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Geothermal energy capacity and legislation in Turkey

Article  in  The Journal of World Energy Law & Business · December 2013

DOI: 10.1093/jwelb/jwt015

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300 Journal of World Energy Law and Business, 2013, Vol. 6, No. 4

Geothermal energy capacity and

legislation in Turkey
Osman Devrim Elvan* and Y. Ozhan Turker**

The global energy requirement for sustaining economic activities, meeting social needs
and social development is increasing daily. Environmentally friendly,1 renewable

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energy resources are an alternative to the primary non-renewable energy resources,
which devastate ecosystems in order to meet increasing demand. Among renewable
energy sources such as hydropower, biopower, geothermal power and solar power,
geothermal energy power offers distinct advantages to Turkey. There is an increasing
tendency towards geothermal energy globally and the European Union has adjusted its
legal regulations in this regard. As a potential EU Member state, Turkey is going
through a similar process. The number of institutional and legal regulations concern-
ing geothermal energy power has increased in recent years; technical infrastructure
studies have been completed and some important steps taken in this regard. This study
examines the way in which Turkey has developed support for geothermal energy
power, presents a SWOT analysis of the geothermal energy power sector in Turkey
and makes a projection for the concrete success expected to be accomplished in
the future.

1. Introduction
Global and national energy demand, which is regarded as the cornerstone of economic
development, is gradually increasing in line with social demands. Meeting these increas-
ing demands through the greater use of primary energy resources such as oil, natural
gas and coal results in negative environmental effects. Natural resources have been deva-
stated as a result of serious errors in energy policies; imperfect planning knowledge,
insufficient organizational and legal mechanisms and the sensitive balance between
resource protection and use was lost. At this point, the use of renewable energy resources

* Assistant Professor, Department of Environment and Forest Law, Faculty of Forestry, Istanbul University, 34473, Bahcekoy,
Istanbul, Turkey
** Department of Environment and Forestry Law, Faculty of Forestry, Istanbul University, 34473 Bahcekoy, Istanbul, Turkey.
1
M Magnussona and others, ‘Choice of Organic Foods is Related to Perceived Consequences for Human Health and to
Environmentally Friendly Behavior’ (2003) 40 Appetite 109–17; M Laroche, J Bergeron and GB Forleo, ‘Targeting
Consumers Who are Willing to Pay more for Environmentally Friendly Products’ (2001) 18 J Consumer Marketing 503–20;
JH Clark, ‘D.J. Macquarrie Environmentally Friendly Catalytic Methods’ (1996) 25 Chem Soc Rev 303–10; AP Mintona and RL
Roseb, ‘The Effects of Environmental Concern on Environmentally Friendly Consumer Behavior: An Exploratory Study’ (1997)
40 J Business Research 37–48.

ß The Authors 2013. Published by Oxford University Press on behalf of the AIPN. All rights reserved.
doi:10.1093/jwelb/jwt015 Advance Access publication 12 November 2013
Osman Devrim Elvan and Y. Ozhan Turker  Geothermal energy capacity and legislation in Turkey 301

was accepted as a solution to this problem and the importance of the issue was empha-
sized with international treaties.2 Attention was also paid to this issue in the European
Union’s acquis and the use of renewable energy resources among EU Member States
were envisaged to increase following the Renewable Energy Directive (2001/77/EC).3 The
contribution of renewable energy in Europe was 6 per cent in 2006 and targets were set of
12 per cent by late 2010 and 20 per cent by late 2020.4 It was reported that, among the EU
Members, Denmark, Germany, Finland, Hungary, Ireland, Luxembourg, Spain, Sweden
and Holland are steadily making progress towards the European target.5 During the past
several years, many countries have increasingly adopted energy efficiency and renewable
energy policies. Turkey, a developing country, is going through a parallel process to these

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international developments in renewable energy. The importance of the issue of sustain-
able energy supply was emphasized in national legal documents,6 some organizational
structural changes were implemented and the use of renewable energy resources within
Turkey has increased.
Within this process, among the renewable energy resources such as hydropower,
biopower, geothermal power and solar power,7 wind energy gained prominence due to
a number of environmental advantages.
Conventional geothermal electricity generation plants use steam from geysers or from
superheated ground water in those locations where the geothermal resource is close to
Earth’s surface, which is usually near the edges of tectonic plates.8
Geothermal energy is thermal energy obtained by artificial methods from hot water,
wet steam and dry steam generated by heat accumulated in rocks in deep layers of earth
and carried into reservoirs by fluids, as well as from hot dry rocks. Geothermal resources
occur mainly around active fault systems and volcanic and magmatic units. Modern
geothermal power plants based on geothermal energy are considered as a clean energy
resource since CO2, NOx, SOx emissions are significantly low in such plants. Geothermal
energy covers all direct and indirect uses of geothermal resources. Low-temperature
(20–708C) fields are used in industry and production of chemicals, but mainly in heating.
Intermediate-temperature (70–1508C) and high-temperature (above 1508C) fields may be
used, in addition to electricity generation, in integrated heating applications depending
on reinjection conditions.9

