Strategic Plan 2015-2019 of the Ministry of Energy and Natural Resources

1. Situation Analysis 12

2. Implementation Results of Strategic Plan 2010-2014 16

3. Mission, Vision, Basic Values and Principles 17

4. Strategic Plan 2015-2019 19 Theme 1: Security of Energy Supply 23 Theme 2: Energy Efficiency and Energy Saving 49 Theme 3: Good Governance and Stakeholder Interaction 61 Theme 4: Regional and International Effectiveness 73 Theme 5: Technology, R&D and Innovation 85 Theme 6: Improvement of Investment Environment 91 Theme 7: Raw Material Supply Security 99 Theme 8: Efficient and Effective Use of Raw Material 105

5. Monitoring and Assessment 112

6. Costing 114 Annex 1: Strategic Planning Board and Team List 115 Annex 2: Chart of Theme-Goal-Objective Roles and Responsibilities 119 Abbreviations Ar-Ge : Research-Development MIGEM : General Directorate of Mining Affairs BIK : Affiliated and Related Institutions MTA : General Directorate of Mineral Department Research and Exploration BO : Build Operate MVA : Megavolt Ampere BOREN : National Boron Research Institute MW : Megawatt Department NEPUD : Nuclear Energy Project BOTAS : Petroleum Pipeline Corporation Implementation Department BOT : Build Operate Transfer NGS : Nuclear Power Plant CAGR : Compound Annual Growth PG : Performance Indicator Rate PIGM : General Directorate of Petroleum DIAB : General Directorate of Foreign Affairs Relations and EU Affairs SWOT : Strengths, Weaknesses, Opportunities EIGM : General Directorate of Energy Affairs and Threats Sm3 : Standard cubic meter TAEK : Turkish Atomic Energy Authority ENTSO-E : European Network of Transmission TEDAS : Turkish Electricity Distribution System Operators for Electricity Corporation EPDK : Energy Market Regulatory Authority TEIAS : Turkish Electricity Transmission Corporation ESIS : The Ministry of Energy and Natural Resources Strategic Management and TEMSAN : General Directorate of Turkish Statistics System Electromechanical Industry ETI MADEN : ETI Maden General Directorate TETAS : Turkish Electricity Trade and Contracting Corporation EUAS : Electricity Generation Company TKI : General Directorate of Turkish Coal EVD : Energy Efficiency Consultancy Enterprises Companies TOE : Tons of Oil Equivalent GSYH : Gross Domestic Product TOOR : Transfer of Operating Rights GWh : Gigawatt hour TPAO : Turkish Petroleum Corporation IEA : International Energy Agency TPBH : Transit Petroleum Pipelines KIT : State Owned Enterprises Department kV : Kilovolt TTK : General Directorate of Turkish Hard kWh : Kilowatt hour Coal Authority LED : Light Emitting Diode TWh : Terawatt hour LNG : Liquefied Petroleum Gas VAP : Efficiency Enhancing Project MENR : The Ministry of Energy and Natural YEGM : General Directorate of Renewable Resources Energy MENR STRATEGIC PLAN 2015-2019 3 PRESENTATION OF THE MINISTER “For energy and natural resources of growing, dynamic and new Turkey…” Taner Yıldız Minister Energy sector has been experiencing a period in which all of this economic growth we possess today. Annual aver- rules are being re-written again. Major energy importing age growth rate of 4% in primary energy consumption be- countries have become exporters, whereas major energy tween 2003-2013 indicates that energy consumption has exporting countries have become the center of demand’s grown along with the economy. Within the period where growth. Economic growth, energy demand and their en- the balances are changing and the energy sector is ex- vironmental impact have become vital issues more than tremely dynamic, the energy strategy to be determined by ever and energy efficiency, as well as environmental har- Turkey, of which energy demand has been continuing to mony comprise the major topics of today’s agenda even increase, is a very critical issue to have long term effects. for the countries holding the richest natural resources. Since the energy and natural resources sectors are As of early 2014, our country which is the sixteenth larg- multi-lateral, dynamic and flexible by the nature of their est economy of the world and the sixth of Europe respec- markets, Strategic Plan to be developed for these sectors tively, is an active member of G- 20 in which the strongest should be in such a structure reflecting opinions of various economies of the world are duly represented. In a period parties, while considering current dynamics and reviewing in which various national economies are getting narrowed the issues from different perspectives. From this point of due to global financial crisis, Turkish economy, following view, we have included our stakeholders actively into the the economic deceleration in 2008 and recession in 2009, Strategic Planning Period and paid maximum attention to grew at 9.2% and 8.5% in 2010 and 2011 respectively, the sector’s requirements. We believe that this approach and the country achieved an average growth rate of 5% shall affect our stakeholders positively to appropriate our during 2003-2013. plan as well. Energy industry has played a vital role in the establishment The competitive market structure regarded as a critical factor for energy supply security, as being attempted to the Strategic Plan. These themes reflect correlation and be established by the liberalization, and having changed synergy between energy and natural resources sectors; the appearance of the energy sector in an accelerated establish a balance by avoiding one of them to get ahead manner within the last decades are the crucial focal points of other and attach deserved importance to both of them. of Turkey’s energy policy. In this regard, the energy sector Alongside of these eight themes, we have contemplated being competitive, transparent and protecting consumers the title of economic, social and environmental sustain- as well as considering environmental sustainability has ability as a framework for all other topics. been our prıority, and we believe that this priority will con- I hereby express my sincere thanks to Undersecretary tinue in the future. and Deputy Undersecretaries, whose contributions de- Considering the natural resources, as pointed out in the spite their intensive agenda are considerably critical for previous Strategic Plan, utilizing rich natural resources the success of the Strategic Plan, to our General Direc- of Turkey to the greatest extent in line with sustainability tors, Managers, all our stakeholders operating in energy principles will remain medium and long term priority. In and natural resources sector who contributed during the this sense, forming effective and applicable policies for preparation stage of the Plan and to all our colleagues in a sustainable mining, assuring occupational health and Ministry, both for their valuable contributions and for their security issues in compliance with environment is a pre- embracing the plan as being its future implementers. requisite for proper management of natural resources in a With these feelings and thoughts, I hope Ministry’s Strate- manner that the natural resources will contribute to eco- gic Plan for 2015-2019 shall be beneficial to the sectors, nomic growth and welfare of the country. all our stakeholders and eventually to our country. As a consequence, we have focused on eight themes in MENR STRATEGIC PLAN 2015-2019 5 Presentation of the Undersecretary “A novel approach, a participatory strategy…” Metin KİLCİ Undersecretary Turkey has become the primary country among OECD services and to develop policies, to implement the stipu- countries in which the energy demand has increased the lated policies in the basis of concrete work programs and most within last 10 years. Alike, our country has become budgets and to monitor and evaluate the implementations the second largest economy, after China, in the world, effectively. Strategic planning; shall introduce efficiency to having the second biggest demand increase in electricity public financial management and on the other hand shall and natural gas since 2002. Projections made by Ministry provide support for the development and strengthening of reveal that this trend shall continue in medium and long institutional culture and identity. terms as well. In the preparation stage of Strategic Plan 2015-2019, un- Within a market environment developing and changing like existing Strategic Plan and other Strategic Plans pre- so rapidly at both national and international levels, deter- pared by public sector within the framework of Law no. mination of future oriented vision and strategies for the 5018, we concentrated to enable the strategic plan not country consequently for the Ministry is utmost important. to be considered as a legal obligatory document and to include it into “Strategy Documents” which provides the In a study conducted on public institutions, managers de- institutions to be the actors having a voice in the market, fine strategic planning as a successful “Innovation tool in as well as in world literature. management” for the public sector. In our country, “Stra- tegic planning” has been adopted as a fundamental tool in Within this framework, based on source diversification for regard to enabling public institutions to introduce planned uninterrupted, sustainable, environmentally friendly, high quality, reliable and cost effective energy supply to the fi- participatory, innovative and pioneering in this regard. nal consumer and for energy procurement; strategic plan I would like to extend my gratitude to all our stakeholders studies have been carried out to deploy indigenous and having contributions in this Plan. As in Preparatory pro- renewable energy sources at maximum level, to support cess, I hereby wish to underline that the contributions of reduction of energy intensity, to use nuclear energy in academic world, other Ministries and non-governmental electricity generation, to minimize waste and environmen- organizations acting in our sector are also necessary in tal impacts of the energy, to reach a competitive energy particular points in the implementation of this Strategic system strengthening the country’s strategic position in Plan. international energy trade. Besides, issues of bringing na- tional mining to better points and providing the efficient I hope that; Ministry of Energy and Natural Resources’ utilization of mine resources, thus introducing it into econ- Strategic Plan 2015-2019, which was developed in the omy have had their important places within this plan. result of intensive studies lasted around a year and which carries the feature of being the reference document in the I truly believe that a multi-faceted Plan has been gener- field of energy and natural resources in our country for the ated together with its adoption by our stakeholders in a next 5 years period, would be beneficial for our country. manner where all our stakeholders actively participate to implementation process by observing requirements of the industry in maximum extent, adopting the principles such as being transparent, reliable, environmentally conscious, MENR STRATEGIC PLAN 2015-2019 7 Presentation of Strategy Development Presidency “An innovative, participatory and sustainable strategic plan…” Ministry’s 2015-2019 Strategic Plan has been designed as Stakeholder, Product and Service Analysis a strategic road map, considering the developments in the Stakeholders of the Ministry have been analysed in accor- field of energy and natural resources in the world, defining dance with their effects and significance towards the Ministry the sources owned by our country and its specific needs, as well as their relationships with the Ministry and have been determining the targets for meeting these needs in maximum incorporated into preparatory studies of the Strategic Plan. level, and in such a structure which is; The products and services offered by the departments of Participatory, the Ministry have been analysed for being used as inputs in Innovative, situation analysis. As a result of these analyses: Multifaceted, As our Internal Stakeholders; Based on–reliable and accurate data-statistically val- Central Units of the Ministry idated, Affiliated, Associated and Related Institutions. Accessible however-challenging objectives, As our External Stakeholders; Establishing synergy and balance between energy Relevant Public Institutions and Organizations, and natural resources that are two main fields of re- Academic Institutions sponsibility of the Ministry, All Non-Governmental Organizations in the field of En- Prioritizing environmental awareness, ergy and Natural Resources, including the strategies-meeting the demand of en- Economic and Social Non-Governmental Organiza- ergy and raw material of the economy of our growing tions, country, International Organizations, Considering global trends, current conjuncture and were determined respectively and all stakeholders were pro- prospective expectations, vided to attend the preparation process with maximum level . In compliance with other comprehensive policy docu- Meetings and Focus Groups Studies ments constituting macro policy and strategies of our country. Within the scope of analyses, meetings and focus groups studies have been carried out and in this regard, the Minister, In this regard, current situation analysis has been conducted the Deputy Minister, the Undersecretary, the Deputies Un- to obtain proper and multifaceted information from different dersecretary, Central Departments and General Directors of stakeholders having diversified perspectives and has been Affiliated, Associated and Related Institutions, Deputy Gen- used as an input of the strategy. Besides, recent develop- eral Directors and relevant Head of Departments and several ments in the world and in our region have been analyzed experts have congregated for this purpose. in the field of energy and natural resources and have been reflected into our strategies. For compiling different thoughts, Questionnaires some practices such as meetings, workshops, focal group Questionnaires have been conducted for obtaining opinions studies and questionnaires have been held at every stage of and expectations relating to the issues and strategies re- preparation studies with a broad participation and an anal- quired to attain strategies in question by stakeholders and ysis, so design process based on consensus has been ex- reaching a large participation group and then results of the perienced. questionnaire have been analysed and have been used as The analyses in 2015-2019 Strategic Plan Preparatory one of fundamental inputs of Strategic Plan. Questionnaires Studies in which multidimensional data collection structure have been conducted to 7 different groups as was designed and applied, therein, were based on the data Personnel of the Ministry sources as follows: Central Units of the Ministry Affiliated, Associated and Related Institutions of the plementations in other countries from which lesson can be Ministry drawn in positive and negative sense for the Ministry and Non-Governmental Organizations relating to Energy global trends constituting input for the analysis have been and Natural Resources examined. These studies have contributed to global per- Other Economic and Social Non-Governmental Orga- spective evaluation of strong and weak aspects of the Min- nizations istry and it has enabled opportunities and threats to be re- viewed in both domestic and internal platforms. Public Institutions that are External Stakeholders of the Ministry Examination of Top Policy Documents Academicians of Academic Departments and Univer- Top policy documents in which the Strategic Plan should be sities relating to Energy and Natural Resources. in conformity with in absolute terms have been perused and These questionnaires with average 20 questions each having evaluated within the framework of the considerations likely to open and closed ended questions together have been im- affect the Ministry. Within this scope; plemented as Internet-based medium and their results have 62nd Government Program and Annual Program, been analysed. Questionnaires which had been replied by Medium Term Program (2014-2016), over 1100 real and legal entities were separately examined, Medium Term Financial Plan (2014-2016), classified and consolidated, so as to form a meaningful in- tegral. 10th Development Plan, Workshops The Decisions of Science and Technology Higher SWOT analysis (Strengths, Weaknesses, Opportunities Board, and Threats) Workshops with three full day sessions have Energy Efficiency Strategy Document, been conducted and the results have been used as an input Electricity Sector Reform and Privatization Strategy through all studies. Document , On February 11, 2014, the workshop has been held Electricity Market and Supply Security Strategy Doc- with a participatory groups of 45 persons comprised ument of Central Units of the Ministry, Top Directors of Affil- iated, Associated and Related Institutions to receive have been examined. opinion of Strategic Planning Board providing input As a result of all the studies set out above, our plan has in- to the Strategic Plan with the participation of the Min- volved eight themes in total which are Energy Supply Security, ister. Energy Efficiency And Energy Saving, Good Governance And On February 12, 2014, the workshop was held where Stakeholder Interaction, Regional And International Effective- SWOT analysis were carried out with Strategic Plan- ness, Technology, R&D and Innovation, Improvement of In- ning Team (SPE) and internal stakeholders on draft vestment Environment, Raw Material Supply Security, Efficient themes in which opinions were received regarding And Effective Use of Raw Material. These themes have been objectives related to Strategic Plan. formed elaborately as a frame where synergy and interactions On February 13, 2014, the workshop has been car- of energy and natural resources sectors have been reflect- ried out in which the opinions in regard to objectives ed, establishing unbiased significance to the sectors - Along- of the Strategic Plan have been obtained and SWOT side these eight themes, economic, social and environmental analysis has been conducted on the basis of draft sustainability has been designed as a framework for all other themes and with a comprehensive participation with themes; external stakeholders comprised of representatives The Strategic Plan has been structured as follows: of Non-Governmental Organizations representing all Name of the theme for each theme, justification for enterprises carrying on operation in energy and min- theme, a brief assessment relating to prioritized risks ing, relevant academicians and representatives and relevant public institutions. and current situation, SWOT analysis findings (the results of SWOT analysis have been interpreted and In addition, a participatory approach has been adopted transferred herein by considering the fact that strong during designation stage of the strategies and a wide range and weak sides have mostly the same roots and op- of meetings have been held where top management actively portunities and threats are in complementary nature participates. In order to provide the embracement of strate- instead of listing strong and weak sides, opportunities gic theme, goal and objectives designed in these meetings and threats separately). by the top management a separate workshop for a period of two days held with participation of the Minister, the Deputy Goals within the scope of the theme, Minister, the Undersecretary and Deputy Undersecretaries, Objectives in regard to attaining this goal under each Central Units of the Ministry, Top Directors of Affiliated, As- goal and performance indicators for each objective, sociated and Related Institutions and opinions of all partici- Relevant strategies to be applied for attaining the said pating units were received. goal for each objective. Literature Research over Public Data at Local and This structuring is as follows as explained in the example pro- Global Scale vided below: Required literature research has been conducted in terms of theoretical infrastructure of the study and exemplary im- MENR STRATEGIC PLAN 2015-2019 9 How Should the Strategic Plan Be Read? THEME SWOT GOAL Security Results of the analyses Goal 1: Strong of Energy carried out for the strenghts and Reliable Supply and weaknesses and also Energy opportunities and threats in Infrastructure the field of the energy supply security of the Ministry CURRENT STUATION AND RISK OBJECTIVE PERFORMANCE INDICATOR Current Situation and G1. OBJECTIVE 1: It will Development of the natural gas Base Risk Assesment be ensured to be launched storing and withdrawal capacity in Year 2019 concerning the necessary investments the plan period. 2013 the Goal 1 to meet 20% of the annual consumption of the natural gas Total storage storing capacity in the long Capacity (billion Sm3) 2.6 5.3 term and also be increased G1. PI 1.1 STRATEGY the levek to meet 10% of the annual consumption by the Total Withdrawal Capacity (billion Sm3) 20 115 end of the planned period. It will be ensured to be increased the backward production capacities in the current natural gas storage facilities. MENR STRATEGIC PLAN 2015-2019 11

1. Situation Analysis History of the Ministry and its the Statutory Decree dated 13.02.1983 and was finalized by the Law no. 3154 issued on 01.03.1985 and the Statuto- Organization ry Decree dated 02.11.2011 and no. 662 stipulating some amendments in this Law. Accordingly, the Ministry has 8 The Ministry of Energy and Natural Resources was estab- main service departments, 5 consultancy and audit depart- lished upon the approval of the Presidency dated 25.12.1963 ments and 3 ancillary service departments. Organizational and no. 4-400 based on the power vested by the Law no. chart of the Ministry as of June, 2014 in which the Strategic

