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Regulatory Framework for Development of Renewable Energy Generation in Turkey

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Abstract

Turkey accepts renewable energy as one of the important mitigation options and tools for satisfying the growth in energy needs by reducing greenhouse gas emissions, besides being a key pillar of its strategy. As part of its indigenization policy, Turkey wants to increase the share of renewable energy in total energy production by at least 30 percent and the commissioning of more new renewable energy investments. Substantial progress has been made on the regulatory side to promote electricity generation from renewable sources. Identification of Turkish renewable energy policies and regulations on electricity generation, in addition to legislative barriers and opportunities that prevent or enable widespread deployment of renewable energy are of importance for the investors. Although there are shortcomings in theory and practice, it seems Turkish fast-growing renewable market, particularly RE-Zone projects and probably rooftop solar projects, will be attractive markets for investors.

This paper has been prepared considering the legislation and market developments in force in August 2018.

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Notes

  1. 1.

    Stern Review on the Economics of Climate Change, see http://webarchive.nationalarchives.gov.uk/, http:/www.hm-treasury.gov.uk/independent_reviews/stern_review_economics_climate_change/stern_review_report.cfm, last accessed 28 February 2018.

  2. 2.

    Melikoğlu, Mehmet: “Vision 2023: Feasibility Analysis of Turkey’s Renewable Energy Projection,” Elsevier, Renewable Energy, Volume 50, February 2013, pp. 570–575.

  3. 3.

    Melikoğlu, Mehmet: “Vision 2023: Feasibility Analysis of Turkey’s Renewable Energy Projection,” p. 570.

  4. 4.

    Renewable Energy Sources and Climate Change Mitigation, Summary for Policy Makers and Technical Summary, published for the Intergovernmental Panel on Climate Change, edited by Ottmar Edenhofer, Ramón Pichs-Madruga, Youba Sokona, et al., 2012, p. 7. See https://www.ipcc.ch/pdf/special-reports/srren/SRREN_FD_SPM_final.pdf, last accessed 28 February 2018.

  5. 5.

    Renewable Energy Sources and Climate Change Mitigation, p. 7.

  6. 6.

    International Energy Agency, Energy Policies of IEA Countries: Turkey 2016 Review (IEA Report), September 2016, p. 22. https://www.iea.org/publications/freepublications/publication/EnergyPoliciesofIEACountriesTurkey.pdf, last accessed 1 September 2018.

  7. 7.

    See http://www.enerji.gov.tr/en-US/Pages/Electricity, last accessed 1 November 2018.

  8. 8.

    IEA Report, p. 21.

  9. 9.

    Ibid., p. 23.

  10. 10.

    Turkish National Renewable Energy Action Plan, Ministry of Energy and Natural Resources, December 2014, p. 8. http://www.eigm.gov.tr/File/?path=ROOT%2f4%2fDocuments%2fEnerji%20Politikas%C4%B1%2fTurkiye_Ulusal_Yenilenebilir_Enerji_Eylem_Plani.pdf, last accessed 1 August 2018.

  11. 11.

    M. Tükenmez, E. Demireli, “Renewable Energy Policy in Turkey with the New Legal regulations”, Elsevier, Renewable Energy, Volume 39, Issue 1, March 2012, p. 9.

  12. 12.

    See http://www.invest.gov.tr/en-US/Pages/Home.aspx, last accessed 26 November 2018.

  13. 13.

    The Ministry of Energy and Natural Resources (MENR), Strategic Plan (2015–2019), https://sp.enerji.gov.tr/ETKB_2015_2019_Stratejik_Plani.pdf, last accessed 26 November 2018.

  14. 14.

    Republic of Turkey, Climate Change Strategy 2010–2020, Foreword of Erdoğan Bayraktar, The Republic of Turkey Minister of Environment and Urbanization, p. 5; See http://www.dsi.gov.tr/docs/iklim-degisikligi/ulusal_iklim_de%C4%9Fi%C5%9Fikli%C4%9Fi_strateji_belgesi_eng.pdf?sfvrsn=0, last accessed 26 November 2018.

  15. 15.

