coal power plants in turkey
TRANSCRIPT
INVESTING IN NON-RENEWABLE ENERGY COAL FIRED POWER PLANTS
Muzaffer BasaranMember of WEC TNC
7th Turkey Energy Forum,13-14 October 2015, Elite World Hotel, Taksim, Istanbul, Turkey
■ ■ ■ PRESENTATION PLAN ■ ■ ■
1.Introduction2.Power Sector in Turkey3.Legistlation in Turkey on Emissions4.Coal in Turkey5.TKI Royalty Model6.Coal Power Plants in Turkey7.Coal Plants built by State Utility8.Coal Plants operated by Private Sector9.Permits10.Incentives in Turkey11.Electricity Price Averages12.Conclusion
POWER SECTOR IN
TURKEY
19701980
19901992
19941996
19982000
20022004
20062008
20102012
20140
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Chart Title
72,1
55.6
MW
(30.
09.2
015)
2,23
4 M
W
5,11
5 M
W 16,3
18 M
W
27,2
61 M
W
45,0
50 M
W
4
INSTALLED POWER IN TURKEY (MW)
Hydro25,357.8 MWNatural Gas21,495.7 MWCoal14,793.6 MWLiquid Fuel742.3 MWWind4,144.2 MWGeothermal581.4 MWOther5,040.6 MW
TURKEY72,155.6 MW
35.1%
29.8%
20.5%
1.0%
5.7%0.8%
7.1%
5
Distribution of Installed Power According to Sources(31.09.2015)
Electricity Generation of Turkey in 2014(GWh)
6
Private Sector179,94971.9%
EÜAŞ (State)70,43228.1%
250,381
The Distribution of Electricity Production in Turkey in 2014 according to Organizations (GWh and %)
Organization %
IPP 46.1
EÜAŞ 28.1
BOO 17.5
BOT 4.6
TOOR 1.9
Autoproducer 1.8
Total 100.0
7
IPP115,370
4,345 Autoproducer
11,531 BOT
43,857 BOO
70,432 EÜAŞ
TOOR 4,846
The Development of the Shares of State and Private Sectorin the Installed Power and Electricity Generation ( % )
8
INSTALLED POWER
ELECTRICITY GENERATION
0
20
40
60
80
10019
8519
8719
8919
9119
9319
9519
9719
9920
0120
0320
0520
0720
0920
1120
1320
1420
15
StatePrivate
86%
14% 28.2%
71.8%
0
20
40
60
80
100
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2014
2015
StatePrivate
84%
16%
78.2%
21.8%
Distribution of Generation According to Sourcesand Consumption GWh (2014)
Sources (%)
Gas 120,467.5 GWhHydro 40,401.8 GWhLoc. Coal 38,519.4 GWhIm. Coal 34,531.7 GWhOil 4,512.8 GWhWind 8,366.8 GWhGeo. 2,251.8 GWhBiomas 1,329.4 GWh
Source: TEIAS 9
Total Generation 250,381.2 GWhImport 7,940.0 GWhExport 2,694.4 GWhConsumption 255,626.8 GWh
48.1%
16.1%
15.4%
13.8%1.8%
3.3% 0.9%
0.5%
LEGISTLATION IN
TURKEY ON EMISSIONS
EMISSION LIMITS IN TURKEYEmission Before LCP Directive
(Before 08.06.2010)After LCP Directive(After 08.06.2010)
SO2
< 100 MWt 2000 mg/Nm3
≤100 -300 MWt 1300 mg/Nm3
>300 MWt 1000 mg/Nm3
Existing Plants50-100 MWt 2000 mg/Nm3
100-500 MWt 2000-400 mg/Nm3
≥ 500 MWt 400 mg/Nm3
New Plants50-100 MWt 850 mg/Nm3
