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REPUBLIC OF TURKEY

PRIME MINISTRY
UNDERSECRETARIAT OF STATE PLANNING ORGANIZATION

Secretariat of the Higher Board of Planning

NUMBER : B.02.1.DPT.0.05.01-107 / 1701 21 MAY 2009


SUBJECT : Electricity Energy Market And
Supply Security Strategy Paper.

TO THE MINISTRY OF ENERGY AND NATURAL RESOURCES

REF.: Your letters no. 5359 and 6036 dated 27/10/2008 and 5/12/2008 respectively.

Please find attached Resolution no. 2009/11 dated 18/5/2009 of the Higher
Board of Planning.

We kindly ask for due action.

[Signed]
Halil Ibrahim AKCA
Deputy Undersecretary

ANNEX: 1 (one) Board Resolution.

Address : Necatibey Caddesi No. 108 06100 / ANKARA


Phone : 0 (312) 294 59 34
Fax : 0 (312) 294 59 79

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HIGHER BOARD OF PLANNING

Date : 18.09.2009
Res. No. : 2009 / 11
Subject : Electricity Energy Market and Supply Security Strategy Paper.

Taking into consideration Letters no. 5359 and 6036 dated 27/10/2008 and
5/12/2008 of the Ministry of Energy and Natural Resources;

The Higher Board of Planning has decided to approve the attached


“Electricity Energy Market and Supply Security Strategy Paper” prepared
under coordination of the Ministry of Energy and Natural Resources with
participation and contributions of relevant stakeholders.

[Signed]
Chairman
Recep Tayyip ERDOGAN
Prime Minister

[Signed] [Signed] [Signed]


Member Member Member
Ali BABACAN Cevdet YILMAZ Mehmet SIMSEK
Minister of State and Minister of State Minister of Finance
Deputy Prime Minister

[Signed] [Signed] [Signed]


Member Member Member
Mehmet DEMIR Binali YILDIRIM Nihat ERGUN
Minister of Public Works Minister of Transportation Minister of Industry and Trade
and Settlement

[Signed] [Signed]
Member Member
Taner YILDIZ Halil Ibrahim AKCA
Minister of Energy and State Planning Organization
Natural Resources Deputy Undersecretary

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ELECTRICITY ENERGY MARKET AND SUPPLY SECURITY
STRATEGY PAPER

1. INTRODUCTION

Since taking effect of Law No. 4628 on March 3, 2001, our country has taken substantial steps
toward creating a competitive and functioning market in the electricity energy sector,
restructuring public institutions operating in the sector, and implementing those market rules
that will ensure liberalization of the sector.

Being a short- and medium-term roadmap in the area of sector reform and privatization, the
Electricity Energy Sector Reform and Privatization Strategy Paper was publicized on March 17,
2004. Within this scope, required regulations were finalized, long-term demand estimation was
conducted and published, implementation of transitional Balancing and Reconciliation started,
Transitional Contracts were finalized, implementation of the price equalization mechanism
started, DSI power plants were transferred to EUAS, EUAS portfolio groups were formed as a
preparation for privatization, distribution regions were reorganized and incorporated, TEDAS
was included in the privatization program, transitional tariffs were defined for such regions, and
tender procedures were initiated after establishing the methodology for privatizing distribution.
Thus important steps were taken in the formation of the electricity market and the privatization
process.

Being based on liberalization in the electricity energy sector, the main purpose of the
restructuring initiative is to create an investment environment which allows for those
investments that are required for supply security, and to reflect onto consumers all gains that
will be made through efficiency increase to be brought about by a competitive environment.
Policies and strategies followed in order to reach this goal are closely related to both the national
situation and also global developments in the energy sector. As a matter of fact, in the face of
increases in both cost and price of energy, and the increasing demand for electricity, many
countries are now taking new measures to ensure supply security, redesigning existing market
structures and rules according to experience and problems, and strengthening market
mechanisms through measures to ensure supply security. In our country as well, the increase in
demand which continues to be higher than world average, and the consequent increase in the
need for investment dictates that new measures are taken.

