Turkey: A Closer Look To Opportunities On Solar Energy

Last Updated: 9 September 2014
Article by Erman Muzaffer Yurdakul

In recent years, scientists have focused on renewable and alternative energy sources, like solar and wind energies, due to energy prices and environmental problems of fossil fuel consumption. It is well known that solar energy is the source of life on earth. The solar energy affects positively all living organisms and the planning and design of building heating and cooling systems. Turkey has a very high solar energy potential since its location is exposed with a very high solar radiation.

Especially, the amount, direction and variation of radiation are very important for heating and cooling systems for the necessary calculations of heat gain from solar energy. The solar energy potential is also necessary to estimate maximum solar energy loads on walls, windows and roofs.

The solar industry is undergoing a critical transition. The rules of the game are changing, and many current players could face significant challenges as the industry restructures. But those who believe the solar industry has run its course may be surprised. Solar companies that reduce their costs, develop value propositions to target the needs of particular segments, and strategically navigate the evolving regulatory landscape can position themselves to reap significant rewards in the coming years.

According to International Energy Agency ("IEA") analysis, under extreme assumptions solar energy could provide up to one-third of the world's final energy demand after 2060. A number of assumptions are made to see what might be possible in terms of solar deployment, while keeping affordability in sight. These include policy makers successfully reducing greenhouse gas emissions beyond the current international targets, and electricity-driven technologies fostering significant energy efficiency improvements and displacing fossil fuels in many uses in buildings, industry and transportation.

Over the past three years, Solar Photovoltaic ("PV") installed system prices, module prices, and module production costs have all fallen by more than 50% and as a result of these falling prices, manufacturing consolidation and a more balanced supply-demand picture, PV demand will continue to grow and the solar industry will shift from a demand-constrained market into a classic supply-driven market in 2014. Therefore, the PV industry is once more at a pivotal stage. There are strong indicators suggesting that the industry will reach new heights in 2014, but there is also significant risk, possibly coming more from industry participants themselves than from end-market factors. In this regard, the leading PV market research firms are predicting a good year in 2014.

The subsidies that made solar PV economically attractive for many consumers set the conditions for the boom. Demand rose, new entrants flocked to the industry, and the innovation has been accelerated. Manufacturing capacity increased dramatically (particularly after large-scale, low-cost Chinese manufacturers entered the market) and the market became oversupplied. Prices dropped suddenly, which increased demand but put pressure on margins.

- Solar Energy Power in Turkey

Turkey's importance in the energy markets is growing, both as a regional energy transit hub and as a growing consumer. Turkey's energy demand has increased rapidly over the last few years and likely will continue to grow in the future.

The country's energy use is still relatively low, although it is increasing at a very fast pace. According to IEA, energy use in Turkey is expected to double over the next decade, while electricity demand growth is expected to increase at an even faster pace. Meeting this level of growth will require significant investment in the energy sector, much of which will come from the private sector. Large investments in natural gas and electricity infrastructure will be essential.

Turkey is located in a relatively advantageous geographical position. The solar energy potential evaluations, based on the data measured by the State Meteorological Services revealed that the annual average total insolation duration as 2640 hours (7,2 hours/day) and the average annual solar radiation as 1311 kWh/m²-year (3,6 kWh/m²-day).

However, it is known that the existing meteorological data is lower than the actual solar energy data of Turkey. Although the measurements have not been completed yet, the collected data indicates that the actual solar energy radiation values are 20-25% higher than the existing data.

Utilization of photovoltaic systems is limited with the usage of some governmental organizations in remote service areas such as telecom stations, forest fire observation towers and highway emergency. In June 2013, the first tender was announced, creating the long awaited start of the Turkish market. With the opening of the tender for 600 MW there were projects submitted for 9 GW by 409 companies.

The commercial segment (up to 1 MW) seems to be the most interesting issue for the interested persons. There is no license requirement for systems up to 1 MW which makes this segment attractive and relatively easy for developing PV projects.

