2017-Sustainable Industrial Processing Summit
SIPS 2017 Volume: Summit Plenary
| Editors: | F. Kongoli |
| Publisher: | Flogen Star OUTREACH |
| Publication Year: | 2017 |
| Pages: | 61 pages |
| ISBN: | |
| ISSN: | 2291-1227 (Metals and Materials Processing in a Clean Environment Series) |
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Evaluation of Subvention Schemes for Lignite Electricity Plants in the Aftermath of the Paris Agreement - 2015
Tamer Turna1;1YILDIRIM ENERGY INVESTMENTS INC, Maslak, Turkey;
Type of Paper: General Plenary
Id Paper: 358
Topic: 46
Abstract:
Since the 1970's, Turkey has undertaken several policies to utilize its Lignite reserves. Various technologies have been considered and implemented throughout 4 decades. In the beginning, the state-owned power generation company was commissioned to invest in such power plants. In the 1990's to 2000's, this role was passed to the private sector, but without much success. After the banking crisis in 2001 and the restructuring of the banking system with the guidance of the IMF, the account deficit and dependence on Russia-sourced natural gas was brought to the forefront, thus Lignite utilization policies were told to be essential. The market paradigms were barely supporting this vision, thus the private sector didn't pay much attention to this hard to burn fuel. However, policies were enforced. At the same time, line Global energy policies dramatically shifted towards support for renewable energy sources (RES). As a result of the evolution in RES technologies, their effectiveness, CAPEX and OPEX costs, and viable subvention schemes, the market share of RES-sourced electricity increased from 20% to 44%. Further triggered by the global economical and local stagnation, the market paradigms changed (power and cleaner coal prices declined) and made the Lignite fueled power plant (LCPP) investments completely non-viable. Thus the Turkish Government recently introduced harsh subvention methods to support the LCPP investments, to the disadvantage of the cleaner imported steam coal thermal power plant technologies. With its 80 GW power generation capacity, the controversy of Turkey's energy policies to the COP 21 outcomes becomes an interesting topic to look at. This paper will evaluate the questions 'Are Lignite subvention policies sustainable from an economical and environmental perspective?' and 'Are there other possibilities to solve the economic and social burden of the Lignite mining sector and related power plants?'