Creating a competitive market in the electricity energy sector requires a transition period. In
order to ensure that such transition period does not pose a risk in terms of supply security,
developments of market formation in our country are monitored carefully taking world trends
into consideration, placing special emphasis on difficulties encountered by other countries
during their transitions and their related experiences, making required legislation changes and
taking necessary precautions.

Within this scope, the Electricity Energy Market and Supply Security Strategy Paper was
drafted, keeping in mind transitional needs and hitherto developments and actions, for
publicizing the privatization program and the methodology to follow in the coming period for
creating the targeted market structure in electricity energy sector; and for defining and
announcing the steps necessary for ensuring supply security, and targets for resources to be used
in electricity supply in the medium and long term.

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2. OBJECTIVE AND PRINCIPLES

The primary objective is to ensure delivery of electricity, which plays an undisputable role in
our economic and social lives, to consumers in an adequate, high-quality, uninterrupted, low-
cost, and environment-friendly manner.

To that end, efforts will continue for creating a competitive market; effectiveness will be
brought to initiatives aiming at making new demand-driven electricity production investments
sustainable, compatible with market structure, and harmonized with resource priorities of energy
policy; measures will be taken to ensure that electricity transmission and distribution services
are offered at such quality and in such amounts as to guarantee consumer satisfaction;
production and distribution privatizations, which are among tools for creating a competitive
market, will be finalized; and a competitive electricity energy market which functions according
to free market rules will be created.

In structuring of the electricity energy sector, and functioning of the market, the following
principles will be adhered to:

o Creation and maintenance of market structure and market activities in a way to ensure
supply security;

o Toward the target of creating a sustainable electricity energy market, taking into
consideration climate change and environmental impacts in activities in all areas of the
industry;

o Minimizing losses during production, transmission, distribution and utilization of


electricity energy; increasing efficiency; reducing electricity energy costs by building a
competitive environment based on resource priorities of energy policy; and using such
gains to offer more reasonably priced electricity service to consumers;

o Encouraging new technologies, ensuring diversity of resources, and maximum use of


domestic and renewable resources in order to reduce external dependency in energy
supply;

o Increasing the share of domestic contribution in investments to be made in the sector.

3. MARKET STRUCTURE AND APPLICATIONS

3.1. WHOLESALE MARKET

3.1.1. IMPROVEMENT OF EXISTING MARKET

We will persevere on efforts for creating a market structure based on bilateral contracting
between buyers and sellers, which is integrated through a mechanism of balancing and
reconciliation.

It is principle that distribution companies with retail licenses and suppliers providing energy to
eligible consumers procure their needed electricity energy through bilateral contracting to be
executed with producers. It is necessary to ensure supply security, and to strengthen the bilateral
contracts market for offering investors a safe investment environment, and for guaranteeing
security of supply to consumers. Medium- and long-term bilateral contracts will create suitable

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conditions for needed production investments to be made by the private sector. To reach this
target, secondary legislation will be made in parallel to regulations that aim at creating a
situation whereby distribution companies with retail sales licenses, who are obliged to meet the
energy demand of consumers, can enter into medium- and long-term energy purchase contracts
with production companies and wholesale companies, and eligible consumers can do the same
with suppliers of their own choosing.

Complementary to the bilateral contracts market, existing balancing and reconciliation system,
which is operated by Market Financial Reconciliation Center (PMUM), will be introduced at the
first instance as a day-ahead market and real-time balancing power market. The target is to
create the futures market in medium term. Active participation of the demand side will be
ensured. To that end, a gradual transition strategy will be followed.

