Turkey’s investment incentive scheme is being amended to encourage energy efficiency in industrial facilities.
Aksam – Turkey’s investment incentive scheme is being amended to encourage energy efficiency in industrial facilities. Aiming to save around TRY 15 billion (approx. USD 7 billion) a year in energy costs in the industries of iron and steel, petrochemicals and the production of cement and ceramics, the Turkish government has introduced a new set of incentives that encourage energy saving and waste heat recovery in existing manufacturing plants.
According to a statement by the Minister of Energy and Natural Resources, Taner Yildiz, increasing energy efficiency to reduce import dependency would save some TRY 65 billion (approx. USD 30 billion) by the year 2023.
“As per the decision taken by the Cabinet of Ministers on May 9th, energy saving investments that would reduce energy consumption in unit production by a minimum of 20 percent for at least 5 years in existing manufacturing facilities with an annual consumption of least 500 tons of oil equivalent (toe) energy, will be supported with Region-5 level incentive instruments regardless of the actual location of the facility,” Yildiz noted at a press event. “The same incentive will also apply to waste heat recovery, liquefied natural gas (LNG) and underground gas storage investments worth at least TRY 50 million,” the Minister added.
Turkey’s investment incentive system has multi-layer support mechanisms supporting investments by their type, scale and region. Turkey is divided into 6 parts, Regions 1 to 6, within the system, and the investment projects located in higher numbered regions benefit the most.