1. RENEWABLE ENERGY
in WORLD & TURKEY
STEAŞ/Petkim Future Projections
Kenan Yavuz
STEAŞ, CEO
Wind Power Turkey
20-21 September, 2011

2. STEAŞ/PETKİM
&
FUTURE PROJECTIONS
AGENDA

3. STEAŞ Our Vision
SOCAR & TURCAS Energy Inc. To be a leader company who has a
Refinery-Petrochemical-Energy-Logistics
integration in the area covers Turkey,
Azerbaijan and their neighboring countries
Our Objective
To be the greatest industrial production
force of Turkey by accomplishing the
Refinery-Petrochemical-Energy-Logistics
Integration until the year 2018
PETKİM OTHER SUBSIDIARIES
STRAŞ
Petkim Petrochemical Holding Inc.
SOCAR & TURCAS Refinery Inc.
Our Vision
Our vision
To be a regional force in the refinery sector To sustain our leadership in the Turkish
Our Objective market through continuous growth
To compensate the supply of Turkish To become a regional force
Petroleum Products Market by Our Objective
manufacturing by the year 2015 To reach 40% market share by the year
2018
STEAS Group Structure
3

4. STEAS
Aimed to
Increase Petkim’s Competitive
Power
&
Move her Future Dreams Of
Being the Major
Petrochemical Hub
in the Region
by the Realization of
Growth Strategy
Including “Cluster Model”

5. Petkim Dam
Petkim Port
PETKİM: Competitive Advantages

6. Within the frame of Refinery-Petrochemical-Energy-Logistics integration
on Petkim Peninsula, we target to be the biggest energy and production center
of Europe by realizing Petkim “Value-Site” cluster project
GROWTH PLAN
Mid-to-Long Term
UPSTREAM PETKİM DOWNSTREAM ENERGY LOGISTICS
&
TRADING
STEAS: Vision and Targets
Vision 2015
Vision 2020 3 STEPS OF GROWTH PROJECTION
Vision 2040

7. REFINERY
NEW PETROCHEMICAL
PRODUCTION
WIND ENERGY
25-47 MW Energy
Production
At least 1000 MW
Total Energy
Generation
PETKİM PORT & LOGISTICS
1 million TEU capacity of Container
Terminal
1 million tons Storage Capacity of Tank
Terminal
Vision 2020
Process The Region’s World
#1 Petrochemical
Integration Class Energy and
Production Centre
Energy Chemical Logistics
In Turkey
Efficiency Hub

8. REFINERY (STAR)
Capacity: 10 MMTPA PETROCHEMICAL PRODUCTION
New Petrochemical Production; BDX,
PET, XLPE
Capacity Expansions of the Existing
Plants; Aromatics, LDPE-T, ACN, PA,
PTA,
600.000 MTPA Ethylene Production
WIND ENERGY
25 MW Energy
Production
+
ENERGY TERMINAL
(300-600 MW)
PETKİM PORT & LOGISTICS
1 million TEU capacity of Container Terminal
1 million tons Storage Capacity of Tank
Terminal
Vision 2015
#1 Petrochemical Production Centre In Turkey

9. REFINERY 2.5 MMTPA INTEGRATED
CAPACITY ETHYLENE PORT
35 MMTPA PRODUCTION Min. 1.0 M TEU
Capacity
Container Port
2000 MW CONDOMINIUM
ENERGY
PRODUCTION MODEL
TANK
TERMINAL
2 Million tons
Storage
Capacity
UNDERGROUND
CAVERN
PRODUCTION OF
HIGH VALUE- EXPANDED
ADDED PROCESS AREA
PRODUCTS
Vision 2040

10. ▬ We target to increase our
COMPETITIVE POWER by
realizing Cluster Model &
becoming the biggest
Utilities
petrochemical and logistics Logistics Supporting
Facilities
center on Petkim Site
Downstream
Petrochemical Plants
▬ Our 25-megawatt wind farm is
Intermediate
scheduled to become
Petrochemical Plants
operational by the end of 2012,
“Cracker”
Refinery
▬ We are planning investments in
solar power too.
Integration Chain
Cluster Model & Renewables
Petkim uses renewable energy sources that
is as environmentally friendly as it is cost-
effective and reliable