4951. Organizational Law of the Ministry was regulated by Plan was prepared is as follows: MINISTER DEPUTY PRIVATE MINISTER SECRETARIAT MINISTRY CONSULTANTS PRESIDENCY of AUDIT UNDER LEGAL SERVICES SECRETARY CONSULTANCY DEPARTMENT HEAD of INTERNAL AUDIT PRESS and PUBLIC DEPARTMENT RELATIONS CONSULTANCY DIRECTORATE of PERSONNEL DEPARTMENT DEPUTY DEPUTY DEPUTY DEPUTY DEPUTY UNDERSECRETARY UNDERSECRETARY UNDERSECRETARY UNDERSECRETARY UNDERSECRETARY SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING CENTRAL UNITS GENERAL PRESIDENCY GENERAL GENERAL DIRECTORATE of of STRATEGY DIRECTORATE DIRECTORATE of ENERGY AFFAIRS DEVELOPMENT of RENEWABLE MINING AFFAIRS ENERGY GENERAL DEPARTMENT DEPARTMENT GENERAL DIRECTORATE of of NUCLEAR of AFFILIATED DIRECTORATE of FOREIGN RELATIONS ENERGY PROJECT and RELATED PETROLEUM AFFAIRS and EU AFFAIRS IMPLEMENTATION INSTITUTIONS DEPARMENT of DEPARMENT of TRANSIT PETROLEUM ADMINISTRATIVE and PIPELINES FINANCIAL AFFAIRS AFFILIATED INSTITUTIONS GENERAL TURKISH DIRECTORATE of ATOMIC ENERGY MINERAL RESEARCH AUTHORITY and EXPLORATION RELATED INSTITUTIONS GENERAL GENERAL DIRECTORATE DIRECTORATE of GENERAL DIRECTORATE GENERAL of ELECTRICITY TURKISH ELECTRICITY of TURKISH ELECTRICITY DIRECTORATE of GENERATION COMPANY TRANSMISSION TRADE and CONTRACTING TURKISH PETROLEUM CORPORATION CORPOTATION CORPORATION GENERAL GENERAL DIRECTORATE of GENERAL DIRECTORATE DIRECTORATE of ETI MADEN GENERAL PETROLEUM PIPELINE of TURKISH COAL TURKISH HARD COAL DIRECTORATE CORPORATION ENTERPRISES AUTHORITY GENERAL DIRECTORATE of TURKISH ELECTROMECHANICAL INDUSTRY ASSOCIATED INSTITUTIONS ENERGY MARKET NATIONAL BORON REGULATORY RESEARCH INSTITUTE AUTHORITY DEPARTMENT MENR STRATEGIC PLAN 2015-2019 13 General Directorate of Turkish Electricity Distribution Cor- and giving all kinds of required commands and supporting poration (TEDAS) with its 21 privatized Electricity Distribu- the same, tion Regions under its responsibility and included within the − Involving with the studies in respect with determination of scope and program of privatization with the Decision of High the policies and strategies intended for enhancing energy Board of Privatization dated 02.04.2004 and no. 2004/22 efficiency and evaluation of renewable energy resources are not included within Affiliated, Associated and Related In- and performing the studies in regard with determination of stitutions in its organizational chart and has been designated these policies and strategies, as responsible body for some objectives set out in the Stra- − For the purpose of fulfilling the roles revealed hereinabove, tegic Plan since its field of operation is directly associated gathering and evaluating required information and per- with the Ministry. forming preparatory studies relating to determination and development of long-term policies. Establishment Purpose, Authority, Roles and Global Overview to Energy and Responsibilities of the Ministry Natural Resources Industry Establishment purpose of the Ministry in accordance with the A national strategy to be determined in the industry of natu- Law on Organization and Roles of the Ministry of Energy and ral resources continuing with changed contour but with rel- Natural Resources no. 3154 is help determine improvement ative higher stability with energy industry that is an extremely and strengthening of objectives and policies, defence of the dynamic sector whose balances, requirements and sides in country, security and welfare and national economy in refer- global scale rapidly vary is of utmost importance for taking ence with energy and natural resource and to enable energy into consideration current developments in the world and and natural resources to be investigated, developed, gen- in our region. Development experienced in energy market, erated and consumed in duly manner. Roles of the Ministry access to new resources in parallel with technological ad- have been defined in the foregoing Law as follows: vancements, generation and consumption values varying in − Determining short and long term requirement of the coun- the country and increasing environmental concerns continue try to energy and natural resources, helping determine re- to mould global energy industry. When our energy depen- quired policies for their supplies, conducting their planning, dency is taken into account in the field of energy and natu- − Helping determine general policy principles for the purpose ral resources, the risks posed by varying markets under the of exploration, operation, development, improvement, effect of global and regional trends are crucial for Turkey. evaluation, control and maintenance of energy and nat- When it is viewed from this perspective, operation and strat- ural resources in compliance with the benefit, technical egies of the Ministry are being affected from several external requirements and economic development of the country, factors. These factors can be summarized as: conducting required programs, preparing and causing to − Global and regional geopolitical and geostrategic develop- prepare plans and projects, ments, − Granting the rights of exploration, installation, setting up, - Developments in energy and natural resources markets operation and utilization in regard evaluation of these re- - State-of-the-art technologies sources, performing transfer, assignment and rescission - New energy resources procedures of these rights, if necessary, establishing mort- gage, expropriation and other restricting rights and record- - Diverse environmental susceptibilities ing and maintaining the registries of the same, - Changing route of trade − Providing and inspecting coordination of assessment stud- - Global and domestic macro-economic developments ies of general policies of survey, establishment, operation - Preferences and values changing in generation and con- and maintenance services of generation, transmission and sumption approaches. distribution plants of energy and natural resources in com- By considering the foregoing, what leading trends are in pliance with public needs, Security and benefit, global energy industry within the scope of the 2015-2019 − Designating generation, transmission, distribution and con- Strategic Plan Preparatory Studies, how these trends exhibit sumption prices policies of the products together with un- variation and in what way they will affect our country have derground and superstructure energy and natural resourc- been elaborated. The said investigations are outlined below: es and determining their prices, if needed, Rise in oil prices, low fluctuations in recent period and de- − Examining and approving operating and investment pro- velopment of new exploration and generation technologies grams of Affiliated and Related Institutions of the Ministry have caused an investment environment which will enable and monitoring and evaluating their activities based on an- performing generation with unconventional generation meth- nual programs, ods from rock petroleum and rock gas reserves that are − Inspecting, scrutinizing and examining all studies and pro- harder to access. cedures of Affiliated and Related Institutions of the Ministry While vast majority of global gas generation is used for do- SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING mestic consumption, a ratio in the amount of 31% is subject Increasing electric power demand makes nuclear energy to international trade. Although global natural gas trade has to be the most important source base load power plants. not been within a change in recent times, advancements in Large scaled nuclear disaster resulted by the earthquake in demand and supply sides boost especially new LNG termi- Fukushima region in Japan March 11th, 2011 caused the nal investments. A myriad of LNG terminal investments have confidence of governments, relevant institutions and individ- been carried out in global platform in parallel with expected uals on nuclear energy to be shaken throughout the world natural gas export impetus of the USA and for the purpose of and resulted in organization of various anti-nuclear protests meeting increasing natural gas demand depending on trend in various countries and pushed the countries to review their of natural gas use undergone in Japan after Fukushima and nuclear power programs. However, many countries, for pro- in emerging Asia economies. New fields discovered in Africa viding their Security of Energy Supply, begin to make new also increases LNG operations in the region. nuclear investments based on current technology by in- Liberalization and spot market formations undergone in nat- creasing their security measures. ural gas markets impose a pressure in regard to changing Energy efficiency, which is considered as the cheapest and the methodologies implemented in determination of prices of the most clean energy source for supply is an area which natural gas in past periods. is getting higher and becoming more attractive every pass- In addition to these developments undergone in global are- ing day throughout the world, particularly European Union na, new resources such as Northern Iraq oils, Eastern Med- member countries. Based on IEA data, it is stated that the iterranean gas reserves, developments such as Azerbaijan investments made in 2011 all around the world in the field of pipeline operations, removal of Iran embargo and Ukrainian energy efficiency by public sector, major private enterprises crisis are of utmost importance in terms of petroleum and and multilateral financial institutions have reached up to 300 natural gas operations. billion dollar. Besides, taking into consideration the invest- Renewable energy investments have continued to increase ment made by small enterprises, it is evaluated that energy in recent times; electrical generation based on renewable efficiency investments are much more than their anticipated energy at the end of 2012 in the world has reached 4.888 value. Investments towards energy efficiency are expected TW. Renewable energy technologies play a vital role in not to continue increasingly in the middle term. only electricity generation in the world but also in meeting In energy and natural resources sectors, technologies par- heating demand. At the end of 2011, except conventional ticularly the implementations such as carbon capture and bio-mass, contribution of renewable energy for meeting of storage technologies, fuel batteries, struggle against climate heat demand reached up to 8,8%. In particular, Germany, change and global carbon markets, nuclear fusion energy Spain and England, leading countries in European Union in the field of renewable energy have been implementing their technologies and demand side management have significant renewable energy targets rapidly in line with their strong pol- game changing potential. It is inevitable that our national en- icies and supporting action plans. Specifically, Germany and ergy and natural resources policies should be evaluated in Spain have aimed to develop their domestic equipment in- such a manner not to fall behind the global developments dustry in solar energy technologies and applied policies in- and to comply with these improvements. volving serious incentives in this respect. The said policies Mines, naturally must be extracted where they are located. have provided installed power to reach serious levels in a Mining processes need a sensitive and integral structure in short time. However, in line with the burden on the public which all parties participate in terms of economic, social and finance brought by the incentives and the decline in equip- environmental aspects. On the other hand, raw materials ment costs due to advanced technology, it is seen that these constitutes the backbone of the industry which plays a lead- countries should review their incentive policies today. ing role in enhancement of social welfare and provision of Coal, particularly in the recent period, by the impact of clean employment. coal technologies, has reached a different position and be- From a global point of view, despite energy mineral raw ma- come to be more alluring phenomenon. According to the terials have been discussed by various agreements, a serious data of International Energy Agency (IEA), it is has been policy on out of energy minerals classified as metallic miner- shown that the share of coal in worldwide electricity gener- als, construction (structure) minerals and industrial minerals ation has been 37.4% in 1990. This share rose to 40.3% by could not be established until 2000’s. However, as a result 2012 and maintained its first place among all sources and of increasing concerns in terms of supply Security, particu- it is projected that it has maintained its rank in all resources larly in EU and the USA, developed countries began to form until 2035. Developments experienced in the trade volumes their out of energy policies. The policies formed within this of coal markets provide opportunity for expansion of physical framework are generally classified into three main groups; and financial coal trade and allow reaching further liberal and raw material supply both inside the country and abroad, re- liquidity market structure. Increase of liquidity and trade vol- placement products and source efficiency and conversion, ume has provided the formation of financial derivative prod- whereas innovation has been defined as an issue intersect- ucts. In the coal prices which developed under the effect of ing with all these policies. petroleum prices until 2011, particularly due to coal supply that USA has contributed to international coal trade in the re- In this respect, although it seems contradictory in concep- cent period, a decline has occurred independently from pe- tual aspect, forming an effective mineral policy for a sustain- troleum prices. The decrease of exports in Russia and South able mining in compliance with environmental aspects and Africa towards Europe and the low performance shown by providing occupational health and Security conditions are a these two countries in their total trade volume, not in short priority for the management of our natural resources so as term, shall cause their positions to regress in European Coal to provide contribution to our national welfare and social de- Market in long term. velopment. MENR STRATEGIC PLAN 2015-2019 15

2. Implementation Results of Strategic Plan 2010-2014 In the Strategic Plan 2010-2014, the Ministry have set 11 ted to top management of the Ministry in specific periods, strategic goals and 32 strategic objectives under 5 strategic the reasons of deviations from objectives of which perfor- themes and created performance indicators regarding these mances have been found partially successful or unsuccess- goals and objectives and performed monitoring and evalua- ful and evaluations made on suggestions for necessary have tion activities in every six- month periods. been included in detail. For proactive monitoring, reporting of stages recorded in Under the consideration of these findings included in the implementation process and evaluation of probable devia- report, generally due to some reasons such as; problems tions from strategic targets, thus taking necessary measures sourced from the applicable legislation, delays occurred within the permit process, infrastructural deficiencies, restric- in time are of utmost importance. Within this scope, data tions on authority and coincidences, slow progress in some regarding indicators included in 2010-2014 Strategic Plan markets needed to be restructured, it has been decided that have been obtained from the Departments of the Ministry some objectives could not be accomplished at desired level and developments recorded for each objective have been but an improvement may be provided due to some mea- duly evaluated. sures to be taken in following periods. For this reason, most As a result of performance evaluation made for the plan pe- of the objectives considered as unsuccessful or partially suc- riod, the objectives considered as successful -partially suc- cessful included in the prioritized policy and strategies of the cessful and unsuccessful- have arisen. In “Monitoring and Ministry have taken its place in this plan again. Evaluation Reports” prepared within this scope and submit- SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING

3. Mission, Vision, Basic Values and Principles Mission Providing the highest contribution to national welfare by utilizing energy and natural resources in the most efficient and environmentally-conscious manner Vision A reliable future in energy and natural resources MENR STRATEGIC PLAN 2015-2019 17 Basic Values and Principles • Transparency opinions, suggestions and expectations as far To accomplish the activities as accessible by as possible within our policy making processes relevant parties and offering them to the public within the scope of the legislation • Innovativeness and leadership To support R&D studies and to lead the use of • Reliability domestic and new technologies To execute the activities in accordance with the purpose of a reliable and prestigious in- • Efficiency stitution in national and international platforms To use public sources, allocated to the Min- istry, in line with the objective of providing the • Environmentally-consciousness productivity and efficiency and Respect to Life • Consistency and Predictability To execute the activities within the framework To execute our activities in stable manner un- of environmental sustainability and respect to der the protection of national benefits in the life principles light of medium and long term reliable projec- tions and in line with global improvements. • Participation To take into consideration of the stakeholders’ SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING

