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Turkey’s economic and social development has led to a massive increase in demand for electricity over the last
decade. The Turkish Electricity Transmission Company (TEIAS) estimates that demand will increase by 6 percent
to 7 percent annually until 2023 (TEIAS, 2004). Since the country has no major oil or gas reserves, it is highly de-
pendent on energy imports and is exposed to energy insecurity in the future (Yuksel, 2013). But Turkey does
have huge potential for renewable energy exploitation. There has been a huge growth in the construction of
wind power plants and small hydropower plants in recent years.To meet the growing energy demand, theTurkish
Government has adopted a feed-in tariff, which is available for 10 years from commissioning of the plant.
Turkey
General Country
Information
Population: 73,997,128
Surface Area: 783,560 km²
Capital City: Ankara
GDP (2012): $ 789 billion
GDP Per Capita (2012): $ 10,666
WB Ease of Doing Business: 69
Source: WWEA (2013); Investment Support and Promotion Agency (2013); Benli (2013); Capik et al. (2012); Baris and Kucukali
(2012); BP (2013); World Bank (2014); EIA (2013); SRS NET & EEE (2008); Hoogwijk and Graus (2008); Hoogwijk (2004); JRC (2011);
and UNDP calculations.
R E N E W A B L E E N E R G Y S N A P S H O T :
Key information about renewable energy in Turkey
Empowered lives.
Resilient nations.
6.7%
RE Share
57,000 MW
Total Installed Capacity
Biomass Solar PV Wind Small Hydro1
0 9 2,312 1,490
16,000 3,871,500 114,000 6,800
3,811 MW
Installed RE Capacity
Electricity Generating
Capacity 2012
Installed Renewable Electricity
Capacity 2012 in MW
Technical Potential for Installed
Renewable Electricity Capacity in MW
1 2010 value
To promote the use of locally produced equipment, higher tariffs for five years are available to producers that in-
stall domestically produced equipment in their renewable energy facilities (Government of Turkey, 2011:Article
6B). This can be beneficial for foreign investors, because capital investment in $/MW installed capacity for small
hydropower plants in Turkey is significant less than in the rest of the world, resulting in a payback period of less
than three years (Kucukali and Baris, 2009).3
Turkey targets a 30 percent share of renewable energy in power generation by 2023. Particularly the government
aims to reach 20,000 MW of installed wind capacity, 3,000 MW of installed solar power capacity and the full uti-
lization of its hydro potential by 2023 (Melikoglu, 2013). Power generation is subject to licencing (Electricity
Market Licencing Regulation, Art 1). Renewable energy producers have to apply to the Energy Market Regulatory
Authority by 31 October 2014 for a renewable energy source certificate (Government of Turkey, 2011: Art. 6)).
Excluded from a mandatory certificate are renewable energy power plants with installed capacity up to 500kW
(ResLegal, 2013). But other permission is often also required, for example permission from the State Hydraulic
Works for the construction of a small hydropower plant. TEIAS is obliged to prioritize access to the grid for elec-
tricity produced from renewable sources (Government of Turkey, 2002: Article 38e).
Legislation and policy
R E N E W A B L E E N E R G Y S N A P S H O T :
Feed-in tariffs in Turkey2
Source: Government of Turkey (2011)
Eligible technologies Tariff applied $/MW-h Max. tariff possible if domestic
equipment is included in $/ MW-h
Wind 73 110
Hydro 73 96
Biomass 133 151
Solar PV
Solar CSP
133
133
200
225
2 Electricity from biogas and geothermal power plants are also eligible to receive a feed-in tariff (Government of Turkey, 2011).
3 By assuming a capacity factor of 0.4, a max. available tariff of $96/MW-h and investment costs of $8,454/kW.
Turkey
Institutions
Organization Responsibility Website
Ministry of Energy
and Natural Resources
- Shapes policy in the energy sector www.enerji.gov.tr
Energy Market Regulatory
Authority (EMRA)
- Issues licences in the energy sector as e.g. generation
licence
- Sets pricing principles and regulates tariffs
www.emra.org.tr/
Turkish Electricity
Generation Corporation
(EUAS)
- Biggest power generation company in the country
owning 60% of the generation capacity
www.euas.gov.tr
Turkish Electricity
Transmission Company
(TEIAS)
- Operates the national grid and provides grid access www.teias.gov.tr/eng/
Republic of Turkey
Prime Ministry Investment
Support and Promotion
Agency
- Responsible for the consultation and attraction of
foreign investors
www.invest.gov.tr/
Opportunities to finance renewable energy projects in Turkey
Financing organization Details Website
EIF EU-backed loans up to €300,000 to small and medium
enterprises and entrepreneurs are available via inter-
mediary banks KGF, Finansbank and T.C. Ziraat Bankasi.
