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Details

  • Service: Tax
  • Type: Regulatory update
  • Date: 9/24/2014

Turkey 

Taxes and Incentives
Turkey Taxes and incentives for renewable energy KPMG Global Energy & Natural Resources.

Support schemes

Investments and other subsidies


General Investment Incentive Regime has changed in June 2012. This new incentive regime is applicable to ENR investments, mainly by providing the following:


  • VAT exemption on purchase (or import) of investment equipment
  • customs duty exemption on import of investment equipment
  • exemption from other funds and surcharges.

Other subsidies


The new Electricity Market Law 6446 became effective as of 30 March 2013. The incentives provided under this law apply to investors holding a generation license and beginning operations before 31 December 2015:


  • A 50 percent discount is applied to the transmission system utilization fee for five years following the start of operations.
  • Documents and transactions related to the power plants and concluded throughout the investment period are exempted from stamp tax and duties.

Operating subsidies

Feed-in tariff


The tariff and the government purchase guarantee are applied for 10 years following the start of operations of a generation power plant until 31 December 2015.


Resources:


  • Hydro: USD cent (ct)7.3kWh
  • Wind: ct7.3/kWh
  • Geothermal: ct10.5/kWh
  • Solar: ct13.3/kWh
  • Biomass (including landfill): ct13.3/kWh

Discount on fees


The new Electricity Market Law 6446 has become effective as of 30 March 2013. Under this law, an 85 percent discount is applied to the lease, easement and utilization right of energy transfer lines for 10 years in both investment and operating periods.

Additional information

  • If the mechanical and electromechanical equipment used in renewable energy facilities that have started operation before 31 December 2015 are manufactured in Turkey, an additional incentive of between ct0.4 and 2.4/kWh for five years will be provided to such facilities, under certain conditions.
  • Renewable energy sources based electricity generation power plants with an installed capacity of maximum 1 MWe and other similar investments are allowed to operate without a generation license.
 

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