>100 MWt 200 mg/Nm3
NOx
≥ 50 MWt 800 mg/Nm3
Old Existing Plants50-500 MWt 600 mg/Nm3
>500 MWt 500 mg/Nm3
Existing Plants (After 01.01.2016)50-500 MWt 600 mg/Nm3
> 500 MWt 200 mg/Nm3
New Plants50-100 MWt 400 mg/Nm3
>100 MWt 200 mg/Nm3
Dust(PM)
5 kWt-5 MWt 200 mg/Nm3
5-50 MWt 150 mg/Nm3
> 50 MWt 100 mg/Nm3
Existing Plants< 500 MWt 100 mg/Nm3
≥ 500 MWt 50 mg/Nm3
New Plants50-100 MWt 50 mg/Nm3
>100 MWt 30 mg/Nm3
COAL IN
TURKEY
1950-2005 8.3 billion ton2005-2010 New discoved reserves: 4.8 billion tonAfsin Elbistan (K. Maras) 1.8 billion tonKarapinar (Konya) 1.7 billion tonCerkezkoy (Tekirdag) 500 million ton RESERVE= 8.3 + 6.9 = 15.2 billion tonAlpu (Eskisehir) 350 million ton - 1.1 (consumed) = 14.1 billion tonDinar (Afyon) 250 miliion tonSoma (Manisa) 200 million tonOther 2.1 billion ton
Türkiye’de Önemli Kömür Havzaları ve Sahaları
fd
>80 million ton<80 million ton
Pliosen ligniteMiosen ligniteOligosen ligniteEosen lignite
Hard coalKaynak: Dr. İlker Şengüler, MTA
COAL RESERVES IN TURKEY
■ ■ ■ CALORIFIC VALUE OF TURKISH LIGNITE ■ ■ ■
14
The majority of Turkish Lignite have low calorific value, high ash and humidity content. The calorific value of more than 75% of the reserves are below 2500 kCal/kg; 17%, 2.500-3.000 kCal/kg; only 8% are over 3.000 kCal/kg.
15
PRIVATE SECTOR; 1,7
EÜAŞ; 7.3
TKİ; 2,1
MTA; 3
LIGNITE RESERVE 14,1 Billion Ton
52%
12%
21%
15%
■ ■ ■ RESERVE AND OWNERSHIP OF TURKISH LIGNITE ■ ■ ■Taşkömürü
1,3% 8
Linyit14,1%92
Hardcoal
723 66%
Lignite377 34%
WORLD 1.1 TRİLLİON TON Hardcoal1.3 b ton
8%
Lignite14.1 b ton
92%
TURKEY 15.4 BİLLİON TON
A
TKI ROTALTY
MODEL
16
■ DEFINITION OF ROYALTY AND MAIN POINTS IN TKI SPECIFICATIONS ■
ROYALTY:“ROYALTY” is the payment to the Administration per ton for coal production or per kWh for the electricity produced from the coal field.This method is used by TKI to utilize coal fields to build coal power plants by private sector.
MAIN POINTS IN TKI ROYALTY BIDDING•Installed Power of the Plant:…..MW•Royalty payment per kWh :krs/kWh•Contract period: 30 year operation after 6 years of construction phase •Yearly Minimum Electricity Production:……kWh
17
■ ■ ■ ROYALTY PRICE AND PRIVATISED BASINS ■ ■ ■Royalty is paid 7 years after the contract date (6 year investment period).In case of Early Production, (for example in 6th year) 50% of the Royalty is paid.Royalty payment is based on TL/ton or TL/kWh and is escalated according to UFE (yearly producers price index) and paid monthly.The investor can also sell coal and the price is calculated by TKI based on Royalty Amount.