    The National Climate Change Policy Documents can be categorized as “multi-sectoral” and “sector specific.” The documents such as 10th National Development Plan, National Climate Change Strategy, National Climate Change Action Plan, Energy Efficiency Strategy Paper taking part in multi-sectoral documents group and the documents such as Strategic Plan of the Ministry of Energy and Natural Resources and Electricity Market and Supply Security Strategy Document compose sector specific documents.

  16. 16.

    In this hierarchy, constitution takes part at the top and is followed by laws. Laws precede regulations, regulations precede by-law which in turn are higher in legislative hierarchy as compared to communiqués. In Turkey, generally “regulation” term is preferred instead of by-law. Within this study, compatible with Turkey application, regulation term is used for the same purpose.

  17. 17.

    The Paris Climate Change Agreement (Paris Agreement) was the key outcome of the Paris Climate Conference (COP21) in December 2015. The central aim of the Paris Agreement’s is to strengthen the global response to the threat of climate change by keeping a global temperature rise this century well below 2 °C above pre-industrial levels and to limit the temperature increase even further to 1.5 °C. Additionally, the agreement aims to strengthen the ability of countries to deal with the impacts of climate change. The Paris Agreement requires all Parties to put forward their best efforts through “nationally determined contributions” (NDCs) and to strengthen these efforts in the years ahead. Moreover, all Parties shall report regularly on their emissions and on their implementation efforts. It is expected that the developed countries will have certain reduction targets and they will complete their transition to a carbon neutral economy by the end of 2050. The Paris Agreement was opened for signature on April 22, 2016. Until today (January 2018) 197 countries including Turkey signed it but 172 countries ratified it. The Agreement is in force as of 4 November in 2016.

  18. 18.

    For Turkish Intended Nationally Determined Contribution, see http://www4.unfccc.int/submissions/INDC/Published%20Documents/Turkey/1/The_INDC_of_TURKEY_v.15.19.30.pdf, last accessed 26 November 2018.

  19. 19.

    Turkish Statistical Institute 2016 (TÜİK). National Greenhouse Gas Inventory Report 1990–2014.

  20. 20.

    Republic of Turkey Ministry of Development, the 10th National Development Plan (covers the 2014–2018 period), see http://www.mod.gov.tr/Lists/RecentPublications/Attachments/75/The%20Tenth%20Development%20Plan%20(2014-2018).pdf, last accessed 26 November 2018.

  21. 21.

    Republic of Turkey Ministry of Development, the 10th National Development Plan, p. 13.

  22. 22.

    Republic of Turkey Climate Change Strategy 2010–2020. See http://www.dsi.gov.tr/docs/iklim-degisikligi/ulusal_iklim_de%C4%9Fi%C5%9Fikli%C4%9Fi_strateji_belgesi_eng.pdf?sfvrsn=0, last accessed 26 November 2018. The NCCS was prepared by stakeholders from the Coordination Board on Climate Change (CBCC), related private sector participants, NGOs, and it was approved by the Higher Planning Council in May 2010.

  23. 23.

    NCCS sets some short-, medium-, and long-term strategies for GHG emission reduction in the energy, transportation, industry, waste, land use, agriculture, and forestry sectors.

  24. 24.

    Republic of Turkey, Ministry of Environment and Urbanization, National Climate Change Action Plan, see http://www.dsi.gov.tr/docs/iklim-degisikligi/%C4%B1depeng.pdf?sfvrsn=2, last accessed 26 November 2018.

  25. 25.

    http://www.yegm.gov.tr/document/20180102M1_2018_eng.pdf, last accessed 28 November 2018.

  26. 26.

    Ministry of Energy and Natural Resources, Turkey’s National Renewable Energy Action Plan, December 2014, p. 8. See http://www.eigm.gov.tr/File/?path=ROOT%2f4%2fDocuments%2fEnerji%20Politikas%C4%B1%2fTurkiye_Ulusal_Yenilenebilir_Enerji_Eylem_Plani.pdf, last accessed 20 August 2018.

  27. 27.

    IEA Report, p. 165.

  28. 28.

    Erdal Tanas Karagöl, Ismail Kavaz, Salihe Kaya, and Büşra Zeynep Özdemir, National Energy and Mining Policy of Turkey, Analysis (SETA Report), July 2017, p. 16. https://setav.org/en/assets/uploads/2017/08/Analysis35.pdf, last accessed 26 November 2018.

  29. 29.

