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A new model for jointly purchased energy services in Turkish industrial parks

Panel: 5. Business models, finance and investment

This is a peer-reviewed paper.

Author:
Gokhan Kirkil, Kadir Has University, Turkey

Abstract

As a part of an EU-funded H2020 project called S-PARCS (new energy efficiency service models in industrial parks), we performed a survey for existing energy services in four biggest industrial parks in Turkey. Industrial Parks in Turkey are initially founded as public entities but later governed by a board formed by both public and private managers. In terms of electricity and natural gas services, industral park management acts as a distribution company. In the past, industrial park management purchased electricity and natural gas through bilateral agreements and sold them to their companies after adding some transaction cost. With this model, they were able to foresee their profits.

Over last few years, as a result of establishment of electricity and natural gas markets in Turkey, industrial parks started purchasing electricity and natural gas from daily energy markets. This new model brings new challenges to park management as energy prices started to fluctuate all over the year. In addition, the government started to collect renewable energy feed-in-tariff payments from industrial customers proportional to their consumption.

In this paper we propose a new energy management model for industrial parks to better manage energy price fluctuations and tariffs.

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