Subsidy and taxation of renewable energy resources: The case of Türkiye

Although incentive policies for renewable energy in Turkey started in 2005, they gained great momentum with the regulations made after 2010. These steps have positive effects on sustainable economy, nature and country vision and contribute to Turkey's goals. These incentives include taxation areas such as stamp duty, income tax, corporate tax, value added tax, customs duty and special consumption tax. Their aim is to develop the renewable energy sector and increase its use. These incentives aim to accelerate the energy transformation by supporting investments. In Turkey, various incentive mechanisms have been put into effect in order to use potential resources efficiently in the field of renewable energy and in line with national policies and strategies determined in the field of energy. In this context, it is known that the first comprehensive legal regulation regarding renewable energy is the "Law No. 5346 on the Use of Renewable Energy Resources for the Purpose of Electrical Energy Production". An important incentive mechanism that started to be implemented with the RES adopted in 2005 is the fixed price guarantee. In 2010, a higher fixed price guarantee and various monetary and non-monetary incentives were added to the Law. With the fixed price guarantee, producers are encouraged by giving them the right to sell the excess electrical energy obtained from renewable energy sources at a determined fixed price. In the last decade, Turkey has increased electricity production, especially by utilizing renewable resources, and has provided a significant diversity in its energy portfolio. Incentive measures are also implemented to support the use of renewable energy resources in Turkey. These incentives consist of mechanisms such as fixed price guarantee, addition of domestic contribution, exemption from license fee, tender method and investment incentives. These incentives encourage sustainable energy production by making renewable energy projects economically attractive. The intensive use of energy resources in all areas of life has brought about the provision of subsidies and taxes in this field. Particularly in the execution of zero emission targets, advantages have been tried to be provided through incentives and low taxes from the production stage of renewable energy resources to the end user, and investments have been encouraged. The aim of the study is to draw attention to public policies such as incentives, tax reductions and subsidies to increase renewable energy production and to examine the contributions of these policies to the development of renewable energy resources and to make some suggestions on the subject. Keywords: Renewable Energy Sources, Subsidies, Tax Reductions, Incentives