Renewable energy in Turkey

Türkiye is deeply committed to the pursuit of a sustainable future, placing a strong emphasis on renewable energy and energy efficiency. In recent years, the country has made remarkable progress in its energy transition. In 2021, Türkiye installed renewable energy capacity stood at an impressive 54.8GW, accounting for 43% of its total electricity generation. Looking ahead, the Turkish government has set ambitious targets for renewable energy. By 2030, their aim is to achieve a 50% share of renewable energy, and 80% by 2053. While these objectives present significant challenges, Türkiye has identified three key initiatives that will contribute to achieving these green goals. 

One such initiative is the Green Industry Project, a government-led program actively promoting energy and water use efficiency in Turkish industries. Under this project, businesses that invest in energy-efficient technologies and water-saving measures are rewarded with financial incentives. 

Another initiative involves tax reduction for TOGG, a Turkish automotive company specialising in electric vehicles. This tax reduction makes TOGG's electric vehicles more affordable for consumers, thereby increasing access to sustainable transportation options and significantly contributing to Türkiye's green future. 

Furthermore, the Turkish government is focused on expanding its transmission infrastructure through tenders for new energy transmission lines. These new lines will efficiently transport electricity generated from renewable sources to urban centers, powering the population. 

These initiatives are expected to yield several positive outcomes for sustainability. The initiative aims to enhance energy and water use efficiency within Turkish industries, incentivise private sector investments in green technologies and promote sustainability awareness among small and medium-sized enterprises (“SMEs”). 

Türkiye's commitment to a greener future is evident through these various initiatives, which prioritise renewable energy, energy efficiency, and sustainable practices. These efforts will undoubtedly have a profound impact on Türkiye's journey towards becoming a more environmentally friendly nation. 

The Green Industry Project is an initiative, funded by the World Bank with a budget of $450 million, aimed at assisting Turkish industries in adopting a more sustainable approach. This project consists of three key components: 

1. KOSGEB: One component, KOSGEB, will provide $250 million in repayable financing to SMEs for their green transformation initiatives. These activities may include investments in renewable energy, resource efficiency, waste management, and circular economic practices. 
2. TÜBİTAK: Another component is TÜBİTAK, which will offer $175 million in grants and reimbursable financing to support green innovation initiatives undertaken by Turkish companies. These efforts could involve the development of novel green technologies, products, or processes. 
3. Ministry of Industry and Technology: The third component involves the Ministry of Industry and Technology's contribution of $25 million in technical assistance to facilitate the successful implementation of this project. Additionally, it aims to enhance the institutional capacity of Turkish stakeholders within the realm of green economic practices. 

This ambitious project is anticipated to yield several positive outcomes: 

• Enhanced energy efficiency and water use efficiency within Turkish industries, leading to reduced energy and water costs for businesses while reducing greenhouse gas emissions. 
• Increased private sector investment in green technologies, generating new employment opportunities and stimulating economic growth. 
• A rise in innovative solutions focused on environmentally friendly efficiency measures submitted by firms, identifying and implementing new strategies to enhance business environmental performance. 
• Reduction in waste generation by firms, safeguarding natural resources and reducing environmental impacts. 
• Heightened sustainability awareness among SMEs, empowering businesses to make well-informed decisions regarding their environmental footprint and adopt more sustainable practices. 
• Expanded trade opportunities with the European Union (“EU”), as the EU has set ambitious targets for reducing greenhouse gas emissions and improving energy efficiency. By investing in green technologies and processes, Turkish businesses will be well-positioned to meet these targets and increase their exports to the EU. 

The Green Industry Project represents a significant leap forward for Türkiye in its pursuit of a more sustainable economy. It offers a valuable opportunity for Turkish SMEs to invest in green technologies and processes, enhancing their competitiveness in the global marketplace. The project is scheduled for completion in 2026, with long-lasting benefits for Türkiye's future. It demonstrates the country's steadfast commitment to the green economy. 

Additionally, apart from the aforementioned impacts, the project is poised to deliver numerous other advantages: (i) it will contribute to improved air quality by curbing emissions from businesses, benefiting public health and the environment; (ii) it will create new jobs in the green economic sector, specifically in areas such as renewable energy, energy efficiency, and waste management; (iii) Turkish businesses will enjoy increased competitiveness as their environmental costs decrease and environmental performance improves; (iv) and  the project will enhance Türkiye's brand image as a nation dedicated to sustainable development. 

In essence, the Green Industry Project is an extensive and ambitious initiative that will play a pivotal role in Türkiye's transition towards a more sustainable future. With its strong design and ample funding support, this undertaking is expected to yield various positive outcomes. Notably, it provides an invaluable opportunity for Turkish SMEs to invest in eco-friendly technologies and processes, thereby bolstering their global standing. Moreover, it serves as tangible evidence of Türkiye's unwavering commitment to fostering a green economy, aligning with its national climate change strategy and demonstrating its dedication. This groundbreaking project holds promise not only in assisting Türkiye in meeting its climate change targets but also in fostering sustainability within the nation itself. 