2
United Nations (UN) Framework Convention on Climate Change (9 May 1992) and Kyoto Protocol (11 December 1997).
3
J Szarka, ‘Wind energy, Discourse Coalitions and Climate Change: Breaking the Stalemate?’ (2004) 14 Eur Environ 317–30.
4
European Climate Change Programme and Sixth Environmental Action Programme, Commission of the European
Communities Proposal for a Directive of the European Parliament and of the Council on the Promotion of the Use of
Energy from Renewable Resources.
5
Anon, (2010), AB- yenilenebilir enerji politikasi 5http://www.euractiv.com.tr/enerji4 accessed 29 March 2012.
6
National Development Plans, Country Energy Strategy Report Electricity Energy Market and Supply Security Strategy Paper
(2009–2023). Country Energy Strategy Report.
7
IB. Fridleifsson, ‘Geothermal Energy for the Benefit of the People. Renew’ (2001) 5 Sustain Energy Rev 299–312; R Bakis, ‘The
Current Status and Future Opportunities of Hydroelectricity’ (2007) 2 Energy Sources Part B 259–66.
8
D Harries and others, ‘Geothermal Energy in Australia’ (2006) 63 Intl J Environ Studies 815–521.
9
Anon, (2010)b, T.C. Enerji ve Tabii Kaynaklar Bakanligi, 5http://www.enerji.gov.tr/index.php?dil¼tr&sf¼webpages&b¼
jeotermal&bn¼234&hn¼&nm¼384&id¼406974 accessed 29 March 2012.
302 Journal of World Energy Law and Business, 2013, Vol. 6, No. 4

Direct use of geothermal energy is the oldest and most versatile way of its utilization as
energy.10 Documents obtained show that geothermal energy has been directly used in
more than 25 countries for more than 2000 years. Traditionally, direct use of geothermal
energy occurs in small-scale projects; however, such projects have evolved into larger-
scale projects thanks to the latest developments.11 District heating in Iceland and France,
and greenhouse complexes in Hungary and Russia, and major industrial uses in New
Zealand and USA may constitute examples of the said larger-scale projects.12
Most of the world’s geothermal power plants were built in the 1970s and 1980s fol-
lowing the 1973 oil crisis.13 The urgency to generate electricity from alternative energy
sources and the fact that geothermal energy was essentially free adversely affected careful

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designs of power plants to maximize their efficiency for a given geothermal resource.14
This change has had important consequences for energy and environmental polices.15 As
a result, energy policy has been an important part of sustainable development, due to the
significant role of energy in economic growth and environmental effects associated with
energy utilization.16
Geothermal energy generated by the power plants around the world is 48.493 MWt,
which leads to an annual energy generation of 423.730 Tj/yr. According to these figures,
37.5 million tonnes of fuel oil used in power generation is saved.17
Currently, renewable energy sources supply 14 per cent of the total world energy
demand. Renewable energy is a promising alternative solution because it is clean and
environmentally safe. Approximately half of the global energy supply will be from
renewables in 2040. Within this scope, geothermal and solar thermal sources are more
important energy sources for the future.18
In Europe geothermal energy production currently takes up a very small share of the
total amount of energy derived from renewable energy sources. Although the electricity
production is cost-effective and competitive if we compare it with conventional power
plants, the risks associated with the investment into the geothermal sites still continue to
be a limiting factor, and thus the installed power amounts about 1,124 MWe (for 2007).
10
MH Dickson and M Fanelli, ‘Geothermal Energy: Utilization and Technology’ UNESCO Renewable Energy Series: (2003),
Paris, France, 205; A Demirbas, ‘Electrical Power Production Facilities from Green Energy Sources’ (2006) I Energy Sources,
Part B 291–301.
11
GC Bakos, ‘Low Enthalpy Geothermal Energy for Greenhouse Heating at Nea Xanthi, Greece’ (2007) 29 Energy Sources Part A
571–79.
12
JW Lund, ‘Direct Utilization of Geothermal Energy’ (2010) 3 Energies 1443–71, ISSN: 1996-1073.
13
MK Ghose, ‘Environmentally Sustainable Supplies of Energy with Specific Reference to Geothermal Energy’ (2004) 26 Energy
Sources 531–39.
14
M Kanoglu, ‘Exergy analysis of a dual-level binary geothermal power plant’ (2002) 31 Geothermics 709–24; A Demirbas, AS
Demirbas and AH Demirbas, ‘Turkey’s Natural Gas, Hydropower, and Geothermal Energy Policies’ (2004) 26 Energy Sources
237–48; A Hepbasli and O Akdemir, ‘Energy and Exergy Analysis of a Ground Source (Geothermal) Heat Pump System’ (2004)
45 Energy Conversion and Management 737–53.
15
WH Golove and LJ Schipper, ‘Restraining Carbon Emissions: Measuring Energy use and Efficiency in the USA’ (1997) 25
Energy Policy 803–12.
16
I Dincer and MA Rosen, ‘Energy, Environment and Sustainable Development’ (1999) 64 Applied Energy 427–40; L Ozgener, A
Hepbasli and I Dincer, ‘Energy and Exergy Analysis of Salihli Geothermal District Heating System in Manisa, Turkey’ (2005) 29
Intl J Energy Research 393–408.
17
Lund (n 12).
18
A Demirbas, ‘Global Renewable Energy Projections’ (2009) 4 Energy Sources Part B 212–224; M Guru and A Kapulluoglu, ‘The
Optimization of Electricity Production from Geothermal Sources by a Binary System’ (2012) 34 Energy Sources Part A 278–86.
Osman Devrim Elvan and Y. Ozhan Turker  Geothermal energy capacity and legislation in Turkey 303

