As is known, the renewable energy resources have gained
great importance in energy production in
Turkey as well as in the world. By reason of the
exhaustibility of primary energy resources such as coal, oil and
natural gas and import dependence on natural gas and oil,
Turkey has been working on use of the renewable resources
in electricity manufacturing and it is intended to increase the
rate of renewable resources in electricity manufacturing up to 30 %
until 2023. Hydroelectric power as a renewable energy resource
plays also an essential role for Turkish energy market, its market
share has been increasing year for year.
Turkish Legislation on Hydroelectric Energy
Legal ground of hydroelectric power plants consists of the laws
and regulations concerning the electricity market and renewable
energy. First of all, an investor intending to operate a
hydroelectric power plant shall consider two significant points:
licensing procedures and incentives.
License procedures of a hydroelectric power plant are performed
under the conditions of the related laws and regulations on
renewable energy and electricity market. It shall be considered
that each electricity market activity may be operated with a
related license excluding unlicensed electricity manufacturing from
renewable energy resources under the conditions which have been
stated by the Electricity Market Law.
If the establishment and operation of hydroelectric power plants
are subject to the incentives provided by the state is another
significant question. As is known, the investment incentives have
been regulated by the related Decision of Council of Ministry and
Communiqué which include state's support such as tax
reductions, tax exemptions and social security premiums support on
incentives depending on their regions and types.
What About the Status of the Inactive Hydroelectric Power
There are several hydroelectric power plants in
Turkey which have been sequestrated and
are inactive because of environmental and other different reasons.
The status of such inactive hydroelectric power plants have been
regulated by the New Electricity Market Law which has entered into
force in 2013. Accordingly, the rightholders of such hydroelectric
power plants have had a term of six months as from the date of
entering of this Law into force under the condition that they
should not coincidence with other existing projects.
If the definition of renewable energy resources is considered,
the hydroelectric power is regarded as a renewable energy resource.
However, only certain category of energy resources is regarded as
renewable resources before the Law on Renewable Energy Resources.
Accordingly, hydroelectric power resources reservoir area of which
does not exceed 15 km are not in the scope of renewable energy
resources and therefore these may not benefit from the incentives
for renewable energy resources stated by the laws and
Incentives for Investments in Hydroelectric Energy
As mentioned above, investments in certain type of hydroelectric
power plants are subject to incentives which are provided to
investors in electricity manufacturing from renewable energy
resources. In the event that a hydroelectric power plant fulfills
these conditions, this investment will be able to benefit from the
following incentives and support mechanisms for renewable
Feed-in tariffs for renewable energy resources
Financial support for local equipment used in the power
Diverse financial supports of the state such as tax exemption
or tax reduction depending on the scope and location of each
Licensing incentives especially with regard to the license
Incentives in land allocation such as reductions under certain
Priority for electricity manufacturing plants from renewable
energy and local natural resources in connection processes
The Pros and Cons of Hydroelectric Energy
Compared to other energy resources, the most essential advantage
of hydroelectric power is its harmlessness for the environment.
Moreover, the power manufacturing costs are not high due to the
inexpensiveness of water, its main resource. Such projects have
longer life spans compared to primary energy resources. However,
the investment costs of a hydroelectric power plant are high.
According to the statistics, the theoretical hydroelectric
potential of Turkey is 433 bn kWh, and 216 bn kWh is the technical
evaluable potential. Currently, there are ore than 200
hydroelectric power plants in operation and it is expected to
increase the number of hydroelectric power plants in Turkey in
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.
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Turkey has amended the Electricity Market Law numbered 6446 to promote use and security of domestic energy resources. Under the amendments, planned capacity mechanisms must give priority to local energy sources.
Turkey's energy regulator previously ruled (decision numbered 5709, dated 30 July 2015) that a total capacity of 2,000 MW would be reserved in the period up until 2020 for wind power pre-license applicants to connect to the grid.
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