Instrument for Pre-Accession Assistance in Rural Development Program (the "IPARD") is the agricultural component of the Instrument for Pre-Accession Assistance-IPA which is formed by European Union to support candidate and potential candidate countries. IPARD aims to develop rural areas of the candidate and potential candidate countries by supporting agricultural production, employment opportunities, sustainable use of natural resources and improving the rural environment.
Turkey is a recipient under the IPARD II program for the period between 2014 and 2020. IPARD II does not only support investors in agricultural and stock farming activities but also in renewable energy investments. Incentives are granted by the Agricultural and Rural Development Support Institution (the "ARDSI").
Granted measures for renewable energy investments can be separated to two types.
The first type covers renewable energy investments which are implemented for the self-consumption of the facilities operating in the agriculture sector. The second type covers renewable energy investments which are supported under the Farm Diversification and Business Development Measure with the Code number 302-7 (the "302-7 Measure") pursuant to which recipients can sell power to electricity distribution companies without making their facility connected to agricultural production.
The 302-7 Measure is granted for renewable energy investments (up to 1 MW of installed power) which are photovoltaic solar energy systems, concentrated solar energy systems, wind energy systems, geothermal, biomass, micro-cogeneration (for power and/or heat generation). Hydroelectric investments are not covered under the 302- Measure.
Amounts granted for renewable energy projects within the scope of the 302-7 Measure can only be used for certain type of expenses which are also listed in the applications documents of the 302-7 Measure. In general, these are as follows:
- construction, modernization and extension of renewable energy facilities;
- acquisition of stationary engines and equipment for renewable energy facilities; and
- Acquisition of software and IT equipment for the commissioning of renewable energy facilities.
Investments that are implemented in the following 42 provinces are eligible to apply under the 302-7 Measure:
|1. Afyonkarahisar||12. Çankırı||23. Karaman||34. Ordu|
|2. Ağrı||13. Çorum||24. Kars||35. Samsun|
|3. Amasya||14. Denizli||25. Kastamonu||36. Şanlıurfa|
|4. Aksaray||15. Diyarbakır||26. Konya||37. Sivas|
|5. Ankara||16. Elazığ||27. Kütahya||38. Tokat|
|6. Ardahan||17. Erzincan||28. Malatya||39. Trabzon|
|7. Aydın||18. Erzurum||29. Manisa||40. Uşak|
|8. Balıkesir||19. Giresun||30. Mardin||41. Van|
|9. Burdur||20. Hatay||31. Mersin||42. Yozgat|
|10. Bursa||21. Isparta||32. Muş|
|11. Çanakkale||22. Kahramanmaraş||33. Nevşehir|
Further, grant rates vary depending on the province, varying between 65% and 50% of total investment cost. The details are as follows:
|Province||Amount that can be Financed under the 302-7 Measure||Limit for each Project||Minimum investment amount for the Project|
|Karaman||65%||€ 500,000||€ 5,000|
|Hatay||65%||€ 500,000||€ 5,000|
|Erzincan||65%||€ 500,000||€ 5,000|
|Diyarbakır||65%||€ 500,000||€ 5,000|
|Ardahan||65%||€ 500,000||€ 5,000|
|Çankırı||65%||€ 500,000||€ 5,000|
|Mersin||65%||€ 500,000||€ 5,000|
|Yozgat||65%||€ 500,000||€ 5,000|
|Muş||65%||€ 500,000||€ 5,000|
|Ağrı||65%||€ 500,000||€ 5,000|
|Isparta||65%||€ 500,000||€ 5,000|
|Tokat||65%||€ 500,000||€ 5,000|
|Erzurum||65%||€ 500,000||€ 5,000|
|Balıkesir||65%||€ 500,000||€ 5,000|
|Kars||65%||€ 500,000||€ 5,000|
|Other 27 provinces in the list||55%||€ 500,000||€ 5,000|
The 302-7 Measure aims to increase investments in renewable energy particularly in developing rural provinces in Turkey. Such grants are co-financed by the Republic of Turkey and the European Union. Since 2014, within the scope of IPARD II, there have been three waves of grant issuances under the 302-7 Measure. The next and 4th wave for the 302-7 Measure grants is expected to be in the fall of 2018.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.