The use of heating energy from geothermal deposits has been showing a slight increase,
and is mainly used for heating and balneology. It amounts to 13.6 GWth.19 During the
past decade the use of shallow geothermal resources by using heat pumps has shown an
exponential growth of over 670,000 installed units in the EU and 7.6 GWth (2007).20 The
plan was that by the end of 2010 heating energy derived from the geothermal sources
(excluding the heat pumps) reached 5 GWth, and together with the installed capacity for
the production of the electricity about 1 GWe (6–10).21 In 1999, geothermal energy was
used in many countries but constituted only 2 per cent of the total energy produced in the
world.22 However, this rate is increasing today.
The highest number of installed geothermal power plants in the world (3.766 MWt) is

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in the USA, which is followed respectively by China, Iceland, Japan and Turkey. However,
China is the leader in terms of the amount of energy obtained from such plants
(10.531 GWh/a). China is followed respectively by Japan, USA, Iceland and Turkey.
(According to 2001 data, installed capacity of the plant is 820 MWt and production is
4,377 GWh/A in Turkey.)23 Turkey also has rich geothermal energy resources.24 Austria,
Canada, Sweden, Switzerland and Turkey have nearly doubled the amount of geothermal
energy they produce in the past 5 years. Development of geothermal power systems
increases by 9 per cent each year.25 However, there are dangers awaiting geothermal
energy use. According to the data published by the European Renewable Energy
Council (EREC) in 2006, expected annual growth rate for geothermal energy will be
reduced from 9 per cent to 4 per cent until 2040 as geothermal energy is a limited
source and found in only certain parts of the world. Such reduction does not mean
less geothermal energy use. According to data published by EREC, geothermal energy
generation in Europe, which was 1.4 GW in 2007, is expected to increase to 77 GW in
2050.26
Geothermal projects require a relatively large initial capital investment, with small
annual operating costs thereafter. Thus, a district heating project, including production
wells, pipelines, heat exchangers and injection wells, may cost several million dollars. By
contrast, the initial investment in a fossil fuel system includes only the cost of a central
boiler and distribution lines. The annual operation and maintenance costs for the two
systems are similar, except that the fossil fuel system may continue to pay for fuel at an
every-increasing rate; while, the cost of the geothermal fuel is stable. The two systems, one

19
IB Fridleifsson, R Bertani and E Huenges, ‘The Possible Role and Contribution of Geothermal Energy to the Mitigation of
Climate Change’ (2008) IPCC Scoping Meeting on Renewable Energy Sources, Proceedings, Luebeck, Germany, pp 59–80.
20
European Heat Pump Action Plan, EHPA, Version 1, 2008.
21
VM Sustersic and others, ‘An Overview of the Regulatory Framework for the Geothermal Energy in Europe and Serbia’ (2010)
14 Thermal Science S115–S23.
22
VI Zui and VG Levashkevich, ‘Preliminary Estimates of Geothermal Potential of Belarus’ (1999) Proceedings of the 1999
Course, Direct; utilization of Geothermal Energy, International Summer School on Direct Application of Geothermal Energy,
International Geothermal Days.
23
Fridleifsson, R Bertani and E Huenges (n 19) 59–80.
24
A Murathan, A Murathan and A Alicilar, ‘The Use of Geothermal Fluid for House Heating and Effect on Environmental’ (1996)
9 GUJ Inst Sci 591–97.
25
AH Demirbas, ‘Global Geothermal Energy Scenario by 2040’ (2008) 30 Energy Sources Part A 1890–95.
26
EREC, Re-thinking 2050, A 100% Renewable energy vision for the European union, Brussels, (2010), Belgium.
304 Journal of World Energy Law and Business, 2013, Vol. 6, No. 4

with a high-initial capital cost and the other with high-annual costs, must be compared.27
Geothermal plants emit very little air pollution and have minimal impacts on the
environment.28 All of these utilizations and its applications are known around more
than 40 countries in the world and the total thermal energy produced for direct usages
estimated to be 11,400 megawatts with a cost of less than 2 cents per 1 kilowatt.29
Geothermal energy is clean, cheap and renewable30 and can be utilized in various
forms, such as space heating and domestic hot water supply, CO2 and dry-ice production
process, heat pumps, greenhouse heating, swimming and balneology (therapeutic baths),
industrial processes and electricity generation. The main types of direct use are bathing,
swimming and balneology (42 per cent), space heating (35 per cent), greenhouses (9 per