4. Strategic Plan 2015-2019 Strategic Plan 2015-2019, in particular for de- while following common development require- veloping Ministry’s institutional and executive ca- ments are emphasized, pacity, has been structured on themes meeting In the field of Energy; daily requirements of the sector and forward ex- − Supply Security, pectations in the field of energy and natural re- sources requiring policy development. Selection − Energy efficiency and saving of the themes has been achieved on the basis In the field of Natural Resources; of participatory studies such as questionnaires − Efficient and effective raw material use, workshop, focal group meeting made performed − Raw material supply security, by internal and external stakeholders and current situation and trend analyses at local, regional and come to the fore. global scale. Strategic Plan 2015-2019 of the Sustainability considered as an inevitable con- Ministry consists of 8 themes, 16 goals and 62 cept for the process of introducing energy and objectives in total, and involves the following out- natural resources into economy and their con- line; sumption has not been designed as a separate In the field of Energy and Natural Resources; theme but designed as a frame to include all themes. The Strategic Plan has been aimed to − Good governance and stakeholder interaction, be implemented under the consideration of en- − Regional and international effectiveness, vironmental, economic and sustainability prin- − Technology, R&D and innovation, ciples in terms of its all goals, objectives and − Improvement of investment environment, strategies. MENR STRATEGIC PLAN 2015-2019 19 ENERGY Security of Energy Efficiency and Good Governance and Energy Supply Energy Saving Stakcholder Interaction Goal 1: Strong and Goal 4: Turkey; Making Reliable Energy Use of Its Energy in the Intrastructure Most Efficient Way Goal 2: Optimum Goal 5: Improved Resource Diversity Capacity for Energy Efficiency and Saving Goal 3: Effective Demand Management Goal 6: The Ministry with a Strong Corporate Capacity Goal 7: The Ministry Using Information Technologies Effectively Goal 8: A Well-Coordinated Ministry SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING Regional and Technology, Improvement of the Raw Material Efficient and International R&D and Investment Supply Security Effective Use Effectiveness Innovation Environment of Raw Material NATURAL RESOURCES Goal 9: Turkey Goal 11: Goal 13: Goal 15: Security Goal 16: Integrated with Indigenous Competitive and of Non-Energy Efficient and Effective Regional Technology in Transparent Markets Raw Material Use of Non-Energy Energy Markets Energy and Natural Supply Natural Raw Materials Resources Goal 14: Improved Goal 10: A Powerful Investment Processes Actor in the Goal 12: A Result- International Oriented R&D Arena Apporoach MENR STRATEGIC PLAN 2015-2019 21 With its generation, import, transmission, storage and distribution infrastructure TRUST IS NOT A MATTER OF COINCIDENCE IN NEW TURKEY SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING THEME 1 Security of Energy Supply Why Security of Energy Supply? Main components of security of supply are considered to be frastructure bringing together the supply and demand phys- the provision of generation and imports, transmission, stor- ically are not taken into consideration. Supply, demand and age and distribution infrastructure and management of de- all components between them as transmission function are mand. Although security of supply invokes getting focused considered to be complementary issues and these factors on provision of supply, it is not possible to provide the se- are required to be handled all together for enabling proactive curity of supply in structures in which demand and the in- management of security of supply. The structure of electricity genera- more investor awareness should also tion dependent on natural gas bears be increased. important risk, therefore it is neces- sary that the share of natural gas in Turkey, due to its position, is suitable electricity generation should be de- for being an energy transition centre creased and countries for imports (hub); however relevant infrastruc- should be diversified. ture, market formation and regional effectiveness should be provided. It is necessary that investments on transmission and distribution in- A considerable import dependency frastructure should continue and exists in oil and natural gas. Although should be completed on time for the we have some institutions involved in purpose of supporting the sectoral oil and natural gas exploration stud- growth in electricity and natural gas. ies, these activities should be intensi- fied, initiatives for shale gas explora- Results Natural gas storage capacity is not adequate currently and is required to tion and generation should be taken, strong domestic companies should of SWOT be increased. increase their foreign contacts and initiatives and foreign sources should Analysis We have substantial potential in terms of both electricity and heat be introduced into domestic utiliza- tion. generation in renewable energy sources such as solar, wind, hy- There exists an important demand dro-electric, geo-thermal, bio-mass, management potential in industrial wave and tidal. However, in order to sector for lowering the peak demand accomplish utilization of this potential in electricity, but legislation and mar- fully, financial opportunities should ket structure should be developed be improved, legislation should be for enabling an active demand man- updated and transmission infrastruc- agement implementation. ture should be strengthened; further- MENR STRATEGIC PLAN 2015-2019 23 GOAL 1 Strong and Reliable Energy Infrastructure Security of supply is handled as three components which are stage so as to include electricity transmission and distribu- respectively supply, demand and infrastructure which pro- tion, natural gas transmission and distribution and storage vide opportunity to bring demand and supply together, and shall enable to access energy in desired place and time and any lack of these components means that security of sup- shall provide utility for reaching security of supply and de- ply is not able to be managed efficiently. From this point of sired competition level in energy markets. view, bringing energy infrastructure into a strong and reliable Million TOE Coal Natural Gas Oil 140 Hydro Wood, Biomass 120 and Other Wastes 100 Others 80 Graphic 1: 60 Development of Primary Energy Demand in Turkey 40 Source: MENR *Others include; Solar, 20 Wind and Geo-thermal Resources. 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING When the situation is examined in terms of natural gas, ben- al consumption could be met. For this purpose, necessary efiting from cheap natural gas resources efficiently, under the investments are to be supported and relevant reports and consideration of seasonal fluctuations such as increase of programs are to be prepared. consumption due to decreasing temperatures in winter, and When the situation is examined in terms of electricity market, failures arising out of the import country for enabling to meet the natural gas demand without being interrupted, it is aimed planning the transmission lines in line with generation devel- that natural gas storage capacity should be brought to such opment plans in the long term and under the consideration of a level where 10% of annual consumption could be satis- supply- demand balance in the short and medium term shall fied and transmission line restrictions should be removed. provide that electricity shall be available to be used where In addition, it is of high importance to launch and follow up and when requested; furthermore important contribution the investments which would provide the storage capacity shall be provided for avoiding problems which may arise due to be brought to such a capacity where 20% of the annu- to restrictions in the market. GWh Thermal Hydro Geothermal + Wind 250,000 6,760 8,921 5,418 3,585 511 1,009 1,931 200,000 52,339 57,865 59,420 221 Graphic 2: 153 150 151 153 44,244 35,851 33,270 35,958 51,796 150,000 39,561 Development of 35,330 46,084 Electricity Generation 33,684 100,000 in Turkey 171,638 174,872 171,812 155,196 164,139 156,924 155,828 122,242 131,835 50,000 95,563 105,101 104,464 Source: TEIAS 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 MENR STRATEGIC PLAN 2015-2019 25 MW 70,000 3,071 60,000 Thermal 2,423 1,843 Hydro 1,414 50,000 869 22,289 Geothermal + Wind 169 394 19,620 35 82 17,137 40,000 34 34 15,831 36 30,000 Graphic 3: 12,579 12,645 12,906 13,063 13,395 13,829 14,553 12,241 Development of Electricity 20,000 38,648 Installed Capacity 32,279 33,931 35,029 27,357 27,272 27,595 29,339 10,000 22,974 24,145 25,879 19,569 Source: TEIAS 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 km 60,000 Total Electricity Transmission Line Length 50,000 Graphic 4: 40,000 Length of Electricity 50,225 51,235 46,283 46,667 47,147 48,760 49,450 Transmission Lines 45,723 45,779 45,810 46,032 42,765 Source: TEIAS 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING MVA Quantity (Number) 140,000 1,478 1,600 1,398 1,357 120,000 1,317 1,400 1,272 1,241 1,173 1,130 1,200 100,000 1,072 1,089 1,088 966 1,000 80,000 Power (MVA) Quantity 800 119,096 60,000 109,462 Graphic 5: 89,476 93,672 99,852 104,577 600 82,056 40,000 78,062 Development of 380 kV 67,085 68,942 71,897 400 and 154 kV Transformer 61,532 20,000 Capacity and Quantity 200 Source: TEIAS 0 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Billion m³ 50 Underground Storage Capacity (billion m3) 30% Consumption (billion m3) 45 Rate of Underground Storage Capacity to Consumption (%) 40 25% 35 30 Graphic 6: 20% 25 Natural Gas 45.2 45.9 15% 44.1 20 Consumption and 36.0 37.4 Capacity of 35.1 35.2 10% 15 30.5 Underground Storage 26.9 10 20.9 22.1 17.4 5% 5 Source: BOTAS, TPAO 2.7 2.7 2.7 2.7 2.7 2.7 2.7 0 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 MENR STRATEGIC PLAN 2015-2019 27 km 90,000 88,313 82,238 80,000 74,855 70,000 Total Natural Gas 67,869 Transmission and 60,000 Distribution Line 58,342 Length 53,936 50,000 45,554 Graphic 7: 40,000 35,084 Natural Gas 30,000 Transmission and Distribution Line 20,000 Length 10,000 6,078 7,809 Source: BOTAS, EPDK 4,510 5,245 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2006 2009 2014 2007 2007 2007 1989 2009 2006 2008 2003 2002 2008 1989 1996 2008 1989 2007 2008 2007 2008 2010 2006 2003 2008 1996 2008 1996 2006 2003 2009 2003 1988 2003 2003 2008 2006 2003 1995 2004 2003 2003 2003 2003 2005 2007 2008 2003 2007 2003 2005 2003 2007 2005 2003 2005 2011 2007 2003 2011 2005 2006 2005 2011 2005 2005 2003 2005 2005 2007 2012 2005 Figure 1: 2011 The Provinces Supplied with Provinces where the Gas Supply was provided in 2002 and before (9 Provinces) Natural Gas Provinces where the Gas Supply was provided between 2002 and 2013 (64 Provinces) Provinces where ongoing constructional works are available (5 provinces) Source: BOTAS Provinces where ongoing engineering studies are available (3 provinces) Particularly, when direct relation between natural gas and of plans and in coordination shall provide contribution to se- electricity markets is taken into consideration, strengthening curity of supply. of natural gas and electricity infrastructures within the scope SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING Natural gas storage plant investments are not only in the mo- sioning of these investments. These risks should be man- nopoly of public sector but should be also accomplished by aged by making the investment environment to comply with private sector. Storage investments need time to be imple- tariff, legislation and incentives, etc. for the private sector, mented due to higher financing requirement and technical and by advancing these investments in compliance with the difficulties. Financing problems and technical requirements plan for public investments. are the most influential risks to obstruct the timely commis- G1. OBJECTIVE To ensure natural gas storage capacity to be able to meet Coordinator: EIGM 20% of the annual consumption in the long term, necessary Responsible Bodies: PIGM, BOTAS, TPAO, EPDK investments shall be initiated and shall be brought up to a level so as to be capable of meeting at least 10% of the an- nual consumption until the end of the plan period. Performance Indicators: Base Tuz Gölü natural gas storage and Base Natural gas storage and withdrawal capacity Year 2019 Year 2017 2019 2013 withdrawal capacity 2013 Total Storage Capacity Tuz Gölü Storage Capacity 2.6 5.3 - 0.5 1 (billion Sm3) (billion Sm3) G1.PI.1.1 G1.PI.1.2 Total Withdrawal Capacity Tuz Gölü Withdrawal Capacity 20 115 - 20 40 (million Sm3 /day) (million Sm3 /day) G1. OBJECTIVE 2 Electricity and natural gas transmission system shall be con- Coordinator: EIGM structed and operated according to (n-1) criteria, disabling Responsible Bodies: TPAO, BOTAS, TEIAS, EPDK of a critical part of the system, in line with short and medium term supply-demand balance and long term generation de- velopment plan. Performance Indicators: Completion of (n-1) emergency plans Maintenance of non-interruption arising from transmis- G1.PI.2.1 for electricity and natural gas transmis- 31.12.2016 G1.PI.2.2 sion system in electricity and natural gas transmission sion systems systems MENR STRATEGIC PLAN 2015-2019 29 Strategies Completion of existing projects and planning of new proj- Considering annual demand projections in electricity and ects shall be provided in order to reach natural gas stor- natural gas, implementation of existing electricity and nat- age volume required to be at a level of 10% of the con- ural gas transmission investments shall be provided with sumption in accordance with Natural Gas Market Law taking into consideration technological advances such as no. 4646. smart grid, storage in electricity and investments regard- ing storage and LNG terminal in natural gas. Increase of withdrawal capacities of existing natural gas storage plants shall be provided. Preparation of infrastructure plan by TEIAS and BOTAS regarding regional supply and demand development and Regulations assisting the private sector to make invest- completion of investments planned according to (n-1) cri- ments regarding the storage and LNG terminals shall be teria in the electricity transmission system shall be provid- determined by a participatory procedure and put into ed primarily for the regions facing transmission restriction. practice. Completion of international interconnection facilities in The suitability of the fields, where natural gas and petro- compliance with ENTSO- E criteria and establishment of leum production is available, for natural gas storage after necessary infrastructure in order to give opportunity to the reserves are exhausted shall be evaluated jointly with international electricity trade shall be provided. license owner companies. Preparation and publishing of “Natural Gas Transmission Preparation of infrastructure plans regarding regional Capacity Projection Report” including peak demand, re- supply and demand development for the regions which quired natural gas storage capacities, monthly and annu- may face up transmission restriction shall be provided by al demand projections shall be provided annually. TEIAS and BOTAS. SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING MENR STRATEGIC PLAN 2015-2019 31 GOAL 2 Optimum Resource Diversity Diversification of primary energy resources and utilization of Provision of resource diversity in electricity generation is a the country’s resources rationally are the key components prominent factor for effective utilization of resources and de- for both of sustainability and low cost energy supply. Re- crease of import dependency. Due to the fact that natural source diversity involves the diversity both in resource type gas is an import resource causing high foreign trade deficit and in the import country. Within this context, reducing the as well as procurement risk, it is aimed that the share of the risks arising from import dependency and bringing forward natural gas in electricity generation should be reduced to the indigenous energy resources are of utmost significance 38% by the end of the plan period. in terms of national economy. TWh 250 Natural Gas Coal** Hydroelectricity 200 Renewable*** Fuel Oil* 150 Graphic 8: Electricity Generation by Resources 100 Source: TEIAS * Diesel oil and Nafta power plants are included. 50 ** Domestic and Imported Coals . Asphaltite is also included. *** Involves Wind, Geo-ther- mal, Waste and other renewable power plants. 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING On the other hand, the most effective utilization of domestic reach a level of 60 billion kWh/year by the end of the plan coal resources has been specified as one of the basic objec- period. For accomplishing this objective, these investments tives and it has been further aimed that by the future invest- are to be accelerated and new resources shall be explored. ments, the electricity generation from domestic coals should Thousand Meters 280 256 240 225 220 200 184 160 Coal Drilling 145 144 125 120 Graphic 9: 88 80 Coal Exploration Drilling 52 40 Source: MTA 15 12 10 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 MENR STRATEGIC PLAN 2015-2019 33 GWh 70,000 Hedef 60,000 GWh 60,000 60,000 Lignite Hard Coal Asphaltite 50,000 50,000 Objective 40,000 40,000 Graphic 10: 30,000 Electricity Generation of 20,000 Domestic Coal Fired Power Plants 10,000 Source: TEIAS 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Utilization of domestic renewable energy resources such as increasing the share of renewable energy in electricity gene- hydro, wind, solar, geo-thermal, bio-mass, wave and tide ration as well as utilization of renewables as a heat source is and introduction of them into the economy are strategically aimed within the scope of the Strategic Plan. striking for providing the resource diversity. For this reason, MW 45% 28,000 38% 40% 35% Installed Capacity 35% 34% 34% 24,000 of Hydroelectric 33% 32% 33% 33% 33% 35% Power Plants 32% 32% Share of Hydroelectricity in 30% 20,000 Total Installed Capacity 25% 16,000 Graphic 11: 20% 12,000 22,289 Installed Capacity 15% Development of 19,620 8,000 17,137 Hydroelectric 14,553 15,831 10% Power Plants 12,906 13,063 13,395 13,829 12,241 12,579 12,645 4,000 5% Source: TEIAS 0 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING MW 4,000 6% 5.1% Wind Geothermal 4.5% 5% Biomass 3,000 Share of Renewable 3.7% Energy in Total Installed 4% Capacity (Excluding Hydro) 3.1% 2,000 Graphic 12: 2.1% 3% Installed Capacity Development of Renewable 2% 1.1% Energy and Its Share in 1,000 Total Installed Capacity 0.5% (Excluding Hydro) 0.3% 1% 0.2% 0.2% 0.2% 0.2% Source: TEIAS 0 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Exploration of new domestic oil and natural gas resources on activities and performing exploration and generation with shall contribute to resource diversity and display reducing non-conventional methods taking into consideration their en- impact on import dependency. Within this framework, the vironmental impacts are among the objectives determined in increase of domestic oil and natural gas resources explorati- line with this goal. Million Tons 25 20 Domestic Import 15 Total 10 Graphic 13: 16.4 16.8 19.3 18.1 20.5 19.5 21.8 18.6 21.0 14.2 Crude Oil Supply of Turkey 5 Source: MENR 2.2 2.5 2.4 2.3 2.4 0 2009 2010 2011 2012 2013 MENR STRATEGIC PLAN 2015-2019 35 Thousand Meters 350 300 Oil & Natural Gas Drilling Length 250 200 305 150 Graphic 14: 323 298 298 242 Oil and Natural 100 Gas Drilling 198 198 113 133 50 96 81 52 Source: MENR 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 As 98,5% of the natural gas used in the country is procured new contracts is very important from strategic point of view from foreign sources, the natural gas is the primary source in in terms of managing the risks and overcoming the tempo- which diversity requirement is witnessed. Providing a balan- rary problems to occur. ce which shall create a diversification of source country with Overcoming the obstructions regarding utilization of domes- enabling renewable energy’s deployment into production in tic resources, particularly coal, shall be available by the jo- a higher level and for increasing domestic natural gas and int attempts of private sector and public sector. Necessary oil exploration. Diversification of source country in natural regulations which would facilitate investments should be gas and oil imports requires both a substantial infrastructure implemented and the investors should act consciously for need and an active energy diplomacy. G2. OBJECTIVE Electricity generation from domestic coal shall be increased Coordinator: EIGM to 60 billion kWh annually by the end of the plan period. Responsible Bodies: MTA, EUAS, TEIAS, TKI, TTK, EPDK Performance Indicator: Base 2015 2017 2019 Year 2013 Electricity generated from domestic coal G2.PI.1.1 (billion kWh) 32.9 40 50 60 SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING G2. OBJECTIVE 2 Transformation of existing domestic coal resources into Coordinator: EIGM electricity generation investments and exploration of new re- Responsible Bodies: MIGEM, MTA, EUAS, TKI, TTK sources shall be provided. Performance Indicators: 2015 2016 2017 2018 2019 Execution of Pre-Survey and Situation of com- Studies pletion of pre- in- vestment processes related to intro- Transfer of the Additional exploration drillings ducing Afyonkar- field to relevant G2.PI.2.1 ahisar-Dinar and expertise institution Opening Eskişehir-Alpu the fields to in exchange for Hydro-geologic survey reserves into econ- investments discovery right and omy by 50% within the costs thereof the planning period Geo-technical survey The study for determination of recoverable reserve 2015 2016 2017 2018 2019 Additional exploration drillings Geological–geophysical survey The situation of Opening Karapınar G2.PI.2.2 Hydro-geologic detailed survey Ayrancı Coal Field Opening the fields to investments to investments Geotechnical survey Conceptive mine design+preparation of preliminary project+tendering Scientific excavation studies in mound and necropolis areas Opening Tekirdağ-Çerkezköy/İstan- G2.PI.2.3 31.12.2019 bul-Çatalca Coal Field to investment MENR STRATEGIC PLAN 2015-2019 37 G2. OBJECTIVE 3 The share of renewable energy resources in primary energy Coordinator: YEGM supply and electricity generation shall be increased. Responsible Bodies: YEGM, MTA, TEIAS, EPDK Performance Indicators : Planned installed power values based on renewable energy sources (MW): Base Year 2015 2017 2019 2013 G2.PI.3.1 Hydraulic 22,289 25,000 27,700 32,000 G2.PI.3.2 Wind 2,759 5,600 9,500 10,000 G2.PI.3.3 Geothermal 311 360 420 700 G2.PI.3.4 Solar - 300 1,800 3,000 G2.PI.3.5 Biomass 237 380 540 700 Base Year 2019 Share of renewable energy resources within commercial 2013 G2.PI.3.6 heat generation by the end of the period (%) 2 3 G2. OBJECTIVE 4 Nuclear energy shall be included into electricity generation Coordinator: NEPUD portfolio. Responsible Bodies: NEPUD, EIGM, TAEK, EUAS, TEIAS, EPDK Performance Indicators: Determination of the field for third Completion of electricity transmis- G2.PI.4.1 31.12.2018 NGS in line with technical, eco- sion lines for Akkuyu NGS nomic and environmental criteria, G2.PI.4.4 initiation of pre-feasibility and in- 31.12.2019 vestment preparations, completion Start-up of Akkuyu NGS for elec- of studies for the determination of G2.PI.4.2 31.12.2019 investors tricity generation (test generation) Determination of domestic uranium and thorium resources and the do- G2.PI.4.3 Start-up of construction for Sinop 31.12.2019 G2.PI.4.5 mestic nuclear industry policy based 31.12.2019 NGS on these sources and preparation of road map SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING G2. OBJECTIVE 5 Coverage ratio of domestic and imported crude oil produc- Coordinator: PIGM tion against consumption shall be increased to 13.6%. Responsible Bodies: TPA Performance Indicator: Base Year 2015 2016 2017 2018 2019 Coverage ratio of domestic and foreign 2013 G2.PI.5.1 crude oil generation against consumption 12.8% 13.2% 13.6% 13.4% 13.1% 13.6% G2. OBJECTIVE 6 Hydrocarbon potential which may be obtained through un- Coordinator: PIGM conventional methods shall be determined. (Shale gas, shale Responsible Bodies: TPAO, TKI, TTK oil etc.) Performance Indicator: Completion of studies revealing that the unconventional resources such as G2.PI.6.1 shale gas, shale oil and methane hydrate etc. are able to be produced and 31.12.2015 revealing their potential thereof G2. OBJECTIVE 7 Diversification of import countries and routes shall be provid- Coordinator: DIAB ed by adding new source countries and routes into natural Responsible Bodies: TPBH, EIGM, BOTAS gas import portfolio. Performance Indicators: Conducting necessary studies for procuring natural Decreasing the dependency on one single coun- gas by private sector from Iraq, Qatar, Algeria, Turk- G2.PI.7.1 menistan, Eastern Mediterranean, Africa and other G2.PI.7.3 try for imports of natural gas to 50% until the end potential countries along with the plan period of plan period Adding at least two countries to the countries Development of various alternatives such as; supplying pipe gas or LNG form natural gas operation of spot pipe gas ,TAP pipe line in re- G2.PI.7.2 G2.PI.7.4 either in spot or long term basis until the end of verse flow basis, usage of LNG facilities of other the plan period countries, if necessary MENR STRATEGIC PLAN 2015-2019 39 G2. OBJECTIVE 8 Domestic oil and natural gas exploration and production ac- Coordinator: PIGM tivities shall be increased until the end of the plan period. Responsible Bodies: TPAO Performance Indicators: Increasing domestic oil, natural gas exploration and production activities till the end of the Base Year plan period 2009-2013 2015-2019 Number of exploration and production wells to be drilled until the end of the plan period (increase in the number of opened wells according to 1,086 wells (20% G2.PI.8.1 905 the previous plan period) increase) 1 geologic- 5 geologic- G2.PI.8.2 Number of geologic wells to be drilled until the end of the plan period purpose well purpose wells In case of explora- tion; 12; G2.PI.8.3 Number of deep sea wells to be drilled until the end of the plan period - Not exploration ; 3 deep sea wells G2. OBJECTIVE 9 The share of natural gas in electricity generation within total Coordinator: EIGM generation shall be reduced to 38% until the end of the plan Responsible Bodies: EIGM, EPDK period. Performance Indicator: Base Year 2015 2017 2019 2013 G2.PI.9.1 Share of natural gas in electricity generation (%) 43.8 45 42 38 G2. OBJECTIVE 10 Necessary feasibility studies regarding the expansion of LPG Coordinator: PIGM and dumped LNG use in the regions, where natural gas can- Responsible Bodies: PIGM, EPDK not be supplied, shall be completed. Strategy and road map studies shall be accomplished if deemed feasible. Performance Indicators: G2.PI.10.2 Completion of strategy studies 30.06.2016 G2.PI.10.1 Completion of feasibility studies 31.12.2015 G2.PI.10.3 Completion of road map 31.12.2016 SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING G2. OBJECTIVE 11 Domestic uranium and thorium resources shall be explored Coordinator: NEPUD and developed so as to be used as fuel in nuclear power Responsible Bodies: MIGEM, MTA, ETI MADEN plants. Performance Indicator: G2.PI.11.1 Until the end of the plan period, completion of reserve determination studies of uranium and thorium resources and preparation of production feasibility studies 31.12.2019 Strategies The investments in the coal fields which have been awar- Necessary studies shall be executed for a hard coal exp- ded to private sector by royalty aiming electricity genera- loration project for domestic hard coal which is similar to tion shall be completed and commissioned. lignite exploration project and exploration activities shall be initiated. Rehabilitation and modernization projects boosting ge- neration in existing coal-fired electricity generation power Exploration studies regarding geothermal fields suitable plants under the responsibility of public and private sec- for electricity generation, heating and for other purposes tor shall be accomplished. shall be focused. The developments regarding projects for electricity ge- As regards promotion of renewable energy; Renewable neration from domestic coal carried out by the private Energy Support Mechanism (YEKDEM) shall be mainta- sector shall be monitored. ined. Domestic hard coal production shall be increased. Appropriate incentive mechanism shall be designed for exploration in geothermal and shall be implemented All coal fields of which the licenses are owned by the pub- together with other measures thereof. lic shall be opened to investment based on appropriate models (lignite fields having large scale reserves with in- Permission and approval processes shall be rehabilitated ter-governmental agreement or public-private partners- and facilitated for expansion on- site generation. hip etc.). Necessary infrastructure shall be provided to be strengt- Number of technical staff shall be increased and existing hened for enabling the integration of renewable energy infrastructure shall be improved for MTA in order to exp- sources which make interrupted generation (wind and lore new coal fields and to bring existing fields ready for solar) into the network. investment. MENR STRATEGIC PLAN 2015-2019 41 Hybrid system whereby feeding water is subjected to areas in which the oil finding could not be found or un- pre-heating process with solar energy in thermal power conventional methods shall be applied therein. plants in appropriate locations shall be enhanced. Sustainability of production shall be provided by the met- Monitoring and follow up system for the projects based hods such as implementation of secondary production on renewable energy sources shall be established. methods in oil and natural gas and exploration of new fields. The studies regarding the determination of wave energy potential in the country shall be carried out. Studies shall be performed to determine the potential of shale gas and shale oil. Studies regarding determination, grading, protection and utilization of renewable energy source areas (YEKA) ap- Studies for obtaining gas by unconventional methods propriate for electricity generation in public and treasury shall be continued, and legal regulations shall be made lands shall be supported. for the feeding of natural gas network by providing incen- tives to oil and natural gas production for the gas produ- Support shall be provided to develop pilot projects ai- ced and upon the approval of the transmission operator ming the efficient utilization of renewable energy sources of all kinds of gases which are produced by unconventi- and pilot projects based on hybrid systems. onal methods and which have similar properties with the natural gas. Necessary measures shall be taken for developing finan- ce opportunities and incentives so that renewable energy The studies shall be carried out to determine the alterna- investments (licensed and planned ones) could be imp- tive import countries and deliberations shall be initiated. lemented. Oil and gas exploration studies shall be promoted. Hydro-electric Power Plant implementation with pumped storage shall be initiated and extended. For the parts of country where no exploration activities have been conducted so far, under the consideration of Measures shall be taken to increase the use of renewable environmental and economic sustainability, approaches energy for heating and cooling purposes. for exploration studies shall be developed. Installed capacity of solar power plants to be constructed Deep sea explorations for oil and natural gas shall be inc- in “Karapınar Energy Industrial Zone” shall be determined reased within national fields. as MW. Regulations regarding licensing process for electricity ge- Necessary follow up procedures shall be conducted for neration from natural gas shall be prepared in line with compliance with calendars specified for NGS projects energy policy and strategies. and necessary measures shall be taken in this respect. Feasibility, strategy and road map studies for the utiliza- Licensing implementations to be made in relation with tion of LPG in terms of domestic and industrial utilization nuclear security and safety for NGS projects shall be and its utilization as primary and/or spare fuel in electri- handled with primary concern. city generation in the places where LPG is not available shall be performed in coordination with other Ministries, Relevant transmission lines of Aksuyu NGS shall be prog- if required. ressed in compliance with the plans and in synchronized manner with the commissioning of the power plant. In places where pipe lines are not available, within the scope of environmental factors and policies for develop- Legal and regulatory infrastructure which shall be neces- ment of the industry, effective role shall be undertaken for sary for issues such as licensing, inspection of NGSs and promoting LNG usage and for the determination of price relevant mandates shall be formed and applied according policies accordingly. to the norm and standards determined by International Atom Energy Agency. Reserve determination studies for uranium and thorium shall be completed and feasibility studies for production A discount shall be applied to the rates of guarantees shall be completed. to be received for work and investment program in the SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING MENR STRATEGIC PLAN 2015-2019 43 GOAL 3 Effective Demand Management Demand management is an important component of securi- at an optimal level. Making demand management mecha- ty of supply. Regulations prepared only in the supply side in nisms usable commercially shall be an influential tool for the the energy market are not adequate for efficiency and sus- management of the peak demand. Therefore, in case when tainability of the market. Active participation of the demand the supply may be inadequate to meet the demand which side into the market shall reduce the imbalances, which may cannot be managed, a flexible process shall be provided in be occurred due to demand and/or supply, to minimum and the system and price fluctuations shall be managed in easier shall provide opportunity that supply and demand may meet way. TWh 250 CAGR: 5.8% 200 150 100 Graphic 15: 190 198 194 210 230 242 246 174 161 Development of Electricity 141 150 133 50 Demand Source: TEIAS 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 * CAGR: Compound Annual Growth Rate is a calculation used for determination of annual growth rate of the annual data occurred in a specific period. CAGR = (Data on the end of the period/data in the beginning of the period)^(1/(Number of years within the scope of the period))-1 SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING Billion Sm3 50 CAGR: 8.4% 45 40 35 30 25 45.2 45.9 20 Graphic 16: 35.4 36.9 35.2 37.4 43.7 15 31.0 Development of Natural 27.3 10 Gas Demand 22.3 5 Source: EPDK 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 To accomplish this goal, demand management was aimed Participation of the demand side, besides the preparation of to be initiated by the end of 2018 in the natural gas market. relevant regulatory frame, shall be possible by development On the other hand, participation of the demand in the electric of the demand side in terms of awareness. Keeping informed market has been aimed to be implemented by the end of the demand side in this respect and raising awareness of the

