Turkey is a fascinating country. Where East meets West and where Europe merges almost seamlessly with Asia, Turkey can boast one of the world’s most diverse cultures. And now we know that Turkey also has a ‘Distributed Power’ market to rival that of Germany and the USA.
Certainly, that is the case when considering gas engines in the 400 kWe to 20 MWe size range.
Our latest analysis shows that 350 MWe of new gas engine capacity was installed in Turkey in 2013. This compares with around 440 MWe for Germany – the world’s largest gas engine market – and a little under 300 MWe for the USA. By 2020, we anticipate that the Turkish market will increase to almost 500 MWe of new capacity every year. Yet, as little as 10 years ago, Turkey had a gas engine market worth a paltry 50 MWe per year.
Graph: Turkey’s gas engine market is comparable with Germany and the USA
So what has stimulated this significant rise in activity?
There are a number of drivers to consider. Here, I’ve highlighted the top 3:
1. A growing economy with rising demand for electricity: Over the last 10 years (2002 to 2012), Turkey’s annual GDP has grown at an average rate of 5%, outperforming almost every other European country. And this trend is set to continue out to 2020. A solid economy, and a young, increasingly urban population, has seen demand for electricity soar. In the future (beyond 2020), a new nuclear programme could see a significant amount of new generating capacity coming online. But in the short term, natural gas is playing a major role in meeting this new demand with gas engines often the prime mover of choice within new-build power plants.
2. An improving regulatory framework: It’s fair to say that Turkey does not have the most favourable policy support for low carbon and renewable energy technologies. Yet, the situation is gradually improving. Efficient CHP technologies can now apply for license exemptions when seeking connections to the electricity grid, by-passing lengthy and often costly permitting processes. And since 2011, a feed-in tariff has been available for renewable technologies including biogas and landfill gas facilities. Now we are beginning to witness a real growth in activity within this sector.
3. European and US players increasing activity: Partly as a consequence of a growing economy and increasing electricity demand, and partly due to the improving regulatory framework, major European and US gas engine players are increasing their operations within Turkey. By establishing local distribution networks and flagship gas engine developments, the technology is increasingly becoming an established alternative to gas turbines at the larger end of the size spectrum (10+ MWe) and proving to be a commercially sound investment within the small industrial and commercial sectors, especially in the 1 to 5 MWe size bands. Perhaps unsurprising in Turkey, the textile industry is proving a particularly attractive segment for gas engines.
Find out more
Delta-ee’s Turkey Country Report, available to subscribers of the Distributed Power Service, provides deep insight on the current and future market drivers for gas engines and contains detailed historic, current and forecast sales data segmented by size class, fuel type and year. For more information on our pricing structure, or to discuss this research, please contact John Murray at firstname.lastname@example.org