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cent), fish farming (6 per cent) and industry (6 per cent).31 Uses of geothermal energy
may differ greatly. It may be used for both heating and free cooling purposes.32
Geothermal energy is commonly used in two ways: for power generation and direct
application.33
Use of underground thermal energy has caused many effects on the environment but it
is less than that caused by other of energy sources specially oil and coal, and so, under-
ground thermal energy is preferred due to its cleanliness.34
There are four different types of geological formations from which energy can be
usefully extracted: hydrothermal, geopressurized, hot dry rock and magma.35 The
energy from all of these reservoirs can be tapped and used for heating or electricity
generation.36
Geothermal resources may therefore be classified by type of rock formation/form
of water and temperature, ranging from 208C to above 3008C.37 This range of tempera-
ture is specified as 240–3208C by the other sources of doctrine.38 Economically
usable geothermal resources utilized through the current technology are available at
500–3000 m depths of soil. It is estimated that more than 97 per cent of current
geothermal production is from magmatically driven reservoirs.39 Geothermal energy
27
Lund (n 12).
28
Demirbas (n 10) 291–301.
29
MAA Al-Dabbas, ‘The Economical, Environmental and Technological Evaluation of Using Geothermal Energy’ (2009) 38 Eur J
Scientific Research 626–42.
30
I Ahmad and A Rashid, ‘Study of Geothermal Energy Resources of Pakistan for Electric Power Generation’ (2010) 32 Energy
Sources Part A 826–38.
31
ibid.
32
H Hofinger and others, ‘Geothermal Energy Systems for Major Projects- Design and Construction’ (2010) 3 Geomechanics and
Tunneling 634–46.
33
Demirbas (n 25) 1890–95.
34
DP Brown and JR Rickerby, ‘Environmental Effects of Geothermal Power Developments Compared with Fossil Fired
Alternatives’ (1991) Proceedings of International Conference on Volcanology and Geothermal Technology 33–47; H
Armannson and H Kristmannsdottir, ‘Geothermal Environment Impact’ (1992) 21 Geothermics 869–80.
35
S Baird, ‘Energy Fact Sheet’ (1993) Energy Educators of Ontario. 5http://www.iclei.org/EFACTS/GEOTHERM.html4 accessed
26 March 2012.
36
Demirbas (n 25) 1890–95.
37
JW Lund, ‘Characteristics, Development and Utilization of Geothermal Resources’ (2007) 28 GHC Bull 1–9; M Goosen, H
Mahmoudi and N Ghaffour, ‘Water Desalination using Geothermal Energy’ (2010) 3 Energies 1423–42.
38
KH Williamson and others, ‘Geothermal Power Technology’ (2001) 89 Proc IEEE 1783–92.
39
S Rehman, ‘Green Power: What is it and Where Can We Find it?’ (2003) IEEE Power & Energy Magazine January/February
30–37.
Osman Devrim Elvan and Y. Ozhan Turker  Geothermal energy capacity and legislation in Turkey 305

Table 1. Lindal diagram

8C

180 Evaporation of highly concentrated solutions

Refrigeration by ammonia absorption
170 Heavy water via hydrogen sulphide process
Drying of diatomaceous earth
160 Drying of timber, Drying of fish meal Electric
Saturated 150 Alumina via Bayer’s process Power
Steam 140 Drying farm products at high rates (canning of food) Production

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130 Sugar industry and extraction of salts
120 Fresh water by distillation
Concentration of saline solution
110 Drying and curing of cement blocks
100 Drying of organic materials (seaweeds, meat, vegetables, etc.)
Washing and drying of wool
90 Drying of stock fish
80 Space heating in buildings and greenhouses
Hot 70 Refrigeration (lower temperature limit) Space Heating
Water 60 Space heating in poultry and cow houses
50 Mushroom growing
Balneological baths
40 Soil warming, district heating (lower limit), health facilities
30 Swimming pools, fermentations, distillations, health facilities
20 Fish farming
(Anon, Mineral Research & Exploration General Directorate of Turkey, (2012), 5http://www.mta.gov.tr/
v2.0/daire-baskanliklari/enerji/images/siteharitalar/1.jpg4 accessed 9 April 2012.)

can be used at different temperatures and has different uses. Such uses are shown in the
Lindal Diagram (Table 1).
Turkey is located on an active tectonic, orogenetic belt, the Alpine-Himalaya Orogen,
with young faults and active volcanism, which is the reason for Turkey’s substantial
geothermal resources. Most of the geothermal energy potential is located in the Aegean
and Central Anatolian regions.40 The total geothermal potential in Turkey is estimated to
be about 31,500 MW. Turkey is one of the 10 richest countries in terms of geothermal
potential in the world. Geothermal energy is a clean, proven and reliable resource for
supplying the needs of a sustainable society and helping to improve the environment in
Turkey. Geothermal energy can be utilized in various forms, such as space heating and
domestic hot water supply, CO2 and dry-ice production processes, heat pumps, green-
house heating, swimming and balneology (therapeutic baths), industrial processes
and electricity generation. Since 1990, space heating and greenhouse developments
40
AB Etemoglu, ‘Thermodynamic Evaluation of Geothermal Power Generation Systems in Turkey’ (2008) 30 Energy Sources Part
A 905–16.
306 Journal of World Energy Law and Business, 2013, Vol. 6, No. 4

have exhibited significant progress.41 In Turkey, targeted electricity production is

