The Energy Regulation and Markets Review - Stikeman Elliott

Turkey
the private sector’s investments in renewable energy, which would be guaranteed by the
Republic of Turkey. 5 These monies are in addition to an initial World Bank funding of
$500 million and the financing by the Clean Technology Fund in the amount of $100
million that were made in 2009. 6
The renewable energy sector has been growing since 2005 when Turkey passed the
Law on the Utilisation of Renewable Energy Resources for the Purpose of Generating
Electrical Energy, 7 amended in 2010. This law defined renewable energy sources as
electrical energy resources suitable for wind, solar, geothermal, biomass, biogas, wave,
current, tidal energy resources and hydraulic generation plants. Large hydroelectric power
plants, however, are not covered under this law. The purpose of this law was to promote
private investments in renewable energy and the liberalisation of electricity generation
using renewable and domestic resources. Also, it addresses the diversification of energy
resources, the reduction of greenhouse gas emissions, the reuse of waste of products and
the development of related manufacturing sectors to achieve these objectives. Pursuant
to this law, the government has pledged guarantees in the form of ‘purchase obligations’
for companies holding retail energy licences in renewable energy projects. This law
also allows for the development of small hydroelectric power plants, geothermal, solar,
biomass and wind power plants.
In 2006, the parliament passed an amendment to the Environment Law No.
2872 8 that allowed the use of the market and other financial tools, including carbon
trading, to promote renewable and clean energy technologies. It also imposed certain
emission fees. This amendment was followed up by the Energy Efficiency Law No.
5627, 9 which was passed in 2007, which provided a 20 per cent discount on electricity
costs of industrial enterprises signing a contract to reduce their energy use by 10 per
cent over a three-year period. Last, additional amendments were made to other laws that
furthered the government’s support of renewable energy.
In 2009, MENR issued a Strategy Paper 10 for 2010 to 2014 that outlines its goals
with respect to security and renewable energy. According to this strategy paper, Turkey
would like to increase its clean energy market share to 30 per cent by 2023, the 100th
anniversary of the Republic of Turkey.
Also, to further its commitment to renewable energy, the government recently
passed a law in 2010 with respect to the establishment of a generation facility based on
5 See ‘World Bank Makes $500M Cleantech Investment In Turkey (NewNet)’, available at
http://scherzerbeat.com/2011/11/world-bank-500m-cleantech-investment-turkey-newnet/.
6 See ‘Turkey Receives World Bank and First-Ever Clean Technology Fund Financing for
Renewable Energy and Energy Efficiency Program’, available at http://web.worldbank.org/
WBSITE/EXTERNAL/NEWS/0,,contentMDK:22194474~pagePK:64257043~piPK:43737
6~theSitePK:4607,00.html?cid=3001.
7 Published in the Official Gazette No. 25819, dated 18 May 2005.
8 Published in the Official Gazette No. 18132, dated 11 August 1983.
9 Published in the Official Gazette No. 26510, dated 2 May 2007.
10 See ‘World Bank Makes $500M Cleantech Investment In Turkey (NewNet)’, available at
http://scherzerbeat.com/2011/11/world-bank-500m-cleantech-investment-turkey-newnet/.
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