18
No BiddingDate
Province Town Installed Power MW
Winning Company
Royalty Fee
krs/kWh1 29.05.2012 Adana Tufanbeyli 600 TEYO 2.57
2 03.10.2012 Manisa Soma 450 Kolin 4.69
3 21.11.2012 Bursa Keles 300 Celikler 5.55
4 26.03.2013 Kutahya Tuncbilek 300 Celikler 5.61
Lignite Basins given on Royalty Method
COAL POWER PLANTS IN
TURKEY
■ ■ ■ COAL POWER PLANTS IN TURKEY ■ ■ ■
Coal typeLigniteL. HardcoalImport Coal
335,0 MW2,3%
8.394.4 MW56,7%
6.064,2 MW41%
14,793.6 MW
Organization
EUAS 21.4% TOOR 4.2% BOO 8.9% IPP 65.5%
620 MW
3,159 MW
2.365 MW
1,320 MW
Total Installed Power 72.155,6 MW(30.09.2015) Coal 20.5 %
9,694.6 MW
20
14,793.6 MW
COAL POWER PLANTS BUILT
BY STATE UTILITY
22
■ ■ ■ EÜAŞ COAL PLANTS OPERATION DATES ■ ■ ■Plant Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6
Afşin Elb. A 07.07.84 03.03.85 25.01.86 13.06.88 - -
Afşin Elb. B 03.03.06 18.09.06 23.06.06 14.11.06 - -
Çatalağzı 26.07.89 05.02.91 - - - -
Çan 20.10.03 20.04.04 - - - -
Kangal 22.12.89 20.12.90 26.10.00 - - -
Kemerköy 04.03.94 20.08.94 17.02.94 - - -
Orhaneli 05.02.92 - - - - -
Seyitömer 10.04.73 08.11.73 01.09.77 16.02.89 - -
Soma 29.09.81 02.08.82 26.05.85 20.02.85 02.08.91 25.03.92
Tunçbilek - - 21.02.66 15.08.77 10.10.78 -
Yatağan 20.10.83 15.06.83 18.12.84 - - -
Yeniköy 17.09.86 23.02.87 - - - -
23
■ ■ ■ MAIN MANUFACTURERS IN COAL PLANTS ■ ■ ■Plant Boiler Turbine Generator FGD
Afş Elb. A1,3 VKW – DB BBC-Alstom BBC-Alstom -
Afş Elb. A2,4 Steinmüller – DB BBC-Alstom BBC-Alstom -
Afşin Elb. B D. Babcock Mitsubishi-Enka Mitsubishi Mitsubishi-Enka
Çatalağzı Transelektro-Kut. Mitsubishi Mitsubishi -
Çan Alstom-Teknotes Alstom-Teknotes Alstom -
Kangal Transelektro-Kut. Mitsubishi-Gama Mitsubishi Mitsubishi-Gama
Kemerköy Rafako-Tokar Zamech-Enka Dolmel Babcock-Gama
Orhaneli Steinmüller LMZ Electrosila Knöll-Teknotes
S.Ömer 1-2 Stein Industry Franco Tosi Marelli -
S.Ömer 3 VKW-Babcock Mitsubishi Mitsubishi -
S. Ömer 4 VKW-Babcock BBC BBC -
Soma Ses Tlm.-Gama Skoda-Gama Skoda -
Tunçbilek Rafako-Tokar KWU KWU -
Yatağan Rafako-Tokar Zamech-Enka Dolmel Bischoff-Güriş
Yeniköy Rafako-Tokar Zamech-Enka Dolmel Bischoff-Pasiner
24
■ ■ ■ MAIN PARAMETERS İN COAL PLANTS ■ ■ ■Parametre Unit AE- B AE-A Yatağan Soma Çan S.öme
rInstalled power MW 1.440 1.360 630 990 320 600
Unit power MW 360 340 210 165 160 150
Production capacity
109
kWh/y9,10 8,80 5,519 6,435 2,08 3,9
Steam flow ton/saat 1.037 1.020 630 525 462 500
Live st. temp. 0C 540 535 535 540 543 540
Live st. pres. bar 167 194 139 142 174 140
Reheat st. tem. 0C 540 535 535 540 542 540
Reheat st. pre. Bar 38 39 24 32 37 36
Feed wt. tem. 0C 250 255 243 234 251 250Conden. vac. Bar 0,07 0,07 0,0726 0,07 0,085 0,06
Efficiency % 38,95 31,27 33,56 30,01 42,00 34,07
Spec. heat con. kCal/kg 2.208 2.750 2.568 2.886 2.048 2.710
25
COAL PLANTS OPERATED
BY PRIVATE SECTOR
26
■ ■ ■ PRIVATE SECTOR COAL PLANTS IN OPERATION ■ ■ ■No
Name Status Location Fuel MW
1 Seyitömer TPP Privatised Kütahya, Lignite 600
2 Kangal TPP + Soma TPP Privatised Sivas, Manisa Lignite 457 + 990
3 Catalagzi TPP + Yatagan TPP Privatised Zonguldak, Mugla Hardcoal 300 + 630
4 Kemerkoy TPP + Yeniköy TPP Privatised Mugla Lignite 630 + 420
5 Orhaneli TPP + Tuncbilek TPP Privatised Bursa, Kutahya Lignite 210 + 301
6 Çayırhan TOOR Beypazarı Lignite 620
7 Sugözü BOO Ceyhan Import Coal 1,320
8 Atlas TPP IPP İskenderun Import Coal 600
9 Enerjisa Tufanbeyli IPP Tufanbeyli Lignite 450
10 Eren Zetes-1, 2 IPP Zonguldak Import Coal 160 + 1,200
11 İçdaş Değirmencik, Bekirli IPP Biga Import Coal 405 + 1,200
12 İzdemir IPP Aliağa Import Coal 350
13 Çolakoğlu IPP Gebze Import Coal 190
14 Aksa Bolu Göynük IPP Göynük Lignite 270
15 Others IPP Various 331.6
Total 11,634.6
27
■ ■ ■ PRIVATE SECTOR COAL PLANTS UNDER CONSTRUCTION ■ ■ ■No Name Location Fuel MW
1 Eren Zetes – 3 Zonguldak Import Coal 1.320
2 Atlas TPP İskenderun Import Coal 600