www.access2finance.eu/en/Turkey/cip/ind
ex.htm
TurSEFF Credit lines will be provided by the European Bank for
Reconstruction and Development through eligible
commercial banks to financially viable private Turkish
small and medium enterprises. A maximum loan of €5
million for renewable energy projects including tech-
nical assistance can be obtained.
www.turseff.org/
Green Growth Fund Provides direct and indirect (through financial inter-
mediaries) financing for small scale renewable energy
projects usually not larger than €50 million.
www.ggf.lu/
International Finance
Corporation (IFC)
Provides investments (e.g. equity, loans) and advisory
services. In 2012 IFC invested $450 million and mobi-
lized $130 million for 13 projects, including renewable
energy and energy efficiency projects. The Country
Partnership Strategy until 2015 aims to continue in-
vestment in renewable energy.
www.ifc.org/
European Bank
for Reconstruction
and Development (EBRD)
Provides renewable energy developers with equity,
loans and loan guarantees for projects with good
commercial prospects of up to 15 years’duration.
www.ebrd.com/pages/workingwithus/pro
jects.shtml
Turkey
References
Baris, K., and S. Kucukali, 2012: Availability of renewable
energy sources inTurkey: Current situation, potential,
government policies and the EU perspective. In: Energy
Policy, 42: 377-391
Benli, H. 2013: Potential of renewable energy in
electrical energy production and sustainable energy
development ofTurkey: Performance and policies. In:
Renewable Energy, 50: 33-46
British Petroleum (BP), 2013: BP Statistical Review of
World Energy 2013. Available at:
www.bp.com/en/global/corporate/about-
bp/statistical-review-of-world-energy-2013/review-by-
energy-type/renewable-energy/solar-energy.html
Capik, M.,Yilmaz, A. O., and I. Cavusoglu, 2012:
Hydropower for sustainable energy development in
Turkey:The small hydropower case of the Eastern Black
Sea Region. In: Renewable and Sustainable Energy
Reviews, 16: 6160-6172
Hoogwijk, M., 2004: On the global and regional
potential of renewable energy sources. Utrecht:
Universiteit Utrecht, Faculteit Scheikunde. Dissertation.
Available at:
http://igitur-archive.library.uu.nl/ dissertations/2004-
0309-123617/full.pdf
Hoogwiijk, M. andW. Graus, 2008: Global Potential of
Renewable Energy Sources: A Literature Assessment.
Available at:
www.ecofys.com/files/files/report_global_potential_
of_renewable_energy_sources_a_literature_
assessment.pdf
Investment and Support and Promotion Agency, 2013:
Turkey’s installed power capacity doubles over the last
10 years. Available at: 
www.invest.gov.tr/en-US/infocenter/news
/Pages/170414-turkey-installed-power-capacity-
doubled.aspx
Government ofTurkey, 2002: Electricity Market
Licencing Regulation. Available at:
www.ongurergan.av.tr/en-EN/mevzuat/Electric%
20Market%20Licencing %20Regulation.doc
Government ofTurkey, 2011: Law on Utilization of RES
for the Purpose of Generating Electrical Energy
www.epdk.gov.tr/index.php/elektrik-piyasasi/
mevzuat?id=143 (Turkish)
JointResearchCentreoftheEuropeanCommission(JRC),
2011:TechnicalAssessmentoftheRenewableEnergy
ActionPlans.Availableat:http://ec.europa.eu
/dgs/jrc/downloads/jrc_reference_report_2011_reap.pdf
Kucukali, S., and K. Baris, 2009: Assessment of small
hydropower (SHP) development inTurkey: Laws,
regulations and EU policy perspective. In: Energy Policy,
37: 3872-3879
Melikoglu, M., 2013: Hydropower inTurkey: Analysis in
the view of vision 2013. In: Renewable and Sustainable
Energy Reviews, 25: 503-510
Renewable energy policy database and support
(ResLegal), 2013: An initiative of the European
Commission –Turkey. Available at: www.res-legal.eu
Scientific Reference System on New Energy
Technologies, Energy End-use Efficiency and Energy
(SRS NET & EEE), 2008:WP3-Technology data - Executive
Summary on Small Hydro. Available at:
http://srs.epu.ntua.gr/Portals/SRS/material/technologyr
eview/Small%20Hydro.pdf
Turkish ElectricityTransmission Company (TEIAS), 2013:
Turkish Electricity Production Planning Study (2005-
2020). Available at: www.teias.gov.tr/Eng/
