The document summarizes Turkey's energy industry, including: - Installed power capacity reached 57,059 MW in 2012, with natural gas making up 44% of electricity generation. - Renewable energy such as hydro, wind, and solar have significant potential but little has been developed. Feed-in tariffs support renewable producers. - Electricity demand has grown 5% annually while generation grew 6% from 2000-2012. The state previously dominated the industry but its control is decreasing through privatization. Significant new investments are needed to meet the projected 4.5% annual demand growth through 2022.

1. Foreign Market Consulting Ltd. Şti. • Dede Yusuf Sok. No:11, 34453 Büyükdere Sarıyer İstanbul - Turkey
Tel: +90-212-3638 052 • Fax: +90-212-3638 517 • www.fmconsulting.com • info@fmconsulting.com
Foreign Market Consulting Ltd. Sti
Istanbul
June 2014
Energy Industry in Turkey

2. Contents
© 2014 Foreign Market Consulting Ltd. Sti.
A Supply Page 03
B Supply & Demand Page 07
C Main Companies and Institutions Page 08
D Market Outlook Page 10

3. 3
• Installed capacity of 57,059 MW in 2012.
A. Supply
Installed Capacity
Source: Turkish Electricity Transmission Company (TEIAS), 2013
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
24,000
26,000
28,000
30,000
32,000
34,000
36,000
38,000
40,000
42,000
44,000
46,000
48,000
50,000
52,000
54,000
56,000
58,000
60,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Installed Capacity
TOTAL THERMAL HYDRO GEOTHERM+WIND
MW

4. 4
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
110,000
120,000
130,000
140,000
150,000
160,000
170,000
180,000
190,000
200,000
210,000
220,000
230,000
240,000
250,000
260,000
Electricity Generation By Resources
GENERAL TOTAL
NATURAL GAS
HYDRO
LIGNITE
HARD COAL +
IMPORTED COAL +
ASPHALTITE
GEOTHERMAL +
WIND
FUEL-OIL
RENEW.& WASTES
DIESEL OIL
NAPHTHA
LPG
GWh
• Electricity generation of 239,497 GWh
• Natural gas has the highest share (44%) among all the energy resources.
A. Supply
Electricity Generation By Resources
Source: Turkish Electricity Transmission Company (TEIAS), 2013

5. 5
• Only a small portion of the potential is utilized; new investments are needed.
A. Supply
Renewable Energy
Type Installed Power Potential
Hydroelectricity
19,936 MW (2012)
(70,734 GWh annual
production, 33% of the
technical potential is utilized 1)
216 billion kWh (Technical
potential) 1
Wind 2,760 MW (2013) 2 48,000 MW 2
Solar 3.5 MW (2013, PV power) 2
2,737 hours annual radiation
1,527 kWh/m2 annual solar
energy 2
Geothermal 310.8 MW (2013) 2
31,500 MW geothermal
potential
2,000 MWe geothermal
electricity potential 2
1 Source: General Directorate of State Hydraulic Works, 2013
2 Source: Ministry of Energy and Natural Resources, 2014

6. 6
• Feed-in tariff and local equipment bonus are important supports for renewable
energy producers.
A. Supply
Renewable Energy
13.3 13.3 13.3
10.5
7.3 7.3
9.2
6.7 5.6
2.7
3.7
2.3
0
5
10
15
20
25
Solar (CSP) Solar (PV) Biomass Geothermal Wind Hydro
Feed-In Tariff and Local Equipment Bonus
FIT Bonus for local equipment
Source: Investment Support and Promotion Agency, 2013
USD cent/kWh

7. 7
• Generation has grown by 6% whereas demand has grown by 5% on average
between 2000 and 2012 each year.
B. Supply & Demand
Electricity Generation & Demand
Source: Turkish Electricity Transmission Company (TEIAS), 2013
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Gross Demand 128,276 126,871 132,553 141,151 150,018 160,794 174,637 190,000 198,085 194,079 210,434 230,306 242,370
National Generation 124,922 122,725 129,400 140,581 150,698 161,956 176,300 191,558 198,418 194,813 211,208 229,395 239,497
100,000
110,000
120,000
130,000
140,000
150,000
160,000
170,000
180,000
190,000
200,000
210,000
220,000
230,000
240,000
250,000
Electricity Generation & DemandGWh

8. 8
• The state is still a dominant actor, but its share in the electricity market is decreasing.
• EUAS’s (Electricity Generation Company) share in installed power has decreased
from 90% in 1990 down to 43% in 2012. (Source: Turkish Electricity Transmission Company [TEIAS], 2013)
• The transmission, which is carried out by TEIAS (Electricity Transmission Company),
is 100% public.
• TETAS’s (Electricity Trading and Contracting Company) share in consumption, which
was 78% in 2005, decreased down to 34% in 2012. (Source: TETAS, 2013)
• Still many state-owned power plants in the privatization portfolio.
• All distribution companies have already been privatized.
C. Main Companies and Institutions
State Enterprises and Privatization

9. 9
C. Main Companies and Institutions
Leading Private Producers
Company Production Based Net Sales (TRY mn), 2012*
Eren Enerji Elektrik Uretim A.S. 1,533.4
Enerjisa Enerji Uretim A.S. 1,244.4
Aksa Enerji Uretim A.S. 1,138.8
Icdas Elektrik Enerjisi Uretim ve Yatirim A.S. 707.0
Bis Enerji Elektrik Uretim A.S. 504.2
Park Termik Elektrik San. ve Tic. A.S. 356.5
Akenerji Elektrik Uretim A.S. 351.9
Zorlu Enerji Elektrik Uretim A.S. 292.5
AES Entek Elektrik Uretimi A.S. 244.0
Rasa Enerji Uretim A.S. 198.3
*EUR 1 = TRY 2.31 in 2012
Source: Istanbul Chamber of Industry, 2013

10. 10
• The electricity demand is forecast to grow at least by 4.5% per year on average
between 2013 and 2022.
D. Market Outlook
Electricity Demand Forecast
Source: Turkish Electricity Transmission Company (TEIAS), 2013
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Electricity Demand
High Scenario Base Scenario Low Scenario
GWh

11. 11
D. Market Outlook
• New investments, which are expected to be made mainly by the private sector, are
needed to hinder energy deficit.
• In 2010, the government signed an agreement with Russia to build the first nuclear
plant of Turkey in the city of Mersin.
• In 2013, the government signed an agreement with Japan to build the second
nuclear plant in the city of Sinop.
• The government targets that the nuclear sources will have a share of 5% in total
energy generation in 2020.
• An additional 4,000 – 5,000 MWs of annual installed capacity (corresponding to USD
6-7 bn investment) is needed to meet the growth in demand. (Source: Investment Support and
Promotion Agency, 2013)
• The government targets to increase the installed power capacity to 125,000 MW in
2023.
Investment Needs

12. Confidentiality
Foreign Market Consulting Ltd Sti handles all data and information confidentially and also asks all
information to be handled confidentially, especially regarding the sources used.
Liability
FMConsulting receives information and data from third parties and presents the gathered data to its
customers. Thus, FMConsulting does not take any responsibility for the accuracy of any declaration or
precision of any gathered data.
Foreign Market Consulting Ltd. Şti. • Dede Yusuf Sok. No:11, 34453 Büyükdere Sarıyer İstanbul - Turkey
Tel: +90-212-3638 052 • Fax: +90-212-3638 517 • www.fmconsulting.com • info@fmconsulting.com