What is the Energy Sector?

The sector that includes the production and distribution of fuels and equipment, encompassing the oil and gas industry, is referred to as the energy sector. In general terms, it covers the processes of exploring, marketing, and distributing petroleum products.

1. What General Supports Are Available for the Energy Sector?

There are various supports provided by KOSGEB, TÜBİTAK, and the Ministry of Commerce for the energy sector. The supports provided for the energy sector are classified into project-based supports and general supports. The details of the supports provided for the energy sector are given below.

TÜBİTAK Supports

A) TÜBİTAK 1501 - Industry R&D Project Support Program
Under the 1501-Industry R&D Support Program, projects that are classified as R&D qualify for support in the areas of producing a new product, developing or improving an existing product, raising product quality or standards, or developing new cost-reducing techniques or new production technologies. The support rate of the program is implemented at 75%.

*There is no budget limit.
*Feasibility is required for investments over 5 Million.

B) TÜBİTAK - 1507 - SME R&D Start-up Support Program Call
The supports provided under the 1501 Industry R&D Support Program aim to support project-based research and technology development activities and innovative activities of Small and Medium Enterprises (SMEs).

*Applicable for projects up to 1,200,000 TL.

KOSGEB Project-Based Supports

A) KOSGEB Technology Investment Program
https://odsdanismanlik.com/tr/kosgeb-kobi-teknoyatirim-destek-programi/

B) KOSGEB International Market Program
https://odsdanismanlik.com/tr/kosgeb-yurt-disi-pazar-destek-programi/

C) KOSGEB R&D Product Development Program
https://odsdanismanlik.com/tr/kosgeb-arge-urge-ve-inovasyon-destek-programi/

KOSGEB General Supports

For detailed information; https://odsdanismanlik.com/tr/hibe-ve-destek-yonetimi-danismanligi/

KOSGEB General Supports

Ministry of Commerce Project-Based Supports

A) Global Supply Chain (GSC) Project
Support Amount: 15,000,000 TL
Support Rate: 50%
Support Duration: 2 Years

Which Sectors Can the Global Supply Chain (GSC) Support Project Be Implemented In?
• Mining and Metal
• Chemical products
• Automotive
• Machinery
• Space / Aviation
• Electricity / Electronics
Other sectors may also be considered if they meet the requirements.

What Items Are Supported Under the Global Supply Chain (GSC)?
• Machine, equipment
• Software purchase
• Training, consultancy
• Certification, testing analysis, and product validation expenses
For detailed information; https://odsdanismanlik.com/tr/ticaret-bakanligi-kuresel-tedarik-zinciri-programi/

B) Design Product Development Project
Support Amount: 5,000,000 TL
Support Rate: 50%
Support Duration: 3 Years

Which Sectors Can the Design Product Development Support Project Be Implemented In?
• Design companies
• Design offices
• Collaboration organizations
• Firms engaged in commercial and industrial activity

What Items Are Supported Under the Design Product Development Support?
• Tools, equipment, materials, and software
• Website membership
• Personnel recruitment (designer, pattern maker, engineer)

For detailed information; https://odsdanismanlik.com/tr/tc-ticaret-bakanligi-tasarim-ve-urun-gelistirme-programi/

Ministry of Commerce General Supports

• Market Entry Document Support - 4,000,000 TL (50%)
• Overseas Market Research Support - 100,000 TL per trip
• Support for Participation in Domestic and International Fairs (within the upper limit)
• Overseas Promotion Support 4,000,000 TL (50%)
• Overseas Trademark Registration Support 750,000 TL (50%)
• Overseas Unit Support 2,000,000 TL (50%)
• Market entry project preparation support 200,000 TL (50%)
• Overseas Company and Brand Acquisition Support 3,000,000 TL (50%)
For detailed information; https://odsdanismanlik.com/tr/hibe-ve-destek-yonetimi-danismanligi/

Productivity Increasing Project (PIP) Supports

Energy efficiency projects (Productivity Increasing Project - PIP) are supported by the Ministry of Energy. Under energy efficiency;
• Equipment and system usage,
• Repair, insulation, modification, rehabilitation

Projects that aim to prevent unnecessary energy consumption, reduce or minimize waste energy, and recover waste energy through process regulation are supported.

What Is the Energy Efficiency Support Amount for the Energy Sector?
It is supported as a grant at a rate of 30%. (For projects with a total investment cost of up to 5 million Turkish Lira, the support will be a maximum of 30% of the project cost)
https://enerji.gov.tr/evced-enerji-verimliligi-destekleri-verimlilik-artirici-proje-destekleri

Voluntary Agreement Supports

Agreements made with the Ministry of Energy for an industrial enterprise to reduce energy intensity by an average of at least 10% over the next three years.
If the commitment is achieved in 3 years;
Support amount: 1,000,000 TL (upper limit - cash support)
Support Rate: 30% of the energy expenses of the relevant year
One-time efficiency provided by solar energy will also be considered.
https://enerji.gov.tr/evced-enerimliligi-destekleri-gonullu-anlasma-destekleri

• New Environmental Supports from the Turkey Technology Development Foundation (TTGV)
https://www.ttgv.org.tr/tr/programlar

• World Bank Supports

2. Investment Incentives for the Energy Sector

*In line with the project approval to be obtained from the Ministry of Energy and Natural Resources; Investments aimed at energy efficiency projects (PIP) designed to achieve at least a fifteen percent (15%) energy saving, to be implemented in existing manufacturing industrial facilities that consume a minimum of 500 tons of equivalent oil (TEP) annually, can benefit from fifth region incentives.
*Investments aimed at producing electricity from waste heat generated in a facility through the recovery of waste heat (except for natural gas-based generation plants) can also benefit from fifth region incentives.
*Investments in the manufacturing of turbines and generators for renewable energy production and the production of blades used in wind energy can benefit from fifth region incentives.
*Thermal power plant investments benefit from the fifth region incentives.
*Hydro (Hydroelectric), Wind (Wind), and Solar Energy investment incentive certificates can benefit from the below government supports under the General Investment Incentive Certificate. (For machine equipment purchases)*

What Are the Minimum Investment Amounts for the Energy Sector?

• 3 million TL in the 1st and 2nd regions,
• 1,500,000 TL in the 3rd, 4th, 5th, and 6th regions.

The regions;

State of the Energy Sector in Turkey and Worldwide

According to 2021 data, there was a 9% increase in energy production in Turkey. 99% of our natural gas need was met through imports. The share of electricity production from wind turbines and solar panels increased to 13%. As observed globally, there was a 29% decrease in energy production from hydroelectric plants due to a decrease in water levels. Various steps are being taken to increase sustainability worldwide and in our country. Each country is taking steps to reduce dependency on foreign energy instead of making energy imports.

Leading Companies in the Energy Sector

According to research on Turkey’s largest energy producers, the top 3 companies were recorded as EÜAŞ, ENKA, and ENERJİSA. ENKA, the largest private sector energy producer, has an installed capacity of 3,969 MWe. This accounts for 4% of Turkey's total production capacity. Looking at the world as a whole, the importance of renewable energy has increased in recent times. There is a desire for the increase in structures using wind and solar energy.