'Turkey Is an Energy Hub'

As part of our "Alternative Fuel Technologies" file, Energy Law Research Institute President Av. Süleyman Boşça has made a statement to our magazine and indicated that the current energy resources have become insufficient. He said: "In order to meet its energy requirements, the EU puts emphasis into pipeline projects instead of maritime transport that harms the environment. Thanks to its geopolitical position, Turkey is an energy hub with its natural gas pipelines and it can meet the demands of Europe."

"There Are Two LNG Terminals in Turkey: Marmara Ereğlisi and Egegaz"

What is the current use of LNG and CNG technologies in Turkey and the world? Can you make an assessment based on their prevalence and the sectors in which they are used?

LNG is the liquefied form of natural gas. It can be used in any area that requires thermal processing. It has a high calorific value and is an efficient fuel type. Turkey is one of the biggest heating-based LNG importers. There are two LNG terminals in Turkey: Marmara Ereğlisi LNG Terminal that has a 5,9-million-ton capacity and Egegaz LNG Terminal that has a 4,4-million-ton capacity. Additionally, there are 2 actively utilized LNG floating storage and regasification terminals at İzmir Aliağa and Hatay Dörtyol. For production purposes, LNG is used in ceramic, iron and steel, automotive, asphalt, paper and packaging. However, LNG is more popular for heating in our country and it is used at hospitals, social facilities, hotels etc.  In addition, LNG is also utilized at natural gas-based energy production plants to produce electric. It is also used as a fuel for land vehicles as an alternative to petrol products. Since LNG is purified of contaminants during its liquefaction process, it is cleaner than natural gas. That's why it is used in the food and beverage industry.

"Risk of CNG Explosion Is Lower Than Other Fuel Types"

CNG is the compressed form of natural gas. It is a crucial fuel especially for cogeneration systems at energy production plants where energy and heat are produced together. What makes it different than LNG is that it can be stored without any costs for cooling etc. CNG is used as a fuel in the automotive sector as well as vehicles like ships, planes and trucks. It is also used in the heating, automotive, food and transportation sectors. CNG is used as a fuel in the transportation sector due to the volatile and high fuel prices.  The most important reason behind its popular use in the transportation sector is that it is a much safer, cleaner and cheaper fuel.

“The Purpose of Joining the Kyoto Protocol; Reducing Greenhouse Gas Emissions by 20% Until 2020"

What does the European Union demand Turkey to change in its alternative fuel, environment and energy policies? What has been done in Turkey so far and what is planned to be done to realize these demands?

We can group EU's energy and environment policies under 3 titles. These are; competitive market approach in the electricity and natural gas sectors, protection of the environment and improvement of the share of renewable energy in energy production to combat climate change and energy supply security. Overall, what is demanded from Turkey is promotion of sustainable development for current and future generations and the protection of the environment. Turkey's first analysis were explained on the report published in 1998 and the first steps towards administrative and financial collaboration have been taken through this report. From that date onwards, Turkey has signed various agreements on environment and protection. In 2004 the EU Council Summit in Brussels has unanimously decided that the negotiations with Turkey shall begin at the beginning of October 3, 2005. As a result of this decision, EU has asked Turkey to state its short, medium and long-term goals. Since October 3, 2005; the EU has been reporting the Turkish environment policies with its Negotiating Framework, Commission Enlargement Strategy and Accession Partnership as well as its annually published progress report. In 2004, Turkey has signed United Nations Framework Convention on Climate Change and submitted its Inventory of Greenhouse Gas Emissions to the Secretariat of Climate Change Framework Agreement. In the May of the same year, Turkey has adopted the Energy Efficiency Law. The EU has prepared, implemented the "Environmental Action Program" for 7 times since 1973 and has also assumed the leadership of the Kyoto Protocol. On 5th of February 2009, Turkey has adopted the law that accepted its accession to the Kyoto Protocol. The Purpose of joining the Kyoto Protocol is to reduce greenhouse gas emissions by 20% until 2020. ­

"EU Focused on Searching for New Energy"

Some of the targets that the EU has created for its own energy policy, have created procedures that worked in favour of Turkey. During the harmonization process, there have been investments to increase energy efficiency and savings, make improvements in renewable energy sources, help our energy sector begin free trade, restructure our energy institutions, to establish the EMRA (Energy Market Regulatory Authority, EPDK) and renew the energy infrastructures. Since the number of EU member states have reached 27 and its current resources are no longer sufficient, it began to focus on searching for new energy supplies. In order to meet its energy requirements, the EU puts emphasis into pipeline projects instead of maritime transport that harms the environment. Thanks to its geopolitical position, Turkey is an energy hub with its natural gas pipelines and it can meet the demands of Europe.

