Turkey

TR-5:Energy Efficiency Support for SMEs

Policy Description

KOSGEB, the government agency with the mission to increase the share of SMEs involved in economic and social development, provides financial support to SMEs for energy manager training, pre-audits, energy audits, and consulting services for efficiency improvement projects. SMEs receive a maximum of 2,000 TL for walk-through energy-efficiency audits and 20,000 TL for comprehensive (investment-grade) audits. A maximum 10,000 TL is provided for consulting services to develop, realize, and operate energy-efficiency improvement projects.

Description

 

The industrial sector in Turkey is very fragmented, with SMEs representing 99.88 % of the enterprises (3,470,720), 55.6% of the total sector value added, and 46% of energy consumption [1] [2]. One of the main barriers to energy efficiency in the industrial sector identified by the government is the lack of access to financing for SMEs [3].

KOSGEB is a government agency with the mission to increase the share of SMEs involved in economic and social development by providing qualified service and support to improve SMEs’ competitiveness and to disseminate a culture of entrepreneurship [4]. Under the Turkish Energy Efficiency Law (TR-1), KOSGEB provides financial support to SMEs for energy manager training, pre-audits, energy audits, and consulting services for efficiency improvement projects. SMEs receive a maximum of 2,000 TL for walk-through energy-efficiency audits and 20,000 TL for comprehensive (investment-grade) audits. A maximum 10,000 TL is provided for consulting services to develop, realize, and operate energy-efficiency improvement projects.

Several international projects also provide technical assistance and financial support for SMEs, in collaboration with KOSGEB :

  • The World Bank Project “SME Energy Efficiency Project” provides a loan of USD 201 million from the International Bank for Reconstruction and Development to local banks. The funds are to scale up commercial bank lending for energy-efficiency investments in SMEs. The World Bank Project also includes a USD 3.64 million grant from GEF to the MENR and to three intermediary banks to provide technical assistance services regarding energy-efficiency investments by SMEs [6].
  • The “Energy-Efficiency Project in SMEs” was launched in 2013 with financial support from the French Development Agency. The goal is to reduce energy cost pressures for SMEs and thereby to reduce energy import cost pressures in the Turkish Economy. Total project budget is 3 Million EURO with KOSGEB participation and in-kind contribution. The project will be implemented over a three-year period.

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: Economic, Incentives & Subsidies

Position in the Pyramid

About Us

Participation: Mandatory

Period

Start Date: 2008

Policy Linkages

Supports Energy Efficiency Law Effort Defining
Supports Energy Efficiency Strategy Effort Defining

Agencies Responsible

SME Development Organization (KOSGEB)

Primary Objective: Energy

Objective

Reduce financing barriers faced by SMEs in improving their energy efficiency; encourage energy-efficiency investments in the SME sector.

Target Group

SMEs: According to KOSGEB's definition published in official paper No. 25997, a micro, small, or medium size enterprise has fewer than 250 employees and a net revenue not greater than 40 million TL [4].

Driver of energy consumption or emissions affected by policy: Energy Consumption

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

Coverage

Quantitative Target? no

Progress Monitored? no

Verification Required? no

Enforced? no

Requirements on the Target Group

SMEs with an annual energy consumption greater than 200 TOE can receive support of  50% to 60%, depending on the region.  The upper limit of energy-efficiency support is 30,000 TL. [4]

Support by Government

In addition to the financial support from the Turkish government, the program gets support from the World Bank and the French Development Agency [1, 2].

 

Implementation Toolbox

KOSGEB provides support for bank credit interest, information technology, regional development, consulting and training, and international cooperation development. [5]

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. Not available.
Estimated costs/benefits for industry Not available. Not available.
Estimated cost for government Not available. Not available.

References & Footnotes

References

[1] Kobienver Websitewebsite., http://kobienver.com/

[2] Agence Francaise de Developpement (AFD). 2012. Turkey Energy Efficiency & Climate Change Program, Abstract of main findings from Mid-Term Review, June. Available at http://www.afd.fr/webdav/shared/PORTAILS/PAYS/TURQUIE/PAGE%20D'ACCUEIL/AFD%20-%20Energy%20Efficiency%20&%20Climate%20Change%20program%20-%20June%202012.pdf

[3] Turkish Industrial Strategy Document 2011-2014 (Towards EU Membership). 2010. Republic of Turkey Ministry of Industry and Trade.

[4] KOSGEB website. http://www.kosgeb.gov.tr/

[5] Technology Development Foundation of Turkey (TTGV). 2010. Project of Determination of the Framework Conditions and Research-Development Needs for the Dissemination of Cleaner (Sustainable) Production Applications in Turkey, Final Report, Ankara – 2010. http://www.ttgv.org.tr/content/docs/cleaner-production-final-report.pdf

[6] World Bank. 2013. Project Appraisal Document on Proposed Loans in the Amount of US$201 Million on Small and Medium Enterprises Energy Efficiency Project, February 28. Report No: 73647-TU.

[7] AFD. 2012. Abstract of main findings from Mid-Term Review of Turkey Energy Efficiency & Climate Change Program. May. http://turquie.afd.fr