3 Ayas TPP Yumurtalık Import Coal 625
4 Adulerya Mihalıçcık Lignite 290
5 Cenal Biga Import Coal 1.320
6 Ciner Ilgın Lignite 500
7 Kolin Soma Lignite 510
8 Selena Hatay Import Coal 900
9 Kirazlıdere Çanakkale Import Coal 600
10 Others 937
Toplam 7,602
PERMITS
■ ■ ■ PERMITS FOR THE POWER PLANT ■ ■ ■
29
• Positive Decision from the Governor for the Site
• Permit from the Military• Amendment of Environment Plan• EIA Report and Commitment• Determination of Health Protection Zone• Permit for search and use of
underground water • Approval of Geotechnical Investigation• Approval of Regional Reconstruction
Department about the Site• Approval of Land Development Plan• Approval of Site Selection from M. of
Env.• Approval of the Map• Approval of Land Division Map• Approval of Land Development Plans
(1/5000 and 1/1000 plans)• Approval of connection of site road to
main road• Approval of System Connection from
TEIAS• Approval for water use• Preapproval for emission• Approval for design and Construction
Permit• Water discharge Permit• Permit for storage of waste• Costruction Permit for Buildings
• Amendment of Land Class • License for the transport of dangerous
goods• Permit to use the buildings• Permit for trial run• Local Fire Brigade Certificate• Emission Permit• Enterprise Certificate• Operation Certificate from Ministry of
Energy• Opening License• Declaration of Job Site to Local Labor
Office• Site water discharge agreement• Site solid waste and excavation
aggrement• Applications for temporary electric, water
and telephone• Water discharge permit• Permit to use explosives• Permit to transport, temporary storage
and use of dangerous and explosive goods
• Permit to use long and heavy vehicles• Permit for the foreign personnel to work
and live in Turkey
No Step
1 Contract with a Consultant to prepare EIA reports
2 Submission of Application File for EIA to M. E.
3 Public Hearing near the Job Site
4 Format Meeting in Ankara at M. E.
5 Submission of the Draft EIA Report to M. E.
6 Examination and Evaluation Meeting at M. E.
7 Submission of the Final EIA Report to M. E.
8 EIA Positive Certificate from M. E.
■■■ EIA PROCEDURE ■■■
EIA POSITIVE CERTİFICATE FOR POWER PLANT
EIA POSITIVE CERTİFICATE FOR THE COAL MINE
■■■ EIA POSITIVE CERTİFİCATES ■■■
Prelicense Application to EMRA
Documentation about Company and Shareholders Documentation about the Project Company Capital Increase Bank Guarantee Increase TEIAS Grid Connection Opinion Prelicence Application Payment
Prelicense from EMRA
EIA Approval Expropriation for the Power Plant Grid Connection Agreement with TEIAS System Usage Agreement with TEIAS Project Approval by Ministry of Energy Construction License by Municipality Zoning Permit Nonmilitary Area Decision
Generation License
■■■ GENERATION LICENSE PROCEDURE ■■■
Prelicense from EMRA Contract with Legal
Consultant
Final expropriation decision of the Court
Fast ExpropriationYes No
Fast Expropriation Decision from the Cabinet through EMRA
Preparation of a court case file with the land and Owner Information
Preparation of a court case file with the land and Owner Information
Formation of expert committee to estimate the unit price of the land
Formation of expert committee to estimate the unit price of the land
Preliminary expropriation decision of the Court
Objection of the Owner
Final Price Decision of the Court
Right to step in the Land
■ ■ ■ EXPROPRIATION PROCEDURE ■ ■ ■
INCENTIVES
IN TURKEY
■ ■ ■ INCENTIVE SYSTEM IN TURKEY ■ ■ ■
General Incentive ApplicationsThis contains VAT Exception and Customs Tax Exemption. Without discrimination of any Region if the investment is not in the list of non supported investment if the investment meets the criteria of minimum fixed amount of investment, it will be supported with VAT Exception and Customs Tax Exemption as before.
