Energy Market Regulatory Authority Research Articles

Regulation of Natural Monopoly: The Turkish Electricity Market

This study examines the situations that arise when regulating a natural monopoly market by focusing on Türkiye’s electricity market. Specifically, this qualitative study investigates the Energy Market Regulatory Authority (EMRA) in terms of capture theory, drawing on various documentary sources, such as electricity sector regulation legislation (constitutions, sector laws, decree-laws, Plan and Budgeting Committee documents of The Grand National Assembly of Türkiye), EMRA official decisions, newspaper reports from 2001 to 2021, and media interviews. The empirical findings discussed throughout the article reveal numerous instances consistent with the capture theory.

Investigation and Optimization of Integrated Electricity Generation from Wind, Wave, and Solar Energy Sources

This study investigates the potential for renewable energy-based electricity generation using existing wave, wind, and solar energies in Türkiye. A significant part of Türkiye’s energy needs is still met using fossil fuels. Considering the country’s resources, renewable energy sources appear as an alternative source to meet these needs. The objective of this study is to find an effective, efficient, economical, environmentally friendly, and sustainable way to produce electricity to reach net-zero targets and transition towards low-carbon and carbon-free energy systems. To be able to make a deep investigation about the relevant issue, six provinces from different regions of Türkiye (Antalya, Çanakkale, İstanbul, İzmir, Kırklareli, and Muğla) are assessed in terms of wave, wind, and solar energy potential, including wave data, wind speeds, sunshine duration, and global radiation values. Wind, wave, and solar energy data of the selected regions were taken from the ERA5 database, which is the weather forecast model of the European Center for Medium-Term Weather Forecasts (ECMWF), and the Ministry of Energy and Natural Resources of the Republic of Türkiye and the General Directorate of Meteorology. Calculations were made using monthly data for the last 5 years. Considering the coastal lengths in the determined regions, the annual total electrical power produced from wave, solar, and wind energies was calculated. In these calculations, the coastal length parameter was assumed to be uniform across all cities, and the electrical power potential from these energy sources was analyzed. Within the framework of these analyses, the number of houses in the selected regions whose electricity needs can be met was calculated. As a result, the potential electrical power and the amount of affordable housing units in the selected regions were compared. As an important result of the studies, it was determined that the characteristic features of the selected regions, such as wavelength, wave height, and wind speed, were directly related to the applicable coast length. The power obtained from wave energy was higher than that from other renewable energy sources, considering the determined coast lengths. Wave energy was followed by parabolic solar collector, wind, and photovoltaic solar energy systems. According to the model, the power obtained from renewable energy systems was at the highest level in the Kırklareli/Demirköy province compared to other locations. Kırklareli was followed by İstanbul, Antalya, İzmir, Muğla, and Çanakkale. It was also found that the electricity needs of 763,578 houses were met in the Kırklareli/Demirköy region, and the electricity needs of 470,590 houses were met in the Çanakkale/Ayvacık region. The statistically optimized factors using the Response Surface Methodology (RSM) for wind, photovoltaic, parabolic solar collector, and wave power were reported as 995.278, 4529.743, 2264.546, and 276,495.09, respectively. The optimal factors aim to achieve a total electricity generation rate of 2.491 × 109 (kWh/year), a total number of houses of 682,590.55 (number/year), and a total cost of USD 813,940,876. In line with the results obtained, the Kırklareli/Demirköy region becomes favorable when considering wave and wave-integrated wind and solar energies. The proposed system has the potential to meet the entire electricity demand of the Kırklareli province based on data from the Republic of Türkiye Energy Market Regulatory Authority (EMRA).

Geopolitical risks and the energy-stock market nexus: Evidence from Turkiye

The goal of this study is to examine the role of geopolitical risks as a driver of stock market returns in the context of the energy-stock market nexus with a particular emphasis on the intermediary role of energy supply for Turkiye. Our findings confirm the role of GPRs as a net transmitter of shocks to the stock market. However, while electricity supply is a net receiver of GPR induced shocks during negative market states, it assumes a leading role as a net transmitter of positive shocks in the network with the shocks largely transmitted towards the stock market returns. Furthermore, we show that the structural reforms implemented by the Energy Market Regulatory Authority (EMRA) towards liberalization of the energy sector have led to a shift in the role of electricity supply as a net transmitter of shocks to financial markets.