- New Regulation and New Opportunities with Unlicensed Electrical Energy Generation

According to solar legislation in Turkey, everyone will be able to produce his/her own electrical energy in certain amounts without any license requirement imposed by Energy Market Regulatory Authority ("EMRA"). According to the Regulation on Unlicensed Electrical Energy Generation ("Regulation") numbered 28783 which has been entered into force on 02.10.2013, every residence may produce a certain amount of its electricity and sell the surplus to the main grid.

It is to mention that the intention of the respective Regulation is (i) to contribute the small production plants to the countries' economy, (ii) to provide the electrical energy for consumers and (iii) to reduce the respective losses in electrical energy.

Furthermore, according to the respective Regulation, every natural or legal person as an electricity subscriber may establish electricity generation plant as solar PV without being required to apply for a license at EMRA; provided that they are officially subscribers. However, subscribers such as apartment building management not being a natural or legal person may not establish such plants. Therefore, it is a fact that such Regulation will be of interest especially to the universities, building complexes and as well as to the large shopping malls.

- Application Procedure for a Connection

Any related person who intends to establish an electricity production plant shall apply for a connection and for use of the system with the documents required by law to the related network operator. These documents shall indicate the right of usage of the applicant on the related real property, the right of usage on renewable energy resource (landfill gas, solar and wind energy are exempted) and the technical specifications of the established plant.

Applications will be evaluated within the first twenty (20) days of the following month. Upon request of the application owner, a generation resource document may be issued to the producers. According to such Regulation, the generation and consumption plants may be located in the same places. This measurement has been determined to avoid the additional costs and to make the intended projects more productive.

It is also possible to establish a generation plant based on renewable energy resource. Principally, electrical energy shall be generated for supply own needs of producers. However, it is also possible to consume the produced electrical energy in other consumption plant of the same person or legal entity. The related network operator determines the surplus energy amounts. This surplus energy is purchased by Supplier Company for 10 years at the prices according to the Renewable Energy Resources Support Mechanism. The generated net energy amount may be sold to the consumers. The usage of domestic products is supported by this Regulation. However, the term of benefit from this support is limited to five (5) years as of the date of temporary acceptance of the production plant.

- Technical Liability and Sale and Purchase of Generation Plants

According to Article 14 of the respective Regulation, the real or legal person who produces electrical energy is liable for the establishment and operation of plants and work safety. Accordingly, these persons shall employ an operation officer. This officer and the producer are jointly and severally liable for the damages arising from breaches of legislation concerning the operation of generation plants.

Furthermore, the generation plants may be assigned to third persons through sale, transfer or another way provided that their temporary acceptance certificate has been issued. These plants may not be transferred without temporary acceptance certificate. The transfer shall be applied to the related network operator and applications are evaluated within thirty (30) days.

Moreover, it is possible to transform a licensed generation plant into an unlicensed plant. The terms and principles of such cases have been regulated by Article 30 of the Regulation. According to the Regulation the unlicensed electrical energy generation limit has been increased from 500 kW to 1000 kW (1 MW) and the application and other procedures have been enabled.

In this context, the electricity generation through solar power will dominate the next twenty years of the Turkish energy market. The decreased financial costs, solar PV prices and investment figures will let the solar energy market boom and the investors will be highly attracted to the opportunities deriving from solar energy.

Finally, this may be favorable for persons if the establishment costs are high, on the other hand, the energy generation costs may be amortized in solar energy if the sunshine duration in Turkey is evaluated. It will be helpful in the future especially with regards to minimize the dependence of Turkey on the electrical energy import. In conclusion, it can be stated that such advantages in energy production may be very useful especially for decrease of electricity bills and to provide the independence regarding energy supply & demand structure of Turkey.

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.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
Kilinc Law & Consulting
Herdem Attorneys at Law
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Kilinc Law & Consulting
Herdem Attorneys at Law
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions