January 2021



For further information please contact:

Tuğba Aksoy
Senior Associate, Istanbul

Aslı İbiş
Associate, Ankara

Ergün Avukatlık Bürosu İstanbul | Levent Loft II, D: 13-16, Levent
T +90 (212) 280 90 91

Ankara | Next Level, A Blok, D: 33, Çankaya
T +90 (312) 220 30 60



New YEKDEM (Renewable Energy Support) Mechanism in Turkey

On 30 January 2021, the new support mechanism for the generation of electricity from renewable energy sources (YEKDEM) has been published in the Official Gazette. The new YEKDEM mechanism, which is based on Turkish Lira and subject to partial FX adjustment, has replaced the previous full FX denominated support mechanism, which was in place since 2007.

According to the Presidential Decree No. 3453;

  • The new YEKDEM mechanism will apply to the renewable energy based power plants which are commissioned between 1 July 2021 and 31 December 2025.
  • The new feed-in tariff, which varies for each type of source as stated in the chart below, will be applicable for 10 years.
  • In addition to the feed-in tariff, an additional “local content” incentive of 8 TL Kurus per kWh will apply. The term of the local content support will be 5 years.
  • The above-stated feed-in tariff and local content support amounts, which are in TL, will be subject to a basket-based adjustment on a quarterly basis. The basket will consist of:
    • PPI (Producers Price Index) (26% weight),
    • CPI (Consumer Price Index) (26% weight),
    • US$ (24% weight), and
    • Euro (24% weight).
  • The feed-in tariffs will subject to a cap in US$ after they are adjusted as explained above.
  • Details of the above-explained support mechanism for each type of source are as follows:
Type of the Power Plant Feed-in Tariff (TL Kuruş/ kWh) Cap for Feed-in Tariff after Adjustment (US$ cent/kWh) Feed-in Support Period (Year) Local Content Support  (TL Kuruş/ kWh) Local Content Support Period (Year)
a. Hydropower  40,00 6.40 10 8,00 5
b. Wind 32,00 5.10 10 8,00


c. Geothermal 54,00 8.60 10 8,00 5
d. Biomass Landfill Gas 32,00 5.10 10 8,00 5
Biomethanisation 54,00 8.60 10 8,00 5
Thermal Disposal 50,00 8.00 10 8,00 5
e. Solar 32,00 5.10 10 8,00 5


This information is provided for your convenience and does not constitute legal advice. It is prepared for the general information of our clients and other interested persons. This should not be acted upon in any specific situation without appropriate legal advice. This information is protected by copyright and may not be reproduced or translated without the prior written permission of Ergün Avukatlık Bürosu.