Renewable energy zones in Turkey

Country / jurisdiction: Republic of Turkiye · Year: 2016 · Status: In force · Level: National · Type: Voluntary

In 2016, the Turkish Ministry of Energy and Natural Resources issued a regulation commissioning renewable energy projects in Renewable Energy Resource Zones. The government awards limited-time purchase guarantees to support renewable energy investments and to incentivise local manufacturing of renewable generation assets. The process requires developers to include domestic businesses or to establish domestic factories and create employment for the local labour force as well as invest in R&D. The localisation requirements can provide direct economic benefits for Turkish factories and manufacturers, in addition to accelerating the development of subsidiary industries. The first tender was awarded in May 2017 for the construction of a 1 GW solar power plant with an estimated USD 1.3 billion total investment. The solar plant will be operational for 30 years meeting the electricity demand of over 600 000 households. The tender also included 65% local content, a commitment to conduct R&D activities in Turkey for a minimum of 10 years, employment of at least 80% local staff, and construction of a cell-manufacturing factory. The country’s first solar panel manufacturing facility, with an annual capacity of 500 MW, opened in August 2020 in Ankara's Başkent Organized Industrial Zone, employing around 1 400 people. Subsequently, a wind auction in 2017 allocated capacity to projects in Edirne-Tekirdağ-Kırklareli, Sivas and Eskişehir provinces. The contract terms included the installation of a wind turbine factory in İzmir-Aliağa, completed in December 2019 and accounting for 65% of domestic wind turbine production. An R&D centre was established in İzmir by the winner of the competition, employing more than 50 qualified personnel working in universities and research centres abroad.

Official source: https://www.invest.gov.tr/en/library/publications/lists/investpublications/guide-to-investing-in-turkish-renewables-energy-sector.pdf