11 May 2008

Touch the Higher for the Great Wind

Turkey, which manufactures wind turbinesas subsidiary industry, needs more than manufacturing in order to set a higher standard.

The statement that İsmet Turan, energy expert of Energy Market Regulatory Authority (EMRA) made in the 'Panel on the Manufacture and Design of Wind Turbines and Equipments by Using Domestic Resources' organized by Istanbul Chamber of Industry last week, was enough to draw attentions to the opportunities for Turkey in the turbine industry.  After Turan stated that there would be an investment of 390 billion euros between the years 2000-2030 and that there were significant opportunities, the industrialists started to become excited.  As the interest of the audience showed, the wind turbines, which become more important thanks to the wind energy in the world and in Turkey as well, are drawing investors attention day by day. However, However, 70 % of established plants in Turkey can be realized with the local content. The domestication of the remaining 30 % part is quite important for Turkey which is planning to establish large amounts of wind power plants. In addition, the actual opportunity for the sector is that the demand for these equipments are very high in the world. The factor that turns this demand of the world into a great opportunity for Turkey is that the required components for these equipments are manufactured in Turkey. Turkey manufactures these components as subisdiary industry; therefore, if Turkish industrialist steers toward the final product, the profit will be folded.  Yet, while doing this, the industrialist has to be prepared for competition and has to choose the right model of business; because the conditions are changing so fast in the global competition.   

THE FOREIGNMARKET OPPORTUNITY

It could be said that internal market is the primary opportunity for the sector when it is considered that Turkey needs investments to generate electricity especially from domestic resources. Other factors that increase the opportunities in the domestic market are the guarantee of purchase that is given by law related to the use of renewable energy sources and such variants as the capacity factor that is higher than other countries (35-40 %). However, when we

examine the wind turbine industry in foreign markets , it could be observed that here the opportunities are as attractive as those in the domestic market. Zeki Aybar Eris: 'We are also planning to enter into the business of turbine manufacturing if we can double our investments.'

According to the figures of Europe Wind Energy Association, by the year 2030, 320 billion euro will have been invested in this sector in Europe. The Europe wind turbine market, which grew by 23 % in 2006, is likely to grow even more thanks to the countries' policy of decreasing the external dependence in energy sector and carbon trade following the Kyoto in the fight against the global warming. In the light of these indicators, wind turbine manufacturing one of the fields to be invested for the industrialist; however, it is not very easy to enter into this sector. The companies  competing in the turbine manufacturing industry need to set a steady plan for competition.Zeki Aybar Eris, CEO of Polat Enerji  says that 'In order to compete with the world, the turbine must be delivered on turnkey basis and give the guarantee of maintenance, repair and spare parts for at least 10 years.' He also adds that, 'The rate of power plant investments realizedcurrently causes damage to the facility investments that can manufacture for the domestic market. Therefore, first  the power plant investments should be supported and then the manufacturing facilities related to them.'

FINAL PRODUCT IS ACTUALLY EASY

The fact that there is already an available subsidiaryindustry for the wind turbine manufacturing in Turkey which is actually a good advantage for the companies that want to conduct final manufacturing. The wind turbine manufacturers in Europe have already obtained final products by using the equipments produced by Turkish industry. Osman İpek, Director General of İpek Energy GmbH which gives the service of international energy consultancy to the countries such as Germany, Pakistan, says that 'Wind turbines generally are made "packaging" by the manufacturers. The manufacturer purchases the blades from a blade manufacturer who sells to the market and buys the gear case from another manufacturer in accordance with the charts presented by R&D department, and trades off these products as a single product after packaging them.' He adds that 'Manufacturing can be easily performed by obtaining a turbine manufacturing license and the related know-how from a company that gives manufacturing license.'