Assessment of Electricity Consumption Characteristic: Textile Factory Case Study

Currently, electrical energy tariffs are a crucial factor in the electricity market, as they significantly impact the decisions made by end users. They play a vital role in the effectiveness of energy management systems (EMS). Tariffs are not solely considered a fixed component of expenditure calculations. Instead, they are indirectly linked to the costs of power generation, electricity transmission, and electricity distribution, as well as other determinants such as government taxation. In certain regions, improper tariff calculation methodologies have resulted in substantial power losses, superluous investments, increased operating costs, and environmental pollution because of the underutilization of available renewable energy sources. This study examined the electrical energy consumption values and characteristics of an integrated textile factory. Additionally, analyses were conducted on the electricity tariffs published by the Energy Market Regulatory Authority (EMRA) Electricity Energy Market management, in order to decrease the electrical energy consumption costs of the textile factory. Based on the findings of the analyses, suggestions were put forward for regulating the electrical energy consumption characteristics and reducing the electrical energy consumption costs.

Modeling and Economic Analysis of Greenhouse Top Solar Power Plant with Pvsyst Software

Due to increasing wars and global warming, the issue of providing the supply-demand balance in energy and food is becoming more important daily. When the issue of providing the electricity needed in modern greenhouses and consuming the energy where it is produced are evaluated together, rooftop applications in greenhouses become important. In this study, a photovoltaic system on a greenhouse in an area of 5031.6 m2 was modeled three-dimensionally using PVsyst software in north-south, and east-west orientations at 10°, 20° and 35° angles, and 6 different simulation studies were performed. By determining the cost of the greenhouse and above-greenhouse photovoltaic system to be constituted, an economic analysis study was performed at the point of OG single-term and OG double-term tariffs in the Energy Market Regulatory Authority (EPDK) tariff tables. As a result, the highest electricity production of the power plant was eventuated as 1579.2 MWh at 10° east-west orientation. In the case of the sale of electricity produced in the photovoltaic system installed above the greenhouse, it has been calculated that the OG single-term tariff brings 2 162 443.087 TL, and the OG double-term tariff 2 203 707.83 TL annual income. The lowest electricity generation was at 35° north-south orientation and was 1392.3 MWh. Based on this production value, it has been calculated that in the case of electricity sales, the OG monomial tariff brings an annual income of 1 894 757.401 TL, and the OG binomial tariff brings 1 930 914.04 TL.

Kentsel Enerji Verimliliğinin Deterministik ve Stokastik Yöntemlerle Kıyaslanması

In urban sustainability researches, benchmarking methods have become the most needed ways to measure urban energy efficiency. Benchmarking the efficiency of urban energy with parametric and non-parametric methods are important cases within the energy field. Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA) are ideal approaches to measure performance of various industries with multiple indicators. Stochastic method considers the noise in data and evaluates the critical success parameters of energy efficiency by separating noise from efficiency scores. This study evaluates urban energy efficiency by deterministic and stochastic ways with deploying DEA and SFA methodologies. The aim of the study is to show the effects and results of deterministic and stochastic approaches in urban energy efficiency measurement and to evaluate how Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA) can be used to derive measures of efficiency and productivity change over time in complex multi‐output multi‐input contexts in the production and consumption of energy services. Using data gathered from Turkish Statistical Institute (TURKSTAT) and Energy Market Regulatory Authority (EMRA) Development Reports. In the study, 30 cities, which are accepted as metropolitans of Turkey by government, are selected as Decision Making Units (DMUs) of both methods. As a result, different efficiency estimates are presented and evaluated within the scope of statistical noise, multiple inputs and outputs by DEA and SFA methods.
 Keywords: Urban Energy Efficiency; Urban Sustainability; Stochastic Frontier Analysis; Data Envelopment Analysis

Hydrogen farm concept: A Perspective for Turkey

Hydrogen farm concept: A Perspective for Turkey

Destek Vektör Makineleri ve Türkiye’deki Enerji Santrallerinde Doğal Gaz Tüketimi Üzerine Bir Uygulama