"2007 Progress Report Emphasized That Turkey Is Behind the EU Standards in Energy"

As part of its harmonization process demands from candidate countries, the EU's pre-requisite from Turkey for its accession is Turkey's fulfilment of the EU Integrated Environmental Cohesion Strategy targets. The Turkey 2007 Progress Report has emphasized that Turkey is way behind the EU standards in energy. It has been indicated that Turkey's lost-illegal electricity rates are still very high and that although the laws adopted for energy efficiency and renewable resources have been helpful, their applications have remained limited. A new strategy must be established and implemented in Turkey for high priority issues about environment such as containment of water, waste and air pollution as well as protection of the environment. Turkey is obliged to renew its existing coal power plants to reduce their emissions. In 2010, Turkey has established a major breakthrough at the Ministry of Environment and Urbanization and found the Department of Climate Change. In 2011, it has adopted the National Climate Change Action Plan. Although the adoption of the National Climate Change Action Plan is a positive step, it hasn't accepted the agreement's targets for reducing national emissions.

“In The 2012 Progress Report, We Were Listed Among the Countries with The Highest Greenhouse Gas Emissions"

The lack of Turkey's national plan has changed EU's view of the harmonization process. As part of the process, the EU has set out Turkey's stance on its progress report in 2012 and indicated that Turkey is among the countries with the highest greenhouse gas emissions. Turkey is waiting for the completion of its EU Membership in order to be a party of such transboundary environmental issues and begin its research.

According to your estimates, which energy sources will become scarce and which will be easier to find in the upcoming years?

If we looked at the entire world, the currently used energy sources unfortunately cause the climate change and negatively impact our living conditions. A large portion of electricity is still produced from coal power plants. The sulphur dioxide released by the burnt coal causes acid rains and deals serious and permanent damage to the nature. Our realization of how bad these damages to the nature will affect our lives in the longer term, the limited nature of resources like petrol and natural gas; has lead countries towards renewable energy sources.

 "Countries That Correctly Use Their Resources Won't Have Energy Issues"

Alternative energy resources are; geothermal energy, solar energy, wind energy and biomass. Countries that correctly use their resources won't have energy issues in the future. If we look at how our country is producing the energy we're using, the installed capacity of our country has reached 87.139 MW in the first half of 2018. Distribution of our installed capacity by the end of the first half of 2018; 32,0% hydraulic energy, 26.4% natural gas, 21.4% coal, 7.7% wind, 5.4% sun, 1.3% geothermal and 5.8% other energy sources.

"Increasing Production from Renewable Energy Sources Reduces Our Foreign Dependence on Energy"

Hydroelectric power plants comprise 32% of our electricity production. These plants are important because they are environmentally friendly, renewable and a highly efficient energy source. If we looked at the economic state of our country, we would see that most of our current account deficit stems from our energy requirements. The rapid growth of renewable energy sources in our country, is one of the most important moves that would reduce our foreign dependence on energy. Thanks to our geopolitical position, we can take advantage of renewable energy investments in solar, wind and hydroelectric power plants.

"Natural Gas Market License Regulation Enables the Sales of LNG and CNG For Vehicles at Secondary Stations"

Which legislations regulate the use of fuels and are there any regulatory obligations on the use of alternative fuels?