11. RENEWABLE ENERGY in the
WORLD
&
2030 FORECASTS
AGENDA

12. Sustainable energy politics targets:
▬ Low cost
▬ Security of supply
▬ diversification of supply
resources
▬ Supply at demanded quantity
and expected quality
Source: WEO, 2009
ENERGY FACTS:
▬ Global energy demand growth : 5,6% ( 3,5 % for OECD Countries, 7,5% for
Non-OECD Countries; 11,2% for China)
▬ The share of renewables in primary energy consumption: 1,8% (0,6 in 2000)
Global Energy Policies Towards 2030
Total world energy demand is supplied by fossil
fuels as 87%, renewable resources as 6% and
nuclear energy as 7%.

13. ▬ 4 key recommendations in IEA report for Turkey
Accelerating natural gas reform, (reducing BOTAŞ market share)
Increasing effective usage of energy,
Pushing the right button about procurement of oil and Natural gas
It is emphasized that an effective carbon emission target should
be identified with in the scope of fighting climate change.
Turkey has became one
of the fast growing energy markets
in the world with rapid
growing economy.
Global Energy Policies Towards 2030
Reference: International Energy Agency (IEA)
Basis Scenario

14. ▬ 2010-2030 transition period to green economy
▬ 2030-2050 green economy system adoption period
▬ After 2050 Totally new world order period
OBJECTIVES:
▬Increase the global energy
efficiency,
▬Increase the clean energy
resources,
▬Develop innovative eco-
friendly technologies,
▬Decrease the green house gas
emissions,
▬Develop new generation
energy technologies.
Energy in the World
Even if energy efficiency is provided at 2030 in
the world, energy demand will be doubled.

15. ▬ Oil and
Natural Gas
has took the
place of
Biomass and
Coal over
many years
▬ Nuclear
Energy
sources has
been
increased by
the year 1980
Historical Progress of Energy Resources
By the year 2000, Renewable Energy Sources
came to order in parallel to
GREEN ECONOMY concept

16. Global energy supply scenario
Global allocation potential of
various renewable energy
sources
Source: GWEC
Global Energy Scenarios Towards 2050

17. Renewable energy;
▬ Obtained from sources that are essentially inexhaustible
▬ Can be harnessed without the release of harmful pollutants
Renewable & Non-Renewable Energy Types

18. ▬ Worldwide capacity reached 196630
Megawatt out of which 37642 Megawatt
were added in 2010
▬ Wind power growth rate was 23,6% in
2010
▬ China is number one in totally installed
capacity
World Wind Energy
Renewable Energy is supply response to the worlds energy
demand,
But no single or easy solution to the energy challenge exists

19. ▬ Wind turbines installed by the end of 2010 can generate 430 Terawatt hours
pet annum and 2,5 % of the global electricity consumption.
▬ Turkey is the 5th country in growth rate in 2010.
▬ Turkey was one of the major wind markets who more than doubled its wind
capacity
World Wind Energy
The wind sector in 2010 had a turnover of 40 Billion
Euro and employed 670.000 of the global electricity
consumption.

20. ▬ Turkey meets 70 % of energy demand by import.
▬ Foreign dependence of energy is over 90% especially fossil fuels;
petroleum, and natural gas.
▬ Petrol has the biggest ratio in power consumption with 34%.
▬ Because of high import dependence, continuity of energy security and
power supply has a vital importance.
▬ It has the potential of being country of transit in energy market by
reason of presenting the 70% of world’s known natural gas and petrol
reserves at adjacent zones and it should form energy policies in that
frame.
▬ It aims to be a key actor in the world energy market despite it is not a
power producer.
▬ Increasing the energy efficiency and overseeing the environmental
factors are also in the priorities at Turkey’s energy policy.
Turkey Energy Policies Towards 2030

21. Potential Power and Installed Power per Resource
CURRENT STATUS & EXPECTATIONS
▬ The energy consumption in Turkey
increases by 8-9% annually
▬ Turkey has large potential for
increasing power generation from
renewable sources.
▬ The current value of installed wind
Current Installed Power in Turkey and
power is around 1,3 GW License Developments
▬ By the end of 2010, Renewable
resources compose 9% of its total
installed power generation capacity.
▬ Theoretical Wind Energy potential
in Turkey is about 48.000 MW
Wind Power in Turkey
Installed wind power capacity is expected to reach to
10.000 MW at 2015 and 20.000 MW at 2020 in Turkey