In the first stage, the final Balancing and Reconciliation Regulation (DUY), which is to
replace the existing transitional balancing and reconciliation mechanism based on three
reconciliation periods, will be finalized and published. Within this scope, existing
balancing market will be separated into two parts: the “Day-Ahead Planning” whose
main purpose is to offer to the System Operator (TEIAS) a system that is balanced from
one day earlier, and is used for day-ahead trading; and the “Balancing Power Market”
which serves the real-time balancing of supply and demand. This process, whereby
imbalances will be reconciled on hourly basis, will be effective as of October 1, 2009
according to aforesaid regulation. In this context, existing Transitional Contracts will be
modified accordingly.

And in the second stage, which will start by January 1, 2011, we will switch from Day-
Ahead Planning to the “Day-Ahead Market,” which is a spot market where market
participants will carry out activities toward the goal of balancing their own portfolios
and offering to the System Operator a system that is balanced one day earlier. In this
stage, the practice of hourly reconciling imbalances in the real-time Balancing Power
Market will continue.

In order for PMUM to pay market participants in a timely and complete manner, it is important
that payments to PMUM are not defaulted or delayed. Therefore, a practice will start within
2009 whereby amounts arising from balancing-reconciliation will be declared to designated
banks, money will be deposited into or paid out of bank account, and/or all public or private
parties will have collaterals proportional to the payment risk in question.

3.1.2. DAY-AHEAD MARKET

It will be possible in the day-ahead market to make energy trade other than medium- and long-
term bilateral contracting. In this way, balancing-reconciliation transactions to be made on the
basis of reconciliation periods will be exclusive to the balancing and reconciliation of amount
differences in existing agreements, whereby market participants will be able to make short- and
long-term spot buy-sell transactions from the day-ahead market including one day later,
proactively eliminating any difference to emerge between foreseen demands and supply
possibilities. This market will also reduce the amount of real-time balancing during the day.

3.1.3. FUTURES MARKET

The futures market will perform important functions for ensuring future supply-demand balance
and helping predict energy prices more realistically, reducing risks that market participants may
encounter.

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3.1.4. CAPACITY MECHANISM

Capacity building and capacity trade mechanisms will be created in order to support energy-
trade-based market structure for accommodating new investments.

The capacity mechanism will require the following:

For producers: Obligation declare reliable capacity in a way that is coherent with their
installed MW power, to publish their capacity certificates accordingly, and to provide
declared capacity,

For suppliers: Obligation to obtain and declare capacity certificates proving capability to
meet their load (MW) supply requirements.

Capacity certificates will be issued in a manner that reflects reliable available capacity.

The regulation which governs procedures and principles regarding the designation of reliable
capacities of producers and capacity needs of suppliers, obligations of the parties, and issuance
and implementation of capacity certificates will be prepared by the Ministry of Energy and
Natural Resources (ETKB) by taking opinion of the Energy Market Regulatory Board (EPDK).
Our target is to start implementation by the end of 2009.

3.1.5. CAPACITY/ENERGY PROCUREMENT THROUGH CONTESTS

In case of necessity, central contests will be organized, through a Decree of Council of


Ministers, with a view to procure energy and capacity for meeting demand from suppliers. In
such contests, the state will not purchase energy or issue any guarantees whatsoever. The target
is that distribution companies who are obliged to meet suppliers’ demands will, in their own
discretion, file a collective demand statement for meeting future demands, new power plants
will be built for meeting such collective demand, and contracts will be executed by and between
owners of new power plants and the demanding distribution companies. Procedures and
principles regarding energy and capacity procurement through central contest will be established
through a regulation to be drafted by the ETKB by taking opinion of the EPDK.

3.1.6. TRANSITIONAL CONTRACTS

Following principles will apply in the transfer of public production capacity through
Transitional Contracts:

Effective period of existing Transitional Contracts executed over regulated prices will be
extended pursuant to Law No. 5784. This provision will also apply to facilities that are
privatized within the effective period of their respective contracts.