apkuretimplani/veriler.htm#_Toc86219420
U.S. Energy Information Administration (EIA), 2013:
Levelized Cost of New Generation Resources in the
Annual Energy Outlook 2013. Available at:
http://www.eia.gov/forecasts/aeo/electricity_
generation.cfm
World Bank, 2014: Data Catalog. Available at:
http://datacatalog.worldbank.org/
WorldWind Energy Association (WWEA), 2013: 2012
Annual Report. Available at:
www.wwindea.org/webimages/WorldWindEnergy
Report2012_final.pdf
Yuksel, I., 2013: Renewable energy status of electricity
generation and future prospect hydropower forTurkey.
In: Renewable Energy, 50: 1037-1043
Recent projects
Company Project Status
Solimpeks / Seiso (Australia) Installed a 500 KW plant in the Turkish city of Burdur. Commissioned
Borusan EnBW Energy
(German/Turkish)
Borusan EnBW is a joint venture of German EnBW and
Turkish Borusan operating wind power plants with
operational capacity of 110 MW.
Commissioned
Energy Market Regulation
Authority (EMRA)
According to Turkish newspapers, 500 companies
with proposals for 9,000 MW solar installations ap-
plied to EMRA in the first half of 2013. This is 15 times
as much as the 600 MW cap set by EMRA for 2013.

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2018 DRR Financing 5.6 Maxim Bouev
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2018 DRR Financing 5.5 Daniel Stander
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2018 DRR Financing 5.4 Kirill Ilinski
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2018 DRR Financing 5.2 Clive O` Connell
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2018 DRR Financing 5.1 Rhodri Lane
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2018 DRR Financing 4.3 Onno Heuvel
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2018 DRR Financing 4.2 Yusuke Taishi
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2018 DRR Financing 3.4 David Simmons
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2018 DRR Financing 3.3 Natalie Kraus
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2018 DRR Financing 3.2 Andy Palmer
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Turkey

  • 1. Turkey’s economic and social development has led to a massive increase in demand for electricity over the last decade. The Turkish Electricity Transmission Company (TEIAS) estimates that demand will increase by 6 percent to 7 percent annually until 2023 (TEIAS, 2004). Since the country has no major oil or gas reserves, it is highly de- pendent on energy imports and is exposed to energy insecurity in the future (Yuksel, 2013). But Turkey does have huge potential for renewable energy exploitation. There has been a huge growth in the construction of wind power plants and small hydropower plants in recent years.To meet the growing energy demand, theTurkish Government has adopted a feed-in tariff, which is available for 10 years from commissioning of the plant. Turkey General Country Information Population: 73,997,128 Surface Area: 783,560 km² Capital City: Ankara GDP (2012): $ 789 billion GDP Per Capita (2012): $ 10,666 WB Ease of Doing Business: 69 Source: WWEA (2013); Investment Support and Promotion Agency (2013); Benli (2013); Capik et al. (2012); Baris and Kucukali (2012); BP (2013); World Bank (2014); EIA (2013); SRS NET & EEE (2008); Hoogwijk and Graus (2008); Hoogwijk (2004); JRC (2011); and UNDP calculations. R E N E W A B L E E N E R G Y S N A P S H O T : Key information about renewable energy in Turkey Empowered lives. Resilient nations. 6.7% RE Share 57,000 MW Total Installed Capacity Biomass Solar PV Wind Small Hydro1 0 9 2,312 1,490 16,000 3,871,500 114,000 6,800 3,811 MW Installed RE Capacity Electricity Generating Capacity 2012 Installed Renewable Electricity Capacity 2012 in MW Technical Potential for Installed Renewable Electricity Capacity in MW 1 2010 value
