Wednesday, December 13, 2006
Denmark-based Vestas, the world's largest producer of wind turbines, already has two ongoing projects in Turkey and is aiming to find more.The Turkish AKSA Group, a leading manufacturer of gas and diesel electric generators, has commissioned two wind power plants, in Sabenova and Karakurt, from Vestas. According to Vestas President Ebbe Funk the combined effect of the projects will save the environment from 83,000 tons of carbon dioxide (CO2) per year.
The Turkish Daily News caught up with the leading personalities of Vestas this week at the Polat Renaissance Hotel in Istanbul. Could the combined effect of all renewables be a viable substitute for nuclear energy in Turkey? Should the government abandon plans to construct nuclear power stations it announced in July?
Director General of Vestas Italia Rainer Karan stressed that wind could not replace all other forms of power generation but could prove extremely profitable in combination with other electricity sources.
Turkey is very dependant on natural gas imports, although it does generate some power via geothermal plants, a renewable energy source. In order to meet its growing energy demand, Turkey is looking to diversify its energy portfolio.
Wind energy's advantages:
Key Accounts Manager Eric Sejersen said, “Wind is a truly domestic resource that can substitute for much of imported energy.”
Sales and Marketing Director for Italy and the Middle East Francesco Paolo Liuzzi explained that, environmental issues aside, wind energy's advantage lies in the immediacy of the results. “If you start investing now, you can get it very soon, while starting with nuclear now means reaping the benefits in 15 to 20 years' time,” he said.
“Wind is cheaper than petrol in terms of social costs such as health and safety and polluting,” he said, adding: “Technological innovation has made it roughly at the same level of gas and nuclear. Thanks to research wind is a predictable: Anemometers can plot the ‘wave' of the wind over time with a great degree of accuracy these days.”
He pointed out that institutional subsidies still existed now that wind energy was in a mature phase in the market. These benefit both the clients and, in the long run, the hosting governments, because the Kyoto protocol entails fines for excessive CO2 levels. Turkey did not sign Kyoto, but ecological factors may become crucial as Turkey's integration talks with the EU develop, said Liuzzi.
Project and QSE Manager Fabrizio Sardella said that wind energy is the only renewable, other than hydroelectric power, that can compete with more traditional methods in term of production and actually reduce CO2 emissions. Solar power does not produce enough power, he noted
The Renewable Energy Law adopted by Turkey in May 2005 introduced a feed-in tariff for renewable-generated energy equal to the average wholesale price of the previous year for the next seven years. According to Aksa Group President A. Metin Kazancı this is an indication of an increased focus on wind energy in this developing market. “The Turkish government is aiming at diversifying its power production, and wind development will contribute to this in the coming years. The liberalization process has opened a large space for private wind energy developers,” he said.
Vestas' core business comprises the development, manufacture, sale, marketing and maintenance of wind power systems. It already has two ongoing projects in Turkey and is eager to extend its client base. Vestas even provides a “sales support tool” that facilitates financing for the client and a pre and post-installation service, though Sejersen emphasised that they didn't have a financial group of their own.
Conditions in Turkey:
According to European Commission study Wind Force 2005, Turkey has an 88,000 megawatt potential, a wind area in Europe second only to the United Kingdom. Sixty-three megawatts of wind energy harvesting capacity has already been installed. Sardella said that General Electric and Energon were also vying for the untapped remainder.
Liuzzi said that, insofar as Turkey is a developed market in all sectors with a good electrical infrastructure, installation and maintenance are pretty much the only costs.
The government, however, could do more to offer incentives clients to take up wind energy in terms of tariffs and producer-friendly electricity pricing. Sardella explained that with electricity prices as they stand, profit margins do not encourage smaller clients. “For small clients to be able to cover their costs, the government would have to mark up the price per kilowatt-hour,” he said.
Ultimately, Vestas aims to help Turkey maximise its renewables potential with regard to wind energy. Vestas' home, Denmark, generates around 20 percent of its energy from wind. The firm has also had great success in Spain, Germany and parts of the United States.
“We aim to make wind energy equal with other resources. We do not make miracles. Let's just say the first step has been taken” said Director-General Karan.
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