Turkey: Grants Awarded To Renewable Energy Sources By Agriculture And Rural Development Support Institution ("ARDSI")

The renewable energy sector is moving fast, new technologies are developed and existing technologies are now more cost effective. Turkey is one of the fastest growing countries in energy demand among European countries. It imports a large proportion of the energy it consumes and the demand for energy is expected to double by the year 2020. Therefore, the renewable energy sector is supported by some policies in energy sector in Turkey.

In this manner, the application and acceptance procedures for projects covering 7 sectors within the scope of "Farm Diversification and Business Development Measure" to be granted with 87,239,811.00 Euros grant by the Agriculture and Rural Development Support Institution ("ARDSI") has been commenced as of the date of 12.02.2018. According to the statement made by ARDSI, within the scope of Instrument for Pre-Accession Assistance in Rural Development Programme II ("IPARD II"), the application call for the third project has been announced on 21.12.2017. Renewable energy sector is one of the sectors to be financially supported under the Farm Diversification and Business Development Measure. The grant rate may be maximum 250,000.00 Euros which is 50% of the proper amount of investment which may be maximum 500,000.00 Euros.

It must be noted that the application may be made until 12.03.2018 at 21:00 via online project application system and the submission of applications may be made until 15.03.2018 at 18:00.

In this sense, the investors in renewable energy sector that fulfills the undermentioned conditions may benefit 50% to 65% grant within the scope of Farm Diversification and Business Development Measure Application Guide published by ARDSI.

1. Beneficiaries

1. Farmers or farm household members that diversify their farming or the other activities: They are real persons defined in Article 3 of Agricultural Law numbered 5488.
2. Real persons in rural area: These real persons have to live in rural areas and carry on a renewable energy sector.  
3. Legal persons in rural area: These legal persons have to either be established in rural areas or have investments or activities in rural areas.

The beneficiaries may benefit from the grant for their existing or a new operation located at one of the rural areas.

2. General Compliance Criteria

1. The applicants are required to no have unpaid taxes and social security debts.
2. The applicants are required to ensure that their investments will be maintained and not subject to any significant change for 5 years following the last payment made by ARDSI.
3. The applicants or the authorized persons of the legal entities can not be older than 65 years during application process.
4. Investments to be made on a leased property are eligible investments. However, the lease term should cover at least five years from the date the investment is completed (the last payment).
5. The applicants who receive less than 30 points from the ranking criteria will not be evaluated as eligible and will be rejected.

6. In accordance with the format to be developed by the ARDSI, a business plan should be submitted. This business plan should prove the economic sustainability of agricultural operation.
7. It should be a micro/small scale enterprise with less than 50 employees and an annual return of less than 8,000,000.00 TL.
8. The operation must apply the investment in one of the following cities, otherwise the application shall not be accepted. Also, it must be noted that the location of the investments must be in the rural area.

3. Compliance Criteria in relation to Renewable Energy Plants

1. The investment within the scope of this activity shall be in rural areas regardless of the status of the applicants.
2. All kinds of renewable energy activities (exclusive of hydropower) in order to generation of electrical energy and heat is eligible, inclusive of biofuels, biogas, biomass, concentrated solar energy, geothermal, solar energy, thermal solar energy, photovoltaic, wind pumps, wind turbines and combinations of the same.
3. Renewable energy investments up to 1 MW capacity (up to 100 kWe for micro-cogeneration investments) shall be supported.
4. In the event that the investment aims at generating electricity from renewable energy sources, it is necessary to connect to the national grid and the following conditions shall be fulfil:

• Connection Agreement to the Distribution System for Unlicensed Electricity Generators from Regional Electricity Distribution Companies (This document should be valid for at least 1 year as of the date of application.).
• In the event that the Connection Agreement is not submitted, Call Letter for the Connection Agreement from Regional Electricity Distribution Companies.
• The Technical Evaluation Form issued by General Directorate of Renewable Energy should be submitted.
• Approved single line scheme.
• The applicant will submit the temporary acceptance certificate issued by the relevant authorities with the final payment request package.

In the light up foregoing issues, in the scope of IPARD-II Programme to be implemented in 42 provinces of Turkey as co-financed by the European Union and the Republic of Turkey, recipients will be provided with grants ranging from 50% to %65 for eligible expenditures and renewable energy investments were included as new sectors in the scope of supports with IPARD II. In this manner, the grant rate to be supplied by ARDSI may be maximum 250,000.00 Euros which is 50% of the proper amount of investment which may be maximum 500,000.00 Euros. Therefore, the application of the investors that fulfill the criteria beforementioned may be made until 12.03.2018 at 21:00 via online project application system and the submission of applications may be made until 15.03.2018 at 18:00.

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.