2015. Thus, as of 2016, it has been aimed that the ratio of advantages introduced by the participation is considered to peak demand to average demand in the electricity market facilitate to attain this purpose. should be reduced each year. G3. OBJECTIVE As of 2016, market based demand side participation Coordinator: EIGM mechanism shall be implemented in order to reduce the Responsible Bodies: TEIAS, EPDK rate of peak demand to average demand in electricity market. Performance Indicator: Implementation of market based demand side participation mechanism in G3.PI.1.1 31.12.2015 the electricity sector G3. OBJECTIVE 2 Implementation of demand side management mechanisms Coordinator: EIGM for natural gas shall be provided. Responsible Bodies: BOTAS, EPDK Performance Indicator: G3.PI.2.1 Initiating the demand side management in natural gas market 31.12.2018 MENR STRATEGIC PLAN 2015-2019 45 Strategies Demand side participation focused pilot projects shall stalling “Smart metering-household consumption control be implemented for industrial consumers and residenc- structure” by the pilot projects, household consumption es, the relevant results shall be evaluated, cost- benefit shall be monitored; besides efficiency and saving, con- analyses and impact analyses shall be conducted in this sumption in peak demand shall also be reduced. respect and implementation road map shall be prepared. The necessary steps shall be taken for transition to liberal Coordination shall be provided with relevant institutions in market in the natural gas and the price shall be formed order to remove peak demand and loss and illegal elec- within a supply-demand balance. tricity consumption problems arising from electricity use in agricultural irrigation. Tools such as interrupted and/ or graded tariffs intend- ed for demand side management of natural gas shall be Demand management shall be enabled in residences; in- developed. SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING MENR STRATEGIC PLAN 2015-2019 47 With efficiency in transportation, housing and industry SAVING IN NEW TURKEY SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING THEME 2 Energy Efficiency and Energy Saving Why Energy Efficiency and Energy Saving? Efficiency and saving individually considered as a sup- technologies and similar issues for the evaluation of energy ply source has been evaluated as a crucial component of efficiency potential in areas such as; industry, transportation, security of supply with its current position; however it has residents and street lighting. Cooperation with relevant in- been considered as a separate theme due to the scope and stitutions and design of effective governance structure and importance of the issue. This theme generally means per- energy efficiency sectors are also within the scope of the forming steps in some issues such as legislation, incentives, theme. informing, awareness campaigns, implementation of new Turkey has a considerable high en- there exists studies for increasing the ergy efficiency potential which could awareness, but these studies should not have been utilized satisfactorily be expanded within the country. yet, necessary financial and technical support should be increased for the Although legislation and incentives utilization of this potential. are available in the field of efficien- cy, the aimed impact could not be Awareness campaigns are conduct- reached fully yet. The effectiveness ed for energy efficiency and energy of studies performed in the field of saving. However, the Ministry is re- energy efficiency is required to be Results quired to increase these campaigns increased so as to involve incentive and model implementations and design based on impact assessment of SWOT should undertake more active role in and Energy Efficiency Consultancy Analysis this respect. Companies (EVD). Measures reducing the energy in- The low average available capacity of tensity should be implemented as a public power plants stands out as a whole and should be implemented problem in terms of portfolio, for this upon the coordination of relevant reason it is necessary to complete Ministries and non-governmental or- the rehabilitation and modernization ganizations. As regards efficiency, studies in these plants. MENR STRATEGIC PLAN 2015-2019 49 GOAL 4 Turkey; Making Use of Its Energy in the Most Efficient Way. Management of supply, demand and infrastructure dimen- aimed that maintenance, repairment, modernization and re- sions of the security of supply in an entirely optimum level is habilitation studies required in public power plants should be possible by the implementation of energy saving and efficien- completed and contribution should be provided to energy cy. For instance; no matter how the supply side gets strong, efficiency and saving. in case of losses and inefficiencies in the transmission and It is expected that costs shall be lowered and the effective- distribution system, it means that some part of supply is be- ness shall increase economically and import dependency ing wasted. For this reason, energy efficiency and saving be- shall also decline strategically as a result of reducing loss of come individually a source of supply. transmission by supporting on site generation, lowering loss Within the scope of 2015-2019 Strategic Plan, based on and illegal consumption rates to desired levels in distribution 2013 data, at least an increase of 20% in energy efficiency regions; and efficient utilization of sources by saving from is aimed in buildings of the Ministry and its Affiliated, Asso- street lighting. ciated and Related Institutions. On the other hand, it is also TOE/$1000 GDP 0,40 0,35 Seasonally Adjusted 0.33 0.30 0.31 0.29 0.29 0.30 0.29 Without Seasonal 0.28 0.27 0,30 Adjustment 0.29 0.26 0.30 0.30 0.29 0.29 0.28 0.29 0.27 0.28 0.28 0.28 0,25 0.27 Graphic 17: 0,20 Primary Energy Intensity 0,15 Source: MENR 0,10 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING 80% 75.0 Loss and Illegal 70% Consumption 65.8 Rates in 2013 60% 50% 40% Graphic18: 27.5 30% Electricity Distribution Regions’ Loss and 20% Illegal Consumption 15.2 Rates in 2013 11.3 9.4 9.9 9.4 9.7 10.4 7.1 7.9 7.6 7.1 7.6 7.9 6.9 7.6 10% 6.6 6.7 6.1 Source: EPDK 0% KAYSERİ ve AKEDAŞ BOĞAZİÇİ EDC DİCLE EDC VANGÖLÜ EDC ARAS EDC TOROSLAR EDC ÇORUH EDC AKDENİZ EDC BAŞKENT EDC ÇAMLIBEL EDC ULUDAĞ EDC SAKARYA EDC YEŞİLIRMAK EDC OSMANGAZİ EDC MERAM EDC AYDEM EDC GEDİZ EDC FIRAT EDC TRAKYA EDC CİVARI EDC AYEDAŞ (European Side) (Anatolian Side) * EDC: Electricity Distribution Company Energy intensity as an important indicator of energy efficien- provided and savings are inadequate. Besides, the attempts cy is directly related to the sectors comprising the national for efficiency and saving may be beneficial in case different industrial structure. Some sectors such as iron-steel industry sectors and different institutions may cooperate with one an- and cement industry need more energy to produce GDP. other and the study by complementing each other. Lack of However, considering the size of these sectors in the na- coordination and cooperation may prevent the achievement tional industry, it shall be seen that efficiency increase to be of desired results. G4. OBJECTIVE In compliance with privatization plan, maintenance, repair- Coordinator: EIGM ment, rehabilitation and modernization studies necessary in Responsible Body: EUAS public power plants shall be completed until the end of 2019. Performance Indicator: 2016 2017 2018 2019 G4.PI.1.1 Number of completed maintenance, repairment, rehabilitation and modernization projects 9 7 2 7 MENR STRATEGIC PLAN 2015-2019 51 G4. OBJECTIVE 2 As regard electricity consumption of the country for street Coordinator: EIGM lighting, by the end of 2013, existing lighting armatures shall Responsible Bodies: EIGM, YEGM, EPDK, TEDAS, be replaced by efficient ones to provide at least a saving rate Electricity Distribution Companies of 40% in existing lighting armatures until the end of the plan period. Performance Indicator: Base Year 2013 2019 G4.PI.2.1 Electricity consumption of existing lighting armatures by at the end of plan period * (kWh) 3,751,401,000 2,251,000,000 * Involves existing street lighting systems, new street lighting investments to be made in the future are not included. G4. OBJECTIVE 3 Loss and illegal consumption rate in electricity distribution Coordinator: EIGM shall be reduced to 10% until the end of the plan period. Responsible Bodies: EPDK, TEDAS Performance Indicator: Base Year 2015 2016 2017 2018 2019 Loss and illegal consumption rate in electricity 2013 G4.PI.3.1 distribution (arithmetical average for Turkey) (%) 15.38 14 13 12 11 10 G4. OBJECTIVE 4 Existing regional heating systems shall be expanded. Coordinator: YEGM Responsible Bodies: MTA, EUAS Performance Indicators: G4.PI.4.1 Issue of legislation on regional heating 31.12.2016 Increase in regional heating implementations 2019 Increase in total number of power plants G4.PI.4.2 applying regional heating until the end of plan period (except for geothermal) 2 Increase in the number of regional- G4.PI.4.3 heating systems based on geothermal 2 energy SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING G4. OBJECTIVE 5 On-site generation shall be expanded and at least 1,000 MW Coordinator: YEGM of total consumption is aimed to be met by on-site genera- Responsible Bodies: YEGM, EPDK, TEDAS, Electricity tion until the end of 2019. Distribution Companies Performance Indicator: 2015 2016 2017 2018 2019 G4.PI.5.1 On-site generation (cumulative) (MW) 200 400 600 800 1,000 G4 OBJECTIVE 6 The energy efficiency in central and district buildings of the Coordinator: YEGM Ministry and its Affiliated, Associated and Related Institu- Responsible Bodies: All Central Units and Affiliated and tions shall be increased at least 20% based on 2013 data. Associated Institutions Energy Identity Cards for these buildings shall be received and cooperation shall be provided with at least two public institutions for this process. Performance Indicators: Annual energy consumption decrease per m2 in central 2015 2016 2017 2018 2019 G4.PI.6.1 and district buildings of the Ministry and its Affiliated, Associated and Related Institutions (%) 6 4 4 3 3 Receiving energy identity cards for Number of public institutions in whi- central and district buildings of the G4.PI.6.3 G4.PI.6.2 Ministry and its Affiliated, Associated 31.12.2017 ch coordination has been provided At least 2 and Related Institutions for receiving energy identity cards G4. OBJECTIVE 7 Improvement shall be supported in primary energy intensity Coordinator: YEGM for the enterprises and entities of related institutions of Min- Responsible Bodies: TTK, TKI, TPAO, ETI MADEN, istry based on 2013 data. TEMSAN, EUAS (for coal production) Performance Indicator: Rate of decrease in primary energy intensity the en- 2015 2016 2017 2018 2019 G4.PI.7.1 terprises and entities of related institutions of Ministry (consumption/unit output* in terms of TOE) (%) 6 4 4 3 3 (*) Output shall be determined upon negotiations with YEGM according to field of activity of Related Institutions. MENR STRATEGIC PLAN 2015-2019 53 Strategies Energy inventory shall be formed in central and district lowered and ISO 50001 Energy Management Standard buildings of the Ministry and its Affiliated, Associated and certificate shall be provided to be received. Related Institutions and 2013 reference values shall be determined. In State Owned Companies affiliated to Ministry, mea- sures enabling the decrease of the share of energy input Ministry and its Affiliated, associated and related organi- within total production costs shall be provided to be im- zations shall bring solid, liquid, fuel, gas, electricity and plemented. water consumption to optimum level and shall become a model of implementation organizations. In compliance with privatization plan, rehabilitation stud- ies on the public generation power plants shall be provid- Energy Identity Cards shall be received for in central and ed to be completed (Maintenance Management System, district buildings of the Ministry and its Affiliated, Associ- Power Plant Performance Monitoring System etc.) ated and Related Institutions and an obligation shall be introduced requiring that energy identity card class shall Generation capacity of public power plants shall be pro- be minimum “C” for purchase and leasing procedures. vided to be used efficiently and availability and capacity usage factors shall be provided to be increased. . Energy efficiency surveys shall be implemented in all work places under the responsibility of the Ministry and which Implementations initiated by Ministry for providing saving are liable for energy management and efficiency increas- in street lighting shall be continued. With the regulations ing projects shall be prepared according to minimum to be made within the scope of lighting audit, saving shall efficiency criteria to be specified. Within this framework, be tried to be enabled by lighting with appropriate power. buildings shall be rehabilitated so that their fossil fuel Studies shall be initiated for gradual expansion of remote consumptions and/or carbon dioxide emissions shall be SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING metering systems and smart network implementations. Small scaled coal reserves which shall not be used for electricity generation shall be provided to be used for pur- An active monitoring and support shall be provided for pose of heat generation. measures taken by electricity distribution companies aim- ing to decrease loss and illegal consumption of electricity. District heating based on geothermal energy shall be de- veloped. Quality and efficient materials shall be provided to be used in order to reduce technical losses in electricity dis- For enabling the expansion of decentralized electricity tribution. generation which are based on renewable energy sourc- es and cogeneration and micro cogeneration systems By conducting feasibility studies regarding district heat- and so on; related legislation shall be reviewed so as to ing in all thermal power plants and by encouraging the facilitate on-site generation, permission and other admin- implementation for appropriate power plants, measures istrative processes, furthermore infrastructure of the net- regarding utilization of waste heat in space heating, in- work shall be strengthened in this manner. dustrial facilities or agricultural activities shall be provided to be taken. For enabling the implementation of irrigation systems based on solar and wind energy, coordination shall be Generation systems which are based on renewable en- provided with stakeholders (The Ministry of Food, Agri- ergy sources and cogeneration and micro cogeneration culture and Livestock, Electricity Distribution Companies, systems and central and district heating and cooling sys- Irrigation Cooperatives etc.) in order to recover the prob- tems shall be supported, legislation shall be prepared for lems regarding peak load and loss and illegal consump- heat market. tion arising from agricultural irrigation. MENR STRATEGIC PLAN 2015-2019 55 GOAL 5 Improved Capacity for Energy Efficiency and Saving One of the basic factors enhancing improvement of ener- thereof. Besides, public increased awareness is a top priority gy efficiency is to support the capacity which would monitor for accomplishment of this objective. Therefore, energy effi- and back up this process and to form a sector in a healthier ciency projects should be increased by the regulatory frame- manner which may provide service on this route. For increas- work and decision support systems which would support ing energy efficiency and saving, accurate policies should be the achievement of this project, awareness should be raised established and efficiencies in the implementation should be in the public and the coordination between the institutions monitored; furthermore, sector is to be arranged so as to should be increased and a collective energy efficiency action involve the companies and institutions which would provide should be initiated and sustained. and inspect efficiency services as well as providing training 2013: 22,099 8,478 Graphic 19: Energy Saving (TOE) by Efficiency Enhancing Projects (VAP) 2010: 6,050 2009: 5,623 Source: MENR * Efficiency Enhancing Project applications were not received in 2011. SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING For achieving this objective, appropriate incentive and mon- incentive policies should be revised in this way. Defining new itoring mechanisms should be available; incentives results mechanisms and tools, design, establishment and support should be monitored based on impact analysis results and of well-functioning energy efficiency sector are critical. G5. OBJECTIVE Policy making and monitoring capacity of the Ministry re- Coordinator: YEGM garding efficiency and conservation shall be developed. Responsible Body: YEGM Performance Indicators: Completion of feasibility studies in Implementation of decision support 01.01.2017 G5.PI.1.1 relation with decision support system G5.PI.1.2 31.12.2015 system for policy and legislation impact for policy and legislation impact assess- assessment and policy making ment and policy making G5. OBJECTIVE 2 A regulatory framework relating to energy efficiency shall be Coordinator: YEGM developed and effectiveness of the incentives shall be inc- Responsible Body: YEGM reased. Performance Indicator: G5.PI.2.1 Completion of energy efficiency road map 31.12.2016 G5. OBJECTIVE 3 A well operating energy efficiency sector shall be established. Coordinator: YEGM Responsible Body: YEGM Performance Indicators: Completion of legislation studies, Determination of steps after G5.PI.3.1 impact analysis and scenario 31.12.2016 G5.PI.3.2 completing impact analysis of 31.12.2017 studies regarding the sector legislation and scenario studies MENR STRATEGIC PLAN 2015-2019 57 G5. OBJECTIVE 4 Public awareness shall be raised on energy efficiency and Coordinator: YEGM saving. Responsible Body: Press and Public Relations Consultancy Performance Indicators: Completion of public awareness Completion of the steps included in G5.PI.4.1 30.06.2015 G5.PI.4.3 31.12.2019 questionnaire Efficiency Transmission Plan Repetition of Public Awareness Ques- Completion of efficiency communi- G5.PI.4.2 31.12.2015 G5.PI.4.4 tionnaire at the end of the period and 31.12.2019 cation plan evaluation of conclusion reports G5. OBJECTIVE 5 Joint work step and interaction plans with the institutions Coordinator: YEGM shall be established for energy efficiency and saving. Responsible Body: YEGM Performance Indicator: 2015 2016 2017 2018 2019 G5.PI.5.1 Number of institutions in cooperation (cumulative) 2 4 6 8 10 SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING Strategies Decision support system regarding policy and legislation Efficiency of existing finance models shall be evaluated impact assessment for policy making shall be established together with finance corporations, finance models of and this system shall be operated during the plan period efficiency projects shall be revised in line with today’ s by being rehabilitated, relevant data base, statistic and necessities, new models shall be formed, finance model inventory studies shall be completed. suggestion study shall be completed and shall be sub- mitted to Economic Coordination Board. During the plan period, along with sectoral saving po- tentials, applicable measures in energy efficiency shall be Based on “Efficiency Communication Plan” to be pre- determined and energy efficiency work step plan shall be pared; for raising society’s awareness on efficiency, nec- performed. essary campaigns and actions shall be designed and applied. Within this context, studies such as adding the The methodology in which the impact of the energy effi- subjects of energy and energy efficiency into the primary ciency would be included into demand forecasts shall be school and secondary school curriculum shall be con- completed. Data base, information forms, software and ducted. hardware infrastructure relevant with Energy Efficiency Portal shall be updated and renewed so as to be in a Stakeholders and institutions which shall be cooperated more user-friendly structure. on efficiency in industrial, residential and transportation sectors shall be determined and cooperation areas shall Stakeholders’ opinions shall be received and an impact be defined, and joint work step and interaction plans analysis on existing incentives shall be performed, alter- shall be established jointly with relevant parties within the natives related to new incentives shall be determined in scope of the above mentioned communication plan. a participatory manner, and a monitoring system shall be established for those which comply with the evaluations. Number of universities and/or professional organizations and number of energy efficiency companies to be audit- Impact analysis of energy efficiency implementations ed on site shall be determined. shall be made and stakeholders’ participation shall be provided, thus the incentive within the market shall be Number of plants having electricity generation license provided upon white certificate and carbon market similar with an installed capacity of 100 MW and over to be structures. . monitored over the portal shall be determined for energy efficiency and saving. For the purpose of establishing an energy efficiency sec- tor with higher efficacy, particularly the EVDs, missions, Twenty six plants having electricity generation license roles, activities and efficiencies of the parties in the sector with an installed capacity of 100 MW and over to be au- shall be provided to be analysed, design in the sector dited on site shall be determined. shall be enabled to be reviewed, and the sector shall be provided to be restructured so as to be effective. MENR STRATEGIC PLAN 2015-2019 59 With its rational management, competency and capacity. A PARTICIPATIVE APPROACH IN NEW TURKEY SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING THEME 3 Good Governance and Stakeholder Interaction Why Good Governance and Stakeholder Interaction? A good governance means alongside with a corporate struc- nizations. Increase of the corporate capacity of the central ture involving the Ministry and its Affiliated, Associated and units includes the issues of administrative competence and Related Institutions, under an environment including sector leadership, coordination between the institutions, human re- investors and employees, non-governmental organizations, sources competence and competence of information tech- other public institutions and similar external stakeholders; nology tools in use (databases, decision support and man- acquisition of a participatory, proactive and rational man- agement information systems, analysis tools and models agement and the maximum capacity and competence to etc.). With the policy and legislation preparation processes, support this management. A good governance in terms of it is considered that enabling stakeholders’ participation at a the departments of the Ministry involves the establishment of higher rate and adoption of more participatory management a structure which would provide the increase corporate ca- concept is an approach which would increase sectoral policy pacities and efficiency of the departments and their internal development efficacy of the Ministry and this is one of the operations and which would provide the maximum efficiency main subjects emphasized in our Strategic Plan. of the actions involving our affiliated and associated orga- The Ministry initiates to apply Energy (ESIS), the Ministry has acquired a and Natural Resources Expertise carri- strong management information system er system by making an important step and decision support system infrastruc- in human resources issue. There are ture. For enabling the Ministry to benefit various competent personnel with sat- from ESIS in a maximum level, integra- isfactory experience within the scope tion of all Affiliated, Associated and Re- of Ministry and its Affiliated, Associated lated Institutions is necessary. and Related Institutions. At the same time, measures for enabling the moti- Non-governmental organizations, uni- vation of competent personnel should versities and similar external stakehold- be increased and should be kept work- ers’ contribution to preparation of policy ing in the institution are required to be development and legislation is provid- taken, current knowledge level of per- ed, however, this contribution should be more extensive and effective, and Results sonnel should be increased by training programs complying with the existing furthermore stakeholder participation should be increased in each stage. of SWOT purpose in general and personnel with different competence should be provid- The public is required to be informed Analysis ed to be recruited into Ministry so as to meet rapidly changing needs of energy clearly about activities of the Ministry. and natural resources sectors. Location of central units of the Ministry in different places may weaken the com- By the implementation of “Strategic munication and coordination among the Management and Statistic System” units from time to time. MENR STRATEGIC PLAN 2015-2019 61 GOAL 6 The Ministry with a Strong Corporate Capacity Ministry’s corporate capacity should be at maximum level so corporate structure involving “Human Resources Transfor- that objectives and targets specified within the context of the mation Plan” is planned to be implemented until the end of Strategic Plan could be reached, needs could be specified 2016. Within this scope, the personnel capacity of the Min- in this direction, strategies could be determined, work steps istry is aimed to be enhanced to highest level. These objec- which are required could be decided. For this reason, corpo- tives are not limited only with central units of the Ministry. rate analysis and institutional culture based structuring and Corporate restructuring projects shall be supported in the improvement in this regard are important. Affiliated, Associated and Related Institutions in which they need to do. For evaluating the human resources at the highest level, a Number of Employee 1,000 900 866 800 700 600 500 Graphic 20: 400 Experience of 300 MENR Personnel 235 200 143 117 69 57 100 Source: MENR 0 0-4 5-9 10-14 15-19 20-24 25 years years years years years years and over SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING Number of Employee 600 500 477 392 400 309 300 Graphic 21: 282 Age Range of 200 MENR Personnel 100 Source: MENR 27 0 18-30 31-40 41-50 51-60 61 years years years years years and over Graphic 22: Educational Graduate Master Background of MENR 57% 10% Personnel PhD 2% Source: MENR Primary School Associate 5% High School Degree 13% 13% Considering the importance of the knowledge in the field As regards the nuclear energy which is one of major strate- of energy and natural resources, thanks to Communica- gic projects of our country, in particular the nuclear security, tion Strategy aimed to be formed until the end of 2015, a completion of relevant law and regulations, corporate infra- transparent and corporate strategy shall be followed with the structure as well as plan and programs on the subject are stakeholders regarding Ministry’ s policies and activities and evaluated under the title of corporate capacity development. public consultation mechanisms shall be implemented. Public structuring reaching to a corporate governance struc- mations primarily depends on the appropriation of employ- turing equivalents to private sector involves some challenges ees in the organization. Adoption of an active transformation and difficulties arising from bureaucracy and legislation. To procedure approach in the Ministry for the achievement of design a transformation program in compliance with legal re- this objective may be achievable by making the personnel strictions towards public institutions is of utmost importance aware of the necessity of this transformation at each level from this point of view. The success of corporate transfor- and training of the personnel in each stage in the same way. MENR STRATEGIC PLAN 2015-2019 63 G6. OBJECTIVE A corporate restructuring involving Human Resources Trans- Coordinator: Personnel Department formation Program shall be achieved until the end of 2016. Responsible Body: Personnel Department Performance Indicator: G6.PI.1.1 Implementation of Human Resources Transformation Program 31.12.2016 G6. OBJECTIVE 2 The capacity of personnel shall be improved. Coordinator: Personnel Department Responsible Body: Personnel Department Performance Indicators: Rate of attendance of personnel into Number of personnel assigned abroad G6.PI.2.1 the in-house trainings Ministry until the 100 G6.PI.2.3 for training purpose until the end of the 30 end of the period (%) period G6.PI.2.2 Rate of satisfaction on in-house train- 80 ings provided (%) G6. OBJECTIVE 3 Feasibility studies for restructuring shall be performed for Coordinator: BIK Department Affiliated, Associated and Related Institutions in which they Responsible Bodies: SGB, EIGM, MIGEM, BIK Department, need to do. the Institutions to be restructured Performance Indicators: Completion of studies for the deter- Completion of current situation analysis, G6.PI.3.1 mination of the institutions which shall 31.12.2015 G6.PI.3.2 feasibility and road map studies for the 31.12.2017 be subject to restructuring institutions subject to restructuring SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING G6. OBJECTIVE 4 Necessary legislation and corporate infrastructure studies Coordinator: NEPUD shall be completed in relation with the nuclear energy and Responsible Bodies: NEPUD, EIGM, Law Consultancy, necessary plan and programs shall be established. TAEK, EUAS, EPDK Performance Indicators: Completion of nuclear energy legisla- G6.PI.4.1 31.12.2015 G6.PI.4.2 Completion of plans 31.12.2016 tion and other regulations G6. OBJECTIVE 5 Communication and Publicity Strategies on Ministry’s poli- Coordinator: Press and Public Relations Consultancy cies and activities shall be established until the end of 2015. Responsible Bodies: All Central Units and Affiliated, Associ- ated, and Related Institutions Performance Indicators: Completion of Communication G6.PI.5.1 31.12.2015 Strategy Document Completion of Publicity Strategy G6.PI.5.2 31.12.2015 Document Strategies Human Resources Transformation Plan shall be imple- panded in a continuous manner. mented and labour force/norm staff shall be planned. Personnel, who are not benefited sufficiently, employed Upon the execution of corporate analysis and institution in central units of the Ministry and Affiliated, Associated culture studies, existing corporate structure shall be ex- and Related Institutions shall be provided to work more amined and improvement projects shall be developed in effective and active. necessary areas. Feasibility studies for restructuring shall be performed for Carrier system shall be expanded and appropriate em- institutions in which they need to do and road maps shall ployees in the existing personnel shall be appointed as be prepared. expert, their knowledge and experience shall be provid- Legislation, institutional framework, plan and programs ed to be utilized and institutional memory shall be main- based on nuclear energy regarding construction, oper- tained. ation and decommissioning of nuclear power plants in a In-house and international training curriculums shall be safe and reliable manner shall be completed. designed and personnel based training plans shall be im- Internal and external perception analyses for the Ministry plemented. shall be conducted. Personnel shall be assigned abroad for post-graduate Internal and external communication strategy and de- education. tailed plans for Ministry shall be prepared. Access to printed and electronic references shall be ex- Ministry Publicity Strategy Document shall be prepared. MENR STRATEGIC PLAN 2015-2019 65 GOAL 7 The Ministry Using Information Technologies Effectively In the present era in which information technologies facilitate essary human resource comes to the forefront as a priority life every time and everywhere, utilization of these technol- objective. Furthermore, provision of the integration of all data ogies at maximum level by the Ministry shall be beneficial in order to provide effective data usage and to monitor ad- both for increasing the efficiency and in terms of effective vances in energy and natural resources sectors continuously governance. is one of the objectives established for the achievement of the purpose. Within this context, all data are aimed to be Besides the development of physical and security infrastruc- brought together in ESIS until 2016. ture in the field of information technologies, provision of nec- Information Technologies projects take time and their cost management concept within a dynamic frame which rapidly is considerably high. For the determination and implemen- adapted is a necessary process. Achievement of this goal tation of the most appropriate information technologies for together with its all components depends on the continuity the needs of the Ministry within the scope of current rap- of this approach. idly changing technological environment, an information G7. OBJECTIVE Physical, security and human resources infrastructure in the Coordinator: SGB field of information technologies of the Ministry shall be de- Responsible Body: SGB veloped. Performance Indicators: Base Year 2013 2015 2016 2017 2018 2019 G7.PI.1.1 Number of personnel trained in informati- on technologies and security 4 12 14 16 16 20 Rate of number of information technol- ogies inventory of which relevant informa- 10 80 90 95 99 99 G7.PI.1.2 tion has been transferred into electronic environment (%) Rate of Ministry’s information system of G7.PI.1.3 which renewal system has been com- 20 80 80 90 90 95 pleted (%) Commissioning and expansion of Obtaining and establishment of work G7.PI.1.4 31.12.2016 G7.PI.1.5 in-house instant messaging , audio 31.12.2016 and efficiency management system and video conference system SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING G7. OBJECTIVE 2 Integration of all data into ESIS shall be completed until the Coordinator: EIGM end of 2016. Responsible Bodies: EIGM, SGB, Affiliated, Associated and RelatedInstitutions Performance Indicators: Number of Affiliated, Base Year Completion of integration into ESIS for Associated and Related 2014 2019 G7.PI.2.1 31.12.2015 all institutions except for EPDK G7.PI.2.3 Institutions which may exchange data with the Ministry within ESISa 2 13 Completion of integration into ESIS G7.PI.2.2 31.12.2016 for EPDK G7. OBJECTIVE 3 All mining operations shall be performed in electronic envi- Coordinator: MIGEM ronment within the scope of e-Devlet project. Responsible Body: MIGEM Performance Indicator : Commencing of carrying out all mining G7.PI.3.1 operations in electronic environment 31.12.2016 within the scope of e-Devlet project Strategies Work steps including establishment of on-line work and tainability and the process shall be improved within cor- efficiency management systems based on a central stru- respondence and archiving process. cture shall be fulfilled in order to increase competence Electronic signature, electronic document, paperless and scales of Ministry’s data processing technologies correspondence, achieving implementations shall be car- implementation and service. ried out; integration process shall be completed among For enabling information sharing with all institutions inc- central units and Affiliated, Associated and Related Insti- luded in ESIS’s domain, necessary communication shall tutions. A central unit shall be established to manage the be established and necessary support shall be provided policies of Information Technologies Governance of the to institutions for integration. Ministry. Information technologies inventory shall be transferred Data Affiliated, Associated and Related Institutions shall into electronic environment. be provided to be circulated faster and in standard for- Integration of existing Management Information System mat. shall be provided with the implementations developed ISO/IEC 27001 certificate shall be received by applying within the scope of existing and new e-Devlet projects. information security and risk management processes in Services provided to license owners within the scope of Information Technologies. e-Devlet projects shall be transferred into internet envi- Electronic human resources management processes ronment. The system increasing the satisfaction of licen- shall be improved and its efficiency shall be increased in se owners, enabling time saving, being managed, recor- this respect. ded and stored easily shall be installed within the scope Secure and efficient printing technologies shall be used. of e-Devlet project and shall be made functional. Disaster Rescue Centre shall be put into use for critical Electronic Document and Archive Management System work implementations. shall be put into operation in the Ministry and work sus- MENR STRATEGIC PLAN 2015-2019 67 GOAL 8 A Well-Coordinated Ministry Considering influence area of the Ministry and its role under- Affiliated, Associated and Related Institutions is essential for taken for energy policies of the country, providing an effec- the implementation of energy policies. tive coordination between central units of the Ministry and Neutral 25.1% Satisfied 33.4% Not Satisfied Graphic 23: 31.3% Satisfaction Level of Very Satisfied MENR Personnel for the Coordination (Information Exchange) within Dissatisfied 0.6% 9.6% the Ministry Source: MENR SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING There are deficiencies 16.7% Graphic 24: Level of Satisfaction Regarding Effective Coordination between Central Units and Affiliated, Associated and Related Institutions 83.3% Source: MENR For being a Ministry with higher coordination power, a com- central units of the Ministry together and improving their munication plan which is not only towards Affiliated, Associ- working conditions have been also taken within the scope of ated and Related Institutions but also the external stakehold- specific objectives and efficient communication channels are ers has been aimed to be implemented. Besides, bringing desired to be kept open. Preparation of relevant communication plans in applicable appropriation by all stakeholders including personnel of the way, sharing with other stakeholders in a healthy way and its Ministry are essential for the achievement of the goal. G8. OBJECTIVE A coordination plan which would enhance the cooperation Coordinator: SGB and communication between central units of the Ministry and Responsible Bodies: SGB, BIK Department, All Central its Affiliated, Associated and Related Institutions shall be im- Units, Affiliated, Associated and Related Institutions plemented. Performance Indicators: Completion of internal coordination Implementation of work steps includ- G8.PI.1.1 30.06.2015 G8.PI.1.2 ed within internal communication plan 31.12.2019 plan in compliance with the plan 2015 2016 2017 2018 2019 G8.PI.1.3 Number of coordination meetings accomplished annually 4 4 4 4 4 MENR STRATEGIC PLAN 2015-2019 69 G8. OBJECTIVE 2 Procedures and principles of a consultation mechanism be- Coordinator: EIGM, MIGEM tween stakeholders of the Ministry and its Affiliated, Associat- Responsible Bodies: All Central Units and Affiliated, Associ- ed and Related Institutions shall be determined and applied. ated and Related Institutions Performance Indicators: Preparing and publishing the principles No numerical Number of headlines in which opin- objective is G8.PI.2.1 and procedures of consultation mech- anisms between the stakeholders in 30.06.2015 G8.PI.2.2 ions are gathered in compliance with available and it public consultation process is for follow up energy and natural resources sector purpose Strategies Internal Coordination Plan for the Ministry shall be pre- with all departments of the Ministry through electronic en- pared. vironment. Senior Executives of central units of the Ministry and its Procedures and principles of a consultation mechanism Affiliated, Associated and Related Institutions shall be between stakeholders of the Ministry and its Affiliated, met and all parties shall be informed the other parties Associated and Related Institutions shall be determined on their updated activities and to make information ex- and implemented in the basis of best implementation principles in EU mechanisms and public consultancy ar- change. Issues discussed in the meetings shall be shared eas in OECD countries. SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING MENR STRATEGIC PLAN 2015-2019 71 With its investments in the field of energy and natural resources to the most distant geographies POWERFUL NEW TURKEY SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING THEME 4 Regional and International Effectiveness Why Regional and International Effectiveness? Turkey’s position between the significant production and the issues such as making investments either in the region or consumption hubs in terms of its geopolitical position brings in far geography in the field of energy and natural resources a lot of opportunities and risks that are required to be man- and resource diversification which would provide contribu- aged effectively. The Regional and International Effective- tion to import activities and security of supply, besides both ness Theme is intended for the execution of energy and nat- natural resources and electricity export activities, effective ural resources activities of the country upon on successful diplomacy approach, climate change and execution of ne- coordination and proactive point of view. This theme involves gotiations in international projects. Geopolitical position of Turkey due to the Ministry should be enhanced in its proximity to rich countries in terms international organizations. of energy and natural resources and being a complementary link between Based on the initiatives of strong and major production and consumption experienced national companies act- areas particularly in natural gas and ing in the field of energy and mining; oil provides important opportuni- national companies are required to ties. On the other hand, enabling the be developed which may act and country to utilize fully from these op- take initiative in international arena. portunities, an active energy diploma- cy should be carried out and neces- sary infrastructure studies should be completed. It is necessary that the Ministry Results should constitute the culture of ener- gy and natural resources diplomacy of SWOT and establish its own infrastructure. Energy diplomacy is required to be Analysis implemented by skilled personnel acquiring foreign language skills. For- eign representation agencies in the field of energy and natural resourc- es are required to be established in foreign countries and effectiveness of MENR STRATEGIC PLAN 2015-2019 73 GOAL 9 Turkey integrated with Regional Energy Markets Considering geopolitical position of Turkey and its relations parent and liquid markets and for obtaining electricity from with regional energy markets due to its transitional position, cost-advantageous markets. functioning of the country’s energy markets integrated with From natural gas and oil aspects, planned pipeline projects other foreign market shall bring the country to an active actor are aimed to be implemented. Accordingly, Turkey shall get of these markets. closer step by step to its objective for being an energy cor- By making ENTSO-E connection permanent, Turkey’s inte- ridor due to its geopolitical position. Ceyhan’s becoming an gration with European electricity markets shall provide addi- integrated energy centre has been determined as an objec- tional opportunities in international electricity trading. Thus, a tive which would bring dynamism to the region and support contribution shall be provided for the creation of more trans- the effective functioning of the markets. Bulgaria 145km 400kV Georgia 136km 400kV 28km 220kV 160km 400kV 400 MW 15 0M MW 550 MW W Armenia Greece 80.7km 154kV 130km 400kV 0- W 70 0M Nakhchivan MW 87km 154kV 40 W M 40 Turkey Iran 250-450 MW 73km 154kV 100km 400kV 20 0M 0 MW W Iraq 42km 400kV Syria Figure 2: 124km 400kV Existing and Planned Current 400 kV lines Interconnection Lines 400 kV lines under construction Current 220 kV lines Source: TEIAS Current 154 kV lines SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING GWh 8,000 7,429 7,000 Import Export 5,827 6,000 5,000 4,556 3,645 4,000 Graphic 25: 3,588 2,954 3,000 Import and Export 2,236 2,422 of Electricity 1,918 2,000 1,798 1,222 1,546 1,158 1,144 1,144 1,226 1,000 435 588 636 573 864 789 812 Source:TEIAS 464 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Georgia Azerbaijan Turkey Figure 3: Syria Iran Oil Pipelines Existing International Lines Iraq Source: MENR Existing National Lines MENR STRATEGIC PLAN 2015-2019 75 Moldovia Ukraine Romania Bulgaria Georgia Ita ly ce Gree Turkey Azerbaijan Syria Iraq Figure 4: Lebanon Iran Natural Gas Pipelines Jordan Existing National and International Lines and Projects Planned National and International Lines Israel Source:MENR Liberalization process which has been experienced partic- Turkey for taking active role in surrounding markets and for ularly within recent 15 years contributed to the capacity of showing effectiveness for the functioning of regional economies. Transit projects and regional integration studies face up var- be managed in harmonization, delays may occur for reaching ious difficulties in finance and administrative aspects due to the specified objectives within this goal. their multinational feature. In case these areas are not able to G9. OBJECTIVE Transition system shall have a permanent connection with Coordinator: DIAB ENTSO-E. Responsible Bodies: TEIAS, EPDK Performance Indicator: G9.PI.1.1 Providing permanent connection with ENTSO-E 31.12.2015 SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING G9. OBJECTIVE 2 International interconnection capacity shall be increased by Coordinator: DIAB two (2) fold until the end of 2019 Responsible Body: TEIAS Performance Indicators: 2013 2015 2017 2019 Import- Export (NTC) Capacities Import Export Import Export Import Export Import Export (MW) (MW) (MW) (MW) (MW) (MW) (MW) (MW) G9.PI.2.1 ENTSO-E 550 400 650 500 650 500 1,800 500 G9.PI.2.2 Georgia 15 0 700 700 1,050 1,050 1,400 1,400 G9.PI.2.3 Iran 400 0 450 0 600 600 1,200 600 G9.PI.2.4 Iraq 0 200 0 200 0 400 500 700 G9.PI.2.5 Syria 0 500 0 500 0 500 600 600 G9.PI.2.5 Total (MW) 965 1,100 1,800 1,900 2,300 3,050 5,500 3,800 2013 2015 2017 2019 Interconnection line capacities among the countries Voltage Capacity Voltage Capacity Voltage Capacity Voltage Capacity (kV) (MVA) (kV) (MVA) (kV) (MVA) (kV) (MVA) G9.PI.2.7 West Line Additional line shall Additional line shall 400 4,015 not be installed. not be installed. 400 3,020 400 1,510 Georgia Line Additional line shall Additional line shall G9.PI.2.8 not be installed. not be installed. 400 1,510 220 287 400 1,510 New line shall be G9.PI.2.9 Iran Line Additional line shall constructed to rep- 400 1,510 not be installed. lace the existing line 154 204 Iraq Line Additional line shall Additional line shall G9.PI.2.10 154 300 not be installed. 400 1510 not be installed. G9.PI.2.11 Syria Line Additional line shall Additional line shall Additional line shall 400 1,005 not be installed. not be installed. not be installed. Total 8,831 8,831 10,341 16,381 MENR STRATEGIC PLAN 2015-2019 77 G9. OBJECTIVE 3 In line with the developments in neighbouring countries, par- Coordinator: DIAB ticipation shall be provided to the regional electricity mar- Responsible Bodies: EIGM,TEIAS, EPIAS, EPDK kets to be established through coupling and duties shall be undertaken in the organizations regarding the functioning of regional markets. Performance Indicator: Performing studies for enabling TEIAS’s membership, along with ENTSO- E Membership, to 8th G9.PI.3.1 of Electricity Region which is aimed to be established in Southeast Europe under the supervision 31.12.2015 of Energy Community in which our country takes place as observer member G9. OBJECTIVE 4 By implementing new transit pipeline projects, the role of Coordinator: TPBH Turkey to be an energy corridor in the field of natural gas Responsible Bodies: DIAB, PIGM, BOTAS, TPAO shall be strengthened. Performance Indicators: Initiating construction of at least three Completion of at least one interna- G9.PI.4.1 international projects until the end of 31.12.2019 G9.PI.4.2 tional project until the end of the plan 31.12.2019 plan period period G9. OBJECTIVE 5 Taking into consideration Turkey’s studies for making Istan- Coordinator: DIAB bul a finance centre, an energy center having power for price Responsible Bodies: DIAB, EIGM, PIGM,TPBH, BOTAS, formation shall be established in Black Sea and Mediterra- EPDK nean, in which Ceyhan and Aliağa delivery products are pro- cessed. Performance Indicators: Determination of investor profiles to Completion of the road map for the take place in the region by expro- G9.PI.5.1 establishment of the energy center 31.12.2017 priation, and completion of relevant G9.PI.5.2 infrastructure and encouraging the 31.12.2019 investors to start up their investments therein SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING Strategies International interconnection studies shall be completed Feasibility and road map studies regarding market cou- in accordance with ENTSO-E criteria and necessary in- pling of the surrounding countries shall be conducted. frastructure thereof shall be established under the con- sideration of legal processes so as to provide opportunity Guiding shall be provided to the surrounding countries for to international electricity trading. the market formation and experiences regarding market operation shall be shared. Necessary investments shall be completed for West Line, Georgia Line, Iran Line, Iraq Line, Syria Line (shall be eval- Transit project progresses shall be monitored and sup- uated in the future despite it is suspended now) for the portive restructuring shall be implemented if necessary. purpose of increasing international interconnection ca- A detailed road map within program management con- pacity. cept, shall be prepared for “Ceyhan Integrated Energy Center Project”. MENR STRATEGIC PLAN 2015-2019 79 GOAL 10 A Powerful Actor in International Arena For capturing new opportunities and synergies in the field of ships for exploration of oil, natural gas, coal and non-energy energy and natural resources in international arena, coop- raw materials should be established and an active growth eration and regional activities are regarded as considerably policy through acquisitions should be followed up. Utilization of cooperation opportunities for the accomplishment of these important. explorations not only within the country but also abroad ap- It is envisaged that; to create new resources, new partner- pear to be at the forefront of this active policy. Table 1: 2013 Hydrocarbon Production (Oil Equivalent) Region /Country and Project Name Type Barrel / Day Batman-Adıyaman-Thrace Oil 33,758 Batman-Adıyaman-Thrace Natural gas 4,957 Total Domestic 38,716 Overseas Hydrocarbon Production in 2013 (Oil Equivalent ) Region /Country and Project Name Type Barrel / Day Azerbaijan-ACG Project Oil 15,829 Azerbaijan Shah Deniz Project Condensate 3,635 Azerbaijan Natural gas 11,053 Kazakhistan-KTM Oil 2,589 Total Overseas 33,106 Source: TPAO For the accomplishment of this goal, public companies to be only in short term but also in long term by adding its international involved in international activities should be subject to some re- experience to the human resource capacity which is desired to structuring so as to be attuned to the competition environment be developed. they would enter and be successful. Besides, by undertaking With Representation Office of Energy and Natural Resources to active missions in international organisations and taking place be implemented in foreign countries, relevant developments shall in the decision making mechanisms of these organizations shall be monitored closely and communication channels shall be kept support the effectiveness of the country in international area. This open at the highest level so that the national effectiveness shall approach shall affect the capacity development positively not be augmented abroad. SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING Having desired results for the procurement of international fields ment having a higher coordination power, following up global basically depends on the global developments which would af- developments closely and acting proactively, relevant risks shall fect the sector. In addition, it should be emphasized that multi- be minimized. lateral and coordinated studies are necessary. With a manage- G10. OBJECTIVE By making partnerships with the companies having foreign Coordinator: DIAB investments for exploration and international experience in Responsible Bodies: PIGM, MTA, TPAO, BOTAS, ETI license area thereof, new sources shall be created in interna- MADEN, TKI, TTK tional area for energy raw materials such as; oil, natural gas, coal and radioactive mineral and other raw materials. Performance Indicators: Number of overseas coal fields Number of overseas radioactive mineral G10.PI.1.3 and other raw material fields acquired by G10.PI.1.1 acquired by partnership / purchase 5 partnership / purchase until the end of 5 until the end of the plan period (pcs.) the plan period (pcs.) Number of overseas oil and natural gas G10.PI.1.2 fields acquired by partnership / purchase 3 until the end of the plan period (pcs.) G10. OBJECTIVE 2 Effectiveness of Turkey in international institutions acting in Coordinator: DIAB energy and natural resources sector shall be enhanced. Responsible Bodies: All Central Units and Affiliated and Related Institutions Performance Indicators : Until the end of planning period, num- ber of persons who shall be assigned Number of persons who shall be for at least 1 year period in the energy assigned at decision making mech- and mining organizations and relevant G10.PI.2.2 anisms of the energy and mining G10.PI.2.1 10 organizations and relevant interna- 1 international organizations (IEA, IRENA etc.) in which Turkey has member- tional organizations in which Turkey ships. has memberships. MENR STRATEGIC PLAN 2015-2019 81 G10. OBJECTIVE 3 Representation Offices of Energy and Natural Resources shall Coordinator: DIAB be established abroad. Responsible Bodies: DIAB, Personnel Department, Law Consultancy Performance Indicators: USA The countries in which Representation Russia Number of Representation of Energy G10.PI.3.1 of Energy and Natural Resources shall Azerbaijan G10.PI.3.2 and Natural Resources appointed 20 Iraq until the end of the plan period be appointed as of 2015 France Strategies Through restructuring Affiliated and Associated Institu- to be assigned into these organizations shall also be de- tions to perform international activities and widening their termined. overseas activities, new resources shall be created in in- Job definition and organizational structure shall be deter- ternational area for energy raw materials such as oil, nat- mined for the Representation Office of Energy and Natu- ural gas, coal radioactive mineral and other raw materials. ral Resources and relevant legislation infrastructure shall Ministry and its Affiliated and Related Institutions’ over- be completed. seas investment, representation, effectiveness and train- Public-private sector cooperation model, which would ing activities shall be increased. give opportunity for joint overseas investments by public A road map shall be created by deciding International or- and private sector shall be established. ganizations to be participated actively and the personnel SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING MENR STRATEGIC PLAN 2015-2019 83 With adding value to its energy and natural resources with its own technology, industry and R&D NEW TURKEY HAS INCENTIVES SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING THEME 5 Technology, R&D and Innovation Why Technology, R&D and Innovation? A significant dimension of self-adequacy of a country in en- The development of technology, ergy and natural resources is the availability of the domestic technology. There are various R&D, innovation and develop- Transfer of global innovations and modern technologies ment studies and incentives thereof are available in Turkey. to Turkey in the best way, However, the studies should be directed to areas with higher Development of domestic process and equipment ca- value added, industrialization and commercialization should pacity, be at the forefront, and incentive and monitoring structures should be designed in this direction. Creation and expansion of R&D environment enabling the This theme is intended in energy and natural resources areas rapid commercialization of innovation as follows: For the best utilization of R&D sourc- There is no control and monitoring es, an “Energy and Natural Resourc- unit following R&D projects in the es R&D Strategy” and the areas Ministry. which would be supported primarily should be determined. Cooperation among public, university and industry is not satisfactory. As existing R&D studies are only at theoretical level but could not be put Information acquired by the parties Results into practice commercially, measures which generate information and tech- nology are not gathered in a central for their commercialization are neces- of SWOT sary. unit, thus repetitions may occur in studies from time to time. Analysis MENR STRATEGIC PLAN 2015-2019 85 GOAL 11 Indigenous Technology in Energy and Natural Resources As the energy and natural resources sector is a capital inten- analysis should be made for relevant equipment, materials sive sector, the indigenization of used material, equipment and services and a road map should be prepared, further- and the services shall bring alone various contributions eco- more measures encouraging the domestic contribution rate nomically and in addition to energy sector, it will also support should be taken. for the growth of the generation sector. This indigenization Technology indigenization studies are long term projects, movement which shall expand beginning from energy sec- therefore the actual results of the steps made in the planning tor has the potential of bringing alone business opportuni- period shall be received not in the plan period but after the ties in various branches of economy and will be beneficial period, in the long term, within this scope it should be taken for knowledge accumulation in line with national R&D and into consideration that the important point here is to place innovation policy. an indigenization and technology development culture and The most important step within the scope of this goal is its infrastructure. that for enabling indigenization, an inventory and necessity G11. OBJECTIVE Inventory and necessity analysis shall be made for the equip- Coordinator: YEGM ment to be subjected to indigenization and a road map Responsible Bodies: All Central Units and Affiliated, Associ- thereof shall be specified. ated and Related Institutions Performance Indicators: Preparing an indigenous equipment G11.PI.1.1 Completion of road map 31.12.2015 G11.PI.1.2 31.12.2016 inventory SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING G11. OBJECTIVE 2 Taking the manufacture sector in Turkey into consideration, Coordinator: YEGM rates of domestic contribution shall be increased. Responsible Bodies: YEGM, NEPUD, PIGM, TPAO, EUAS, TEMSAN, TEIAS, BOTAS, TKI, TTK Performance Indicators: Rate of domestic contribution in G11.PI.2.1 manufacturing by Rate of domestic contribution 30 the end of the period * (average%) G11.PI.2.2 in renewable power plants by the 45 end of the period. (as manufacture rate (%)) * Calculation methodology shall be specified between Responsible Bodies and the coordinator. Strategies R&D and indigenization road map of energy and natural Development plan shall be prepared for enabling manu- resources sectors shall be completed. facture in compliance with international code and stan- dards for domestic contribution. Rate of domestic contribution in manufacturing shall be increased by implementing action plans thereof. Inventory and necessity analyses shall be made for ac- cessories and complementary parts with higher value In purchases through international agreements, “offset” added in the equipment which are subject to indigeniza- liability shall be provided considering domestic industry tion, manufacture opportunities in indigenization shall be capacity researched and road map shall be specified for encour- Ministry‘s policy on rate of domestic contribution in man- aging the domestic manufacture. ufacturing used shall be specified. * Offset application means the operations in which a specific amount of commodities are obliged to be sold while one country is making purchase from another country within the scope of world trade in order to balance its. foreign trade deficit. MENR STRATEGIC PLAN 2015-2019 87 GOAL 12 A Result- Oriented R&D Making R&D activities to convert into practice which would ural resources should be increased, along with private sector bring fruitful results, not remaining in theoretical level only, cooperation, furthermore mechanisms which would promote is one of the goals aimed within the scope of this Strate- private-public sector cooperation should be established. In gic Plan. Because, R&D activities; besides its outputs and addition, by establishing a national Energy and Natural Re- its benefits, also undertake duties which increase the social sources Institute and achieving public-university coordina- tion under this frame, R&D studies should also be monitored. welfare due to its macro-economic impacts brought along. The focus point of this goal hereby is based on R&D actions In line with this goal, it is hereby aimed that; number of R&D should not remain only at research and development level projects which are strategically important in energy and nat- but also it should be commercialized and implemented. It is not possible to expect that all R&D activities can be com- and increasing commercialization opportunities, despite hav- mercialized and implemented. The crucial point herein is that ing higher number of projects, in short/medium term which R&D environment should be settled, which embraces indus- can be commercialized and can create value added in the trialization as an important principle, expanding this culture sector. G12. OBJECTIVE Number of R&D projects in energy and natural resources Coordinator: YEGM, MIGEM sector, having strategic importance, should be increased by Responsible Bodies: All Central Units and Affiliated, Associ- the end of plan period. ated and Related Institutions Performance Indicators: Preparation of a “Critical Technol- No numer- ogy Plan” which would orient R&D ical target Number of R&D projects imple- exists G12.PI.1.1 projects with the attendance of mented by public sector in energy universities, research institutions and 31.12.2016 G12.PI.1.2 herein, for and natural resources sector until follow up- industry sector, along with MENR the end of the plan period purpose R&D Strategy Document only SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING No numer- No numer- Number of R&D projects imple- ical target ical target mented by public–private sector exists Number of specific design and/or exists G12.PI.1.3 cooperation in energy and natural herein, for G12.PI.1.4 product available for manufactur- herein, for resources sector until the end of follow up- ing until the end of the plan period follow up- the plan period purpose purpose only only G12. OBJECTIVE 2 Energy and Natural Resources Institute and R&D Coordina- Coordinator: SGB tion Department, within the scope of the Institute, shall be Responsible Bodies: All Central Units and Affiliated, Associ- established. ated and Related Institutions Performance Indicator: G12.PI.2.1 Completion of studies regarding the establishment of the Institute 31.12.2017 Strategies MENR R&D Strategy Document shall be prepared, direc- ties, research institutes and industry sector shall be pre- tion of R&D studies shall be determined. pared, and implementations within the scope of this plan shall be monitored along with the plan period. Technology centres supported under leadership of pub- lic- university-industry cooperation shall be established. National technology inventory shall be formed and updat- ed annually until late 2016 Legislation for supporting the implementation of R&D outcomes shall be prepared until late 2016. Corporate R&D legislation shall be developed in compli- ance with the applicable legal framework and shall be ar- Organizational design shall be prepared for the institute ranged so as to permit pilot R&D projects. and legislation shall be prepared. State of the art technologies shall be provided to be used Within the scope of Energy and Natural Resources Insti- in the field of renewable energy. tute, research and capacity developing activities for oc- cupational safety in mining shall be implemented. Upon the existence of appropriate laboratory working en- vironment; work efficiency shall be enabled, furthermore “Critical Technology Plan” which would orient R&D proj- reliability and accuracy value in the devices used in Hy- ects in the field of energy by the attendance of universi- drogen Technologies Laboratory shall be fully provided. MENR STRATEGIC PLAN 2015-2019 89 Growing in stability and fulfilling its investments duly and without delay by its private sector HUGE POTENTIAL IN NEW TURKEY SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING THEME 6 Improvement of Investment Environment Why Improvement of Investment Environment? Energy and natural resources sectors grow by private sector establish necessary investment environment where energy investments. Provision of an environment, in which private and natural resources investments could be achieved easily sector investments could be realized faster and easier, re- and rapidly under competitive conditions according to sus- moving the structural obstructions against investments and tainability principles, so that our national growth and devel- finally for enabling the security of supply in the field of energy opment requirement could be met. and natural resources, is a critical factor. This theme aims to Liberalization process which has ac- investors, however; it is also consid- celerated recently in electricity mar- ered that these attempts should be ket seems to be the most important made effective increasingly and com- step for the sector. The share and petitive and flexible markets should impact of the public is required to be be implemented within the scope of decreased in the market in line with EPIAS. liberalization process. Increase of lib- eralization level in wholesale and retail Ministry’s higher power of coordi- market affect the market in positive nation and its revealing a problem direction and increase the competi- solving approach for investments in energy and natural resources are en- Results tion, thus liberalization is considered to continue. tirely considered positive, however it is also observed that; an active supe- of SWOT Natural gas market is required to be rior body which would solve the prob- Analysis operable. lems obstructing the investment and which would coordinate other Minis- Developments for establishment of tries in this respect, is also required. EPIAS are considered positive by the MENR STRATEGIC PLAN 2015-2019 91 GOAL 13 Competitive and Transparent Markets Operation of the markets in a competitive and transparent not fulfilled and where failures of markets are not able to be environment is one of the most influential criteria from per- recovered, it is a fact that positive impacts of the competition spective of investors. Because in the non-transparent mar- environment which are attempted to be formed by liberaliza- kets occurrence of an environment of confidence, which the tion are getting disappeared. Within this context, establish- investors expect, runs a risk. On the other hand, in such ment of competitive and transparent markets is a goal within environments where appropriate competitive conditions are the scope of the Strategic Plan. MW 70,000 Private 60,000 Public 50,000 40,226 40,000 Graphic 26: 32,297 25,059 28,761 24,441 24,279 24,244 24,466 24,466 24,150 24,775 30,000 21,681 22,589 22,570 23,334 23,781 20,296 Installed Capacity by 16,061 17,574 15,486 16,557 Public and Private 20,000 12,998 14,254 Sector 10,165 10,000 Source: TEIAS 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING Number of Active Wholesale Trade Licenses 0 50 100 150 200 250 TWh 100 110 120 130 140 150 160 170 180 190 Number of Active Electricity Generation Public Private and Total Wholesale Source: MENR Source: MENR by Public and Private Trade Licenses in Active Wholesale Licenses the Market Sectors Graphic 28: Graphic 27: Jan 2012 121 Total Wholesale Licenses 52.1 Feb 2012 112 2002 77.3 Mrch 2012 112 Apr 2012 113 80.1 May 2012 2003 114 60.5 Jun 2012 113 88.1 July 2012 113 2004 62.6 Aug 2012 116 Sep 2012 119 95.0 2005 Oct 2012 121 66.9 Nov 2012 115 91.6 Dec 2012 115 2006 84.7 Jan 2013 136 Feb 2013 139 99.2 2007 Mrch 2013 140 92.3 Apr 2013 140 100.7 May 2013 140 2008 97.7 Jun 2013 138 July 2013 139 105.4 2009 Aug 2013 89.5 144 Sep 2013 143 115.7 Oct 2013 2010 142 95.5 Nov 2013 143 Dec 2013 137.0 147 2011 92.4 Jan 2014 147 Feb 2014 153 148.9 2012 Mrch 2014 154 90.6 100 110 120 130 140 150 160 170 180 190 160.0 2013 80.1 Total Wholesale Trade Licenses MENR STRATEGIC PLAN 2015-2019 93 TWh TWh 246 180 Public 242 250 230 Private 210 160 Total Electricity 198 194 Consumption 190 200 140 120 150 100 Graphic 29: 80 Electricity Trade by Public 100 130.3 60 and Private Sectors and Total Electricity 93.7 40 50 Consumption 44.9 46.1 20 36.9 33.1 29.1 Source: TEIAS 25.9 23.2 29.9 32.0 32.7 34.9 16.8 0 0 2007 2008 2009 2010 2011 2012 2013 Upon the realization of privatization within specified plans, In addition to this, it is also planned that; within the plan peri- the share of public in the market is aimed to be decreased od national tariff system should be expired and regional tariff whereas predictability for the investors is desired to be in- mechanism should be implemented by relieving problems of creased. loss and illegal consumption. Delays in the implementation of regulations for the market and loss and illegal consumption may create challenges against the failures in expected improvements as regards the problem of achievement of the relevant goal. G13. OBJECTIVE Electricity generation privatization process shall be followed Coordinator: EIGM to see whether it is applied according to specified plan. Responsible Bodies: EUAS, Privatization Administration Performance Indicators: Completion of privatization Base Year 2019 G13.PI.1.1 of thermal power plants 31.12.2016 The rate to be reduced in 2013 the share of public within G13.PI.1.2 electricity generation by 33.36 the end of the plan period (BO,BOT, (%) TOOR are 20 excluded) G13. OBJECTIVE 2 Preliminary studies shall be accomplished for the implemen- Coordinator: EIGM tation of regional electricity tariffs instead of national tariff Responsible Body: EPDK system until the end of the plan period. Performance Indicator: G13.PI.2.1 Completion of preparatory studies for regional tariff mechanism 31.12.2019 SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING G13. OBJECTIVE 3 Upon the establishment of EPIAS, energy markets shall be Coordinator: EIGM made more transparent, reliable and monitorable. Realization Bodies: TEIAS, EPIAS, BOTAS, EPDK Performance Indicators: Making the Intra-Day Market func- Implementation of information G13.PI.3.1 30.06.2015 G13.PI.3.4 platform which enables data sharing 01.07.2016 tional in electricity market G13.PI.3.2 Making the Market Monitoring 01.01.2016 Completion of infrastructure studies System functional G13. PI.3.5 for functionality of Balancing and 31.12.2016 Day-Ahead Markets within the scope Issue of Transparency Code of EPIAS in natural gas market G13.PI.3.3 01.01.2016 G13. OBJECTIVE 4 Content and calendar related to data sharing of Ministry and Coordinator: EIGM its Affiliated, Associated and Related Institutions shall be de- Responsible Bodies: All Central Units and Affiliated, Associ- termined, and reports and data thereof shall be published ated and Related Institutions accordingly. Performance Indicator: Determination of content and calen- G13.PI.4.1 dar related to data sharing and exe- 30.06.2015 cution of the first institution sharing Strategies Plan related to privatization shall be prepared and shared searches regarding additional markets which might be with public, and predictability from investors’ point of established shall be carried out, necessary studies to de- view shall be enabled. velop legislation shall be conducted in this respect. Some of EUAS’ generation capacity shall be privatized Completion of BOTAS’s restructuring shall be provided through long term contracts gradually by years in an in- within the period specified in the related law. creasing manner. By the end of the plan period, transition to cost-based Regional tariff mechanism, with its details, shall be dis- pricing structure shall be completed in the natural gas cussed in a participatory manner and the road map for its market. implementation shall be developed. Regulations shall be made for bringing the natural gas As set forth in the legislation, market systems within TE- market to function better. IAS shall be transferred into EPIAS in a reliable manner Implementation of Balancing and Day-Ahead Markets in and shall be made functional therein. natural gas market shall be provided. Legislation and infrastructure studies regarding data Completion of the preparations for the establishment of sharing, market transparency and market surveillance oil and carbon markets within EPIAS in collaboration with system shall be carried out. relevant Ministries. In order to make electricity market function better, re- MENR STRATEGIC PLAN 2015-2019 95 GOAL 14 Improved Investment Processes Besides the supports provided to investments based on a It is aimed that; besides relevant processes and governance transparent and predictable market structure, administrative infrastructure should be established, alternative finance properties of processes of supporting investors is an ac- models to promote investments should be developed, thus celerating factor for investors. Particularly, the capability of the investment environment required by the investors should foreign investors; who are considering to make their initial investments in our country, of comprehending the market be enabled. Within this framework, it is considered that the procedures and rules easily as well as prediction of risks restructuring providing high level cooperation between the sourced from the applicable legislation shall bring along the institutions will be essential. cooperation. Difficulties may be faced in completion of necessary coordination and in the functionality of the related organiza- legislations for improvement of investment processes and tion within the plan period. G14. OBJECTIVE Governance and process structure which facilitate energy Coordinator: EIGM, MIGEM and natural resources investments shall be implemented. Responsible Bodies: All Central Units and Affiliated, Associ- ated and Related Institutions Performance Indicators: Establishment of Energy and Natural Completion of legislation G14.PI.1.2 Resources Investment Coordination 31.12.2015 for the establishment of Energy and Board G14.PI.1.1 Natural Resources Investment Co- 31.12.2015 ordination Board and Project Follow Establishment of Project Follow Up and Coordination Department G14.PI.1.3 30.06.2016 Up and Coordination Department SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING G14. OBJECTIVE 2 Alternative finance models shall be developed in order to Coordinator: EIGM, MIGEM promote the investments in energy and natural resources Responsible Bodies: EIGM, MIGEM, PIGM, DIAB, MTA, sectors. TKI, TTK, EUAS, TPAO, EPDK Performance Indicator: G14.PI.2.1 Completion of promotion impact analyses and establishment of finance models 31.12.2019 Strategies “Energy and Natural Resources Investment Coordination Specialized Industrial Zones related to energy generation Board” consisting of the representatives from relevant Mi- and power plant equipment manufacture shall be opened nistries, at Deputy Undersecretary level and higher level for use of investors. representatives from relevant institutions, under the pre- sidency of Energy and Natural Resources Ministry, shall Thermal power plant investments in the fields belonging be established. The mission of this Board is to evaluate to public and other major projects shall be introduced the structural obstructions in energy and natural resour- into economy through public-private partnership model, ces investments and develop policy and actions to resol- without damaging market mechanism. ve these problems and to provide cooperation between Bilateral agreements market shall be supported for wide- the institutions. ning long term contracts and long term off-take agree- Upon the establishment of Project Follow Up and Coordi- ments under free market conditions. nation Department within the body of the Ministry, except Measures shall be taken for enabling the institutionalizati- nuclear and transit pipeline projects, large and medium on of investors which are beyond a specific scale in terms scaled strategic projects carried out by public and private of portfolio magnitude. sector shall be provided to be followed up by a separate department within this structure. Project Follow Up and Regulations aiming the promoting of natural gas storage Coordination Department shall work in cooperation with and LNG terminal investments shall be made. Energy and Natural Resources Investment Coordination Board. Permit and approval periods for energy and mining in- vestments shall be shortened (making job definitions, Incentives based on impact analysis made by economet- re-evaluation of processes, making amendments to le- ric models shall be designed, incentive processes shall gislation), and unnecessary stages and document requi- be monitored, measured and revised according to the rements shall be determined and recovered. results thereof. MENR STRATEGIC PLAN 2015-2019 97 Sustainable and reliable procurement of the required raw materials from indigenous and overseas resources NEW TURKEY HAS OPPORTUNITIES SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING THEME 7 Raw Material Supply Security Why Raw Material Supply Security? Secure procurement of non-energy raw materials means quired raw materials and some of raw materials are import- the source security of various industrial areas in which these ed. This theme is for enabling the sustainability of raw materi- raw materials are used as input through the process. Lack al supply security as well as rational and proactive strategies of these raw materials may hinder production processes and and actions. lead to economic losses. Turkey does not possess all re- For enabling the security of raw mate- for a long time. Inspection mecha- rial supply, it is important to increase nisms thereof are required to be im- the exploration activities. In this man- plemented. ner, related mechanisms are required to be designed. International action is required for the sources which are not available It is seen that; measures are required in Turkey or which have higher pro- to be designed to alleviate conflicts in duction costs. Turkish companies environmental issues, public and in- involved in exploration and operation vestors should be made aware and abroad actively should be supported. informed on the subject and imple- mentations which minimize environ- There exists a deficiency of compe- mental impacts specific for some tent corporate capacity in the field of mining investments should be devel- mining. Business steps should be es- Results oped and expanded. tablished for development of corpo- rate capacity. of SWOT Occupational health and safety should be increased in mines and Critical raw materials should be de- termined and reserve determinations Analysis also cooperation with other public institutions, nongovernmental organi- for relevant reserves should be com- zations and private sector companies pleted. should be developed. There exists a lack of proper and Licenses should be avoided to be common database relating to explo- kept by the investors in idle manner ration activities. MENR STRATEGIC PLAN 2015-2019 99 GOAL 15 Security of Non-Energy Raw Material Supply Exploration activities shall be increased both in the country is substantially important. These studies shall be carried out and overseas, furthermore security of supply of these raw along with corporate capacity enhancement and restructur- materials shall be assured accordingly. Besides, a separate ing studies. strategy study for critical and strategic raw materials for the Domestic companies’ performing mining activities overseas country shall be conducted. is one of the strategies that would contribute to the security To be aware of the raw material mine potential owned by the of procurement of non-energy raw materials. However, these country and to follow up the relevant developments; estab- strategies have been discussed in the goals under the theme lishment of an integrated data bank related to these sources of “Regional and International Effectiveness”. Thousand Meters 350 300 Exploration Drilling 250 200 150 Graphic 30: 321 307 330 248 100 Exploration Drillings 191 197 Conducted by MTA 141 110 50 80 Source: MTA 40 32 38 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Security of supply of non-energy raw material is an issue should increase and their investments should be made con- in which various stakeholders have participated and which sciously, public institutions have gathered their experiences should be executed in coordination. Here, a structure is and have been acting as powerful companies in the interna- needed; where public institutions should arrange investment tional arena, and in which all these actions have been pro- environments in the best manner, private sector capacity gressing in a harmonized structure. SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING G15. OBJECTIVE Explorations in regard to non-energy natural resources Coordinator: MIGEM should be increased. Responsible Bodies: MTA, ETI MADEN Performance Indicators: Increase of natural resources exploration activities 2015 2016 2017 2018 2019 Exploration drilling performed G15.PI.1.1 by public for non-energy natural 150,000 150,000 170,000 190,000 200,000 resources (meter) Annual increase in investment G15.PI.1.2 for explorations until the end of 5 5 5 5 5 the plan period (%) G15. OBJECTIVE 2 Integrated data bank infrastructure should be established for Coordinator: MIGEM non-energy natural resources.. Responsible Bodies: MIGEM, MTA, ETI MADEN Performance Indicators: G15.PI.2.1 Establishment of drilling core data 31.12.2016 G15.PI.2.2 Establishment of reserve data bank 31.12.2016 bank G15. OBJECTIVE 3 National Raw Material Strategy Document involving critical Coordinator: MIGEM raw materials shall be prepared. Responsible Bodies: MIGEM, MTA, ETI MADEN, BOREN Performance Indicator: Completion of National Raw Material Strategy Document involving critical G15.PI.3.1 raw materials and road map 31.12.2015 MENR STRATEGIC PLAN 2015-2019 101 G15. OBJECTIVE 4 Infrastructure studies for enabling the exploration and repor- Coordinator: MIGEM ting of Turkey’s mining resources in accordance with interna- Responsible Bodies: MIGEM, MTA tional standards shall be completed. Performance Indicators: Completion of international reserve Completion of international explora- 31.12.2018 G15.PI.4.1 reporting system 31.12.2018 G15.PI.4.2 tion standards Establishment of National Reserve Reliability System integrated to data G15.PI.4.3 bank for producing reliable reserve 31.12.2019 information Strategies Measures for increasing exploration drillings in private Infrastructure studies shall be conducted for establish- sector shall be taken. ment of Reserve and Resource Security System and for enabling exploration according to international standards. Permit processes regarding exploration and operational shall be revised in a facilitating manner. Within the body of Ministry, a unit; which shall be able to produce policy on non-energy natural resources and Investments regarding natural resources shall be facili- which shall monitor the implementation of these policies tated through the measures under the Improvement of and provide the coordination thereof, shall be estab- Investment Environment Theme. lished. As specified under the theme of Regional and Interna- Project inspection structure in mines shall be reviewed tional Effectiveness, necessary business steps shall be and necessary legislation shall be formed to enable the taken to enable public companies to conduct exploration project inspection in most rational and result oriented activities for non-energy raw materials abroad. manner. For the purpose of establishing an extensive data inven- Cooperation with other Ministries shall be developed for tory by the participation of other stakeholders and es- the control and coordination of industry based on mining, tablishing a data bank in which all geological findings and for monitoring its progress. (including drilling core data bank) are included; studies for developing legal and physical infrastructures shall be The Presidency of Project Follow Up and Coordination, of carried out ( as a physical and electronic data base). which detailed information is given in the theme named; Improvement of Investment Environment, shall work Necessary legal infrastructure shall be prepared to trans- in direct contact with other Ministries for resolving the fer the samples of all drillings performed by public and problems arising from implementations due to applicable private sector to the data bank. legislation (Mine Law and other mining laws which other Studies for establishment of a National Reserve Security Ministries are related to) for investment. System integrated with data bank shall be initiated for the A system; user friendly, recordable and storable, shall purpose of producing reliable reserve data. be established in which the services provided to license For enabling the exploration and utilization of critical raw owners within e-Devlet project could be transferred into materials, critical raw materials shall be determined pri- internet environment. marily. Project evaluation criteria shall be determined obviously National Raw Material Strategy Document involving criti- and competence shall be required at exploration license cal raw materials and a road map shall be prepared and evaluation stage. revised in late 2018. SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING MENR STRATEGIC PLAN 2015-2019 103 Increasing value added of its resources and supporting growth of its industry NEW TURKEY HAS EFFICIENCY SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING THEME 8 Efficient and Effective Use of Raw Material Why Efficient and Effective Use of Raw Material? The country’s non-energy raw materials are limited, for this they should be exported as end products with higher value reason they should be used in effective and efficient manner added, thus such mechanisms should be used wider and for enabling sustainable growth of the industry and increas- limited raw materials should be utilized in maximum by mak- ing of the national income. Rather, exporting mines as ore, ing relevant business steps thereof. High input costs and technological There exists a potential for recovery deficiencies cause ore exports to be which has not been utilized yet and executed with a lower value added. policies should be developed to pro- The sector should be informed in re- mote intensive recycling. gard to prevent raw material export, this approach should be support- The capacity of the companies act- ed and implemented by relevant in- ing in the sector should be developed centives. It is necessary to increase and number of companies with inter- end-product exports and decrease national standards acting in mining Results ore exports. sector should be increased. of SWOT Analysis MENR STRATEGIC PLAN 2015-2019 105 GOAL 16 Efficient and Effective Use of Non- Energy Natural Raw Materials Mechanisms encouraging the production and exports of end and domestic concentrates and secondary product transfor- product within the scope of non-energy natural raw materi- mations should be evaluated and valuable minerals included als should be implemented. It is aimed that processed ore therein should be obtained. exports should be increased, in addition to this, imported Thousand Tons Tons 30,000 7,000 26,637 25,000 6,000 5,740 5,000 20,000 4,000 15,000 3,000 10,000 2,000 5,000 1,000 Graphic 31: 1,546 1,666 795 700 0 0 Some ore and natural Copper Zinc Chrome Lead Gold Silver stone reserves by the end of 2013 Million Tons Million m3 3,500 6,000 Source: MTA 3,066 5,137 3,000 5,000 2,500 4,000 2,000 3,000 2,800 1,500 2,000 1,000 1,000 500 1,000 372 106 0 0 Boron Feldspar Magnesite Marble Travertine Granite SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING Amendments were made in Mining Act No. 3213 for the pur- the scope of these regulations, for enabling the efficient use pose of development of the mining sector. Based on these of sources in mining activities; new criteria have been de- amendments, improvements has been provided in the sec- fined, thus actual investors have been introduced necessary tor, significant increases have occurred in the share of the facilities. sector in total national exports and national income. Within Number 20,000 18,208 17,669 18,000 17,297 16,000 15,149 14,000 First Application License Number Issued 10,731 from the First Application 10,462 12,000 10,377 9,957 9,132 9,461 10,000 Graphic 32: 8,000 Number of 6,856 6,426 application by years 6,157 5,577 5,069 6,000 and licenses issued due to these 4,401 4,452 4,730 4,342 applications 3,984 4,000 2,625 1,746 2,000 1,407 Source: MENR 84 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Million TL 350 300 250 200 150 315.9 Graphic 33: 300.8 100 State Revenues 187.1 by Years 119.4 124.2 50 96.1 74.1 47.1 59.2 Source: MENR 45.1 43.2 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 MENR STRATEGIC PLAN 2015-2019 107 Million $ 8,000 6,817 7,000 Import 6,066 6,000 Export 5,581 4,905 4,785 4,870 5,000 4,483 4,031 4,000 3,851 3,485 3,325 3,077 3,000 Graphic 34: 2,512 2,965 2,410 2,315 Mine exports 1,774 1,889 2,000 1,402 and imports 1,067 1,354 1,099 1,000 742 Source: MENR 608 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Thousand Tons 1,800 1,673 1,603 1,676 1,600 Concentrated Boron 1,400 Boron Chemicals and Equivalent Products 1,398 1,200 1,177 1,053 1,000 Graphic 35: 1,002 924 800 803 Exports of 665 600 concentrated and processed boron 463 400 products 355 409 357 325 328 299 277 292 282 214 200 141 169 175 Source: ETI MADEN 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 For enabling the working security of mines by the coordi- activities should be intensified. nation with relevant institutions, monitoring and inspection In line with this purpose, capacity development of private sector and raising awareness in their investments towards end products are of critical factors. SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING G16. OBJECTIVE Production of processed products and their exports shall be Coordinator: MIGEM increased. Responsible Bodies: MIGEM, ETI MADEN Performance Indicators: Design and implementation of mea- sures which would increase the rate Base Year Rate of concentrated 2013 2019 of processed ore exports to total na- G16.PI.1.1 tural non-energy resource exports in 31.12.2016 G16.PI.1.2 boron within total boron cooperation with Ministry of Science, products until the end of Industry and Technology. plan period 5% 3% G16. OBJECTIVE 2 Measures shall be designed and implemented for enabling Coordinator: MIGEM to obtain valuable minerals from import and domestic con- Responsible Bodies: MIGEM, ETI MADEN centrates and by recycling from secondary (waste items) products Performance Indicator: Design and implementation of measures, in cooperation with other Ministries, for enabling G16.PI.2.1 31.12.2017 to increase the quantity of valuable minerals obtained from concentrated products G16. OBJECTIVE 3 An operation and inspection structure enabling efficient, ef- Coordinator: MIGEM fective and secure mining activities in international standards Responsible Bodies: MIGEM, ETI MADEN, TKI, TTK, EUAS shall be formed. Performance Indicator: Implementation of operation and inspection structure; enabling efficient, effective G16.PI.3.1 31.12.2016 and secure mining activities in international standards MENR STRATEGIC PLAN 2015-2019 109 Strategies By-product and end product inventory shall be prepared Necessary regulations shall be made for the implementa- and sector shall be regulated in line with the production tion of market mechanisms for the utilization of concen- of these items. trated products involving valuable minerals. In relation to the production of by-products and end-prod- Road map for utilization of wastes shall be formed. ucts, utilization of advanced technology shall be promot- ed and expanded so as to increase cost-efficiency and Mining investments should be initiated as based on fea- value added. sibility studies, conscious technology selection should be provided, companies with strong financial capacity As regards the production of by-products and end-prod- should be oriented toward investments, unplanned min- ucts, feasibility studies shall be conducted particularly for ing should be avoided and competitive market formations incentives which would decrease energy input cost. should be supported. Interactions on environment shall be determined in com- Operating and inspecting structure shall be formed for mon mind workshops together with stakeholders and effective, efficient, safe and mining compatible with inter- implementations minimizing the environmental impacts national standard. shall be designed. Technology and efficient equipment utilization should For obtaining valuable minerals in concentrates, relevant be promoted for increasing the efficiency. Furthermore, sector and public sector representatives shall be met and necessary studies for raising awareness thereof shall be common mind workshops shall be organized and road conducted. map shall be issued. As different sub-sectors and raw materials require differ- For the purpose of issuing the inventory of all mineral pro- ent technologies and processes, appropriate approach- cessing plants and products of them and also monitoring es considering the requirements of these sectors shall be and inspecting them; legal arrangements and necessary developed in order to increase efficiency of sub-sectors. infrastructure shall be formed. Guidance services shall be supplied for efficient mining. For aiming to obtain valuable minerals, through advanced enrichment process, from concentrated products either Competition structure in the market shall be followed. In produced or imported; necessary researches and feasi- addition to this, anti-competitive actions shall be deter- bility studies shall be conducted for enabling the estab- mined and avoided. lishment of an integrated mineral processing plant by Safety of operating mines shall be provided by required public or private sector or by public-private partnership. coordination with Ministry of Labor and Social Security. SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING MENR STRATEGIC PLAN 2015-2019 111

