REPUBLIC OF TURKIYE

MINISTRY OF ENVIRONMENT AND FORESTRY

General Directorate of State Hydraulic

Works

Ali KILIÇDSİ Design and Const. Dept.

Department Head

20 October 2011 - Roma

GENERAL INFORMATION ABOUT DSI İNVESTMENTS

R.Serkan KARAKUŞDSİ İnvestigation and Planning. Dept.

Energy Division Director

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• Turkiye’s Population : 74 million• Turkiye’s Surface Area : 78 million ha• Rural population : 35 %• Urban population : 65 %• Annual Pop. increase : 1.5 %• Population density : 95 people/km2 • GNP per capita : ~US$ 10.000 • Electricity demand : 210 TWh (2010 year)• Annual Growth rate : 6-10%

Statistical Information about Turkiye

Turkiye is a semi-arid country;precipitation varies regionally and seasonally

2500 mm

250 mm

In Kızılırmak; 65% of total mean annual runoff is seen in three months.

TURKIYE’s Water Potential

Domestic% 11

Irrigation % 73

Industrial % 16

Irrigation : 32 billion m3 (%73) : 72 billion m3 (%64)

Domestic : 7 billion m3 (%16) : 18 billion m3 (%16)

Industrial : 5 billion m3 (%11) : 22 billion m3 (%20)

TOTAL : 44 billion m3 : 112 billion m3

WATER CONSUMPTION by SECTORS

(TOTAL EXPLOITABLE WATER (net) : 112 billion m3/year)

Year 2010

Industrial%20

Domestic%16

Irrigation%64

Year 2023

DSİ (State Hydraulic Works)

is a governmental organization,

established in 1954

for developing

surface and ground water

resources of Turkiye

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General Directorate of State Hydraulic

Works is the main agency of Turkiye for

the Nation’s overall

water resources

planning,

execution

and operation.

DSI’S ORGANIZATIONAL STRUCTURE

XIV. İSTANBULXI. EDİRNE

II.İZMİR

XXV.BALIKESİR

XXI. AYDIN

XIII.ANTALYA

XVIII.ISPARTA

I.BURSA

III.ESKİŞEHİRI

XXIII.KASTAMONU VII.

SAMSUN

XXII.TRABZON VIII.

ERZURUM

XXIV.KARS

VI.ADANA

XX.K.MARAŞ

XVI.ATATÜRK BRJ.

XV.ŞANLIURFA

X.DİYARBAKIR

XVII.VANXIX.SİVAS

IX.ELAZIĞV. ANKARA

IV.KONYA

XII.KAYSERİ

DSI has 13 DEPARTMENTS IN HEADQUARTERS AND 25 REGIONAL DIRECTORATES IN THE FIELD

IRRIGATION ENERGY

WATER SUPPLY ENVIRONMENT AND FLOOD CONTROL

DSİ Serves

in Four Sectors

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DSI ACTIVITIES ARE MAINLY IN FOUR GROUPS

1. INVESTIGATION AND PLANNING• Data collection and surveys,• Project planning

2. DESIGN AND CONSTRUCTION. Agriculture. Energy. Services. Environment

3. QUALITY CONTROL

4. OPERATION. Irrigation and flood control

Investment Budget Comparison between DSİ and Government

Government

DSİ

YEARS 2003 2004 2005 2006 2007 2008 2009 2010 2011

Governments Budget 8 281 8 665 10 586 13 316 14 152 14 216

14 895

17 983

20 689

DSİ Budget 2 031 2 043 2 657 2 596 2 644 3 554 3 727 4 626 5 552

Ratio 24,5 23,6 25,1 19,5 18,7 25,0 25,0 25,7 26,8

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DSİ INVESTMENT BUDGET

1954 2010 48 Billion $

Total benefit 130 billion $

2012 2014 10 Billion $

(%40 GAP-DAP-KOP Projects )

