Feed-in tariff

Updated: 25.01.2017

Author: Hande Wevers

In Turkey, renewable electricity production is mainly promoted through a guaranteed feed-in tariff. The YEK-Law differentiates the amount of the fixed feed-in-tariffs depending on the technology and whether the plant components were produced in Turkey or not. 

Eligible technologies

All renewable electricity generation technologies are eligible.

Wind energy

Eligible, both onshore and offshore (§ 3 art. 8 YEK)

Solar energy

 Eligible, both PV and CSP (§ 3 art. 8 YEK)

Geothermal energy

Eligible (§ 3 art. 8 YEK)

Biogas

Eligible (§ 3 art. 8 YEK)

Hydro-power

Eligible, both traditional hydro-power and ocean energy (§ 3 art. 8 YEK)

Biomass

Eligible (§ 3 art. 8 YEK)

Amount

The feed-in tariff varies according to the energy source and the origin of the plant components. It has to start to be in operation between 18.05.2005 and 31.12.2015.

The feed-in tariff and the local-content bonus for the following energy sources are fixed in YEK, chart 1 and 2.

Wind energy

  • feed-in tariff: $ Cent 7.3 per kWh on- and off-shore(approx. €ct 5,3 per kWh)
  • local-content bonus: $ Cent 0.6-3.7 per kWh(approx. €ct 0,4-2,7 per kWh)

Solar energy

PV:

  • feed-in tariff: $ Cent 13.3 per kWh(approx. €ct 10,3 per kWh)
  • local-content bonus: $ Cent 0.6-6.7 per kWh(approx. €ct 0,5-5,2 per kWh)

CSP:

  • feed-in tariff: $ Cent 13.3 per kWh(approx. €ct 10,3 per kWh)
  • local-content bonus: $ Cent 0.6-9.2 per kWh(approx. €ct 0,5-7,1 per kWh)

Since 31 December 2013, the Council of Ministers is authorized to determine the total capacity of new installed solar installations which have a YEK permission. (§ 6/C art. 5, YEK)

Geothermal energy

  • feed-in tariff: $ Cent 10.5 per kWh(approx. €ct 8,1 per kWh)
  • local-content bonus: $ Cent 0.7-2.7 per kWh(approx. €ct 0,5-2,1 per kWh)

Biogas

  • feed-in tariff: $ Cent 13.3 per kWh(approx. €ct 10,3 per kWh)
  • local-content bonus: $ Cent 0.4-3.8 per kW(approx. €ct 0,3-2,9 per kWh)

Hydro-power

  • feed-in tariff: $ Cent 7.3 per kWh(approx. €ct 5,6 per kWh)
  • local-content bonus: $ Cent 1-2.3 per kWh(approx. €ct 0,7-1,8 per kWh)

Biomass

  • feed-in tariff: $ Cent 13.3 per kW(approx. €ct 10,3 per kWh)
  • local-content bonus: $ Cent 0.4-1.8 per kWh(approx. €ct 0,3-1,4 per kWh)

Addressees

  • Entitled party: In the first place, this support scheme entitles electricity producing juridical persons with a YEK-License, which is necessary to profit from the support scheme (§ 6 art. 1 YEK). Also entitled are natural or juridical persons without a YEK-license producing RES-electricity in a plant with a maximum capacity of 500kWe (§§ 22 & 23 EPLE).

  • Obligated party: The obliged party is each grid operator supplying the consumers with electrical energy (§ 6 art. 6 YEK).

Procedure

Process flow

  • A limited or joint-stock company with a production license (§ 7 art.1 EPLY) applies until the 31 October 2013 to the Energy Market Regulatory Authority (EPDK) to get a YEK-License for the next year (§ 6 art 1 YEK-Regulation).
  • Electricity production facilities based on solar power are required to satisfy requirements examined during inspections from the EPDK to acknowledge the production amounts for at least the last year (§ 6 art. 5 YEK).
  • Electricity producing facilities based on hydro-power need to get the permission of the State Hydraulic Works (DSİ), before the construction (§ 6/A art. 1 YEK).
  • Electricity producing facilities based on wind energy need to satisfy requirements examined during inspections from the Turkish State Meteorological Service (MGM) for at least 1 year (§ 4 art. 1 RGE).
  • The Market Financial Reconciliation Center (PMUM) shall announce the RES total amount for each invoice period and determine the payment obligation rate of each supplier, which is than invoiced to the supplier in question and the collections made are paid pro rata to the entities (§ 6 art. 6 YEK).

Competent authority

The Ministry of Energy and Natural Resources shall provide coordination in implementation, steering, monitoring and assessment of the fundamental principles and obligations specified in this law, and in planning the measures to be taken (§ 9 YEK).

Cap

The total capacity of new installed solar installations was limited to 600 MW until 31 December 2013, while the maximum capacity of a single installation was limited to 50 MW (§ 6/C art. 5 YEK).

Since 31 December 2013, the Council of Ministers is authorised to determine the total capacity of new installed solar installations which have a YEK permission. (§ 6/C art. 5, YEK)

Eligibility period

The feed-in tariff is limited to 10 years. The bonus tariff for local-content support is limited to first 5 years of operation (§ 6 art. 1 YEK). 

Distribution of costs

Consumers

The costs of the feed-in tariff are borne by the consumers via their electricity bills (§ 6 art. 1 YEK).

Distribution mechanism

  • The costs of the support scheme are borne by the grid operator. The total amount will be determinate by the PMUM and then invoiced to the supplier (§ 6 art. 6 YEK).
  • The grid operators are obliged to pay that amount pro rata to the plant operators (§ 6 art. 6 YEK).
  • The costs of the grid operators are borne by the consumers in terms of their electricity bills (§ 6 art. 6 YEK).

Turkey

Further information

  • T.C. Enerji Piyasası Düzenleme Kurulu (EPDK) - Energy Market Regulatory Authority
  • +90 312 201 40 01-02
  • EPDK website

Basic information on legal sources