565 MWe (4 Billion kWh) until 2013.42
Geothermal energy is very important for Turkey since energy shortage has increased
rapidly. In the long term, geothermal energy will remain a viable option to furnish
clean, reliable power in Turkey.43 Therefore, Geothermal energy research centres have
been established by universities.44
There are about 1,000 geothermal and mineral water resources with temperatures
ranging from 1008C to 1408C in Turkey.45 These resources are located in four main
regions, which are respectively as follows: Western Anatolia, North Anatolian Fault
Zone, Eastern Anatolia and Central Anatolia. Turkey is one of the countries that

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import energy. In 2000, Turkey produced only 27.67 Mtoe (million tons of oil equiva-
lents) energy through its own resources, while its total energy consumption was 79.46
Mtoe.46 This pushed Turkey towards alternative energy resources, among which renew-
able energy resources hold the first place.
Turkey’s geothermal potential is 31.500 MW. About 77.9 per cent of the areas
with geothermal potential are located in Western Anatolia. However, only 4,000 MW
potential was able to be made available until today by the Ministry of Energy and
Natural Resources, General Directorate of Mineral Research and Exploration (MTA).
About 55 per cent of the geothermal areas in Turkey are suitable for heating applications.
According to the figures published in 2010, 1,200 decares of greenhouses and
100,000 households within 15 settlements in Turkey are heated by geothermal energy.
About 1.500 MW of the total geothermal energy potential of Turkey is considered to be
suitable for electricity generation, while the confirmed figure is 600 MWe for now.
Turkey’s installed power of geothermal energy reached 77.2 MW by the end of 2009.47
Turkey’s geothermal energy resources map is given in Figure 1 below.
Turkey has rich geothermal energy resources. The Buyuk Menderes fault zone is
an important area for this potential. After the Denizli-Kizildere geothermal field, in
the eastern part of Buyuk Menderes graven, Germencik-Omerbeyli geothermal
field was founded in the western part of the same graven in 1982 as the second
high-enthalpy geothermal field of Turkey. According to the geological studies, young
tectonic activities, regional faults of high slip, young acidic volcanics (dacite-andesite),

41
A Demirbas, ‘Turkey’s Geothermal Energy Potential’ (2002) 24 Energy Sources 1107–15.
42
H Dagistanli, ‘New Developments and Investment Opportunities of Geothermal Sources in Turkey’ (2009) World Bank
Geofund 2009 International Geothermal Workshop, Istanbul, Turkey, February 16–19, pp 68–81.
43
A Demirbas, AS Demirbas and AH Demirbas (n 14) 237–48.
44
Dokuz Eylul University Jeotermal Energy Research and Application Center (1998), Suleyman Demirel University Jeotermal
Energy Research and Application Center (2002), Izmir Higher Institute of Technology Jeotermal Energy Research and
Application Center (2005), Adnan Menderes University Jeotermal Energy Research and Application Center (2007).
45
GG Gunerhan, G Kocar and A Hepbasli, ‘Geothermal Energy Utilization in Turkey’ (2001) 25 Intl J Energy Research 769–84; A
Baba and H Armannsson, ‘Environmental Impact of the Utilization of Geothermal Areas’ (2006) 1 Energy Sources Part B
267–78.
46
Baba and Armannsson ibid.
47
Anon, T.C. Enerji ve Tabii Kaynaklar Bakanligi, (2010)b 5http://www.enerji.gov.tr/index.php?dil¼tr&sf¼webpages&b¼
jeotermal&bn¼234&hn¼&nm¼384&id¼406974 accessed 29 March 2012.
Osman Devrim Elvan and Y. Ozhan Turker  Geothermal energy capacity and legislation in Turkey 307

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Figure 1. Geothermal Resources and Applications Map in Turkey (Anon, Mineral Research &
Exploration General Directorate of Turkey, (2012), 5http://www.mta.gov.tr/v2.0/daire-
baskanliklari/enerji/images/siteharitalar/1.jpg4 accessed 9 April 2012.).

hydrothermal alterations, fumaroles and many shallow hot water wells have been
determined.48