4734, WITH LOANS

ENERGY

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Technology Consulting

Owners Engineering

Contractors Engineering

Lenders Engineering

Specialized Services

Operation & Maintenance

Italy is perfect on consulting and managementEPCM

Pumped storage Power Plant

Reservoir Storage Schemes

Run-of-River Schemes

Site Management / Supervision

River Basin Development

Rehabilitation and Refurbishment

Services Sectors

Hydropower Development

Automation and Control

Concrete Dams

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GLOBAL HYDROPOWER POTENTIAL

Source: World Atlas of Hydropower & Dams

• Global Hydropower Potential by Region (Potential developed)

World´s realistic potential developed: 30 - 40%

Current Hydro Production: ~ 3000 TWh/y

Realistic Potential Production: ~ 8600 TWh/y

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HYDROPOWER DEVELOPMENT IN EUROPE

Source: IHA Presentation of Michael Fink and Helen Locher, IHA at European Union Energy Sustainable Week -ESHA Workshop "Investing in Sustainable Hydro", Brussels 12 February 2009.

• Most of the Hydropower potential in W- and C- Europe has already been developed !

Russia

Norway

Italy

Iceland

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Breakdown of electricity generation by resources

(as of December 31, 2010)TWh

Natural Gas 96,47

Coal 37,70

Hydraulic 51,50

Import Coal 14,49

Liquid fuel 5,10

Wind-geo-biogas 3,87

Others 1,04

TOTAL 210,18

Wind-geo-biogas1,84%

Natural Gas45,90%

Coal17,94%

Hydraulic24,50%

Imported Coal6,89%

Liquid fuel2,43%

Others0,50%

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• Approximately 75% of Turkiye’s energy need was met by

oil, natural gas and fossil fuels in 2010

• 92% of oil and 99% of natural gas consumed is imported

• This amount corresponds to 22% of the total imports of

our country

• 34 billion $ (Imports of energy raw materials-2010

cost)

• 40 billion $ (estimate for 2011)

IMPACT ON ECONOMY

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197197

186

179 183

197

192 193197

200

151

160

169

179

189

212

224

237

277

257

238

221

205

176

151

163

190

100

150

200

250

300

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Total Energy Supply Min. Energy Demand

Max. Energy Demand

Years

Firm

Pro

duct

ion

(Bill

ion

kWh)

Source : The Ministry Energy and Natural Resources (2007)

ALARM!

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2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

150000

200000

250000

300000

350000

400000

450000

YÜKSEK TALEP DÜŞÜK TALEP

TALE

P(G

Wh)

Low scenarioHigh scenario

Electricity Demand Projections

High scenario:~ 57.000 MW additional capacity needed

Low scenario : ~ 41.000 MW additional capacity needed

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• 6-10% (annual growth rate)

• 2nd economic growth in the world after China (2010)

• To supply energy demand, at least 5 billion $/year investment needed within 10 years

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Turkiye’s energy schemes are

established to promote investment on renewable energy sources

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Targets for the electricity generation mix by 2023:- Renewables :

at least 30 % of total generation by 2023- utilization of the remaining hydro resources (installed capacity 45.000 MW )- wind installed capacity 20.000 MW - geothermal installed capacity 600 MW

- Nuclear : at least 5 % of total generation by 2020- Coal :

utilization of the remaining hard coal and lignite resources

TURKEY – ELECTRICITY MARKET BY FIGURES (2010)

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Renewable Energy Sources Potential and Assets (2011)

Source Potential Under Construction (MW)

Under Operation (MW)

Hydraulic 46 000 MW 10 500 17 000

Wind 20 000 MW 2 170 1 600

Solar 32.6 MTOE - -

Geothermal 600 MWe(31 500 MWt)

116,95 94

Biomass 8.6 MTOE 8,54 15,6

Biogas 1.5-2 MTOE 11,77 12,74

Turkiye’s Hydroelectric Potential

% 37 % 13

% 50

Theoretical Potential : 433 billion kWh/year

Technically Utilized Potential : 216 billion kWh/year

Tech. and Economic Potential : 160 billion kWh/year

Technically non-utilized Potential

Uneconomic Potential

Tech. and Economic Potential

Hydroelectric Potential25% of total energy need of Turkiye is supplied from hydropower

In Operation : 16 950

MW DSİ : 11 020

MW

Others : 5 930 MW

Remaining Potential : 29 050

MW Ongoing construction by DSİ : 3 000 MW Ongoing const. by private sector : 8 000 MW

