring, evaluation and lessons learned

– The project activities have started with an inception phase in February 2011.

EVD COMPANIES (TURKISH ESCO)

- Energy Management Services

- Energy audits,

- Efficiency improvement projects (VAP-EIP)

- VAP implementations

- Projects for voluntary agreements

- Energy efficiency implementations

- Energy Manager trainings

- Energy Labels (for existing buildings)

- Consulting

EVD COMPANIES (Industry)

Total: 33 Authorised companies for industry: 11 Authorised companies for buildings: 27

Authorised companies for industry and buildings: 5

EVD (Turkish ESCO) Industry Buildings Efektif + +

Endüstriyel + -

Enervis + +

Erenco + -

Escon + -

Heitec + -

Schneider + +

Setaş + +

Siemens + -

Som + +








EPC (Energy Performance Contract)

SMEs in the Turkish Economy

Industry, and SMEs in particular, are at the heart of Turkey's economic development.

Turkey's total 3,2 million enterprises, SMEs are present in all sectors of industry and services.

Share of SMEs in total Enterprise activities

Number of Enterprises 99.88 %

Number of Persons Employed 76%

Generated Added Value Achieved by SMEs 53,30%

Total sales 63%

Investment 54%

Exports 62,60%

Imports 38,50%

Total Commercial R&Ds 36, 8%

Total credits 25,60%

Source: Tülin Keskin

SMEs in Turkish Economy

Sectoral Distribution of SMEs

Source: KOSGEB Data Base

SMEs in Turkish Economy

KOSGEB Supports on EE

Annual Energy

Consumption Range

(as toe)

Pre-audit

support

up to .. (TL)

Energy Audit

SMEs

up to … (TL)

Consultancy for

Energy Efficiency

Projects up to … (TL)

200-500 toe 1.500 15.000 3.000

501 and over toe 2.000 20.000 5.000

Over 200 toe Energy Management training

support

-

Up to 3000. (TL)

In addition to that supports, some grants are offered for energy efficiency and

renewable energy projects under other KOSGEB Support Programs such as the SME

Project Support Program, the R&D, Innovation and Industrial Application Support

Program, the Thematic Project Support Program and the Cooperation-Leaguing

Support Program

• Application: Every year in January

• Project preparation: ESCO (Energy Efficiency Service

Companies)

• Repayment period: ≤ 5 years

• Project implementation period: ≤ 2 years

• Project costs: ≤ TL 1,000,000

• Support: At most 30% of project costs

• Required standard: TS EN ISO 50001

(in force as of 01/01/2014)

• Support is provided: After project implementation

• Priority: Projects with short re-payment periods

• EVKK approval and contract with MOE

FINANCIAL SUPPORT EIP Support for Industrial Enterprises

EIP Application-Evaluation-Support

EIP Application

Evaluation by a Commission

APPROVAL

Inspection at the

location ( I )

EIP Contract

Implementation

Inspection at the

location( II )

Evaluation by a

Commission

APPROVAL

EIP Support

FINANCIAL SUPPORT EIP Support for Industrial Enterprises

• Application: Every year in October

• Agreement: Reduction of the average energy intensity by 10%

• Agreement implementation period : 3 years

• Support amount: At most 20% of annual energy consumption

≤ TL 200,000

• Required Standard: TS EN ISO 50001

(in force as of 01/01/2014)

• Support is provided: 3 years after the agreement

• EVKK approval and contract with MOE

FINANCIAL SUPPORT VOLUNTARY AGREEMENT Support for Industrial Enterprises

VOLUNTARY AGREEMENT (VA) Application-Evaluation-Support

Application for VA


APPROVAL

Agreement

Monitoring


APPROVAL

VA Support

FINANCIAL SUPPORT VOLUNTARY AGREEMENT Support for Industrial Enterprises

5 Region Incentives for 5th Region Incentives for Energy Efficiency Investments

From 9 May 2014

• Energy efficiency investments in present manufacturing plants with a minimum annual energy consumption equivalent to 500 TOE that achieve energy savings per unit product of at least 20%, and whose return of investment period is at most 5 years.

• Investments in electrical power generation from waste heat in a plant by way of heat recovery (not including power generation facilities using natural gas).

• This resolution also includes investments in liquefied natural gas (LNG) and underground gas storage facilities with a minimum investment amount of TL 50 million.

• Such investments, irrespective in which region they are made, will have the same incentives as investments in the 5th region.

5 Region Incentives for 5th Region Incentives for Energy Efficiency Investments

• Applicable incentives for the 5th Region

• VAT exemption,

• Customs Tax exemption,

• Tax reduction,

• Contribution to the employer’s share of insurance premiums,

• Contribution to interest payments,

• Allocation of land for investments


Special thaks to

Tülin KESKİN YEŞİL GÜÇ (Freelance)

Arzu GURKAN ENVE - EYODER


•DANKE

• ENERJİ YÖNETİMİ DERNEĞİ

• www.eyoder.org.tr

• [email protected]

• [email protected]

http://www.eyoder.org.tr/

mailto:[email protected]

mailto:[email protected]

Documents

ENERGY EFFICIENCY IN TURKEY (Industry) - · PDF fileENERGY SAVING POTENTIAL According to the GDRE (General Directorate of Renewble Energy) document “Energy Efficiency Status and