Bioenergy, Geothermal, Hydropower, Project Development, Solar, Wind Power

Turkey Adopts Limited Feed Law

Turkey has had a limited feed-in tariff policy since 2005. The previous policy paid the equivalent of $0.07 per kWh for wind energy for a period of seven years. By international standards, the policy was a failure.

Early this year the Turkish parliament adopted a new feed-in tariff policy of equally limited duration, ten years, and equally limited objectives, 600 MW of total capacity. As before, tariffs are limited as well.

The tariffs for solar photovoltaics (PV), the most costly of the new renewable technologies, are only $0.13 per kWh, a third of that in Germany.

One departure from previous policy, Turkey will now offer incentives or bonus payments for hardware “Made in Turkey”. Solar PV systems made in Turkey would qualify for a bonus payment of nearly $0.07 per kWh.

Industry observers have widely panned the new program as insufficient to create the volume necessary to attract manufacturing.

Turkey has a goal of shifting 30% of its power generation to renewables by 2023.  Industry analyst Datamonitor said of the new program: “Instead of fully supporting a fledgling renewables sector, Turkey’s new program limits production and places bureaucratic  barriers in the way of small-scale operators that could deter investors. Turkey has excellent potential for wind, solar, and hydro power production, but placing too much control over the long-term prospects of its renewables industry in the hands of the nation’s cabinet is likely to prove a hindrance rather than a help.”