The fuel-only cost of fossil gas-fired power in early 2022 was 128 USD/MWh, which was more than double that of the
levelized cost of electricity of new
utility scale solar PV and new onshore wind. However in 2022 wind and solar remained more expensive than
energy efficiency measures, which were estimated at 14 USD/MWh. Geothermal and pumped storage get 15 years of this YEKDEM. Otherwise tariffs apply for 10 years and any local bonus for 5 years, and are revised quarterly. According to the
Industrial Development Bank of Turkey, the support fee based on source model depends on transferring money from low-cost solar, wind and hydroelectric power plants to those with high operating expenses, examples of which include imported coal and natural gas. Despite some renewables generators calling for it to be scrapped, it was extended into 2023. Earlier reports from other organisations say that such an expansion of renewables benefits employment, industrial production, and balance of trade. A 2022 study by
Ember in advance of the Energy Ministry long-term plan suggested that dependence on imported energy could be reduced from a half to a quarter by 2030 by energy efficiency and increasing solar capacity to 40 GW and wind to 30 GW: this would mean the increase in wind and solar accelerating from 1 GW a year each to 2.5 and 4 GW respectively. They said that domestic solar manufacturing capacity could achieve 8 GW a year. The report was based on 4 modeling studies by: the Istanbul Policy Center, the World Bank’s Climate and Development report, a report from Europe Beyond Coal and other local environmental organizations, and analysis from Turkish energy transition think tank Shura. If more renewable energy is generated it may be possible to export
green hydrogen to the EU. Companies with a lot of renewables include
the state electricity generation company (mainly hydro),
Aydem, and
Kalyon. Increasing export of electricity to the EU has also been proposed but analyst Kadri Taştan pointed out that this depends on "reliable and solid political relations between the two and an ambitious environmental policy in Turkey". Using renewable electricity to produce
green hydrogen for export has also been suggested, but would require substantial investment. As of 2023 Chinese companies consider Turkey high risk, in part due to unpredictable and changeable regulations. SMEs buy solar parts from Malaysia due to the trade agreement. == Regulations ==