■ ■ ■ Regional Incentive Applications ■ ■ ■
This contains VAT Exception, Customs Tax Exemption, Tax Relief, Employer Share Insurance Premium Support, Allocation of Investment Site and Interest Support. In this system, according to the newly created Incentive map, the regions will be given different support rates. Therefore the location of the investment is important.
Region 1 is the most developed parts of Turkey with minimum support and region 6 is the least developed parts of Turkey with maximum support. Local Coal Power Plant Investments benefit from Region 5 incentives where ever they are.
REGIONCONTRIBUTION
INVESTMENT RATE
TAX DISCOUNT
RATE
SOCIAL SECURITY
(S.S.I.)
INTEREST SUPPORT
VALUE ADDED TAX EXEMPTION
(V.A.T.)
CUSTOMS TAX
EXEMPTION
RESOURCE UTILIZATION
SUPPORT FUND
EXEMPTION
LEASING TRANSCATIO
N RENT (V.A.T.) RATE
5. REGION30 % ( 50 % In investment
period )70 %
6 YEARS (This cannot
exceed 35% of fixed
investment amount )
5 (TL) / 2 (CURRENCY) (Upto maximum
700 thousand TL., 70 % of investment
amount)
Domestic and Imported
Machinery and
Equipment Purchases
Imports of Machinery
and Equipment
Imports of Machinery
and Equipment
with Installments
1 %
Contribution rate on Investment means the income or corporate tax which will not be paid. Until Contribution rate on Investment is reached, the income or corporate tax will be paid at reduced amounts with the " tax discount rate".
Insurance Premium Employer's Share Support is applied after completion of the investment. Employer share of the Social Security calculated according to the minimum wage scale is paid by the State. Total amount paid by the State through the Budget cannot exceed 35% of the total Investment. Total interest rate support cannot exceed 700 thousand TL.
■ ■ ■ INCENTIVES IN REGION 5 ■ ■ ■
ELECTRICITY PRICE AVERAGES
■ ■ ■ AVERAGE SYSTEM MARGINAL PRICES ■ ■ ■
39
MonthPrice
TL/MWhCurrency
TL/$Price
$/MWh
Jan 2011 149,066 1,5589 95,6226
Apr 2011 78,989 1,5219 51,9016
Jul 2011 175,388 1,6458 106,5670
Oct 2011 141,662 1,8317 77,3391
Jan 2012 168,729 1,8516 91,1261
Apr 2012 72,45 1,7918 40,4342
Jul 2012 173,263 1,8184 95,2832
Oct 2012 108,933 1,8076 60,2639
Jan 2013 145,328 1,7697 82,1201
Apr 2013 134,921 1,7915 75,3117
Jul 2013 144,531 1,9608 73,7102
Oct 2013 152,08 1,9799 76,8120
Jan 2014 165,493 2,1949 75,3989
Apr 2014 162,857 2,1306 76,4372
Jul 2014 178,945 2,1216 84,3444
Oct 2014 177,576 2,2824 77,8023
Jan 2015 185,452 2,2968 80,7436
Apr 2015 114,021 2,6773 42,5881
Jul 2015 156,857 2,6411 59,3908
Oct 2015 160,208 2,9978 53,4419
CONCLUSION
■ ■ ■ CONCLUSION ■ ■ ■
Using coal in electricity generation will continue in the coming decades. Therefore we should work on technologies with less emission and better flue gas treatment plants.
There are some incentives for the local coal power plants however the investors prefer import coal, since it is easier to handle.
The emission limits in Turkey were higher than EU before June 2010, but now Turkey also adopted LCP Directive.
The state built power plants are privatised and the new owners will start rehabilitations and environmental facilities such as DeSOx and DeNOx systems.
Building a power plant is a difficult process needing a lot of approvals, permits and licenses involving a lot of various State Departments.
Since the electricity prices in the recent months are low, many investors are either waiting or completely giving up their investments.
