The evaluation of the investment projects in electricity market: Implementings in Turkey

This study aims to evaluate both the electricity sector in the world and in Turkey and the investment projects done in this sector. First of all, the electricity sector analyzed in technical, economical and social way. One can understand from this study that, the electricity can?t be stocked, the supply and demand balance always has to be controlled in the system, it has social costs and it?s a capital intensive sector, and it always has to be in a coordination with the other sector players. Than, the primary energy sources of the electricity sector as fossil and renewable, are analyzed separately. The European Union?s, the United States of America?s and the other few countries? electric sector liberalization and privatization is presented. With the Turkey?s electricity sector?s historical development and the new system, the demand projection and the need of the investment is analyzed. In general, the countries trying to ensure the demand security, to find systems that minimize the negativity of the environmental effects, to realize the private sector investments in electricity sector under the control of the regulatory association and to find ways to finance the investments of the private sector which has a long maturity. Turkey?s energy demand is boomed in proportion to the process of industrialization. To meet this demand, new investments have to be put into effect quickly. It has to be taken into consideration that the investments especially made in the electricity sector has a huge effect on the other sectors. So, the investments made in the electricity sector has to be evaluated both for the investors and for the national economy. Because of this, the evaluation methods of the investment projects are both presented under that subjects and the evaluation methods applied on a hydroelectric plant project that made in the Turkey. But, it can only be evaluated for investors because the shadow prices that have to be used in the national economies? evaluation method, can?t be determined, so the application can?t be done.