Bu çalışmanın amacı, destek vektör makinelerinde regresyon yöntemini kullanarak Türkiye'deki enerji santrallerinin doğalgaz tüketimi üzerine ön kestirim yapmaktır. Bu amaçla, veri seti 2013-2018 yılları arasında Türkiye Enerji Piyasası Düzenleme Kurumu ve Enerji İşleri Genel Müdürlüğünden elde edilmiştir. Bu çalışmada ilk olarak, Türkiye'de doğalgazın enerji piyasasındaki yeri, birincil enerji kaynakları içindeki payı, üretim, tüketim, ithalat ve ihracat değerleri incelenmiştir. Bu değerlerin ölçümündeki farklılıklardan dolayı, ilgili veri seti istatistiksel analizden önce standartlaştırılmıştır. Enerji santralleri tüketimi bağımlı değişken iken; sanayi tüketimi, şehir tüketimi, üretim, ithalat ve ihracat değerleri bağımsız değişken olarak belirlenmiştir. Destek Vektör Regresyonda kullanılan tüm kernel fonksiyonları (Doğrusal, Polinomiyal, Radyal Tabanlı Fonksiyon (RTF) ve Sigmoid) test edilmiştir. En küçük Hata Kareler Ortalaması (HKO)'na sahip olan RTF tahmin kernel fonksiyonu olarak seçilmiştir. Daha sonra, destek vektörler, ağırlıklar ve karar sabiti belirlenmiştir. Ağırlıklar ve destek vektörler çarpılıp sapma eklenerek, son model elde edilmiştir. Son model yardımıyla da Mayıs-Aralık 2018 için Türkiye'deki enerji santrallerinin doğalgaz tüketimlerine ait önkestirimler yapılmıştır. Sonuçlar ilgili tablolarda gösterilmiştir.

Recent developments in oil prices and effect on pump prices in Turkey

International oil prices have shown significant changes over the last year and have fallen down to 45$ /barrel level from around 110$ levels. The oil prices and the dynamics behind it have strongly affected many markets including the economies of countries such as Turkey. The paper briefly discusses oil price movements throughout 2014 including the first half of 2015 and presents major impacting factors that affect the price dynamics, such as US shale oil, supply and demand dynamics. The transmission of oil price fluctuations into Turkish pump prices has been evaluated and the constituents of pump prices have been analyzed over a period encompassing the last 10 years. The important factors that have affected the pump prices and the pricing behavior of oil companies in Turkey, apart from the international market trends, were the exchange rate (USD/Turkish Lira) and the price interventions by the Turkish Energy Market Regulatory Authority. The paper provides an in depth discussion and a comparative assessment on the development of pump prices in Turkey with some major European Markets in the Mediterranean region closer to the Turkish market such as Greece, Italy, France & Spain.

Solar Power In Turkey – A Snapshot

Turkey liberalized the electricity market in 2001 and established the sector-specific regulatory body Energy Market Regulatory Authority (EMRA) concurrently. The segments in the electricity value chain have been unbundled and competition has been introduced into the power generation segment. Companies granted licenses from EMRA can operate the generation facilities and sell their generation in the bilateral market through private contracts or in the spot markets, i.e. day-ahead market and/or intraday market operated by Energy Exchange Istanbul (EPIAS) of which the shareholder structure includes market participants as well.

Demand Management Methods for the Environment Oriented Hybrid Traffic System to be Implemented in Istanbul

Urban transportation problem -a major issue for all metropolises- must be mitigated using “sustainable” solutions, and to this end, new methods must be developed via “Transportation Demand Management Systems”. In this context, «effective management of transport demands and efficient use of the existing transport infrastructure » has been established as a strategy that envisages a change of understanding and approach to sort out Istanbul's transport problem.The rapidly growing rate of private car ownership is one of the main reasons for the transportation problems in our city. According to the Turkish Statistical Institute, around 25% of all cars in the country are registered in Istanbul. In addition, data from Energy Market Regulatory Authority of Turkey (EPDK) suggest that around 18% of total fuel consumption in our country takes place in Istanbul. Such high prevalence of vehicle ownership has major social and economic implications while elevated levels of fuel consumption and the associated emissions make dire impacts on the environment. The foregoing study examines the practices that could be introduced to remedy the problem of intensive traffic which has enormous implications not only worldwide but particularly in Istanbul -our largest metropolis- by using urban solutions, congestion charges applied in most European countries as a means for effective management of traffic, and the practice of low emission zones which prioritizes environmental consciousness. In this context, it presents a number of comparative analyses on the practices in various countries. After reviewing these analyses in terms of the specific needs of Istanbul, the study provides a recommendation for a hybrid model involving “Low Emission Based Congestion Charging” which brings together congestion charges and environmental restrictions of the traffic demand management system planned to be implemented.What's more, traffic congestion in Istanbul is most severely experienced on the bridges which function as intercontinental connections. The main reason for that is –once again- the high rate of private vehicle ownership and inefficient use of vehicles. As a solution to this problem, introduction of a “high occupancy vehicle” practice is recommended to ensure transportation of more people rather than more vehicles in the traffic. In this framework, the study presents a recommendation for new tariff system for traffic density management based on the results of a density analysis over bridge crossings, and it provides and innovative and hybrid method for demand management with “high occupancy vehicles practice to be implemented along with alternative fares charged for bridge crossings”. Introduction of these practices would ensure effective traffic management, and provide for a reduction on emission levels by supporting the elevation of occupancy rates of private vehicles, which is expected to eventually decrease the number of vehicles in traffic. Furthermore, it is anticipated that public transport would be encouraged by ensuring public transport prioritization in the fares; and enhanced punctuality of public transport vehicles would make a major contribution for sustainable transport.The study also explores the political and legal implications associated with the implementation of the recommended practices.Last but not least, introduction of such practices in cities must be promoted through “Basic Principles of the European Union's Environmental Policy” and “Air Quality Framework Directive”. All these practices would provide for an environmentalist outlook on behalf of our country, and as the prerequisites of a livable city, these practices would facilitate the harmonization of our country with the relevant standards as part of the process of joining the European Union.