There are communiqués and regulations on the use of fuel, enacted at different times in our country. The regulations determine the utilization principles and obligations of fuels for different sectors and intended purposes. These are;

Regulation on Control of Air Pollution Caused by Heating

Regulation on the Environmental Impacts of Types of Gasoline and Diesel

Communiqué on Waste-Derived Fuel, Additional Fuel and Alternative Raw Materials

Natural Gas Market License Regulation

Regulation on Monitoring Greenhouse Gas Emissions

Regulation on the Reduction of Ozone Depleting Substances

Regulation on the Technical Criteria to be Applied in the Petroleum Market

Here are the purposes of the current regulations:

The goal is to inspect and reduce the negative impact of contaminants emitted by incineration plants used for heating at residents, public housing, cooperatives, schools, universities, hospitals, workplaces, social resting facilities, industrial areas and similar places, into the atmosphere in the form of fumes, smoke, dust, gas and vapour, on the air quality; by controlling the air pollution caused by heating. For the environmental impact of gasoline and diesel derivatives; the principles and procedures for limiting the effects of gasoline and diesel types used in motor vehicles on the environment and human health are determined to control their environmentally harmful effects. The purpose of the Communiqué on Waste-Derived Fuel, Additional Fuel and Alternative Raw Materials is to determine the principles related to the use of wastes as alternative raw materials, the preparation of waste-derived fuel and the technical, administrative and general rules as well as the use of waste-derived fuel and additional fuels as fuel at incineration plants. The Natural Gas Market License Regulation sets the principles of using LNG and CNG, and it includes an amendment to the regulation that will allow LNG and CNG that is used as an alternative fuel in vehicles, to be transported to remote stations by road and sold. EMRA's amendment allows the natural gas, that was liquefied or pressurized at the main station, to be transported in pressurized containers to be sold to vehicles at secondary stations.

"There Are Many Factors That Affect Oil Prices"

How does the market shape the prices of fuel types; what are the factors that distinguish the price of one fuel type from the others?

Crude oil can be used as vehicle fuel, meaning gasoline or diesel, after going through a refining process. In addition to the fixed costs that set fuel prices, there can be differences in costs due to the factors that vary according to the internal structures of countries. Accordingly, there are three different types of processes in the market: Brent, WTI and Oman. Due to its scarcity and the lack of an equivalent product, oil is an economically important substance.  While oil extraction and transportation expenses are some of the fixed costs of crude oil; variable costs include reserve amount, supply-demand, decisions of OPEC countries and climate conditions. Known as the Organization of the Petroleum Exporting Countries, OPEC holds a large portion of the world's oil reserves. OPEC is formed by 12 countries that produce oil. Found to balance oil prices, OPEC can directly impact the oil prices in a positive or negative way. The times of need for oil, i.e. supply-demand relationship, also play a role in shaping prices periodically. When natural disasters like tornadoes, hurricanes etc. decrease production at the oil producer USA, it causes a temporary impact on the prices. Seasonal increases in the country's demand also affects the prices. One example is the increase in people's tendency to drive in summer. If we look at the pricing relationship with respect to the type of fuels used in transportation; there are additional measures and incentives in the European Union's decisions on reducing Environmental Impact and Greenhouse Gas Emissions because diesel fuels cause more damage to the environment as stated in agreements such as the Kyoto Protocol. These measures and incentives include laws on taxation and reduction of usage. Oil is a finite resource. That's why there are studies for the use of new technologies in transportation. The latest developments include electric and hybrid fuels.

"The Limited Use Cases of Oil and Its Derivatives Will Pave the Way for Alternative Methods"

After the entry of a fuel in our country, there are variable costs that affect the prices. In addition to product price; taxes, wholesaler-distributor share and exchange rate are among the reasons behind the variations in prices. The National Marker and Automation System that was adopted to prevent trafficking, brings additional costs like national oil stock taking obligations. And that is reflect in the sales prices. In conclusion, there are a lot of factors that affect fuel prices. To make an estimate about the future, we must say that it is impossible to be dependent on the existence of an infinite commodity. The limited use cases of oil and its derivatives will pave the way for the search, development and use of alternative methods. In this respect, we expect the popularisation of LNG and CNG-powered vehicles as well as electric and hybrid vehicles, and we predict that they will replace the oil-derived fuels in time.

"Recognition of The Delicacy of The Environment Will Lead Us Towards Alternative Sources"

What would you say about the future of using alternative fuels? What sort of fuel consumption awaits us in the future?

With the developing technology, we will gradually begin talking about the use of alternative fuel types in vehicles. The world has to make a decision and make an effort; not only because of the finite nature of oil, but because of the impact of fossil fuels on the changing climate conditions, Reduction of emissions and immediate recognition of the delicacy of the environment will lead us towards alternative sources.