    Hurriyet Gazette News, see http://www.hurriyet.com.tr/ekonomi/son-dakika-yeka-ihalesinin-kazanani-belli-oldu-40539083, last accessed 1 September 2018.

  30. 30.

    SETA Report p. 17.

  31. 31.

    Further information on emission trading sytems in Turkey, please see: “Roadmap for the consideration of establishment and operation of a Greenhouse Gas Emissions Trading System in Turkey”. https://www.ecofys.com/files/files/pmr-ecofys-et-al-2016-roadmap-ets-turkey.pdf, last accessed 28 February 2018.

  32. 32.

    Turkey has been a party to UNFCCC since 2004 and the Kyoto Protocol since 2009. In the Marrakesh Accord (CP7), Turkey was removed from the list of countries in Annex II of the KP, and the special circumstances of Turkey were recognized by the parties. Following this decision, Turkey is not an Annex-II country, and accordingly, it is not responsible for providing technical and financial support to developing countries in line with the UNFCCC and Kyoto Protocol. Although Turkey is an Annex-I country according to the UNFCCC, it is accepted as a developing country, and there has access to funds to combat climate change. Based on Decision of Marrakesh Accord (CP7) to recognize Turkey’s special circumstances on 10 November 2001, Turkey’s access to international climate finance is currently being negotiated with the Parties.

  33. 33.

    Electricity Market Law published in the Official Gazette dated 30 March 2013 and Numbered 28603. Subjected to many modifications in different times. Lastly updated on 27 March 2018.

  34. 34.

    Law on Organization and Duties of Energy Market Regulatory Authority Numbered 4628 published in the Official Gazette dated 3 March 2001 and Numbered 24335.

  35. 35.

    Law on Utilization of Renewable Sources for the purpose of Generating Electrical Energy Numbered 5346, published in the Official Gazette dated 8 May 2005 and Numbered 25819. Last modified on 17 June 2016.

  36. 36.

    Electricity Market License Regulation, published in the Official Gazette dated 2 November 2013 and Numbered 28809. Lastly some of the articles are revised on 15 December 2017.

  37. 37.

    The Competition Regulation on Pre-licensed Application for Wind and Solar Plants published in the Official Gazette dated 13 May 2017 and Numbered 30065.

  38. 38.

    The Regulation on Renewable Energy Source Areas published in the Official Gazette dated 9 October 2016 and Numbered 29852. Some of the articles are revised by the Official Gazette dated 11 April 2017 and Numbered 30035.

  39. 39.

    Regulation on Unlicensed Electricity Generation, published in the Official Gazette dated 2 October 2013 and Numbered 28783. Revised in different times. Lastly some of the articles are revised on 17 January 2018.

  40. 40.

    Communiqué on implementation of Unlicensed Electricity Generation, published in the Official Gazette dated 2 October 2013 and Numbered 28783. Lastly some of the articles are revised on 15 May 2017.

  41. 41.

    Principles and Procedures on Solar Based Unlicensed Generation Plant Applications of which is connected from the same measurement point with the consumption plant, published in the Official Gazette dated 18 January 2018 and Numbered 30305.

  42. 42.

    Regulation on the Certification and Supporting of Renewable Energy Sources, published in the Official Gazette dated 1 October 2013 and Numbered 28782.

  43. 43.

    Law on Modification of some Decrees with the effect of Law and Tax Law Numbered 7103, published in Official Gazette dated 27 March 2018 and Numbered 30373.

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Authors and Affiliations

  1. Faculty of Law, Izmir University of Economics, Izmir, Turkey

    Özlem Döğerlioğlu Işıksungur

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  1. Özlem Döğerlioğlu Işıksungur
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Correspondence to Özlem Döğerlioğlu Işıksungur .

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  1. Harvard University, Cambridge, MA, USA

    Dmitry Kurochkin

  2. Columbia University, New York, NY, USA

    Elena V. Shabliy

  3. George Washington University, Washington, DC, USA

    Ekundayo Shittu

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Döğerlioğlu Işıksungur, Ö. (2019). Regulatory Framework for Development of Renewable Energy Generation in Turkey. In: Kurochkin, D., Shabliy, E., Shittu, E. (eds) Renewable Energy. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-14207-0_6

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  • DOI: https://doi.org/10.1007/978-3-030-14207-0_6

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