IMPROVING ENERGY REGULATORY FRAMEWORK OF PAKISTAN

The primary objective of this study was to investigate that either Pakistan needs or not a single regulatory authority for its energy sector by means of integrating Oil & Gas Regulatory Authority (OGRA), National Electric Power Regulatory Authority (NEPRA) and the regulatory part of Directorate General of Petroleum Concessions (DGPC) in to a single entity “National Energy Market Regulatory Authority” (NEMRA) . To achieve this objective of research, descriptive analysis along with binary logistic regression technique were used. The results showed that due to the current performance of existing energy regulatory framework it is necessary to establish a single autonomous energy regulatory authority (NEMRA) for the energy sector of Pakistan in order to put it out of crises towards grooming and prosperity.

Is it Possible to be a Sustainable Energy Company in Turkey? A Case Study of OMV's Thermal Electric Power Plant in Samsun

OMV Samsun Electricity Generation Industry and Trade Inc. is constructing a combined-cycle power plant using natural gas of Blue Stream (Mavi Akım) imported from Russia in the Province of Samsun, Terme-Kozluk District of Turkey. Also some other Turkish companies constructed smaller thermal electric power plants in the area. OMV's 870 MW plant planned to commence operations in mid 2013 but production license cancelled by The Council of State (Danıştay) three times due to legal environmental protection constraints which is power plant constructed by the cultivated area. The power plant will cover 3% of Turkey's electricity needs. During ongoing construction process, protests and legal claims of NGOs raised and the company developed defense mechanisms against the claims which is raised. The NGOs applied to the local court and after judgement, The Council of State (Danıştay) has been stopped production license agreement of Natural Gas Combined Power Plant dated 25.08.2008 and No. EÜ/1583-5/1149 issued by Turkish Energy Market Regulatory Authority (EPDK), finally production license for 49 years issued after legislation accepted by the Turkish government. In this research we aimed to analize this legal process and make some suggestions about the CSR activities of a multi-national company (MNC) operating in Turkey about their present claim of being a sustainable energy company.

Demand forecast for road transportation fuels including gasoline, diesel, LPG, bioethanol and biodiesel for Turkey between 2013 and 2023

In Turkey, more than 90% of passengers and goods are transported by roads. In order to flow this immense traffic nearly 2.7 million m3 of gasoline, 11.5 million m3 of diesel, and 5.2 million m3 of liquefied petroleum gas (LPG) was consumed in 2011. Starting from 2013, Turkey plans to blend biofuels to gasoline and diesel gradually reaching to 10% (volume) by 2020. Turkey's economy has been growing at unprecedented rates since 2003. As a result, both diesel and LPG consumption reached to record levels. Yet, gasoline demand decreased almost linearly in the same period. Accordingly, forecasting road transportation fuel demand becomes more difficult and yet more important than ever before. Gasoline, diesel, LPG, bioethanol and biodiesel demand has been forecast for the first time in this study using semi-empirical models in the view of Turkey's Vision 2023 goals, Energy Market Regulatory Authority targets, and European Union directives. The models suggested that in 2023, annual gasoline consumption in Turkey could decrease below 2.0 million m3, whereas, diesel and LPG consumption could rise to 16.4 and 8.8 million m3, respectively. Consequently, 0.3 million m3 of bioethanol and 1.4 million m3 biodiesel could be required to fulfil the official targets in 2023.

