Amendment on Energy Efficiency Law

Grant program for Energy Efficiency Improvement Projects and VAs have been implemented to motivate industrial companies since 2009. Within the amendment in the Energy Efficiency Law in 2019 (The Law No 7164 published in the Official Gazette No. 30700 of 28 February 2019), the energy consumption threshold for the application of Improvement Projects and VAs have been reduced from 1,000 to 500 toe so that the number of enterprises that will benefit from these incentives can increase. Additionally, total investment cost for the EEIP has been raised from 1 million TL to 5 million TL.Grant ratio given by total investment cost (not exceeding TRY 5,000,000 - EUR 759,000) has been increased from 20% to 30% as of 2019. Voluntary Agreements (VA) are implemented to motivate industrial establishments to achieve a minimum of 10% decrease in energy intensity over a three year period. The government provides incentives to stimulate the investment in energy efficiency measures. If an establishment meets the target set by the agreement, then up to 30% of the energy costs can be granted during the first year. The Ministry of Energy and Natural Resources (Department of Energy Efficiency and Environment) signs the agreements with the establishments on the basis of the energy intensity value over the past five years. Then the establishments undertake individual energy efficiency projects.

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