World Geothermal Congress 2020+1
March - October, 2021

Towards More Geothermal Power in Turkey


[MRC Turkey, Turkey]

The energy policy of the Turkish government has two main priorities, namely (a) maximizing exploitation of domestic primary energy resources, and (b) securing sufficient, reliable and affordable energy to a growing economy in an environmentally sustainable manner. In this context, the government of Turkey has put in place a supportive legal framework to facilitate geothermal development. A critical milestone was the Geothermal Law of 2007. This set out the rules and principles for effective exploration, development, production and protection of geothermal and natural mineral water resources. In 2010 an amendment to the Renewable Energy Law established a feed-in tariff of 105 USD/MWh for geothermal power, for a 10-year period from the commissioning date, with an additional 27 USD/MWh to reward the use of locally produced equipment. This is guaranteed for geothermal power plants being commissioned until 31/12/2020. Geothermal resources in Turkey are used for power production, as well as for space heating and tourism related applications. The installed capacity of geothermal power plants in Turkey has grown rapidly in recent years. From some 15 MW in 2006 to 1,282 MW produced by 48 power plants in 2018. Moreover, power plants with a total installed capacity of 354 MW are under construction and another 400 MW has obtained a pre-license, as of JAN 2019. This rapid growth has led the government to increase the target of developing 1,000 MW geothermal electric generation capacity by 2023 to a target of 4,000 MW by 2030. However, this growth has been restricted to Western Turkey; the vast majority of the capacity development has taken place in the Menderes and Gediz Grabens. The key research question of this paper is: how can Turkey attract new investments and further accelerate the installed capacity in geothermal for power generation. Thereupon, this paper will assess the current situation of geothermal in Turkey and point out the potential and the geographical hotspots, which should be focused upon to further develop geothermal power. A simple business model needed for profitable investments will be discussed. The literature on investments in geothermal power will be assessed, leading to an estimate of the reasonable installed capacity per drilled production well. Financial support in the form of a risk sharing mechanism (RSM), which has recently been launched in Turkey will be crucially important.

        Topic: Power Generation Paper Number: 26031

         Session 32D: Power Generation 5 -- Experiences [Tuesday 15th June 2021, 08:00 am] (UTC-8)
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