Soma Deniş

New Soma Deniş Thermal Power Plant (2x255 MWe) evaluation As an investor venturing into the establishment of a cutting-edge thermal power plant utilizing Soma Deniş coal, we would meticulously opt for the time-tested and efficient Soma-B no-5-6 steam boilers, each boasting an impressive capacity of 165 MWe. Taking it a step further, we would elevate this fundamental design by integrating sizable E/P and FGD (Electrostatic Filter and Flue Gas Desulphurization) units, alongside advanced preheating units for coal dewatering. Our vision for the plant's location would take it to the northeastern section of the mine, situated on untouched, arid treasury land, rather than amidst the northwest forest. While acknowledging the absence of water in this chosen site, our strategic solution would entail establishing a comprehensive pipeline system to transport water from the nearby available water sources. Additionally, we would prioritize the construction of a state-of-the-art ash pond to ensure sustainable and eco-conscious disposal of waste materials. However, let's address the current reality. The power plant has been erected within the northwest forest, sandwiched between the Türkpiyale and Kayrakaltı villages, far from coal source. Consequently, this has led to challenges in the coal band conveyor transportation process, necessitating the use of trucks, which undoubtedly impacts overall efficiency and electricity cost. The mismatched CFB design, ill-suited for the high ash content and abundant water characteristics of this particular coal (with approximately 1000-1500 kcal per kg LHV), has resulted in an excessive reliance on fuel oil. Furthermore, the realization of a missing coal preheating unit came too late in the process, leading to its belated construction. Despite the efforts to keep the power plant operational, it is now running under constrained conditions. Regrettably, the counsel from invited foreign experts has often proven irrelevant and impractical. Compounding the situation, the foreign contractor completed the project and departed, leaving local young engineers to grapple with critical issues, causing substantial operational setbacks. In light of these challenges, the capacity mechanism and the addition of fuel oil have inadvertently contributed to the inefficiency of the new power plant. Historically, Turkey has progressed in the field of coal technology with technical support and investments from foreign countries. Naturally, there can be variations in technological and industrial developments among nations. Some countries have invested in coal technologies earlier and are more advanced, while others may have less experience in this area. However, technological advancements are continuously evolving, and every country can enhance its technological capabilities through original research and development efforts. Turkey, too, can work towards developing its own coal technologies and nurturing local experts. This process can be supported through research and development activities, contributions from universities, private sector support, and government investments. Instead of comparing ourselves to other countries' levels of advancement, we can assess our own potential and progress by devising appropriate strategies. By doing so, we can cultivate our own experts in coal technologies and enhance our technological independence. Ankara, 1st August 2023

EMRA

What does EMRA do? The Energy Market Regulatory Authority (EMRA) has been operating as the regulatory and supervisory body of Turkey's energy sector since 2001. It is responsible for regulating and overseeing energy markets such as electricity, natural gas, LPG, petroleum, and renewable energy. The main objective of EMRA is to ensure that energy resources reach consumers in a high-quality, cost-effective, and environmentally friendly manner. EMRA is funded through license fees collected from energy production and distribution companies. For example, in 2018, EMRA received significant license fees from prominent natural gas distribution companies like BOTAŞ. These fees are generally included in energy prices and passed on to consumers. The institution also has a broad legal team to develop regulatory guidelines for energy markets. However, EMRA’s structure and functioning have occasionally faced criticism. Some have pointed out that similar organizations like Ofgem in the UK operate more efficiently with a smaller and less complex setup. Additionally, concerns have been raised regarding the predominance of legal experts on the EMRA’s board and the limited number of engineers, leading to potential shortcomings in handling technical matters and oversight. EMRA’s levies substantial license fees from producer companies to perform its licensing and monitoring duties. To fulfill these responsibilities, it maintains an extensive and experienced legal team. License fees are passed on to consumers through electricity prices. EMRA utilizes the funds obtained from license fees to regulate and supervise energy markets. Its budget and expenses are subject to approval and audit by the Ministry of Finance. Moreover, the Court of Accounts (Sayıştay) and the Grand National Assembly of Turkey (TBMM) have the authority to audit the institution's expenses. After covering personnel salaries and office expenses, EMRA transfers the remaining funds to the treasury. This ensures that its revenues and expenditures are under control, and budget discipline is maintained. Pursuing unnecessary expenditures to avoid transferring funds to the treasury is not feasible due to legal regulations, and the institution is expected to adhere to ethical principles. Observations and criticisms indicate that EMRA requires structural transformation. Implementing necessary reforms to make the institution more effective, efficient, and technologically competent can aid EPDK in becoming a more efficient regulatory body. Ankara, 8th August 2023.