2/3/2021

New Feed-in Tariffs Enter into Force in Renewable Energy

​The new Presidential Decree for Renewable Energy Sources Support Mechanism (YEKDEM) was published in the Official Gazette on January 30.

Within the scope of the new support mechanism for renewable energy power plants, new feed-in tariffs and local content premium will be in TRY with adjustments each year in January, April, July and October based on a predetermined formula.

In order to benefit from the new YEKDEM mechanism, renewable energy power plants should be commissioned between July 1, 2021 and December 31, 2025. Supports will be applicable for 10-years and will vary for each type of energy source with a cap value in USD. An additional local content support of TRY 0.08/kWh -fixed for all types of plants- will also be available for 5 years.

According to the new decree, feed-in tariff of TRY 0.40/kWh will be applicable for hydroelectric power plants, while TRY 0.32/kWh, TRY 0.54/kWh, and TRY 0.32/kWh will be applied to wind, geothermal and solar power plants respectively.

With the new tariff, concerns arising on the future of the YEKDEM mechanism - which was first introduced in 2010 for a 10-year period and having an expiry at end-2020- were eliminated.

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