(by 4628)

Planned (by private sector ) : 17 510 MW Planned (by DSİ-Yusufeli Dam ) : 540 MW

Total Potential : 46 000

MW

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For hydropower

2003 2010 : 7 billion $ ( in operation)

2011 2014 : 15 billion $ (Ongoing construction)

2012 2020 : 30 billion $ (planned)

For windpower

2005 2010 : 1,6 billion € ( in operation)

2011 2020 : 15 billion € (Ongoing construction and

planned)

PRIVATE SECTOR INVESTMENT

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For hydropower (70% construction cost)

At least 10 billion $ (within 10 years)

For windpower (20% construction cost)

At least 10 billion € (within 10 years)

Dependence on foreign technology

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Amendment to Law on Utilization of Renewable Energy Resources for the Purpose of Generating Electrical Energy(No:6094)(Official Gazette: January 08 , 2011, No.27809)

•The Law includes regulations regarding the promotion of renewable based electricity generation. In addition, it covers the procedures and principles for the conservation of the renewable energy resource areas, certification of the energy generated from these resources and utilization of these resources.

• Amendment to Law in 2011;• A new support scheme is introduced. Different feed-in prices for different renewable based electricity generation.

7.3 US cents per kWh for hydro and wind 10.5 US cents per kWh for geothermal 13.3 US cents per kWh for solar and biomass (including waste gases)

• In addition, a certain support of 0.4 to 3.5 US cents per kWh is also given to the plants for the utilisation of domestically manufactured technical equipments.

New Legislation

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Foreign investors

• electromechanical equipment supplier• financing • İnvestor- developer

USA, Germany, Crotia, Spain, Norway, Czech Republic, India, France, Austria, China, Arab countries…

• Ansaldo Energia (Finmeccanica Group) (Gas plant-840 MW-640 million €)• Enel Green Power (Geothermal)

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• 2001 Electricity Market Law (No:4628) Natural Gas Market Law (No:4646)

• 2003 Petroleum Market Law (No:5015)• 2003 (Principles of signing Water Use Right Agreement for production activities in electricity market)

• 2004 Strategy Paper as Road Map of the Electricity Market Reform & Transition

• 2005 LPG Market Law (No: 5307)

• 2005 Law on Utilization of Renewables in Electricity Generation Law (No:5346)

• 2007 Energy Efficiency Law (No:5627) • Amendments to the Law on Utilization of Renewables in Electricity Generation

• 2007 Geothermal Law (No:5686)

• 2007 Nuclear Investments Law (No:5710)

• 2008 Significant Amendments to the Electricity Market Law (No:5784)

• 2009 Strategy Paper on Electricity Market & Security of Supply

• 2011 Law on Amendment to the Law of Utilization of Renewables in Electricity Generation(No:6094)

Major Policy Developments “Legislative Framework”

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SUGGESTIONSCarbon trading (British)Energy investment (Licence period - 49 years - Paybacktime is short)Privatisation schemesThe plants for the utilisation of domestically manufactured technical equipments (promotion)Financial support (credits)

Dragon River

Geçitköy Dam

Anamur

~78 km

75 million m3 /year water will be transferred to KKTC from Dragon River.

Northern Cyprus (KKTC) Water Supply Project

KKTC Domestic Water Supply Project

80 km

On 28.10.2011Pre-qualification bids will be taken for Sea Crossing Transmission Line Construction

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Turkish Side :

• Source : Dragon River

• Alaköprü Dam

• Pipe D=1400 mm, L=21 km, Steel

• Surge Tank: 10 000 m3

Cyprus Side:

• Güzelyalı Pumping St.

• Pipe D=1400 mm, L=3,25 km, Steel

• Geçitköy Dam

• Geçitköy Pumping St.

Sea Passing :

• Pipe D= 1600 mm , L= 78 km HDPE (High Density Polyethylene Pipe)

• Depth : - 250 m suspended

• Anchorage to the sea bottom with 500 m intervals

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THANK YOU

Devlet Su İşleri Genel Müdürlüğü06100 Yücetepe / Ankara – Turkiye