Lignite potential solution to Turkey’s rising energy demand

Currently, 15.4 percent of Turkey’s electricity production is fuelled by lignite and coal. As of the end of 2011, 30.6 percent of electricity was generated using natural gas, 32.2 percent by hydroelectric plants, 2.9 percent by liquid fuel power stations and a further 3.2 percent by wind farms.

Energy Minister Taner Yıldız announced reductions in the use of natural gas to produce electricity last week, adding that new measures will be implemented to lower the country’s dependency on energy imports. He said those who use domestic lignite to produce electricity will be given special incentives and limits will be imposed on future natural gas-powered projects. These measures will contribute to the government’s 2023 target of reducing natural gas imports by 20 percent.

Energy Market Regulatory Agency (EPDK) President Hasan Köktaş had previously said Turkey’s energy strategy places an emphasis on the effective use of Turkey’s coal resources, but the main concern raised by TMMOB is the increasing number of licenses being given out to private investors who plan to build power plants fuelled by imported coal. Currently, 7.9 percent of electricity is being generated using imported coal, a figure which is likely to increase in the near future according to EPDK data showing that 21 further power plants are currently in the licensing process. The total capacity of the proposed plants will be 12,546.17 megawatts, a fourfold increase on present figures.

In addition, coal-fired power plants currently in the investment phase represent a total capacity of 4,902.60 megawatts. It is estimated that one-third of the total combined coal and natural gas power production will be generated using imported coal when all proposed coal-fired power plants are brought online, including those in the investment phase and under construction. The total capacity of natural gas power stations, including existing plants and projects under construction or in the investment phase, is estimated to be 50,566.36 megawatts.

The current dependency on foreign coal and natural gas considerably increases Turkey’s CAD. Experts at TMMOB suggest Turkey must take advantage of its renewable energy potential, as well as existing natural resources. With sufficient investment, Turkey could produce up to 90-100 billion kilowatt hours (kWh) from hydroelectric sources, 120 billion kWh from wind farms, 5-16 billion kWh from geothermal power, 380 billion kWh from solar energy, 35 billion kWh from biofuel plants and 108-116 billion kWh from lignite power stations.

The amount of natural gas and coal imported for electricity production has increased in line with demand. Turkey saw 9.89 percent growth in electricity demand between 2010 and 2011, rising from 208 billion to 229 billion kWh. Turkey’s imported coal and natural gas totaled $21.2 billion in 2005, increasing to $38.5 billion in 2010 and exceeding $50 billion in 2011 due to both rising prices and an increase in demand.

Hüseyin Akarçeşme, a businessman and council member at the İstanbul Chamber of Commerce (İTO), said his commission has been researching ways to use lignite as a source of power generation for 15 years, adding that an İTO study suggests if lignite goes through a process of drying before it is used, the rate of gas emissions can be cut by 90 percent. By implementing a carbon capture and storage (CCS) system, some of the emissions produced in the combustion process can be prevented from reaching the atmosphere and the ash produced is an important raw input for the cement industry. He added that current İTO research suggests the greenhouse gas emissions of the process are close to zero.

Akarçeşme argues further research and development will allow more efficient and environmentally friendly projects to be developed, which will enable the exploitation of Turkey’s rich natural resources.

The İTO research suggests energy production policies should encourage the use of domestic equipment and natural resources. Between 2010 and 2030 energy investments in Turkey are expected to total between $225 billion and $280 billion. İTO research concludes that strict licensing policies should be implemented and the energy sector should be restructured to reflect these policies.