Turkey

TR-1:Energy Efficiency Law

Policy Description

The Energy Efficiency Law (No. 5627) was enacted in May 2007 (revised in 2011) to increase efficient use of energy resources and thereby avoid waste, ease the burden of energy costs on the economy, and protect the environment. This law is the framework that guides Turkey’s energy-efficiency policy implementation [1].

The Energy Efficiency Law covers principles and procedures for increasing and promoting efficiency in energy generation, transmission, distribution, and consumption at industrial establishments, buildings, power generation plants, transmission and distribution networks, and in transportation. It also addresses raising energy awareness among the general public and increasing utilization of renewable-energy sources.

 

Description

 

The Energy Efficiency Law (No. 5627) was enacted in May 2007 to increase efficient use of energy resources and thereby avoid waste, ease the burden of energy costs on the economy, and protect the environment. This law is the framework that guides Turkey’s energy-efficiency policy implementation [1].

The Energy Efficiency Law covers principles and procedures for increasing and promoting efficiency in energy generation, transmission, distribution, and consumption at industrial establishments, buildings, power generation plants, transmission and distribution networks, and in transportation. It also addresses raising energy awareness among the general public and increasing utilization of renewable-energy sources.

The law provided the legal basis to [2]:

  • Establish the Energy-Efficiency Coordination Board
  • Specify the mandate and authority of the General Directorate of Renewable Energy (YEGM, formerly EIE)
  • Set requirements for industry and businesses that include:
    • Appointing of a certified (*1) energy manager for industrial plants with annual energy consumption of more than 1,000 tons of oil equivalent (TOE), and establishing an energy management unit under the responsibility of the energy manager if consumption is more than 50,000 TOE. In addition, organized industrial zones that include enterprises with less than 1,000 TOE of energy consumption must establish an energy management unit.
    • Reporting energy consumption to YEGM for industrial entities that use more than 1,000 TOE annually.
  • Conduct training and public awareness campaigns
  • Establish subsidies and financial supports to promote energy efficiency:
    • Industrial efficiency projects that have a payback period of at most five years and cost at most 1 million Turkish Liras (TL) shall be subsidized by up to 30% of the cost.
    • Industrial enterprises that sign a “voluntary agreement” to decrease their energy intensities by an average of at least 10% within three years can be supported for 20% of their energy costs with a ceiling subsidy of 200 thousand TL.

Policy Information Expand this section for information on the key features of the policy, such as its date of introduction, categorization, main objective(s) and linkages with other policies.

Policy Categorisation

Policy Instrument Type: Administrative

Position in the Pyramid

About Us

Participation: Mandatory

Period

Start Date: 2007

Policy Linkages

Supported By Energy Management Training Program Supporting Measure
Supported By Energy Efficiency Support for SMEs Supporting Measure
Supported By Improving Energy Efficiency in Industry Project (sponsored by UNDP, UNIDO & GEF) Supporting Measure
Supported By Energy Efficiency Awareness Program Supporting Measure
Supported By Energy Efficiency Incentive & Financing Programs Supporting Measure

Agencies Responsible

General Directorate of Renewable Energy (YEGM)

Primary Objective: Energy

Objective

Increasing Energy Efficiency

Target Group

All sectors of the economy. In the industrial sector, establishments that have 1,000 TOE or more of total annual energy consumption are the main target of the policy to be implemented.

Driver of energy consumption or emissions affected by policy: Total energy consumption

Implementation Information Expand this section for information on targets, monitoring, verification and enforcement regimes, and implementation requirements and tools.

Coverage

An Energy-Efficiency Coordination Board was established to monitor results and coordinate efforts. The General Directorate of Renewable Energy (or YEGM) monitors the implementation of decisions made by the Board.

Quantitative Target? no

Progress Monitored? yes

Monitoring Done By

Organisation Type Organisation Name
Government Agency General Directorate of Renewable Energy (YEGM)

Verification Required? no

Enforced? no

Requirements on the Target Group

  • Appointing a certified energy manager for industrial plants with annual energy consumption of more than 1,000 TOE and establishment of an energy management unit under the responsibility of the energy manager if consumption is more than 50,000 TOE. Organized industrial zones that include enterprises consuming less than 1,000 TOE must also establish an energy management unit.
  • The energy manager is defined as a person who holds an energy manager certificate and is in charge of carrying out activities relating to energy management in the industrial establishments and buildings covered under the Energy-Efficiency Law. Certificates are issued to energy managers by the General Directorate, authorized institutions, and energy-efficiency consulting companies.
  • Reporting of energy consumption to  General Directorate of Renewable Energy (or YEGM)  by industrial entities that use more than 1,000 TOE annually. 

Support by Government

The law is supported by the government with a package of incentives, training, and awareness and monitoring programs involving different actors of the Turkish energy-efficiency community (see TR2-TR7). 

Implementation Toolbox

Impacts, Costs & Benefits Expand this section to find information on policy effectiveness and efficiency.

Impact Quantitative Estimate Qualitative Estimate
Estimated effect on energy consumption or emissions Not available. In 2012, a survey [3] of the iron, steel, cement, paper, ceramics, and textile industries investigated industrial energy management practices in Turkey. The surveyed industries represented 68% of total energy consumed by the Turkish industrial sector. The goal of the study was to highlight significant bottlenecks and challenges that energy-intensive industries face in applying energy management. The survey found that only 22% of the surveyed companies actually practice corporate energy management. “The main barriers to proper energy management implementation were identified as lack of synergy between the stakeholders, the extent and scope of energy manager courses, and inadequate awareness of and lack of financial support for energy management activities.”
Estimated costs/benefits for industry Not available. Not available.
Estimated cost for government Not available. Not available.

References & Footnotes

References

[1] Turkey Government Official Gazette. 2007. Issue 26510, Wednesday 2 May. ENERGY-EFFICIENCY LAW, Law No. 5627, Adoption Date: 18/4/2007.

[2] United Nations Development Programme, United Nations Industrial Development Organization, Government of Turkey. 2013. Evaluation of GEF Project: Improving Energy Efficiency in Industry in Turkey (IEEI) (PIMS No: 4113), Mid-Term Evaluation Report, Mission Members: Mr. Roland Wong, International Consultant, December

[3] Seyithan Ahmet Ates and Numan M. Durakbasa. 2012. “Evaluation of corporate energy management practices of energy intensive industries in Turkey.” Energy 45: 81e91.

Footnotes

(*1) The energy manager is defined as a person who holds an energy manager certificate and is in charge of carrying out activities relating to energy management in the industrial establishments and buildings covered under the Energy-Efficiency Law. Certificates are issued to energy managers by the General Directorate, authorized institutions, and energy-efficiency consulting companies.