5. Monitoring and Assessment Performance indicators in Strategic Plan are categorized into Starting from September, 2015, to control whether the two major groups by their characteristics. developments regarding all performance indicators will be recorded into ESIS Strategic Management Module I. Quantitative Performance Indicators: These perfor- and to evaluate the developments by the end of every mance indicators involve numerical objective. March and September of each year, For example “Electricity generation from domestic coal Within this context; shall be increased to 60 billion kWh annually by the end of the plan period.” In case of inconsistency among Responsible Bodies and Coordinator, to organize a meeting on perfor- II. Qualitative Performance Indicators: These perfor- mance development among them and to take a copy mance indicators involve control points within a specific of the meeting minutes and examine it. time frame for the completion of specific target studies. In case of coherence between Responsible Body and For example: “A corporate restructuring involving Human Coordinator to receive the performance progress form Resources Transformation Program shall be achieved and to examine it. until the end of 2016.” In case where PSD is in charge of both Responsible To monitor quantitative performance indicators; reference Body and Coordinator, to evaluate the performance year, necessary calculation procedure, data suppliers and progress together with the related Deputy Undersec- methodology related to frequency of data for calculation have retary and to report the results by performance prog- been prepared in detailed. Monitoring process for quantita- ress form. tive indicators shall be basically accomplished based on data sets transferred over ESIS. Degree of realization on value tar- Starting from May, 2016, to form Annual Monitoring get planned for interim periods and developments in general Report for all performance indicators through monitor- shall be evaluated by the meetings to be held periodically by ing the developments via ESIS and examine the meeting Coordinator and Responsible Bodies. Meeting period varies minutes between the Coordinator and Responsible Bod- according to the content of the indicator and has been spec- ies and share it with the high level management. ified comprehensively in monitoring methodology. Role of Coordinators within Qualitative performance indicators, by its nature, call for a control list to monitor approaching to and reaching the ob- the Performance Monitoring jective. Monitoring shall be executed by evaluating whether the objectives will be fulfilled or not, and examining the rea- Process sons in case of failure. No numerical data is required herein. Units in charge of coordination in the Strategic Plan shall ful- Developments, here, shall be evaluated by the meetings to fil all the duties given below for all performance indicators be held periodically by Coordinator and Responsible Bodies. regarding the objectives under their responsibilities of coor- dination: The details regarding monitoring is to vary depending on the position of Responsible Bodies and the details are shown in By the end of February, 2015, to select data forms over Figure 1. ESIS on the basis for the calculation of all quantitative performance indicators within the scope of the objectives Role of PSD in Performance under their responsibilities of coordination, Monitoring Process Starting from September, 2015, to examine develop- PSD shall perform the following duties for all performance ments regarding all performance indicators within the indicators: scope of objectives under their responsibilities of coor- dination, through ESIS Strategic Management Module By the end of February, 2015, to record all goal, objec- by the end of March and September for each year, to tive, and performance indicators into ESIS’ s Strategic evaluate mutually the developments, causal relationship, Planning module, to provide its approval by the high level failures, problems etc. and to plan the work steps on management (Directorate of PSD and the related Deputy the areas of reconciliation over common issues through Undersecretary, Undersecretary and the Minister hierar- meetings among Responsible Bodies and to prepare the chically), meeting minutes related to this evaluation and to transmit To guide the Coordinator for monitoring, it to PSD. SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING ments related to all performance indicators for the ob- Role of Responsible Bodies jectives under their responsibilities to the Coordinator by within the Performance the end of March and September for each year, and to evaluate mutually the developments, causal relation- Monitoring Process ships, failures, problems etc. together with the Coordi- The bodies in charge of implementation in the Strategic Plan nator if necessary, to plan the work steps on the areas shall fulfil all the following duties for all performance indicators of reconciliation over common issues and after preparing regarding the objectives under their responsibilities: the meeting minutes together with the Coordination Unit to transmit it to PSD. Starting from September, 2015, to inform the develop- At the Beginning of the Plan PSD 1 Inputs all goals, objectives and performance indicators within the Strategic Plan into ESİS's Strategic Planning Module by the end of February, 2015. Assigns the Coordinator and Responsible Bodies for to the Objective and Performance indicators. The inputs of the Strategic Plan into ESİS is approved by the senior management. Once in every six months (by the end of September and March in every year Responsible Body and Coordinator 3 Responsible Body 2 Conveys the progresses and related explanations Responsible Bodies and Coordinator holds a meeting to the Coordinator for each indicators stated in the within two weeks following the delivery of the Performance Performance Monitoring Report Monitoring Report. The progress is discussed at the meeting, in case of approaching to the red and yellow alarm points, the actions to be decided taken jointly are evaluated. Coordinator 4 PSD 5 Prepare meeting minutes and send a copy of it with Performance Monitoring Report Progresses are monitored over ESIS to PSD Each Year in May Figure 5: PSD 6 Performance Monitoring Annual Monitoring Report is created for Process all Performance Indicators and submitted to the senior management MENR STRATEGIC PLAN 2015-2019 113

