Conference Daily – Day 1 (Tuesday, 9 October 2018)

10/10/2018

OPENING CEREMONY

Almost 1000 participants attended the 2018 Turkish Energy Summit (TES) and ERRA Energy Regulation and Investment Conference in Antalya, Turkey, on October 9-10, 2018. The Conference was hosted by the Energy Markets Regulatory Authority (EMRA) of Turkey and co-organized by ERRA and TES.

Introductory Remarks

Mustafa Karahan, Chair of the Turkish Energy Summit, opened the conference noting that it is organized at a critical time of paradigm changes in the energy sector landscape. Sinan Ak, CEO of Zorlu Enerji, provided an overview of the evolution of the energy sector developments in Turkey, whereas Kivanc Zaimler, CEO of Enerjisa, emphasized the importance of co-organizing the conference with ERRA, including a high number of energy regulators and policy makers.

Keynote Addresses

Mart Ots, Chairman of the Energy Regulators Regional Association (ERRA), praised the structural reforms that countries have implemented in their energy sectors and highlighted the role of regulatory independence. In doing so, Mr. Orts encouraged regulators to have confidence in the power of markets to provide value and welfare to the sectors we regulate and to energy customers.

The Conference then aired a video of the role of EMRA in the developments in the Turkish energy sector. Mustafa Yilmaz, President of the Energy Markets Regulatory Authority, noted that the 17th ERRA Energy Investment and Regulatory Conference is being co-organized under the motto of „Global Synergy Local Energy” and encouraged discussions to be developed under this motto. Mr. Yilmaz also emphasized the role of regulatory independence and highlighted the opening of the wholesale gas market in September 2018, the development of renewable energy resources and advancements in energy storage.

Mr. Fatih Donmez, Minister of Energy and Natural Resources of Turkey, welcomed participants and noted that EMRA, the Minister himself, as well as the Deputy-Minister of Energy of Turkey are all well familiarized with ERRA and expressed his pleasure of having ERRA as a co-organizer of the conference.

SESSION I:

CURRENT STATUS OF THE TURKISH ENERGY SECTOR

The Conference then went on to a Q&A session with the Turkish Minister of Energy and Natural Resources, Mr. Fatih Donmez. The discussions covered developments in drilling vessels in the Mediterranean and Black seas as well as up-stream investments on land. Mr. Donmez noted the importance of the sustainability of policies related to the energy sector and their role in enhancing the ability of the energy sector to be able to predict market developments. Mr. Donmez addressed the issue of 950 MW of BOT contracts, which are set to expire soon, and provided insights on EMRA’s plans to further liberalize the retail market.

SESSION II:

EMPOWERED CUSTOMERS: REGULATOR’S ROLE IN IMPROVING DEMAND-SIDE DYNAMICS

The second session of the conference was opened by Erin Hammel – Master of Ceremony – Director of International Programs at the National Association of Regulatory Utility Commissioners (NARUC) – ERRA’s sister organization. Tamara Sulukhia, Sustainable Development and Infrastructure Program Leader for Turkey at the World Bank, moderated the session related to empowered customers and regulator’s roles in improving demand-side dynamics. Mr. Oleg Barkin, Member of the Board of the NP Market Council of Russia provided a presentation on the role of the Council in supporting new technological developments in the Russian Wholesale Energy Market, noting that distributed generation and demand response systems are likely to affect demand-side dynamics in the near-term. Gatis Junghans, Member of the Board of the Latvian Transmission System Operator, emphasized that customers can provide a useful flexibility source to the system by participating actively in the electricity market. Mr. Pritt Treial of Elektrilevi (Estonia) provided a presentation on how regulation facilitates innovation and noted that, according to current trends, individual systems will be less expensive than buying electricity from the grids within the next decade. Elektrilevi already identified around 1000 locations where such investments are already worthwhile.

The panel discussion that followed was moderated by Huseyin Karatas, Former EMRA commissioner. The Panel consisted of Afsim Burak Bostanci, an Energy Expert of EMRA, David Dgebuadze, Head of the Electricity metering Department at Georgian State Electrosystem, Jesus Serrano Landeros, a Commissioner at the Energy Regulatory Commission of Mexico and Dmitry Vasilev, Head of Department at the Federal Antimonopoly Service, Russian Federation. The panel noted the increased importance of DSM to support the integration of RES and the necessity to allow independent aggregators to enter the market to provide these services.

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