Description: 

The Project seeks to strengthen the transmission system by increasing its capacity and installing automated control and protection systems to maintain grid stability when integrating intermittent Wind Power Plants (WPPs) into the system.

Background:

Electricity demand in Turkey is expected to grow at 4.5-5 percent per year, and the Turkish government is eager to diversify its energy sources to meet future demand in a sustainable way through renewable energy resources (RES) while improving energy security. Wind energy is a major RES, and Turkey has a potential for generating 48,000 MW of power from wind. The current installed capacity is only about 2,700 MW, and the government aims to install 20,000 MW of wind capacity by 2023, accounting for 25-30 percent of the projected peak demand in 2023.

While Turkey offers feed-in-tariffs of $0.11 cent/kWh to WPPs, other barriers inhibit large-scale development. An annual wind capacity addition of 1600-1700 MW is needed to achieve 20,000 MW of installed capacity by 2023. Lack of transmission capacity is a major barrier, since the best wind power sites are far from load centers.  The transmission lines have to be planned. This requires heavy upfront investments in transmission capacity, which private project developers are unwilling to finance.

Objectives and Outputs:

The objective is to assist Turkey in meeting its increased power demand by strengthening the transmission system and facilitating large-scale renewable energy generation. Furthermore, the project seeks to avoid GHG emissions through greater integration of RES based generation.

Upfront development of transmission infrastructure will accelerate WPPs development, installing three 380kV 500 MVA highly digitalized sub-stations with associated grid connection structures for wind power evacuation in the provinces of Can, Izmir and Hamitabat. Smart-grid investments will strengthen grid operation (CTF: $25 million, IBRD: $32.5 million), and enable real-time network monitoring, system upgrades, and terminal units installation. In addition, Technical Assistance is carried out on smart-grid technologies implementation, wind energy market regulation, and safeguards strengthening, which will support capacity building at TEIAS, EMRA and Ministry of Environment and Urban Development. The other two components will install submarine power cables and underground transmission cables to strengthen the transmission network. The activities are consistent with Turkey’s energy sector development strategy and its goal to diversify energy sources, increase RES share, and install 20 GW of WPPs by 2023.

At the present expansion rate, it is estimated that only 8.5 GW of wind energy would be achieved by 2023, as opposed to 11.2 GW with Project assistance. Therefore, the Project aims to accelerate wind energy development. The Project investment is estimated to directly result in about 600 MW of additional WPP capacity generating 1,734 GWh of power annually, leading to more investments to produce an additional 6,250 MW of WPP by 2030. The avoided energy losses are expected to be 711 GWh per year, and the environmental co-benefits are estimated at avoided cumulative emissions reduction of 108.4 MT CO2 over a 15-year life of the Project. The Project will result in significant developmental impacts consistent with CTF eligibility criteria, and has a transformational impact leading to broader deployment and scaling up of low carbon WPPs.

This project summary is drawn from draft project proposals [such as the PAD, PID, SAR, and country investment plan] and may not contain the most up-to-date information.

IBRD Project Portal


Project Details
Cover Note | Project Document | External Review | Proposed Decision
Approved on January 13, 2014 (Approved Decision)
Approved amount(s):
USD 50.0 million