Turkey expands incentives that cover renewable energy investments as it relies more on local resources to generate electricity.
According to a recent legislative amendment, the manufacturing of equipment such as turbines, generators and wind blades will be considered “priority investments” and will be eligible for VAT and customs duty exemptions, tax reductions, interest rate support, land allocation and social security premium support.
Turkey’s multi-layer incentive scheme supports investments by type, scale and region. The scheme divides Turkey into 6 regions and investment projects located in higher-numbered regions benefit the most from the incentives. Projects related to the manufacturing of equipment to be used in harnessing renewable sources are designated region 5.
The total investments required to fulfill Turkey’s forecast energy demand in 2023 of 440 TWh is estimated at USD 130 billion. Nearly one-third of the country’s installed power will be generated from renewable energy sources by then.