Turkey introduces new feed-in tariff for renewable energy support mechanism

Turkiye

On 30 January 2021, the Turkish President issued Decision No. 3453, which introduces a new feed-in tariff (see table below) for electricity generation facilities that have renewable energy resource certification, in accordance with Turkish Law No. 5346.

This Law on the 'Usage of Renewable Energy Sources for Electricity Production' authorises the President of Turkey to determine the prices and time periods for generation facilities that hold Renewable Energy Resource Certificates (YEK Certificate), use domestic parts and have started operation after 30 June 2021; and for YEK Certificate holders that initiated operations after 31 December 2020. Accordingly, the prices and periods to be applied to holders of YEK certificates entering service between 1 July 2021 and 31 December 2025 are defined as follows:

Type of the renewable energy production plant

Renewable Energy Resources Support Mechanism Price

(Turkish Lira kurus/kWh)

Renewable Energy Resources Support Mechanism Price Period

(year)

Local Content Price

(Turkish Lira kurus/kWh)

Local Content Price Period

(year)

Hydropower

40,00

10

8,00

5

Wind

32,00

10

8,00

5

Geothermal

54,00

10

8,00

5

Biomass

Landfill gas and by-products of waste tire processing

32,00

10

8,00

5

Biomethanization

54,00

10

8,00

5

Thermal Disposal

50,00

10

8,00

5

Solar

32,00

10

8,00

5

According to the law, Turkish renewable energy producers using domestic parts and starting operation before 30 June 2021 for a period of five (5) years are also entitled to the prices shown in the above table as part of the Renewable Energy Support Mechanism (YEKDEM).

The Law further states that these prices apply to renewable energy producers that started operation between 18 May 2005 and 31 December 2020 for a period of ten (10) years.

For more information on renewable energy in Turkey, contact your regular CMS source or our local CMS expert Dr. Döne Yalçın.