High calorific value coal
Turkish and global outlook
Despite coal has notorious perception due to its impacts on the environment, it’s not possible to neglect its share in the global energy supply. Especially, in emerging markets with ever growing energy demand, relative cost and eligibility advantages of the coal bring it into prominence.
An analysis of coal consumption shows that electricity and heat generation sector maintained its leadership with more than 3.8 billion tonnes in 2012. This situation is also valid in Turkey.
Installed capacity of imported coal PPs in Turkish electricity market has passed 3.9 GW by the end of the 2013. Imported coal PPs will show significant growth in the coming years based on increasing electricity demand in Turkey and economic advantages of imported coal. In the first seven months of 2014, additional installed capacity of 950 MW was connected to the grid. Turkish electricity market has a tendency to imported coal power plants similar to the natural gas investment propensity since 2011.
Uncertainties related to natural gas power plants and unexpected delays in lignite projects lead investors to hard coal as a relatively more eligible and cheaper energy source. As a result, many imported coal power plant projects have emerged. In addition to 7 imported coal power plants in operation, 33 PPs projects are either under construction or evaluation stage and this indicates the significance of the investors’ intention.
On the other hand, there is a significant number of projects in almost all regions suitable for imported coal power plants. However, some of these projects will be naturally driven out of the competition.
Global trends such as China’s growing coal demand, impact of US shale gas production on coal prices and countries’ carbon policies are amongst the major determinants of coal prices.