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Opportunities in Turkey’s Smart Grids for Finnish companies

Opportunities in Turkey’s Smart Grids for Finnish companies

Dec 23, 2016
Renewables & smart grid
Energy production & distribution
Turkey

Rising electricity consumption in Turkey creates a need for smart grid solutions.

In line with its growing population, Turkey has a high demand for electricity. Currently, the electricity consumption has an annual growth rate of over 7 percent. The growth rate is the highest in Europe and among the highest in the world.

In 2015, the electricity consumption in Turkey was 264.14 million MWh and is expected to rise to 500 million MWh by 2023. Due to its scarce energy sources, Turkey is a net energy importer. 98 percent of natural gas, 92 percent of oil and 30 percent of coal consumed in the country are imported.

Because of the rising electricity consumption, energy efficiency is growing in importance on the agenda of the Turkish government. Presently, the electricity distribution companies register considerably high loss and leakage rates. In 2015, the leakage rate was 13 percent countrywide but almost 75 percent in some of the regions. The government aims to reduce this rate significantly.

In line with the 2023 vision of the Turkish government, it has been stated that Turkey aims at replacing 35 million electricity meters with smart meters by 2023.

By 2015, Turkey had invested altogether USD 5 billion in smart grids and is expected to increase its investments for the next decade. Between 2016-2020, the distribution companies have an obligation to make new investments of TRY 18.5 billion (app. EUR 5 billion) in 5 years within the 3rd tariff period. These new investments will include both R&D projects as well as projects related to smart grids.

Need for a variety of solutions

As of now, automatic meter reading systems are mostly installed in organized industry zones and industrial sites with a high level of electricity, natural gas and water consumption. Meanwhile, the implementation work at residential sites is still underway.

In addition to organized industry zones and electricity and natural gas distribution networks, water administrations of municipalities have started to switch towards automatic meter reading systems.

In general, the Turkish smart grid visions will require a wide range of solutions:

  • Implementing further Supervisory Control and Data Acquisition systems (SCADA)
  • Different approaches to control smart meters (PLC, AMI, ACT)
  • Collecting and processing big data from the smart grid systems
  • Security solutions for cyber attacks
  • Connectivity solutions for smart meters, including wireless communication systems
  • Technology infrastructure (cloud services, 4G/5G services, sensor technologies)
  • Energy storage solutions
  • Renewable energy solutions
  • Geographic Information System (GIS) solutions
  • Energy and system auditing services

However, some of the above mentioned fields are already full of well-known global players. Thus, more specific niche areas could be the best option for Finnish companies. These include the likes of:

  • Electricity storage
  • Advanced metering seems to be a potential niche, but the level of competition is high especially with local providers. Still, Finnish companies can enter the advanced metering market. The best option may be to move forward together with a local partner. For instance, French and American companies use this method.
  • In smart grids, consumer based solutions and services, such as ICT, mobile platforms and partnerships with telecom companies, will be among the most important issues in the future.

Next steps

Even though, the market recognition of Finnish companies in the Turkish smart grids sector might be limited, the general image of Finland in Turkey is very positive and always associated with high quality.

One of the possible next steps is attending the ICSG (International Istanbul Smart Grid Congress and Exhibiton) in April 2017.

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Interested in this opportunity, please contact

Pelin Gokcek

Senior Advisor

Pelin.gokcek@finpro.fi

Talha Dayi

Junior Advisor

Talha.dayi@finpro.fi

Companies in the sector