Price Rigidity in Fuel Market: A Solution with a Different Geographic Market Approach

ACTECON Papers 05 focuses on fuel market and structural problems in such market as well as the effects of recent tax and price increases in its 5th issue. It is a relatively difficult question to answer for people living in Turkey: Why are we paying for the most expensive fuel in the world and why the decrease rate of the prices is not same with the increase rate? These questions can have numerous and various answers however none of them were economically justified over decades. Accordingly, this situation leads to market imperfections in our country as the tax rates obtained from the fuel approaches to 65%.We still remember that the increases and decreases in international fuel prices have not been reflected on the pump prices before 2005 in which fuel prices were decided by the government. Nowadays, we see that the government is troubled with 'fuel prices not decreasing as at the same rate of it is increasing' problem and Turkish Competition Authority and Energy Market Regulatory Authority are expected to come up with a solution to the 'lack of competition/price rigidity' problem. In this academic article, Sahin ARDIYOK, suggests and analyses 'narrower geographic market' approach in fuel sector in the perspective of competition law and economics within the aim of solving the 'price rigidity' problem. In this context, we will present market failures in fuel market and define Turkish Competition Authority’s and Energy Market Regulatory Authority’s role regarding those market failures and deal with the opportunities missed during the privatization process of TUPRAS. Subsequently, we discuss narrower geographic market model recently implemented by German Competition Authority in various merger and acquisitions transactions and whether applying the same approach would provide less rigidity in prices of oil in Turkey.

Evaluation of wind energy investment interest and electricity generation cost analysis for Turkey

Abstract Turkey has remarkable wind energy potential, but its utilisation rate is very low. However, in 2007, energy investors applied to the Energy Market Regulatory Authority (EMRA) with 751 wind projects to obtain a 78180.2 MW wind power plant license. This paper first presents an overview of wind energy development in the world and then reviews related situations in Turkey. Second, to motivate the interest in wind energy investment, new wind power plant license applications in Turkey are analysed. Finally, wind electricity generation cost analyses were performed at 14 locations in Turkey. Capacity factors of investigated locations were calculated between 19.7% and 56.8%, and the production cost of electrical energy was between 1.73 and 4.99 $cent/kW h for two different wind shear coefficients.

A Review of Research and Development of Wind Energy in Turkey

AbstractDuring the end of the 20th and the beginning of the 21st centuries, interest has risen in new and renewable energy sources, and especially wind energy for electricity generation. In a short time, wind energy has been welcomed by society, industry and politicians as a clean, practical, economical and environmentally friendly alternative to existing fossil fuels. As a result of extensive studies on this topic, wind energy has recently been applied in various industries, and has started to compete with other energy resources. Wind energy applications and turbine installations at different scales have increased since the beginning of this millennium. Technically installed wind turbines capacity factors have high values in most areas of Turkey. It is seen that, in general, the modeling of wind speed and its parameters have been studied and researched rather than wind power technological development in Turkey. Wind investors had doubts about uncertainties in the renewable energy policies. After May 2007, an energy efficiency law was accepted and 10 years of electricity generation by renewable sources is considered as guaranteed by the Turkish government. The installed wind power has reached 131.35 MW in Turkey and it is expected that this value will be increased to 808.81 MW by the end of 2008. The dependence of strong technological and economical development on Turkey's energy needs have increased and new national or international sources have to be taken into account for the energy sector of the country. It is clear that this source gap could be filled by using the high potential of wind power, which is estimated at 58 GW. It is expected that installed wind power to supply up to 5% of electricity consumption by 2015 and for the end of 2008 this ratio will increase to 2% (it is currently ca. 1.0%). However, unexpected and unpredicted wind power applications have occurred on November 1st, 2007 in Turkey. It has been announced that 78,000.00 MW wind power investments have been applied by the Energy Market Regulatory Authority (EMRA). This is a new era for the Turkish energy sector and there is no model for this new situation. Therefore, in this paper, wind energy in Turkey is reviewed and opened up for further discussion.

Reforming the Energy Market and Utilization of Electrical Energy

The main objective of the present study is to provide an overview of reforming the Turkish energy market, including the electricity production and consumption values of Turkey and restructuring in the eight European Union countries. Turkey's electricity demand has been growing very rapidly. It has increased from about 47 TWh in 1990 to some 142 TWh in 2003, and it is expected to continue for the foreseeable future. Besides this, Turkey's total electricity capacity increased from 16,318 MW in 1990 to 31,846 MW in 2002. Restructuring of the electricity sector in the country has started with the establishment of the Energy Market Regulatory Authority (EMRA) upon the law (no. 4628) that came into force on March 3, 2001. The Energy Market Regulatory Board, which runs the EMRA, was commissioned on November 19, 2001. In May 2002, the EMRA issued drafts of the Energy Market Licensing Regulation and the Electricity Market Tariffs Regulation, and these regulations went into effect in August 2002. The Electricity Market Implementation Manual was also issued by the EMRA in April 2003. At present, not only the electricity sector, but the whole Turkish energy sector is in a dynamic change.