Existing contracts will be revised within the framework of the hourly reconciliation
practice to be implemented.

Minimum reliable capacity of EUAS hydroelectric power plants, which is to be assessed


annually by ETKB, EUAS and TEIAS, will be allocated to TETAS through Transitional
Contracts. In order to ensure that dams are maintained at safe levels, which is important
for water revenues of hydroelectric dams under responsibility of EUAS, day-ahead
production offers by EUAS to PMUM in relation to said dams will be made in a way
that maintains monthly dam operation levels to be predefined.

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3.1.7. MARKET OPERATOR

The target is that Financial Reconciliation transactions, which are presently carried out by
TEIAS, and operation of the day-ahead and futures markets to be created in the medium-term
will be performed by the “Market Operator” with financial and administrative autonomy. Work
relating to the structuring of the Market Operator will be completed by the end of 2009.

3.1.8. ENHANCING MARKET OPENNESS

In order to enhance market openness on consumption side, eligible consumer limit will be
reduced on regular basis, all consumers except for residences becoming eligible consumers by
the end of 2011, and all consumers becoming eligible consumers by the end of 2015.

3.2. TARIFFS AND PRICING

Implementation of the price equalization mechanism, which was put into practice for equalizing
tariffs applied to consumers between regions of distribution over a single national tariff, will
continue until the end of the transition period.

Pricing of energy will be based on cost, and implementation of Cost Based Pricing Mechanism,
which took effect on 1 July 2008, will continue.

After implementing the final market design whereby day-ahead trade and in-day balancing are
separated, distribution companies with retail licenses will be able to reflect day-ahead buying
costs to their tariffs. But since we aim at a market structure in which imbalances are eliminated
in the day-ahead, and since the target is to meet needs with the energy procured from bilateral
contracts and the day-ahead market, it will be possible to reduce the amount of in-day real-time
power balancing. After the day-ahead market becomes functional, costs arising from hourly
reconciliation of imbalances in the real-time Balancing Power Market will not be reflected on to
tariffs.

By accordingly amending Law No. 4628, we will ensure that retail sales tariffs continue to be
prepared by all consumers who have not switched suppliers.

Pricing of electricity energy will be done in a way that encourages savings and efficient use.

3.3. SEPARATION OF ACTIVITIES

Distribution companies who perform distribution, production and retail sales activities together
will separate these functions by January 1, 2013, after which date said activities will be carried
out under separate legal entities. Any amendments and corrections required in the Electricity
Market secondary legislation for this practice will be finalized by the EPDK within 2012.

4. PRIVATIZATION

While main purpose is to create a competitive sector structure, to increase efficiency in


production and distribution sectors, reducing costs and reflecting all gains onto end users,
revenue-oriented approach will be avoided in privatization.

Essential operation and maintenance activities, including essential investments, will continue
without any disruption independently from the privatization process.

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4.1. PRIVATIZATION OF DISTRIBUTION

Structural changes that fall under the targets specified in the “Electricity Energy Sector Reform
and Privatization Strategy Paper,” which was issued upon Decision No. 2004/3 dated 17.3.2004
of the Higher Board of Planning, have been completed, and privatization work will be
completed to a great extent by the end of 2010 within framework of the principles established
for the privatization of distribution.

Distribution regions pertaining to contracts signed pursuant to Law No. 3096 and are classified
under “existing contracts” in Law No. 4628 will be transferred to contract parties if contract is
amended under Law No. 4628. In such regions, companies covered by Law No. 4046, which
were established within TEDAS and have signed an Operation Right Transfer Contract with
TEDAS, will continue to operate said regions until date of transfer, maintaining their existing
structure until their liquidation.

Shares of public companies operating in the electricity market in private production and
distribution companies will be privatized.

4.2. PRIVATIZATION OF PRODUCTION FACILITIES

Privatization of production facilities aims at enhancing the electricity production capacity,


increasing the availability of existing production facilities, increasing capacity utilization
factors, and mobilization of private sector resources for increasing competition across the sector.

