Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) EU/IPA Energy Sector Technical Assistance Project (P131921) EUROPE AND CENTRAL ASIA | Turkey | Energy & Extractives Global Practice | Recipient Executed Activities | Technical Assistance Loan | FY 2014 | Seq No: 7 | ARCHIVED on 29-Sep-2017 | ISR29724 | Implementing Agencies: Ministry of Energy and Natural Resources, Republic of Turkey Key Dates Key Project Dates Bank Approval Date:30-May-2014 Effectiveness Date:30-May-2014 Planned Mid Term Review Date:15-Mar-2016 Actual Mid-Term Review Date:04-Apr-2016 Original Closing Date:31-Mar-2017 Revised Closing Date:28-Sep-2017 Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective is the enhancement of the Turkish energy sector in line with the EU Energy priorities and strategies in energy efficiency, renewable energy, and the natural gas market. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name (1) MENR - (a) institutional review and capacity building of MENR and (b) review of alignment of Turkey's legal and institutional fr amework with the EU's energy acquis.:(Cost $1.12 M) (2) Renewable Energy - (a) review of current situation, barriers and road map, (b) renewable energy grid integration and (c) busines s development services to small and medium-sized industries.:(Cost $3.03 M) (3) Natural Gas - (a) support for the unbundling of the national gas company BOTAŞ; and (b) design and regulations for a gas trading platform and a plan for effective gas market opening.:(Cost $2.67 M) (4) Energy Efficiency - (a) market development including business development services to small and medium-sized industries and (b) capacity building for commercial energy efficiency lending market.:(Cost $5.46 M) (5) Visibility and Public Awareness.:(Cost $0.61 M) Trust fund administration, program management and supervision.:(Cost $1.15 M) Overall Ratings Name Previous Rating Current Rating 10/2/2017 Page 1 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Unsatisfactory  Moderately Satisfactory Overall Risk Rating  Substantial  Substantial Implementation Status and Key Decisions The project has been carried out in a satisfactory manner with most tasks completed. Specifically, the Project has: 1 . Delivered 133 small-scale renewable energy prefeasibility and bankable reports, which would lead to the generation of 152.7 GWh of clean electricity once financed. 2 . Enhanced SME EE financing by providing EE auditing services and facilitating FI access with 205 energy efficiency audits completed and 62 in the pipeline for approval. These audits could lead to an estimated 160 applications to Turkish banks for US$35 million in energy efficiency loans to SMEs, saving US$16 million in energy costs each year. To date, 30 audits have been financed with another 83 on the pipeline. 3 . Prepared extensive acquis alignment related work and Regulatory Impact Assessment Report, MENR and EUD informed the Bank that these particular two deliverables were timely input to EU-Turkey energy chapter discussions and formed the baseline. 4 . Organized trainings and workshops on acquis alignment, EU energy policy, accession requirements, regulatory impact assessment, EU natural gas market operations, capacity allocation, products and technological infrastructure. Over 2000 participants have joined Project activities for capacity building and awareness raising. 5 . Prepared a roadmap for small scale RE development in Turkey which was widely discussed and approved. 6 . Finalized a feasibility report with technical specifications for the establishment of a central Solar Power Monitoring, Forecasting and Control System in TEIAS. 7 . Gas trading platform component (CS-03) has created substantial capacity for the successful operationalization of a competitive gas market through the development and establishment of a Gas Trading Platform (GTP) and related activities to enable commercial balancing and/or wholesale spot gas trading. EPIAS and EMRA now are working on integration of the GTP in their operations. 8 . Carried out a market assessment for energy efficiency in the industrial sector, which found market potential of US$7-9 billion per year in cost effective energy efficiency investments, which could save US$2.3 billion annually. 9 . Developed Standardized Energy Audit and Bankability Report templates were developed ,these reports were described as one of the priority gaps to be closed by the sector players to attain development of the energy efficiency market. Bankability Report templates are the first of their kind in Turkey and were designed to help facilitate the banking sector’s understanding of these technical energy audit reports and ensure that creditworthy SMEs were prioritized for the energy audits; The closing event for the Project has taken place in MENR premises with attendance of MENR, EMRA, BOTAS, TEIAS, MoEU and EU Delegation's high level officials. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Substantial  Substantial Macroeconomic  --  Moderate  Moderate Sector Strategies and Policies  --  Low  Low Technical Design of Project or Program  --  Low  Low Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial Fiduciary  --  Substantial  Substantial 10/2/2017 Page 2 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) Environment and Social  --  Low  Low Stakeholders  --  Low  Low Other  --  --  -- Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  MENR (Energy Sector Alignment) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The MENR approves a program for the enhancement of the Turkish energy sector The MENR approved a in line with the report on programming EU energy for the enhancement of priorities and the Turkish energy There has been strategies, sector in line with the EU measureable progress based on a energy priorities and under all contracts, review and Turkey's energy sector can strategies, based on a with one contract regulatory be enhanced in line with review and regulatory Value completed (CS-03) and impact the EU energy priorities impact assessment of all reports have been assessment of and strategies. alignment of Turkey's submitted for alignment of legal and institutional comments before being Turkey's legal framework for electricity, finalized. and institutional gas, energy efficiency framework for and renewable energy electricity, with the EU's energy naturalgas, acquis. energy efficiency and renewable energy with the EU's energy acquis. Date 18-Jul-2012 06-Jul-2017 25-Sep-2017 28-Sep-2017 PHINDPDOTBL  Natural Gas Market Development (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Gas Trading Platform Gas Trading Platform BOTAŞ and has been drafted, (GTP) design have been EMRA approve Design and regulations not Value widely discussed and prepared, widely a draft design available. delivery approved by discussed and delivery and the MENR, EMRA and approved by the MENR, regulations, 10/2/2017 Page 3 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) EPIAS. EMRA and EPIAS. respectively, for EMRA and EPIAS have a mechanism commenced work to for the integrate GTP in EPIAS. wholesale Elements of necessary trading of regulations have been natural gas. drafted. Date 18-Jul-2012 06-Jul-2017 25-Sep-2017 28-Sep-2017 PHINDPDOTBL  Renewable Energy Development (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The MENR approves a plan for the The MENR approved a The RE action plan has acceleration of plan for the acceleration been approved and renewable of (small scale) adopted by the energy Turkey's energy security renewable energy Government, which development and climate change development including aims to produce 30% including the Value strategies include proposal for of electricity from improvement of acceleration of renewable improvement of TEIAŞ renewable resources TEIAŞ power energy development. power system flexibility by 2023, including 10% system to integrate a larger of renewables share in flexibility to share of renewable transport sector. integrate a electricity. larger share of renewable electricity. Date 18-Jul-2012 06-Jul-2017 25-Sep-2017 28-Sep-2017 PHINDPDOTBL  Energy Efficiency Promotion (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target To date about 205 SME EE audits MENR is now finalizing Turkish completed.Turkish its national EE action financial financial institutions plan and plans to institutions have started to receive submit it for approval in receive and Turkey's energy security and review financing the coming weeks. The review and climate change applications for energy contract for energy financing strategies include efficiency projects for efficiency under IPA applications for Value acceleration of deployment small and medium-scale project has been energy of energy efficiency industries and buildings initiated in October, efficiency measures and (30 financed already and 2015 and work is projects for technologies. 83 in the application for ongoing under multiple small and financing), exact number tasks, including about medium-scale of IPA Phase I Project 200 SME EE audits industries and related financing completed. buildings. applications will be reported following the 10/2/2017 Page 4 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) Project closing date. Date 18-Jul-2012 06-Jul-2017 25-Sep-2017 28-Sep-2017 Overall Comments Intermediate Results Indicators PHINDIRITBL  MENR (Energy Sector Alignment) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The initial reports on gap analysis in electricity, natural gas, energy efficiency and renewable The initial reports on energy legislation have gap analysis in been prepared and Regulatory electricity, natural gas, approved. MENR and impact energy efficiency