6. Costing During cost determination process, the entire Ministry’s bud- regarding projects and overhead expenses have been tak- get (forecast budget) has been distributed accordingly with en into consideration. Annual costs in the basis of goal are the goal it is related with. In this distribution, the budgets specified below: GOAL ANNUAL COSTS (TL) 2015 2016 2017 2018 2019 Total Goal 1 : Strong and Reliable Energy Infrastructure 6,940,265 7,518,815 7,802,844 8,192,987 8,602,636 39,057,547 Goal 2 : Optimum Resource Diversity 35,380,472 38,055,896 39,337,194 41,046,431 43,013,179 196,833,172 Goal 3 : Effective Demand Management 7,782,408 7,696,903 7,802,844 8,192,987 8,602,636 40,077,778 Goal 4 : Turkey; Making Use of Its Energy in the Most Efficient Way 24,659,306 26,539,346 27,731,157 28,675,453 30,109,226 137,714,487 Goal 5 : Improved Capacity for Energy Efficiency and Saving 20,822,366 21,725,423 22,654,333 20,482,466 21,506,590 107,191,179 Goal 6 : The Ministry with a Strong Corporate Capacity 19,176,893 15,387,306 16,067,254 16,771,072 17,205,272 84,607,797 Goal 7 : The Ministry Using Information Technologies Effectively 17,927,812 12,414,664 11,704,267 12,289,480 12,903,954 67,240,176 Goal 8 : A Well-Coordinated Ministry 6,852,730 7,431,280 7,802,844 8,192,987 8,602,636 38,882,477 Goal 9 : Turkey Integrated with Regional Energy Markets 19,133,107 20,579,483 21,508,393 20,482,466 21,506,590 103,210,039 Goal 10 : A Powerful Actor in International Arena 10,544,560 11,364,248 11,704,267 12,289,480 12,903,954 58,806,508 Goal 11 : Indigenous Technology in Energy and Natural Resources 6,852,730 7,431,280 7,802,844 8,192,987 8,602,636 38,882,477 Goal 12 : A Result-Oriented R&D 6,968,260 7,546,810 7,840,151 8,230,293 8,639,942 39,225,456 Goal 13 : Competitive and Transparent Markets 13,862,419 15,019,519 15,605,689 16,385,973 17,205,272 78,078,872 Goal 14 : Improved Investment Processes 6,911,397 7,471,896 7,802,844 8,192,987 8,602,636 38,981,760 Goal 15 : Security of Non-Energy Raw Material Supply 17,766,800 17,755,570 15,694,704 16,385,973 17,205,272 84,808,318 Goal 16 : Efficient and Effective Use of Non-Energy Natural Raw Materials 13,758,313 14,915,414 15,658,542 16,385,973 17,205,272 77,923,514 GENERAL TOTAL 235,339,839 238,853,853 244,520,172 250,389,993 262,417,701 1,231,521,557 SITUATION ANALYSIS IMPLEMENTATION RESULTS of STRATEGIC PLAN 2010-2014 MISSION, VISION, BASIC VALUES AND PRINCIPLES STRATEGIC PLAN 2015-2019 MONITORING AND ASSESMENT COSTING