  • 2. To promote the use of locally produced equipment, higher tariffs for five years are available to producers that in- stall domestically produced equipment in their renewable energy facilities (Government of Turkey, 2011:Article 6B). This can be beneficial for foreign investors, because capital investment in $/MW installed capacity for small hydropower plants in Turkey is significant less than in the rest of the world, resulting in a payback period of less than three years (Kucukali and Baris, 2009).3 Turkey targets a 30 percent share of renewable energy in power generation by 2023. Particularly the government aims to reach 20,000 MW of installed wind capacity, 3,000 MW of installed solar power capacity and the full uti- lization of its hydro potential by 2023 (Melikoglu, 2013). Power generation is subject to licencing (Electricity Market Licencing Regulation, Art 1). Renewable energy producers have to apply to the Energy Market Regulatory Authority by 31 October 2014 for a renewable energy source certificate (Government of Turkey, 2011: Art. 6)). Excluded from a mandatory certificate are renewable energy power plants with installed capacity up to 500kW (ResLegal, 2013). But other permission is often also required, for example permission from the State Hydraulic Works for the construction of a small hydropower plant. TEIAS is obliged to prioritize access to the grid for elec- tricity produced from renewable sources (Government of Turkey, 2002: Article 38e). Legislation and policy R E N E W A B L E E N E R G Y S N A P S H O T : Feed-in tariffs in Turkey2 Source: Government of Turkey (2011) Eligible technologies Tariff applied $/MW-h Max. tariff possible if domestic equipment is included in $/ MW-h Wind 73 110 Hydro 73 96 Biomass 133 151 Solar PV Solar CSP 133 133 200 225 2 Electricity from biogas and geothermal power plants are also eligible to receive a feed-in tariff (Government of Turkey, 2011). 3 By assuming a capacity factor of 0.4, a max. available tariff of $96/MW-h and investment costs of $8,454/kW.
  • 3. Turkey Institutions Organization Responsibility Website Ministry of Energy and Natural Resources - Shapes policy in the energy sector www.enerji.gov.tr Energy Market Regulatory Authority (EMRA) - Issues licences in the energy sector as e.g. generation licence - Sets pricing principles and regulates tariffs www.emra.org.tr/ Turkish Electricity Generation Corporation (EUAS) - Biggest power generation company in the country owning 60% of the generation capacity www.euas.gov.tr Turkish Electricity Transmission Company (TEIAS) - Operates the national grid and provides grid access www.teias.gov.tr/eng/ Republic of Turkey Prime Ministry Investment Support and Promotion Agency - Responsible for the consultation and attraction of foreign investors www.invest.gov.tr/ Opportunities to finance renewable energy projects in Turkey Financing organization Details Website EIF EU-backed loans up to €300,000 to small and medium enterprises and entrepreneurs are available via inter- mediary banks KGF, Finansbank and T.C. Ziraat Bankasi. www.access2finance.eu/en/Turkey/cip/ind ex.htm TurSEFF Credit lines will be provided by the European Bank for Reconstruction and Development through eligible commercial banks to financially viable private Turkish small and medium enterprises. A maximum loan of €5 million for renewable energy projects including tech- nical assistance can be obtained. www.turseff.org/ Green Growth Fund Provides direct and indirect (through financial inter- mediaries) financing for small scale renewable energy projects usually not larger than €50 million. www.ggf.lu/ International Finance Corporation (IFC) Provides investments (e.g. equity, loans) and advisory services. In 2012 IFC invested $450 million and mobi- lized $130 million for 13 projects, including renewable energy and energy efficiency projects. The Country Partnership Strategy until 2015 aims to continue in- vestment in renewable energy. www.ifc.org/ European Bank for Reconstruction and Development (EBRD) Provides renewable energy developers with equity, loans and loan guarantees for projects with good commercial prospects of up to 15 years’duration. www.ebrd.com/pages/workingwithus/pro jects.shtml