and EU are using these assessment of renewable energy documents as a basis alignment of legislation have been for EU accession Turkey's legal prepared and negotiations. Regulatory and institutional approved. MENR and impact assessment work framework for Regulatory impact EU are using these Value has been completed. electricity, assessment not available. documents as a basis Further, a training on natural gas, for EU accession 'Regulatory impact energy negotiations. assessment of efficiency and Regulatory impact alignment of Turkey's renewable assessment work has legal and institutional energy with the been completed and framework for electricity, EU's energy roadmaps are now natural gas, energy acquis. under advanced efficiency and renewable preparation. energy with the EU's energy acquis' has been conducted for MENR staff. Date 18-Jul-2012 06-Jul-2017 25-Sep-2017 31-Mar-2016 10/2/2017 Page 5 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) PHINDIRITBL  Consultant Engagement (Yes/No, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y PHINDIRITBL  Natural Gas Market Development (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Design and draft regulations for a mechanism for the wholesale trading of natural gas has been achieved. Further activities include, (i) Design and Assessment and draft Design and draft Recommendations regulations for regulations for a Design and regulations not Report for the Turkish a mechanism Value mechanism for the available. Natural Gas Trading for the wholesale trading of Hub; (ii) Assessment wholesale natural gas. and Recommendations trading of Report for the natural gas. Limitations of BOTAŞ for Unbundling; (iii) Assessment, Recommendations and Roadmap Report for BOTAŞ. Date 18-Jul-2012 06-Jul-2017 25-Sep-2017 31-Mar-2016 PHINDIRITBL  Consultant Engagement. (Yes/No, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y 10/2/2017 Page 6 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) PHINDIRITBL  Renewable Energy Development (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target A review of current situation, The RE action plan has A review of current barriers and been adopted by the situation, barriers and road map for Government. It aims to road map for renewable renewable produce 30% of energy, and a plan energy, and a electricity from renewable energy grid plan renewable renewable resources integration to distribution energy grid by 2023 and 10% of and TEIAŞ transmission integration to renewables share in systems have been Review, road map and distribution and Value transport sector. The completed. A total plan not available. TEIAŞ contract for RE has number of 133 transmission been recently awarded renewable energy systems. and work is ongoing prefeasibility and Formulation of under several tasks, bankable reports for at least five including the small and medium-sized renewable completion of about 65 industries and buildings energy projects prefeasibility studies for have been completed as for small and small-scale RE. of ISR date. medium-sized industries and buildings. Date 18-Jul-2012 06-Jul-2017 25-Sep-2017 28-Sep-2017 PHINDIRITBL  Consultant Engagement (Yes/No, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y PHINDIRITBL  Energy Efficiency Promotion (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target As of ISR date the As of ISR date the Consultant completed Consultant completed Formulation of about 200 SME EE about 205 SME EE at least twenty- audits and currently audits and bankability five energy Insufficent capacity, drafting the bankability reports. Additionally, efficiency Value shortage of energy reports. Additionally, several awareness projects for efficiency projects. several awareness raising activities and small and raising activities and trainings completed with medium-sized trainings are ongoing regards to ESCO market industries and with regards to ESCO development and EE buildings. market development project preparation. A 10/2/2017 Page 7 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) and EE project report on EE banking preparation. A report products was finalized on EE banking and approved. An EE products was finalized policy review is being and approved. An EE finalized. policy review is being finalized. Date 18-Jul-2012 06-Jul-2017 25-Sep-2017 28-Sep-2017 PHINDIRITBL  Consultant Engagement (Yes/No, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P131921 TF-16532 -- USD 12.70 12.70 0.00 9.89 2.34 78% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P131921 TF-16532 -- 30-May-2014 30-May-2014 30-May-2014 31-Mar-2017 28-Sep-2017 Cumulative Disbursements 10/2/2017 Page 8 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) Restructuring History Level 2 Approved on 17-Feb-2017 Related Project(s) There are no related projects. 10/2/2017 Page 9 of 9 Public Disclosure Copy