In recent years, scientists have focused on renewable and alternative energy sources, like solar and wind energies, due to energy prices and environmental problems of fossil fuel consumption. It is well known that solar energy is the source of life on earth. The solar energy affects positively all living organisms and the planning and design of building heating and cooling systems. Turkey has a very high solar energy potential since its location is exposed with a very high solar radiation.
Especially, the amount, direction and variation of radiation are very important for heating and cooling systems for the necessary calculations of heat gain from solar energy. The solar energy potential is also necessary to estimate maximum solar energy loads on walls, windows and roofs.
The solar industry is undergoing a critical transition. The rules of the game are changing, and many current players could face significant challenges as the industry restructures. But those who believe the solar industry has run its course may be surprised. Solar companies that reduce their costs, develop value propositions to target the needs of particular segments, and strategically navigate the evolving regulatory landscape can position themselves to reap significant rewards in the coming years.
According to International Energy Agency (“IEA”) analysis, under extreme assumptions solar energy could provide up to one-third of the world’s final energy demand after 2060. A number of assumptions are made to see what might be possible in terms of solar deployment, while keeping affordability in sight. These include policy makers successfully reducing greenhouse gas emissions beyond the current international targets, and electricity-driven technologies fostering significant energy efficiency improvements and displacing fossil fuels in many uses in buildings, industry and transportation.
Over the past three years, Solar Photovoltaic (“PV”) installed system prices, module prices, and module production costs have all fallen by more than 50% and as a result of these falling prices, manufacturing consolidation and a more balanced supply-demand picture, PV demand will continue to grow and the solar industry will shift from a demand-constrained market into a classic supply-driven market in 2014. Therefore, the PV industry is once more at a pivotal stage. There are strong indicators suggesting that the industry will reach new heights in 2014, but there is also significant risk, possibly coming more from industry participants themselves than from end-market factors. In this regard, the leading PV market research firms are predicting a good year in 2014.
The subsidies that made solar PV economically attractive for many consumers set the conditions for the boom. Demand rose, new entrants flocked to the industry, and the innovation has been accelerated. Manufacturing capacity increased dramatically (particularly after large-scale, low-cost Chinese manufacturers entered the market) and the market became oversupplied. Prices dropped suddenly, which increased demand but put pressure on margins.
Solar Energy Power in Turkey
Turkey’s importance in the energy markets is growing, both as a regional energy transit hub and as a growing consumer. Turkey’s energy demand has increased rapidly over the last few years and likely will continue to grow in the future.
The country’s energy use is still relatively low, although it is increasing at a very fast pace. According to IEA, energy use in Turkey is expected to double over the next decade, while electricity demand growth is expected to increase at an even faster pace. Meeting this level of growth will require significant investment in the energy sector, much of which will come from the private sector. Large investments in natural gas and electricity infrastructure will be essential.
Turkey is located in a relatively advantageous geographical position. The solar energy potential evaluations, based on the data measured by the State Meteorological Services revealed that the annual average total insolation duration as 2640 hours (7,2 hours/day) and the average annual solar radiation as 1311 kWh/m²-year (3,6 kWh/m²-day).
However, it is known that the existing meteorological data is lower than the actual solar energy data of Turkey. Although the measurements have not been completed yet, the collected data indicates that the actual solar energy radiation values are 20-25% higher than the existing data.
Utilization of photovoltaic systems is limited with the usage of some governmental organizations in remote service areas such as telecom stations, forest fire observation towers and highway emergency. In June 2013, the first tender was announced, creating the long awaited start of the Turkish market. With the opening of the tender for 600 MW there were projects submitted for 9 GW by 409 companies.
The commercial segment (up to 1 MW) seems to be the most interesting issue for the interested persons. There is no license requirement for systems up to 1 MW which makes this segment attractive and relatively easy for developing PV projects.
Author:
Atty. Mustafa Kemal Balta, LL.M.
Managing Partner