The Turkish government's recent decision to lower taxes on TOGG, Türkiye's first domestically produced electric car, is a positive and sensible move. This tax reduction will make TOGG more affordable for consumers, encouraging a greater number of people to consider transitioning to electric vehicles. This shift toward electric vehicles offers numerous sustainability benefits. 

Electric vehicles produce zero emissions, providing an opportunity to effectively tackle Türkiye's significant air pollution problem. Many cities across the country face alarmingly high pollution levels, making this tax reduction crucial in mitigating the issue and improving overall air quality for all citizens. 

Furthermore, lowering taxes on TOGG helps reduce Türkiye's dependence on imported oil. Currently, the majority of oil consumed in the country is imported, which significantly contributes to greenhouse gas emissions. By promoting the adoption of electric vehicles like TOGG through tax reductions, Türkiye can combat climate change while simultaneously decreasing reliance on foreign oil. 

In addition to its environmental benefits, the tax reduction for TOGG will have a positive impact on Türkiye's economy as well. As a highly advanced product, TOGG will create job opportunities and stimulate economic growth across various industries within Türkiye. The decreased taxation will enhance TOGG's competitiveness against imported electric vehicles, resulting in increased sales and further employment prospects. 

Further details regarding how this tax reduction impacts sustainability include: 

• The reduced taxes are expected to lead to an increase in electricity demand; however, Türkiye can meet this demand by expanding its renewable energy production. Türkiye holds significant potential regarding renewable energy sources. 
• By reducing taxes on TOGG, a decrease in petrol demand is also anticipated. This ultimately leads to reduced greenhouse gas emissions and improved air quality throughout Türkiye. 
• Moreover, this tax reduction plays a crucial part in job creation within Türkiye’s automotive sector. The manufacturing of the technologically advanced TOGG requires an adept workforce with specialized skills. By reducing taxes on these vehicles their competitiveness against imported electric ones is bolstered. 

It's important to highlight that Türkiye has abundant potential for renewable energy sources, and the reduction of taxes on TOGG will accelerate the transition towards a sustainable energy future. Lowering taxes on TOGG is a positive step for Türkiye as it brings benefits to both the environment and the economy, ultimately leading to an improved quality of life for its people. 

Türkiye is making significant progress in its ongoing energy transition, placing a strong emphasis on renewable energy and energy efficiency. Privatising power plants has emerged as a key milestone in this transition. Notably, the successful privatisation of Girlevik 2 Mercan Hydroelectric Power Plant in 2021, with the formal signing of a transfer of operating rights agreement in 2022, stands as a notable achievement. 

The privatisation of Çayırhan Thermal Power Plant followed suit, along with preparations to privatise an additional 11 hydroelectric power plants currently owned by EÜAŞ. In March 2022, the privatisation efforts expanded to include Tekirdağ Natural Gas Combined Cycle A and B power plants. 

The wave of power plant privatisation represents a pivotal moment in Türkiye's energy transition for several reasons. Firstly, it serves as a means to generate substantial revenue to support critical government initiatives and projects. Secondly, it allows for private sector investment in the energy sector, fostering technological advancements and expertise. Finally, this move plays a crucial role in alleviating the burden on government debts. 

In addition to power plant privatisations, Türkiye is also investing in the construction of new energy transmission lines. The plans revealed by the General Directorate of Turkish Electricity Distribution Co. in 2022 include expropriation activities necessary for the construction of energy transmission lines across Bilecik, Çankırı, Eskişehir, Kastamonu, Mersin, and Muğla. These new transmission lines are vital for Türkiye's energy transition as they enable the transportation of renewable energy from remote areas to where it is needed and enhance the reliability of the electricity grid. 

Türkiye's commitment to renewable energy is evident through substantial investments in various renewable energy resources. In 2021 alone, 159 renewable energy resources were commissioned, with 139 commissioned in 2020. These resources encompass a diverse range, including solar, wind, hydroelectric, and geothermal power. The development of renewable energy plays a crucial role in Türkiye's energy transition, offering a clean and sustainable source of power that reduces the country's dependence on imported fossil fuels. 

Türkiye is firmly dedicated to building a sustainable energy future, as outlined in its National Energy Plan, which emphasises the expansion of clean energy, enhancing efficiency, and prioritising sustainability. The plan projects a 39.5% increase in energy consumption, with 205.3 million tons of oil equivalent estimated by 2035 compared to 147.2 million tons in 2020. Türkiye aims to increase the renewable energy share in primary energy consumption to 23.7% by 2035. 

Achieving these targets will require continued investment in renewable energy, technological advancements, and efforts to improve regulations within the sector. With Türkiye's tremendous potential in the field of energy and its unwavering commitment to renewable sources and efficiency, a sustainable future is guaranteed not only for Türkiye but also for the world.