Annex 1: Strategic Planning Board and Team List Strategic Planning Board NAME SURNAME TITLE Metin KİLCİ Undersecretary Dr. Selahattin ÇİMEN Deputy Undersecretary Doğanbey AKGÜL General Director of the Presidency of Strategy Development Dr. Zafer DEMİRCAN General Director of Energy Affairs M. Hamdi YILDIRIM General Director Mining Affairs Yusuf YAZAR General Director of Renewable Energy Selami İNCEDALCI General Director of Petroleum Affairs Murat KARAPINAR Acting General Director of Foreign Relations and EU Ali AĞAÇDAN 1st Legal Counsellor A. Kerem ESKİGÜN Acting Counsellor or of Press and Public Relations Sait ÖZDİL Head of Administrative and Financial Affairs Department Satılmış KARAKAYA Head of Personnel Department Nurhayat CANTEKİN Head of Affiliated and Related Institutions Department Dr. R. Aykul MURATOĞLU Head of Transit Petroleum Pipeline Department Necati YAMAÇ Head of Nuclear Energy Project Implementation Department Süleyman DUMAN Head of Internal Audit Department M. Hacı EMİNOĞLU Head of Inspection Services The continuation of the Strategic Planning Team List is in the next page. MENR STRATEGIC PLAN 2015-2019 115 Strategic Planning Team NAME SURNAME TITLE The Presidency of Strategy Development Doğanbey AKGÜL General Director of the Presidency of Strategy Development Hasan Hüseyin ERDOĞAN Head of Strategic Management Department Dr. Ömer ERDEM Acting Head of Energy Strategy and Market Monitoring Department F. Canan ATLIHAN Head of Strategic Plan Preparation, Monitoring, Evaluation and Coordination Group Hazel ULUCAN Financial Services Assistant Expert Zehra TOPRAKLI Chief Ayberk TOKMAK Engineer Seval ŞEN PAMUK Computer Operator Hüseyin Hüsnü KURUMLU Officer Şükran ŞİMŞEK Computer Operator Mehmet GÜLER Head of Energy Statistics and Strategic Management Group İlknur ERİŞTİREN ENR Assistant Expert Onur DÖNMEZÇELİK ENR Assistant Expert Murat MISIR ENR Assistant Expert Mehmet PAKSOY Financial Services Expert Arzu YOKUŞ Chief General Directorate of Energy Affairs Barış SANLI Deputy General Director Erdoğan SERT Deputy General Director Dr. Öztürk SELVİTOP Head of Department Abdulkadir ONGUN Head of Department Canip SEVİNÇ Engineer General Directorate of Mining Affairs Halil İbrahim DEMİR Coordinator Fahri GEZGİNCİ Engineer Mehmet Ali DEĞER Coordinator General Directorate of Petroleum Affairs Adnan BELENLİ Head of Department Safa AYDIN ENR Assistant Expert Mustafa Nuri ERDEM ENR Assistant Expert Gökhan KARACA ENR Assistant Expert Engin PEKTEZ Engineer Strategic Planning Team NAME SURNAME TITLE General Directorate of Renewable Energy Fatih YAZITAŞ Head of Department Sebahattin ÖZ Head of Department Halil İbrahim GÜNDOĞAN Head of Department Department of Nuclear Energy Project Implementation Salih SARI Engineer Erşen ÇAMAŞ Physicist Department of Transit Petroleum Pipelines Levent ÖZMEN Engineer Savaş ZORLU Engineer General Directorate of Foreign Relations and European Union Aysun ÖZKAZANÇ Acting for Deputy General Director Erbay DÖKMECİ Acting for Deputy Head of Department Affiliated and Associated Institutions Department Nevin KÜRÜM Head of Section Legal Consultancy Department Merdan YURDAKURBAN Legal Counsellor Internal Audit Department Hasan YAMAN Internal Auditor Personnel Department Murat ÖZGÜN Head of Section Şeyma TEKİN Computer Operator MTA General Directorate Sibel ERGEN Coordinator EUAS General Directorate Necmi YAŞAR Head of Department General Directorate of TEIAS Enver ERKUL Head of RPC Department Bahadır UÇAN Head of Department Ercüment ÖZDEMİRCİ Head of Section Fatih BAYTUGAN Head of Section Nurhan OZAN Head of Section Murathan KARA Head of Section The continuation of the Strategic Planning Team List is in the next page. MENR STRATEGIC PLAN 2015-2019 117 Strategic Planning Team NAME SURNAME TITLE General Directorate of BOTAS Mehmet TECİMEN Head of Department Şennur ÜVEZ Assistant Head of Department Nurten HALICIOĞLU Head of Section General Directorate of TPAO Mehmet Ali KAYA Head of Department Ayşe KAPULLUOĞLU Assistant Head of Department Ahmet TÜRKSOY Head of Section TAEK Betül DEMİRBAY Engineer General Directorate of ETI MADEN Uğur AYDOĞAN Technical Expert General Directorate of TETAS Gürsel AÇIKBAŞ Head of Department Güneş BARLAS Head of Section Yücel KARTAL Technical Chief General Directorate of TKI Tuğrul ALPER Deputy General Director General Directorate of TTK Dr. Necdet BİÇER Head of Department General Directorate of TEMSAN Dr. Zeynep Ş. OCAKÇIOĞLU Head of Strategy Development BOREN Beyhan SAYIN Coordinator EPDK Mehmet Tahir PAKDİL Head of Group Gökhan EFE Head of Group Mehmet TUNCEL Energy Expert Mustafa GÖZEN Head of Group Bilge SERDAR Energy Expert “Positions in Strategic Plan Preparing Period are taken into account, subsequent changes are not reflected.”

