New report; Climate Change With Royalty Model

Turkey promoted royalty contract after 2005. After Soma mine disaster, royalty contract in coal production took public attention. Royalty contract in electricity production in not well-known model.

New report, Climate Change With Royalty Model analyses background of royalty contract in electricity production. The report is prepared by Önder Algedik, energy and climate expert.

Findings of the report rises serious concerns about Turkish high carbon economy policies;

  • Turkey ratified UNFCCC in 2004. After that, Turkey launched coal exploration activities in 2005. Since than, 7,2 billion tons of new lignite reserve explored.
  • Royalty contract is an important tool in increasing coal production. Royalty model in electric production is another tool that increases coal consumption. As of today, Turkey has 9 coal power plant contract with royalty model.
  • Burning 887 million tons of reserve of these 9 power plants means 780 million tons of CO2 which is equal to 5 years of greenhouse gas emissions emitted by Ethiopia.
  • Turkey privatized 4,6 GW of coal power plant recently. With royalty model, private sector reached 7,6 GW power plant installed capacity. Even this figure shows how Turkey is gaining private sector investment to the high carbon economy.
  • Although Turkey has been defending historical responsibilities, further affords has been developed in order to burn the coal in the soil. Combustion of recently found 7.2 billion tons of reserve would cause 8 billion tons of carbon dioxide that is equal to 50 times of annual emissions emitted by Ethiopia.

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Writer of the report; Önder Algedik summarizes that “ Financing Coal report described Turkey’s high carbon economy model and how Turkey is pushing coal in energy policies. Our recent report TGNA’s Role in Climate Change analyzed Turkish Parliament role in terms of legislation and parliamentary scrutiny. As Turkey signed Paris Agreement on April 22, This new report shows widening gap between scientific facts and policies as well as increasing role of private sector in coal power plant.”

For the the report click here,

 

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Afşin-Elbistan Coal Power Plants Report: Changing climate rather than producing electricity!

Climate and Energy Consultant and founder of 350Ankara.org Önder Algedik has published a new report on Afşin- Elbistan coal reserve and power plants. The report analyses role of Afşin-Elbistan reserve and explains role in changing climate rather than producing electricity.

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For the report, click here.

In order to strengthen high carbon policy, Turkey has been looking for development of new project on government owned Afşin-Elbistan C, D and E sites while working on permission to other mine areas of private sector for power plant investments. The report identifies problems of high carbon policies in the light of Afşin-Elbistan lignite reserve;

  • In 2005, the exploration works have been re-started as a sign of the acceleration in the return of Turkey to coal use.
  • As a consequence of exploration work, lignite reserve increased to 4,8 billion tons in the area. In other words, Afşin-Elbistan basin has one third of the coal reserves of Turkey.
  • Till 2015, Plant A and Plant B burned 405 million tons of coal in order to produce 173,3 million MWh electricity by emitting 200 million tons of carbon dioxide.
  • Taking into consideration that the annual operation period of thermal plants is about 8000 hours, it is seen that the average operational period of 8 units of 2 plants is very low and has been 2422 hours in 2012.

The report also shows difficulty of keeping the global temperature raise under 20C in case of burning remaining coal reserve. Although scientific reports shows that 80% of worlds known reserve should stay in the ground, the report demonstrates that burning remaining reserve of Afşin-Elbistan area would cause emitting 2,4 billion tons of carbon dioxide.

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Financing Coal

Turkey’s coal based energy policies threatens G20 and UNFCCC discussions

Climate and Energy Consultant and founder of 350Ankara.org; Önder Algedik has published a new report called Financing Coal: High Carbon Arithmetic of Turkey in the year of G20 Presidency of Turkey and UNFCCC Paris talks. The report explores Turkish coal sector including finance mechanisms that supports high carbon dynamics of Turkish energy sector. According to report, with current energy policies, Turkey will emit more greenhouse gas from electricity sector after completing coal power plants on the pipeline.

Writer of the report; Onder Algedik summarizes that “Although we are globally discussing abandoning coal in the eve of UNFCCC Paris and Turkey included fossil fuel subsidies and climate financing topics in G20 agenda, Turkey continues developing privileges for coal usage and planning to release more GHG emissions by usage of more domestic and global coal reserves”

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Fossil Fuel usage increasing faster than energy demand;

In terms of fossil fuels, report shows that, fossil fuel usage is accelerating faster than energy demand in Turkey:

  • Fossil fuel usage increased 152%, despite %128 total primary energy increase between 1990-2012.
  • Turkey’s high carbon policies increased share of fossil fuel from %81.5 in 1990 to %89.9 in 2012.

 Usage of coal in electricity sector is increasing and boosting GHC emissions of Turkey;

While the greenhouse gas emissions of Turkey has increased 133.4% between 1990-2012, the emission produced by the combustion of coal at thermal power plants has increased 219%. Moreover; If Turkey commissions the plants included in the portfolio; the coal-sourced carbon dioxide emission, which was 21,5 million tons in 1990, 68,7 million tons in 2012, is expected to reach 200 million tons (which is almost half of Turkey’s 2012 GHG emissions).

Moreover, Turkey provides more incentives for coal investments and developing new coal finance mechanisms. As a result; crediting coal investments are increasing and boosting GHC emissions of the country. Report concludes that up to now; national banks provided 4,3 Billon dollar credit to 4.7 GW of coal power plants by securing investment and supporting policies. These credits will be increased by realization of 20 GW of coal power plant.

Carbon Leakage through Coal!

Report shows that Turkey’s energy policies based on coal leads the extraction of more domestic and some global coal reserves.

  • Between 1990 and 2012, Turkey’s domestic coal usage doubled while coal import increased 5 times.
  • If the current coal plans are realized, Every 3 MW of 4 MW new capacities will use exported coal in Turkey.

Current data shows that; alongside the extraction of national coal reserves, Turkey is becoming an address of carbon leakage day by day through imported coal. Coal import from South Africa, Australia, USA, China and Canada, and mainly Russia has been increased drastically and will increase with current coal based energy policies.

Full version of the report can be downloaded through this link.

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Climate Negotiations Without Turkey?

“We have to ask ourselves ‘Why is Turkey becoming more carbon intensive while the technology provides more service with less energy?’ Turkey’s dismal climate scoreboard is best understood by the Turkish economy’s heavy dependence on industries with high carbon emissions.”

Turkish Policy Quarterly, Summer 2014

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Effectively tackling climate change requires strong, wide-spread agreement and high-level policy measures on a global scale. In contrast to the former high carbon economy paradigm, the new era is defined by the de-carbonization of economic activities. In this context, however, Turkey still functions within the old paradigm. Although Turkey is now experiencing extreme climate events more than ever, it has continued to promote carbon-intense growth policies. Compounding the detrimental effects of these national policies, Turkey is also not a visible player in international climate negations. Turkey’s contribution to the new international agreement scheduled to be adopted in Paris in 2015 is critical.

to read full article, click here; Climate Negotiations Without Turkey?

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