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What's our Options with Renewable Energy?

Updated on November 12, 2015

The Facts of Turkey that relate to their Energy

Turkey is a unique country located in the middle of Europe and Asia. It has the influence of both continents, only separated by the Bosporus Strait. The country is 780,580 square km with the largest city being Istanbul. The country consists of a 99.8% Muslim religion. There is approximately 80 million people within the country and the urban dwellers make up 70% of this population. The country consists of a young population with the average age being 28 years old and 26.2% of the population is 14 and under. The Turkish lifestyle is one ran around television internet, and social media (Vivarelli, 2013). There are even 18 million televisions in Turkish homes, with electricity needed to fuel each and every one of these vices.

There are certain principal commercial centers and towns that are used to aid in the decision on where to enter the Turkish market. These area include: Ankara, the capital of Turkey and seat of the government with organized industrial zones, Istanbul, the commercial center and most populous part of Turkey with 20 percent of the industrial workforce, Izmir, the major area of the Aegean region with a large amount of progressive trade centers, Konya, the agricultural capital of Turkey, Kayesri, an industrial town, Gaziantep, the area of ambition for development due to the large amount of land and irrigation system, as well as Eskisehir which is a developing industrial town (Doing Business in Turkey, 2014).

Resources:

Doing Business in Turkey. (2014). Entering the market. Retrieved from http://www.turkey.doingbusinessguide.co.uk/the-guide/entering-the-market/.

Vivarelli, N. (2013, Apr 09). Turkey. Variety, 319, 56-57. Retrieved from http://search.proquest.com/docview/1346952859?accountid=12085.

Turkey's Needs Denied Due to Funding

The Turkish Flag flying high in Istanbul on the Galata Bridge
The Turkish Flag flying high in Istanbul on the Galata Bridge | Source

Control

Along with the Georgia 2008 conflict both U.S. and Russian companies have been fighting to emerge into the Turkish market (Babali, 2009). With some key strategies, Ameresco can provide clean renewable energy to a market that is emerging and has room for new, innovative solutions to the energy need for such a large amount of people. If the people of Turkey want the renewable energy at a faster rate than Ameresco is ready and able to provide, then Ameresco will not be able to provide the renewable energy, and could make customers upset that they are not receiving the product in a timely manner. However, in order to remedy this potential problem, Ameresco should gradually introduce the renewable energy services in order to reach all the people when the company has the staff and resources in order to meet the demands as they roll in. It would be part of the marketing plan, that the company would first focus on Ankara, to do a trial run of the renewable energy and then move into other geographic districts, with Istanbul being in the middle of areas targeted, because the massive amount of people could mean a big problem for the company to meet the supply and demand of over 13 million people in one geographic area.

Resource:

Ameresco, inc.; ameresco reports third quarter 2011 financial results. (2011). Energy Weekly News, 32. Retrieved from http://search.proquest.com/docview/904149646?accountid=12085.

Babali, T. (2009). Turkey at the energy crossroads: Turkey, present and past. Middle East Quarterly, 16(2). Retrieved from http://go.galegroup.com/ps/i.do?id=GALE%7CA230959923&v=2.1&u=vic_liberty&it=r&p=AONE&sw=w&asid=364e967a39ad99f2c493d3decf840cb6.

Renewable Energy

Is Renewable Energy a Possibility for Turkey?

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Renewable Energy In Turkey

Host Country/ Local Concerns

The Turkish government wants support for the investment in renewable energy. However, international companies are facing challenges in this arena because of the inability to gather correct environmental impact studies and get enough funding, as well as facing crisis from the Turkish government itself because of the inability to acquire the proper licenses required by the government.

In order to remedy this problem, passing laws in Turkish parliament can help with the standardization of prices for energy produced through renewable methods which can help reduce the concerns of the locals who see that the products may not be economically viable, especially during the global price fluctuations. If this type of law were to pass, then Ameresco would receive around $0.07 per KW-hour for their wind energy and hydroelectric energy, while receiving $0.11 for geothermal energy, and finally $0.13 for solar energy. Amendments in addition to this proposition in parliament will help alleviate the concerns that renewable energy is very expensive; rather it would have ceilings put on the costs, which means customers from all walks of life can purchase the energy and help save money, instead of only the elite being able to purchase. This would also ensure that the government would have fixed rates given to them from the energy purchased, so every entity is receiving its proper kickbacks and everyone makes money from the deal.


Resources:

Ameresco implements energy saving plan. (2010). Entertainment Close - Up, Retrieved from http://search.proquest.com/docview/814749381?accountid=12085.

Pricing/ Profit Levels of Ameresco

Profit is always at the top of a business minded person’s mind. Turkey has an excellent geographical location in order to create solar energy. In fact, according to the Renewable Energy General Directorate and the State Meteorology Affairs General Directorate, the annual sunshine in Turkey is around 2640 hours. This means there is roughly 7.2 hours a day of sunshine which will helps product 1.311 kWh/m2. This makes Turkey one of the best countries for solar power investment. With all of that said after the grid scale solar licenses are issued, a charge of $13.3 cents per kWh will be charged. This low amount is feasible because the incentives for local production have the potential to go up to 20 cents per kWh. After all the research it was found that the Southeastern Anatolia region will fair best from the solar energy due to the 1460 total solar radiation and the 2993 annual hours of sunshine duration (Cetinkava, 2013).


Resource:

Cetinkava, S. (2013). Turkey: solar power market in turkey. Buy USA Info. Retreived from www.buyusainfo.net/docs/x_4443356.pdf.

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