2. Turkish legislation and geothermal energy

The tendency towards geothermal energy in Turkey has not only increased interest and
investments in the sector, but has also been supported with legal regulations. In this
section, the Turkish legislation will be analyzed, beginning from the Constitution, which
is the highest legal regulation according to the hierarchy of norms.
The environment right, which is the right to live in a balanced and healthy environ-
ment, was defined in the 1982 Turkish Constitution and vesting this right was accepted
within the duties of the State.49 Turkish Constitution of 1982 has provided environment
right through its Article 56, according to which ‘Everyone has the right to live in a
healthy and balanced environment. It is the duty of the State and citizens to protect
the environment’.50 Therefore, it may be suggested that, indirectly, the constitutional
definition of these environmental rights actually provides strong legal support for
transition to renewable energy.
48
A Murathan, A Alicilar and I Ar, ‘An Optimization Example for Electricity Production from Geothermal Sources by Using
Double Stage Systems’ (1999) 3 Energy Edu Sci Technol 42–47.
49
A Coskun and GGencay, ‘Kyoto Protocol and ‘‘deforestation’’ a Legal Analysis on Turkish Environment and Forest Legislation’
(2011) 13 Forest Policy and Economics 366–77.
50
OD Elvan and U Birben, ‘Collision between Regulations in Forest Law and Environment Related Legislations in Turkey’ (2010)
IUFRO Legal Aspects of European Forest Sustainable Development Proceedings of the 11th International Symposium, Zvolen,
Slovakia, 978-80-228-2210-7.
308 Journal of World Energy Law and Business, 2013, Vol. 6, No. 4

The right to environment vested in the Constitution is implemented in the

Environmental Law Act,51 which clearly states that ‘renewable energy should be
supported’.
The Electricity Market Law52 (2001) includes a provision for the encouragement
of those who establish a plant below a certain size, which is based on incentivizing
renewable energy resources. In the same law, the State is responsible for ‘taking the
necessary precautions and encouraging people to support the use of renewable energy
resources in electricity production’.
This objective is also supported by the Law on Utilization of Renewable Energy
Resources for the Purpose of Generating Electrical Energy,53 which aims ‘to expand

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the utilization of renewable energy resources for generating electrical energy, to benefit
from these resources in secure, economic and qualified manner, to increase the diversi-
fication of energy resources, to reduce greenhouse gas emissions . . .’.
All the sectoral objectives of Turkey since 1963 have been determined by Five-Year
Development Plans, the 9th of which is currently in force. These plans are included in the
Turkish legal system as a part of the legal framework. Using geothermal resources
for energy generation is mentioned for the first time in the 3rd Five-Year Development
Plan that covers 1973–1977. It was stated in the ‘Long Term Development Targets
(1972–1995)’ in the said plan that geothermal resources would be used. In the
4th Five-Year Plan, the steps taken to achieve the said target were described, and it
was stated that a geothermal thermal plant with 15 MW installed capacity and 90 GWh
average generation was under construction and would be put into operation in 1981. The
5th Five-Year Development Plan also emphasized the importance of geothermal
resources, and it was stated in this plan that priority would be given to improvement
of these resources. Moreover, it was stated that additional incentives would be offered in
the priority development areas for the purpose of putting geothermal energy resources in
such areas into operation as soon as possible. And these resources were intended to be
developed through technical assistance and foreign capital. In the 6th Five-Year Plan that
covers 1990–1994, it was stated that all necessary measures would be taken to make more
use of geothermal energy. In this plan, the energy generation from geothermal resources,
which was 22 GWh in 1984, was aimed to be increased to 60 GWh by 1994. The number
of geothermal plants, which was 6 in 1984, was projected to increase to 15 by 1994 in the
said plan. And the necessary legal and administrative arrangements to allow more use of
geothermal energy were planned to be made. The 7th Five-Year Development Plan that
covers 1996–2000 also emphasized the importance of geothermal energy, and underlined
the intention to offer the necessary incentives. Also, it was stated that the relevant legal
gaps would be addressed as soon as possible, and a law on geothermal resources should be
enacted. The 8th Five-Year Development Plan that covers 2001–2005 emphasized the
importance of the said resources as the previous plans did. As the law on geothermal
51
Law no 2872 published in the Official Gazette dated 11 August 1983.
52
Law no 4628 published in the Official Gazette dated 3 March 2003.
53
Law no 5346 published in the Official Gazette dated 10 May 2005.
Osman Devrim Elvan and Y. Ozhan Turker  Geothermal energy capacity and legislation in Turkey 309

energy resources mentioned in the previous plan was still not enacted, it was stated in this
plan that the arrangements for the said law should be finalized as soon as possible. In this
plan, the geothermal energy generation capacity, which was 15 MW since 1984, was
aimed to be increased to 40 MW by 2005. Thus, the average generation capacity was
going to be increased from 90 GWh to 277 GWh, and the actual generation from 80 GWh
to 235 GWh. The 9th Five-Year Development Plan that covers 2007–2013 also empha-
sized the importance of geothermal energy. However, it was stated that the law men-
tioned above was still not enacted, and the arrangements to complete these legal
arrangements would be given particular importance.
As mentioned in the 9th Five-Year Development Plan, years of study yielded results