  • 4. Turkey References Baris, K., and S. Kucukali, 2012: Availability of renewable energy sources inTurkey: Current situation, potential, government policies and the EU perspective. In: Energy Policy, 42: 377-391 Benli, H. 2013: Potential of renewable energy in electrical energy production and sustainable energy development ofTurkey: Performance and policies. In: Renewable Energy, 50: 33-46 British Petroleum (BP), 2013: BP Statistical Review of World Energy 2013. Available at: www.bp.com/en/global/corporate/about- bp/statistical-review-of-world-energy-2013/review-by- energy-type/renewable-energy/solar-energy.html Capik, M.,Yilmaz, A. O., and I. Cavusoglu, 2012: Hydropower for sustainable energy development in Turkey:The small hydropower case of the Eastern Black Sea Region. In: Renewable and Sustainable Energy Reviews, 16: 6160-6172 Hoogwijk, M., 2004: On the global and regional potential of renewable energy sources. Utrecht: Universiteit Utrecht, Faculteit Scheikunde. Dissertation. Available at: http://igitur-archive.library.uu.nl/ dissertations/2004- 0309-123617/full.pdf Hoogwiijk, M. andW. Graus, 2008: Global Potential of Renewable Energy Sources: A Literature Assessment. Available at: www.ecofys.com/files/files/report_global_potential_ of_renewable_energy_sources_a_literature_ assessment.pdf Investment and Support and Promotion Agency, 2013: Turkey’s installed power capacity doubles over the last 10 years. Available at:  www.invest.gov.tr/en-US/infocenter/news /Pages/170414-turkey-installed-power-capacity- doubled.aspx Government ofTurkey, 2002: Electricity Market Licencing Regulation. Available at: www.ongurergan.av.tr/en-EN/mevzuat/Electric% 20Market%20Licencing %20Regulation.doc Government ofTurkey, 2011: Law on Utilization of RES for the Purpose of Generating Electrical Energy www.epdk.gov.tr/index.php/elektrik-piyasasi/ mevzuat?id=143 (Turkish) JointResearchCentreoftheEuropeanCommission(JRC), 2011:TechnicalAssessmentoftheRenewableEnergy ActionPlans.Availableat:http://ec.europa.eu /dgs/jrc/downloads/jrc_reference_report_2011_reap.pdf Kucukali, S., and K. Baris, 2009: Assessment of small hydropower (SHP) development inTurkey: Laws, regulations and EU policy perspective. In: Energy Policy, 37: 3872-3879 Melikoglu, M., 2013: Hydropower inTurkey: Analysis in the view of vision 2013. In: Renewable and Sustainable Energy Reviews, 25: 503-510 Renewable energy policy database and support (ResLegal), 2013: An initiative of the European Commission –Turkey. Available at: www.res-legal.eu Scientific Reference System on New Energy Technologies, Energy End-use Efficiency and Energy (SRS NET & EEE), 2008:WP3-Technology data - Executive Summary on Small Hydro. Available at: http://srs.epu.ntua.gr/Portals/SRS/material/technologyr eview/Small%20Hydro.pdf Turkish ElectricityTransmission Company (TEIAS), 2013: Turkish Electricity Production Planning Study (2005- 2020). Available at: www.teias.gov.tr/Eng/ apkuretimplani/veriler.htm#_Toc86219420 U.S. Energy Information Administration (EIA), 2013: Levelized Cost of New Generation Resources in the Annual Energy Outlook 2013. Available at: http://www.eia.gov/forecasts/aeo/electricity_ generation.cfm World Bank, 2014: Data Catalog. Available at: http://datacatalog.worldbank.org/ WorldWind Energy Association (WWEA), 2013: 2012 Annual Report. Available at: www.wwindea.org/webimages/WorldWindEnergy Report2012_final.pdf Yuksel, I., 2013: Renewable energy status of electricity generation and future prospect hydropower forTurkey. In: Renewable Energy, 50: 1037-1043 Recent projects Company Project Status Solimpeks / Seiso (Australia) Installed a 500 KW plant in the Turkish city of Burdur. Commissioned Borusan EnBW Energy (German/Turkish) Borusan EnBW is a joint venture of German EnBW and Turkish Borusan operating wind power plants with operational capacity of 110 MW. Commissioned Energy Market Regulation Authority (EMRA) According to Turkish newspapers, 500 companies with proposals for 9,000 MW solar installations ap- plied to EMRA in the first half of 2013. This is 15 times as much as the 600 MW cap set by EMRA for 2013.