In determining the privatization method, consideration will be given to performing the


rehabilitations needed by existing power plants, and to making new investments for increasing
installed power at facilities with sufficient fuel resources.

Determining production facilities to be privatized and grouping them in portfolios will be done
in a way that upholds the fundamental criteria of preventing dominant powers in the market, and
ensuring competition.

Existing production portfolio groups will be finalized through reassessment.

It will be possible to privatize, without the need to include in any portfolio, those lignite power
plants that need rehabilitation and have sufficient reserves for adding new units, on the
condition of building additional units.

Method for privatizing production facilities (asset sale, Transfer of Operation Right, share sale,
ratio of shares to be sold, etc.) and status of portfolio groups will be decided by the Privatization
Administration (OIB) by taking the opinions of ETKB.

Information and documents requested by OIB will be provided, and any action requested by
OIB will be taken in the shortest time possible by relevant public bodies.

Our target is to start procedures for the privatization of production facilities within 2009.

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5. SUPPLY SECURITY

5.1. MONITORING AND ASSESSMENT OF SUPPLY SECURITY

Short-, medium- and long-term supply security will be continuously monitored and assessed
under Additional Article 3 titled “Supply Security” added to Law No. 4628 by Law No. 5784,
and measures will be taken whenever deemed as necessary. Primary focus in such assessment
will be on ensuring supply-demand balance with sufficient redundancy, source diversity,
external dependency, environmental impacts, sector development which is in line with targets
defined according to price formation in markets, and taking measures to redirect the market in
case of deviation from targets.

In order to establish energy policies and help market participants make long-term assessments,
long-term demand projections will be prepared, and ETKB will publish projections in relation to
capacity requirements and to the composition of production to meet such demand.

5.2. TEMPORARY MEASURES

5.2.1. ENERGY PURCHASE BY TETAS THROUGH BILATERAL CONTRACTING

Electricity energy that TETAS will, in case of need, procure from the market through bilateral
contracting as per provisions of Provisional Article 14 added to Law No. 4628 by Law No. 5784
will be sold after being added to amounts specified in Transitional Contracts executed between
TETAS and distribution companies, which added amount will be in proportion to total
consumption of each company.

5.2.2. ACCELERATION OF PUBLIC INVESTMENTS UNDER CONSTRUCTION

Appropriations will be made for timely completion of DSI hydroelectric power plant
investments listed in the Annex, and DSI will take measures to ensure that funds reserved for
these projects are used for their intended purpose, and never transferred to other projects. The
extent of DSI spending out of project-specific funds will be monitored and controlled on the
basis of yearend realization figures. DSI will take measures to ensure timely completion of said
investments, thus preventing increase of costs foreseen at the beginning of the project.
Appropriations will also be made for ensuring timely completion of rehabilitation programs for
certain power plants under responsibility of EUAS.

5.3. IMPROVEMENT OF THE TRANSMISSION SYSTEM

5.3.1. INCREASING INSTITUTIONAL CAPACITY OF TEIAS

While our aim is to restructure the Market Operator as a separate legal entity, until such
structure is in place, TEIAS, who is presently System Operator, Market Operator and also owner
and operator of the transmission system, will be strengthened from an administrative and
financial perspective in order to perform functions that are crucial for ensuring market
development and supply security. To that end, TEIAS will be supported for recruiting of
technical personnel up to a sufficient level, which will also include replacement of retired
personnel. To reach this goal, legislative adjustment will be made if necessary.

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5.3.2. IMPROVEMENT OF THE TRANSMISSION NETWORK

Adequacy of the transmission infrastructure is one of the most important factors for ensuring
electricity supply security and maintaining a well-oiled electricity market. In this context, in
order to allow for connection of ongoing and future production investments to the network,
required budget appropriations will be made with priority and in line with the transmission
planning to be made by TEIAS. For reducing system losses and increasing system reliability,
transmission pricing will take into account regional supply-demand balances with the exclusion
of production facilities based on natural resources; and in order to ensure an increase of
production in regions with intensive consumption, transmission tariffs will be encouraging for
power plants to be built in those regions that are in high need of production.