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in 2007, and the Law on Geothermal Resources and Natural Mineral Waters54 was
put into force. The purpose of this law is: ‘To set forth the procedures and principles
regarding effective exploration, research, development, production and protection of
geothermal and natural mineral water resources, holding rights on these resources and
devolution of the rights, economic utilization of the resources in a compatible way to
the environment, and abandonment of these resources.’ Furthermore, the Law defined
‘geothermal resource’ as follows: ‘The natural water, steam and gases comprising
melted substances and gases with temperature permanently higher than the regional
atmospheric average due to the natural heat in the earth crust and water as well
as vapor and gases obtained from hot dry rocks.’ According to this Law, geothermal
resources shall be under sovereignty and disposal of the State, and all operations relating
to the said resources shall be subject to a ‘license’. It was also stated that the rights to
such resources may be granted to any Turkish national, either natural, or legal person,
and such rights may be inherited.
All operations relating to geothermal resources are subject to inspection by MTA.
These inspections are compulsory, and license holders pay 1,000 Turkish Liras to MTA
for such inspections. Protecting the geothermal system that constitutes the resource, and
avoiding squandering the resources, and protecting the environment must be given top
priority in the operations that are subject to the Law on Geothermal Resources and
Natural Mineral Waters. And license holders must have the protected-area survey
made before starting their operations. Otherwise, their operations are suspended, and
the relevant license holders are given an appropriate time frame to determine the pro-
tected areas. In case of failure to determine the protected area within the given time
frame, provisions of the Article 11 of the said Law shall be applied. The said article
includes administrative sanctions that may result in cancellation of a license.

3. Environmental impact assessment and geothermal energy

As environmental issues have gained importance in Turkey, basic environmental subjects
have been defined, politics have been determined and legal and institutional structures
have been developed. During this period, the requirement for environmental impact
54
Law no 5686 published in the Official Gazette dated 3 June 2007.
310 Journal of World Energy Law and Business, 2013, Vol. 6, No. 4

assessment (EIA), which is one of the major tools of environmental management, has
become a current issue. This topic gained a legal basis in 1983, with the Environmental
Law no 2872 and embodied in the 10th Article ‘investors must produce an EIA Report for
their planned activities which may cause environmental pollution. No permission is given
to the projects before a positive EIA decision is taken’. Thus, studies conducted under the
requirement for EIA aim to facilitate investments without causing ecological harm or
polluting the environment.
In order to assign concrete principles to the EIA procedure and determine the appli-
cation rules, the first version of the Turkish EIA Regulation was produced in 1993 and
subsequently revised in 1997, 2002, 2004 and 2008.

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In this legislation, the activities that may have environmental effects are classified
within two Appendices. The projects listed in Appendix-I have greater environmental
impact potentials and such projects are obligated to prepare an EIAR. The Scoping and
Examining-Evaluation Commission investigate the prepared EIA and a decision of
either ‘EIA Positive (Accepted)’ or ‘EIA Negative (Refused)’ is given by the Ministry of
Environment and Urbanization (MoEU). An EIA positive decision states that, as result
of the measures to be taken, any predicted negative environmental impact of the project
can be kept at acceptable levels in accordance with the legislation and scientific principles,
and thus the project is acceptable. A decision of ‘EIA negative’ states that the realization
of the project is unadvisable due to its negative effects on the environment.
The projects noted in Appendix-II are smaller scale projects and they are subject to a
pre-investigation procedure named ‘Selection and Elimination Criteria’. At the end of
this procedure, a decision of ‘EIA required’ or ‘EIA not required’ is given by the MoEU.
An ‘EIA required decision’ states that the environmental impacts of the project that is
subject to selection and elimination criteria should be examined in more detail, and that
the preparation of EIS is required. A decision of ‘EIA not required’ states that the project
that is subject to selection and elimination criteria does not have significant environ-
mental effects, and that the preparation of EIS is not required (Table 2).
Extraction of geothermal energy resources with a heat capacity of 25 Mw or above,
and construction of plants that use geothermal energy are included in Appendix-I. Plants
that generate energy from geothermal resources and have an installed power of 5 MWe
or above are included in Appendix-II. In other words, plants with an installed power
of 5–25 MWe are subject to ‘Selection and Elimination Criteria’. And the plants with
installed powers below the said threshold are not subject to EIA. According to the

Table 2. Geothermal energy capacity and EIA

Heat capacity Covered by Process

Project 425 Mwe EIA Appendix I Subject to EIA process

25 Mwe 4 Project 45 Mwe EIA Appendix II Subject to selection and elimination criteria
5 Mwe 4 Project Not covered by EIA EIA process is not applicable
Osman Devrim Elvan and Y. Ozhan Turker  Geothermal energy capacity and legislation in Turkey 311

previous EIA Regulation, construction of plants that extract geothermal energy resources
or use geothermal energy were included in the list under Appendix-II, and plants
that extract heat less than 5 MWe were not subject to EIA. However, the said
Regulation has been amended in 2011 to include the plants with a heat capacity above
25 MWe in Appendix-I, and to maintain a strict control over impacts of such plants
on the environment. Until today, only one geothermal energy project entered in the EIA
process, and this plant, which is located in Aydin-Germencik, obtained a positive report
on 20 August 2003.