Annex 2: Chart of Theme-Goal- Objective Roles and Responsibilities Theme 1: Security of Energy Supply Goal 1: Strong and Reliable Energy Infrastructure Objective Coordinator Responsible Bodies G1. OBJECTIVE 1: To ensure natural gas storage capacity to be able PIGM to meet 20% of the annual consumption in the long BOTAS term, necessary investments shall be initiated and EIGM shall be brought up to a level so as to be capable TPAO of meeting at least 10% of the annual consumption EPDK until the end of the plan period. G 1. OBJECTIVE 2: Electricity and natural gas transmission system TPAO shall be constructed and operated according to BOTAS (n-1) criteria, disabling of a critical part of the sys- EIGM tem, in line with short and medium term supply- TEIAS demand balance and long term generation devel- EPDK opment plan. Goal 2: Optimum Resource Diversity Objective Coordinator Responsible Bodies MTA G 2. OBJECTIVE 1: EUAS Electricity generation from domestic coal shall be TEIAS EIGM increased to 60 billion kWh annually by the end of TKI the plan period. TTK EPDK G 2. OBJECTIVE 2: MIGEM Transformation of existing domestic coal resourc- MTA es into electricity generation investments and ex- EIGM EUAS ploration of new resources shall be provided. TKI TTK G 2. OBJECTIVE 3: YEGM The share of renewable energy resources in pri- MTA YEGM mary energy supply and electricity generation TEIAS shall be increased. EPDK MENR STRATEGIC PLAN 2015-2019 119 Goal 2: Optimum Resource Diversity Objective Coordinator Responsible Bodies NEPUD EIGM G 2. OBJECTIVE 4: TAEK Nuclear energy shall be included into electricity NEPUD EUAS generation portfolio. TEIAS EPDK G 2. OBJECTIVE 5: Coverage ratio of domestic and imported crude PIGM TPAO oil production against consumption shall be in- creased to 13.6%. G 2. OBJECTIVE 6: TPAO Hydrocarbon potential which may be obtained PIGM TKI through unconventional methods shall be deter- mined. (Shale gas, shale oil etc.) TTK G 2. OBJECTIVE 7: TPBH Diversification of import countries and routes DIAB EIGM shall be provided by adding new source coun- tries and routes into natural gas import portfolio. BOTAS G 2. OBJECTIVE 8: Domestic oil and natural gas exploration and PIGM TPAO production activities shall be increased until the end of the plan period. G 2. OBJECTIVE 9: The share of natural gas in electricity generation EIGM EIGM within total generation shall be reduced to 38% EPDK until the end of the plan period. G 2. OBJECTIVE 10: Necessary feasibility studies regarding the ex- pansion of LPG and dumped LNG use in the PIGM PIGM regions, where natural gas cannot be supplied, EPDK shall be completed. Strategy and road map stud- ies shall be accomplished if deemed feasible. G 2. OBJECTIVE 11: Domestic uranium and thorium resources shall MIGEM be explored and developed so as to be used as NEPUD MTA fuel in nuclear power plants. ETI MADEN Goal 3: Effective Demand Management Objective Coordinator Responsible Bodies G 3. OBJECTIVE 1: As of 2016, market based demand side partici- pation mechanism shall be implemented in order TEIAS EIGM to reduce the rate of peak demand to average EPDK demand in electricity market. G 3. OBJECTIVE 2: BOTAS Implementation of demand side management EIGM EPDK mechanisms for natural gas shall be provided. Theme 2: Energy Efficiency and Energy Saving Goal 4: Turkey; Making Use of Its Energy in the Most Efficient Way Objective Coordinator Responsible Bodies G 4. OBJECTIVE 1: In compliance with privatization plan, mainte- nance, repairment, rehabilitation and modern- EIGM EUAS ization studies necessary in public power plants shall be completed until the end of 2019. G 4. OBJECTIVE 2: EIGM As regard electricity consumption of the country for street lighting, by the end of 2013, existing YEGM lighting armatures shall be replaced by efficient EIGM EPDK ones to provide at least a saving rate of 40% in TEDAS existing lighting armatures until the end of the Electricity Distribution Companies plan period. G 4. OBJECTIVE 3: Loss and illegal consumption rate in electricity EPDK EIGM distribution shall be reduced to 10% until the TEDAS end of the plan period. G 4. OBJECTIVE 4: MTA Existing regional heating systems shall be ex- YEGM EUAS panded. G 4. OBJECTIVE 5: YEGM On-site generation shall be expanded and at EPDK least 1,000 MW of total consumption is aimed YEGM TEDAS to be met by on-site generation until the end of 2019. Electricity Distribution Companies MENR STRATEGIC PLAN 2015-2019 121 Goal 4: Turkey; Making Use of Its Energy in the Most Efficient Way Objective Coordinator Responsible Bodies G 4. OBJECTIVE 6: The energy efficiency in central and district build- ings of the Ministry and its Affiliated, Associat- ed and Related Institutions shall be increased at All Central Units and least 20% based on 2013 data. Energy Identity YEGM Affiliated, Associated and Cards for these buildings shall be received and Related Institutions cooperation shall be provided with at least two public institutions for this process. TTK G 4. OBJECTIVE 7: TKİ Improvement shall be supported in primary ener- TPAO gy intensity for the enterprises and entities of re- YEGM ETI MADEN lated institutions of Ministry based on 2013 data. TEMSAN EUAS (for coal production) Goal 5: Improved Capacity for Energy Efficiency and Saving Objective Coordinator Responsible Bodies G 5. OBJECTIVE 1: Policy making and monitoring capacity of the YEGM YEGM Ministry regarding efficiency and conservation shall be developed. G 5. OBJECTIVE 2: A regulatory framework relating to energy effi- YEGM YEGM ciency shall be developed and effectiveness of the incentives shall be increased. G 5. OBJECTIVE 3: A well operating energy efficiency sector shall YEGM YEGM be established. G 5. OBJECTIVE 4: Press and Public Rela- Public awareness shall be raised on energy effi- YEGM tionship Consultancy ciency and saving. G 5. OBJECTIVE 5: Joint work step and interaction plans with the YEGM YEGM institutions shall be established for energy effi- ciency and saving. Theme 3: Good Governance and Stakeholder Interaction Goal 6: The Ministry with a Strong Corporate Capacity Objective Coordinator Responsible Bodies G 6. OBJECTIVE 1: A corporate restructuring involving Human Personnel Personnel Resources Transformation Program shall be Department Department achieved until the end of 2016. G 6. OBJECTIVE 2: Personnel Personnel The capacity of personnel shall be improved. Department Department SGB G 6. OBJECTIVE 3: EIGM Feasibility studies for restructuring shall be per- BIK MIGEM formed for Affiliated, Associated and Related In- Department stitutions in which they need to do. BIK Department Institution to be restructured NEPUD G 6. OBJECTIVE 4: EIGM Necessary legislation and corporate infrastruc- Law Consultancy ture studies shall be completed in relation with NEPUD TAEK the nuclear energy and necessary plan and pro- grams shall be established. EUAS EPDK G 6. OBJECTIVE 5: Press and Public All Central Units and Affiliat- Communication and Publicity Strategies on Relationship Con- ed, Associated and Related Ministry’s policies and activities shall be estab- sultancy Institutions lished until the end of 2015. Goal 7: The Ministry Using Information Technologies Effectively Objective Coordinator Responsible Bodies G 7. OBJECTIVE 1: Physical, security and human resources infra- SGB SGB structure in the field of information technolo- gies of the Ministry shall be developed. G 7. OBJECTIVE 2: EIGM EIGM SGB Integration of all data into ESIS shall be com- All Central Units and Affiliated, pleted until the end of 2016. Associated and Related Institutions G 7. OBJECTIVE 3: All mining operations shall be performed in electronic environment within the scope of MIGEM MIGEM e-Devlet project. MENR STRATEGIC PLAN 2015-2019 123 Goal 8: A Well-Coordinated Ministry Objective Coordinator Responsible Bodies G 8. OBJECTIVE 1: SGB A coordination plan which would enhance the co- BIK operation and communication between central SGB units of the Ministry and its Affiliated, Associated All Central Units and Affiliated, As- and Related Institutions shall be implemented. sociated and Related Institutions G 8. OBJECTIVE 2: Procedures and principles of a consultation mech- EIGM All Central Units and Affiliated, As- anism between stakeholders of the Ministry and its MIGEM sociated and Related Institutions Affiliated, Associated and Related Institutions shall be determined and applied. Theme 4: Regional and International Effectiveness Goal 9: Turkey Integrated with Regional Energy Markets Objective Coordinator Responsible Bodies G 9. OBJECTIVE 1: TEIAS Transition system shall have a permanent con- DIAB EPDK nection with ENTSO-E. G 9. OBJECTIVE 2: International interconnection capacity shall be DIAB TEIAS increased by two (2) fold until the end of 2019. G 9. OBJECTIVE 3: In line with the developments in neighbouring EIGM countries, participation shall be provided to the TEIAS regional electricity markets to be established DIAB EPIAS through coupling and duties shall be undertaken in the organizations regarding the functioning of EPDK regional markets. G 9. OBJECTIVE 4: DIAB By implementing new transit pipeline projects, PIGM the role of Turkey to be an energy corridor in the TPBH BOTAS field of natural gas shall be strengthened. TPAO DIAB G 9. OBJECTIVE 5: EIGM Taking into consideration Turkey’s studies for making Istanbul a finance centre, an energy PIGM center having power for price formation shall be DIAB TPBH established in Black Sea and Mediterranean, in which Ceyhan and Aliağa delivery products are BOTAS processed. EPDK Goal 10: A Powerful Actor in International Arena Objective Coordinator Responsible Bodies G 10. OBJECTIVE 1: PIGM By making partnerships with the companies MTA having foreign investments for exploration and TPAO international experience in license area thereof, DIAB BOTAŞ new sources shall be created in international area for energy raw materials such as; oil, natu- ETI MADEN ral gas, coal and radioactive mineral and other TKI raw materials. TTK G 10. OBJECTIVE 2: All Central Units and Affiliat- Effectiveness of Turkey in international institu- DIAB ed, Associated and Related tions acting in energy and natural resources sec- Institutions tor shall be enhanced. G 10. OBJECTIVE 3: DIAB Representation Offices of Energy and Natural DIAB Personnel Department Resources shall be established abroad Law Consultancy Theme 5: Technology, R&D and Innovation Goal 11: Indigenous Technology in Energy and Natural Resources Objective Coordinator Responsible Bodies G 11. OBJECTIVE 1: All Central Units and Affiliat- Inventory and necessity analysis shall be made YEGM ed, Associated and Related for the equipment to be subjected to indigeniza- Institutions tion and a road map thereof shall be specified. YEGM NEPUD PIGM G 11. OBJECTIVE 2: TPAO Taking the manufacture sector in Turkey into EUAS YEGM consideration, rates of domestic contribution TEMSAN shall be increased. TEIAS BOTAS TKI TTK Goal 12: A Result-Oriented R&D Objective Coordinator Responsible Bodies G 12. OBJECTIVE 1: Number of R&D projects in energy and natural YEGM All Central Units and Affiliat- resources sector, having strategic importance, MIGEM ed, Associated and Related should be increased by the end of plan period. Institutions MENR STRATEGIC PLAN 2015-2019 125 Goal 12: A Result-Oriented R&D Objective Coordinator Responsible Bodies G 12. OBJECTIVE 2: Energy and Natural Resources Institute and R&D All Central Units and SGB Affiliated, Associated and Coordination Department, within the scope of the Institute, shall be established. Related Institutions Theme 6: Improvement of Investment Environment Goal 13: Competitive and Transparent Markets Objective Coordinator Responsible Bodies G 13. OBJECTIVE 1: Electricity generation privatization process EUAS EIGM shall be followed to see whether it is applied Privatization Administration according to specified plan. G 13. OBJECTIVE 2: Preliminary studies shall be accomplished for the implementation of regional electricity tariffs EIGM EPDK instead of national tariff system until the end of the plan period. G 13. OBJECTIVE 3: TEIAS Upon the establishment of EPIAS, energy mar- EPIAS EIGM kets shall be made more transparent, reliable and BOTAS monitorable. EPDK G 13. OBJECTIVE 4: Content and calendar related to data sharing of All Central Units and Affiliated, As- Ministry and its Affiliated, Associated and Relat- EIGM sociated and Related Institutions ed Institutions shall be determined, and reports and data thereof shall be published accordingly. Goal 14: Improved Investment Processes Objective Coordinator Responsible Bodies G 14. OBJECTIVE 1: Governance and process structure which facili- EIGM All Central Units and Affiliated, As- tate energy and natural resources investments MIGEM sociated and Related Institutions shall be implemented. G 14. OBJECTIVE 2: EIGM Alternative finance models shall be developed EIGM MIGEM in order to promote the investments in energy PIGM MIGEM DIAB and natural resources sectors. MTA TKI TTK EUAS TPAO EPDK Theme 7: Raw Material Supply Security Goal 15: Security of Non-Energy Raw Material Supply Objective Coordinator Responsible Bodies G 15. OBJECTIVE 1: MTA MIGEM Explorations in regard to non-energy natural re- ETI MADEN sources should be increased. G 15. OBJECTIVE 2: MIGEM Integrated data bank infrastructure should be es- MIGEM MTA tablished for non-energy natural resources. ETI MADEN MIGEM G 15. OBJECTIVE 3: MTA National Raw Material Strategy Document in- MIGEM ETI MADEN volving critical raw materials shall be prepared. BOREN G 15. OBJECTIVE 4: Infrastructure studies for enabling the explora- MIGEM MIGEM tion and reporting of Turkey’s mining resources in MTA accordance with international standards shall be completed. Theme 8: Efficient and Effective Use of Raw Material Goal 16: Efficient and Effective Use of Non-Energy Natural Raw Materials Objective Coordinator Responsible Bodies G 16. OBJECTIVE 1: MIGEM Production of processed products and their ex- MIGEM ETI MADEN ports shall be increased. G 16. OBJECTIVE 2: Measures shall be designed and implemented MIGEM for enabling to obtain valuable minerals from im- MIGEM ETI MADEN port and domestic concentrates and by recycling from secondary (waste items) products. MIGEM G 16. OBJECTIVE 3: ETI MADEN An operation and inspection structure enabling MIGEM TKI efficient, effective and secure mining activities in TTK international standards shall be formed. EUAS MENR STRATEGIC PLAN 2015-2019 127 www.enerji.gov.tr