6. LICENSING AND CONNECTION OF WIND PLANTS

Pursuant to Energy Efficiency Law No. 5627 and to the regulation that contains the principles
regarding wind power plant applications, and following the opinion to be provided by the
General Directorate of Electrical Power Resources Survey and Development Administration
(EIE), the roadmap for licensing will be announced by the EPDK based on the criteria of EPDK
assessment.

In case EIE opinion and EPDK assessment yields to a situation whereby the number of
applications for power plants to be connected to a same transformer substation exceeds the
capacity of such substation, or there are more than one applications for the same area, regulation
on procedures and principles for the contest to be held by TEIAS will be published no later than
June 30, 2009.

In order to prevent increasing wind power plant capacity from creating problems in system
operation, and to ensure that obstacles in front of connecting such power plants to electrical grid
are removed, software and equipment to be added by TEIAS to existing load distribution centers
will be provided and installed by the end of 2010.

7. INTERCONNECTIONS WITH NEIGHBORING COUNTRIES, CONNECTION TO


THE EUROPEAN TRANSMISSION NETWORK (UCTE), AND IMPORTS/EXPORTS

In order to improve our electricity import and export potential, international transmission
connections to neighboring countries will be made, and their capacities will be improved.

For activities to be carried out hereunder, the following principles will be adhered to:

Our primary and priority goal is to ensure that our electricity transmission network is
operated in a way that is synchronized with and parallel to the European Transmission
Network (UCTE). Therefore, in order to ensure parallel operation with UCTE system by
the end of 2009, we aim at completing all necessary modifications and improvements in
our transmission and production system so that UCTE-related work can be rapidly
finalized and connection can be made. To that end, appropriations will be made for
investments to be made by TEIAS and EUAS.

When this target is realized, cross-border trade through common transmission network
created with Europe will be carried out within the framework of EU cross-border trade

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directive and internal legislation. In this context, it will be possible to participate in
potential regional markets to emerge, or make efforts for creating new regional markets.

Connections to other countries will be in compliance with conditions for connection to


the European electricity network, and for our UCTE membership.

In this context:

o In transmission connections with non-UCTE countries, direct current (DC)


connection method will be principally applied. Therefore, agreements to be
executed for existing and new connections between TEIAS and transmission
network operators of neighboring countries will contain a condition for building
required AC-DC / DC-AC convertor facilities,

o Transmission facilities to be built within national borders and DC-AC


transformer facilities will be constructed by TEIAS and made available to legal
entities with the intent to import/export.

Until installation of the DC connection:

o Importing and/or exporting will be possible through routing of units;

o Exporting will be possible to isolated regions created outside Turkey;

o As per provisions of Provisional Article 13 added to Law No. 4628 by Law No.
5784, it will also be possible to import electricity energy using isolated region
feeding systems created within the country. The time period specified in said
article may, in case of need, be extended by a decision of the EPDK due to
concerns of supply security;

o But imports through unit routing or isolated region methods will not have an
adverse impact on the quality and safety of the electrical system, and quality of
imported energy will be in compliance with applicable legislation.

8. RESOURCE UTILIZATION TARGETS

8.1. GENERAL PRINCIPLES

It is our priority target to increase share of domestic resources in production of electricity


energy. To that end, measures for directing the market will be taken in order to encourage the
use of domestic resources.

Report on supply security, which is to be submitted by ETKB to the Council of Ministers as per
Additional Article 3 added to Law No. 4628 by Law No. 5784, will propose measures for
reaching and surpassing both general targets described above, and targets revised below for each
resource. Targets will be subject to revision in consideration of developments in technology,
markets, resource potential and demand projections.