22. Renewable Goals in the energy market
▬ Turkey has some
strategic goals in
renewable energy
market.
▬ Approximately 80
billion TL of
investment in the
renewable energy
sector is required by
2023
Source: Deolitte
Expectations of Renewable Energy in Turkish Market

23. ▬ Fixed Price Guarantees (Feed-in-
Tariff)
▬ Premium Guarantees
▬ Quota Based Green Certificates
▬ Tender Incentives
▬ Investment Intensives
▬ Tax Exemptions and Deductions
Renewable Energy Support Mechanisms

24. ▬ Proven to be successful and effective
▬ The risk premium required by investors can be minimized by the high level
of price security systems
▬ Low cost for society
▬ Helps to promote a specific portfolio among different RES-E technologies
▬ Leads to a minimization of costs for society but not necessarily to
minimization of generation costs,
▬ Helps to reach an area or plant size specific distribution of a RES-E
technology
▬ Relatively homogeneous premium costs for society over time
▬ Encourages competition among manufacturers but not among investors in
the early phase of deployment
▬ RES-E targets will be met by adjusting tariff level over time.
Source: Fraunhofer Report
Analysis for Feed-in-Tariff Systems

25. Wind power installed in Europe by end of 2010
European Union : 84,324 MW
Candidate Countries : 1,418 MW
EFTA : 478 MW
Total Europe : 86,321 MW
▬ According to the Directive
2001/77/EC, the EU has the
objective to increase the
share of electricity generated
from renewable energy
sources to 21% of the total
electricity consumption.
▬ Feed in Tariff is the most
common scheme in Europe.
Support Mechanisms in EU Countries

26. ▬ Turkey employs feed in
tariff as the intensive
method.
If mechanical or electrical
equipment used in Support Prices projected by the RER support mechanism
generation facilities
commissioned before 2015
and that is subjected to the
RER mechanism and
manufactured in Turkey,
then local equipment
bonus added to the feed in
tariff relevant to this
renewable energy source
Renewable Energy Policies in Turkey
In the case of achieving 20.000 MW wind power potential in 2023:
• 26 million ton CO2 emissions can be prevented.
• 170.000 person will be employed

27. MAIN PROBLEMS:
Consumed /
Consumed / ▬ High Energy Cost
Turkey’s Expectant CO2
Expectant emission amount
Export Figures
Quantity of
▬ We rely heavily on
Year Actual / according to foreign energy
Electricity quantity of
Expectant resources
(Billion electricity
(USD)
kWh/year)
(Billion ton/year) ▬ High energy
consumption; low
2009 110 Billion $ 198 407 efficiency
▬ We have to
2023 500 Billion $ 900* 1850* generate
employment and
*: Figures are calculated linear export figure growth assumption. enhance 500 billion
USD export value.
▬ 900 Billion kWh electricity need to obtain 500 billion USD export
figures.
Turkey’s Situation
It is an obligation that Turkey should proceed
as investing to nuclear energy as well as
renewable resources

28. ▬ While determining country energy policies, we should not be out of the
GREEN ECONOMY race as considering the effects caused by security of
supply issues, increasing energy costs, climate change and
globalization .
▬ Energy saving awareness should planted to society and opinion leaders.
▬ Turkey should make the best of her renewable energy potential.
▬ It is not possible to close energy deficit by investing to only renewable
energy resources for Turkey.
▬ Turkey should offer energy variety without thinking environment as
cost factor.
▬ While offering variety, we should use other resources such as nuclear,
coal, etc.. as well as renewable energy resources
ECO-FRIENDLY, CLEAN, EFFICIENT AND COMPETITIVE ENERGY
PRODUCTION
Conclusions
NONEXISTENT ENERGY IS HIGHLY PRICED
ENERGY
NO ENERGY NO COMPETITION

29. Thank You
SOCAR & TURCAS Enerji A.Ş.
SOCAR Bhosphorus Plaza,
Büyükdere Caddesi
No 47 Kat 3 Maslak İstanbul
Tel : 0 212 276 43 40
Faks : 0 212 276 43 50
www.socarturcas.com.tr