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4. Assessment and conclusion
The use of renewable energy resources, especially geothermal energy, has increased
recently and this growth is likely to continue due to the environmental benefits of
moving to renewables and the opportunities that this provides. The expansion of the
renewable energy sector in Turkey parallels similar developments seen around the world.
Turkey is one of several countries with a high-geothermal energy capacity and has
implemented legal, organizational and technical structures to support this technology.
Geothermal energy in Turkey will be assessed using SWOT analysis in order to be able to
illuminate the development in this regard and to reach the targets in this step of the
present study (Table 3).
Large amounts of Turkey’s future strengths and opportunities regarding geothermal
energy are clear from the brief evaluation above, because the result is compatible with
Turkey’s geothermal energy targets. As mentioned in previous parts of the study, Turkey
is among the top 10 countries in the world, even in the current state. There is a very
strong legal and corporate infrastructure for building geothermal power plants. The Law
on Geothermal Resources and Natural Mineral Waters, entered into force in 2007, in
particular has proven the commitment to the targets. Laws and regulations on geothermal
energy have been enacted, and importance of the same has been emphasized in the state
development plants and energy reports, and targets have been set.
Geothermal energy, which is a domestic and always-available resource that reduces fuel
costs, and eliminates fuel price related long-term risks, and reduces dependence on other
countries in terms of economic, political and procurement-related risks,55 is particularly
important for Turkey. This is because Turkey, which is in developing process, may
sometimes face serious energy deficits, and it is still dependent on external resources
for meeting energy demands. Therefore, if used in a timely manner with the right policies,
having the seventh largest geothermal energy potential in the world will constitute a
significant tool for Turkey to reduce its import expenditures.
Increased environmental awareness in Turkey in such a period when Turkey is parti-
cipating in environmental negotiations for EU membership supports geothermal energy
investment. Competent public administrations contribute to raising environmental

55
S Baskaya, ‘Hidrolik santralleri (hes) ve ruzgar enerjisi santralleri (res)’nde cevresel etki degerlendirilmesi (CED), (2010) III.
Ulusal Karadeniz Ormancilik Kongresi 20-22 Mayis 2010 Bildiriler Kitabi Cilt II, Artvin, Zafer Ofset.
 312

Table 3. SWOT analysis of geothermal energy in Turkey

Strengths Weaknesses
. Clearly defined Turkish legislation on geothermal energy . The level of awareness regarding the subject is
. The legislation in convergence with EU Criteria insufficient
. Turkey has a strong institutional framework for this issue . The investment incentives for the sector are
. The subject gains importance in the national energy planning strategy insufficient
. The general acceptance of the necessity for geothermal energy . Geothermal resources
. High-geothermal energy potential (ranked 7th in the world) . Limited nature of geothermal resources
. The Ministry reviews the environmental information about the subject
. EIA (for the plants with a capacity of 25 MWe and above) or Selection
and Elimination Criteria are prescribed for all types of plants

Opportunities Threats
. Presence of supportive processes within international environmental . Overseas loans and technology may be required.
law and increasing corporation facilities Current investments have not reached the desired
. Increasing environmental awareness within public opinion level
. Renewables will reduce Turkey’s dependency on current forms of high . They create negative social effects
cost, imported energy . They may reduce rigid energy pricing in the region
. It will enable reduction of energy generation costs where they are established
. The importance given to this topic will facilitate the EU negotiations . Despite EIA, they may have negative impacts on
about environmental issues the environment
. The necessary scientific infrastructure exists within universities . They may have negative impacts on forest
. There will be new ways to benefit from international incentives and ecosystems, especially when they are established
loans in forest areas
Journal of World Energy Law and Business, 2013, Vol. 6, No. 4

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 Osman Devrim Elvan and Y. Ozhan Turker  Geothermal energy capacity and legislation in Turkey 313

awareness by providing access to environmental data and ensuring transparency.

Furthermore, they publish energy investments and the procedure relating thereto on
their website to facilitate public participation in decision-making.
One of the opportunities of geothermal energy is the increase in the corporation
facilities in international environmental law. Notably EU, UN, World Bank and envir-
onmentally improved countries, numerous corporation facilities have emerged.
Geothermal power plants may have adverse effects on the environment, although not
as much as the other power plants. In the previous EIA regulation, geothermal power
plants with a capacity of 5 MWe were not deemed eligible for EIA and Selection and
Elimination criteria, while the plants with a capacity above 5 MWe were subjected to EIA

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only if such plants are found eligible for EIA as a result of their examination according to
the Selection and Elimination criteria. However, new arrangements were brought through
an amendment in 2011. According to the new arrangements, the plants with a capacity
of 25 MWe are directly included in the scope of EIA, while the plants with a capacity
lower than 5 MWe are still not considered eligible for EIA. These arrangements are
considered as positive steps to protect the environment in Turkey.
In conclusion, geothermal energy is relatively clean, cheap and renewable. As is clear
from the above, strengths and opportunities of geothermal energy outweigh its weak-
nesses and risks. In Turkey, which has a significant geothermal energy potential, a healthy
EIA process can make it possible to minimize the environmental damage that may be
caused by geothermal power plants.

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