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8.2. DOMESTIC LIGNITE AND HARD COAL

Proven lignite deposits and hard coal resources will be put to use by 2023 in electricity energy
generation activities. To that end, efforts will continue for making good use of exploitable
domestic lignite and hard coal fields in electricity generation projects.

8.3. NUCLEAR ENERGY

Activities initiated for use of nuclear power plants in electricity generation will continue. Our
target is to increase the share of these power plants in electricity energy up to at least 5% by the
year 2020, and to increase it even further in the longer run.

8.4. SHARE OF RENEWABLE ENERGY RESOURCES IN PRODUCTION OF


ELECTRICITY ENERGY

Our primary target is to ensure that the share of renewable resources in electricity generation is
increased up to at least 30% by 2023. This target will be subject to revision based on potential
developments in technology, market, and resource potential. In this context, long term works
will take into consideration the following targets:

HYDROELECTRIC

We will ensure, by 2023, that our technically and economically available hydroelectric potential
is entirely put to use in electricity generation.

WIND

Our target is to increase installed wind energy power to 20.000 MW by the year 2023.

GEOTHERMAL

We will ensure that our geothermal potential of 600 MW, which is presently established as
suitable for electricity energy production, is entirely commissioned by 2023.

SOLAR

Our target is to generalize the use of solar energy for generating electricity, ensuring maximum
utilization of country potential. Regarding the use of solar energy for electricity generation,
technological advances will be closely followed and implemented. Within 2009, Law No. 5346
will be accordingly amended in order to encourage generation of electricity using solar energy.

OTHER RENEWABLE RESOURCES

Preparation of production plans will take into account potential changes in utilization potentials
of other renewable energy resources based on technological and legislative developments, and in
case of increases in utilization of such resources, share of fossil fuels, and particularly of
imported resources, will be reduced accordingly.

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8.5. NATURAL GAS

Through measures for utilization of our domestic and renewable resources, share of natural gas
in electricity generation will be reduced down to below 30%.

8.6. IMPORTED COAL

While domestic and renewable resources are given precedence in meeting the need for
electricity energy, power plants based on high-quality imported coal will also be made use of,
taking into consideration supply security and developments in utilization of such resources.

9. EFFICIENCY AND SAVINGS

Toward the goals of ensuring energy supply security, reducing risks associated with external
dependency, increasing the effectiveness of fight against climate change, and protecting the
environment, it is important that we increase efficiency from the production to the consumption
of energy, that we prevent waste, and reduce energy intensity both on sector basis and at a
macro level.

In this context, measures will be implemented which will ensure efficiency in the consumption
of electricity energy without negatively affecting social and economic development targets.

Technical losses during generation, transmission and distribution of electricity will be


minimized, and illegal use during distribution will be prevented.

Within the framework of Energy Efficiency Law No. 5627, electricity energy will be used
effectively, waste of electricity energy will be prevented, burden of electricity energy costs on
economy will be relieved, and environmental impacts will be migrated.

Procedures and principles regarding classification of electric motors, air-conditioners, electrical


household appliances and light bulbs, and assessment of their minimum efficiency ratings, will
be established by the Ministry of Industry and Trade, and measures will be taken, and steps will
be taken to prohibit the sale of those that do not meet minimum threshold criteria.

Regulatory work relating to enhancement of energy efficiency at electricity production facilities


and along transmission and distribution networks; demand side management; open area lighting;
and generalization of high-efficiency cogeneration applications will be performed by ETKB.

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ANNEX:
DSI PLANTS UNDER CONSTRUCTION

AKKOPRU
ALPASLAN
ATASU
BOGAZKOY
CINE
DERINER
ERMENEK
ILISU
KIGI
KILAVUZLU
KIRAZLIKOPRU
MANYAS
SUREYYABEY
TOPCAM

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