Impact of Financial Support Mechanisms on Renewable Energy Deployment: Turkey as a Case Study

Year 2023, Volume: 18 Issue: 1, 10 - 16, 30.03.2023

Gamze Tanil

Abstract

In this study, we inquired the link between state financial support mechanisms for renewable energy sources (RES) and renewable energy deployment success in Turkey. The study particularly focused on the electricity sector. Deployment success for renewable energies is defined using several indicators: number of new participants to the RES financial support scheme, their installed capacity, their electricity generation, the amount of RES payments in the given year, the increase in overall renewable energy capacity, and the increase in the share of renewable energies within overall electricity generation of the country. The study starts by reviewing state regulations and financial incentives that promote renewable energy investments in Turkey. The effectiveness of this policy is tested by using yearly renewable energy statistics for the period 2014-2020. Methodologically, we applied correlation analysis to test the research hypotheses. The research results showed significantly positive correlation coefficients between the tested variables within the study period, and therefore, validated the positive impact of the use of state financial incentives on the promotion of renewable energy capacity, and thereby, on the increase in the share of renewable energies in the overall electricity mix in Turkey.

Keywords

Renewable energy, financial incentives, investments, feed-in tariff, Turkey

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