Albright International is set to make the investment to take advantage of state subsidies to be provided as part of a renewable energy law that is expected to be enacted soon by Parliament. Bayram Şahin, the owner of Şahin Holding, Albright’s Turkish distributor, told Today’s Zaman that his firm and Albright representatives had a meeting with Prime Minister Recep Tayyip Erdoğan last week in which they committed to establishing a manufacturing plant in Malatya for the production of solar panels, after which they plan to engage in the production of solar energy for consumption in Turkey. If no changes are made to the bill that is awaiting a vote in Parliament, Turkey will subsidize $0.12 per kilowatt hour (kWh) of solar energy and 0.055 euros for each kWh of wind energy. Many companies, however, are calling for these amounts to be increased.
The government is pushing a renewable energy agenda in order to establish a more environmentally sustainable way of meeting Turkey’s energy needs while also reducing its dependence on foreign countries in the field of energy.
Şahin said they are waiting for the bill to be enacted before releasing funds for the establishment of a large facility in Malatya. However, he stressed that the government should distinguish real investors from intermediary companies who only buy and sell energy after adding their own profit margins onto the price. “After the renewable energy paw is passed in Parliament, there needs to be a competition between the companies at the licensing stage. Our Energy Ministry should choose whichever company bids with the cheapest price, even it is only one cent,” Şahin said.
Justice and Development Party (AK Party) Malatya deputy Mehmet Şahin, who has been working for three years to convince the company to invest in his region, said the project will provide jobs for thousands of people in his constituency. “I hope this project is realized as soon as the renewable energy law is enacted and Malatya reaches the level it deserves,” he said. Şahin previously brought Anemon Hotels to Malatya and also secured significant capital for the city’s municipality by helping to sell the wholesale food market building there to a foreign company for TL 60 million.
If the bill is enacted without any changes, companies seeking to benefit from the government subsidies will need to apply to the Energy Market Regulatory Agency (EPDK) by Oct. 31 of each year at the latest. Renewable energy firms other than those producing solar energy will have to start operating before Dec. 31, 2015 to receive the incentives. For solar energy companies, on the other hand, the government will provide subsidies for 15 years if the company is made operational before Dec. 31, 2012. For those who fail to meet that deadline, the size of the subsidies will be reduced by 8 percent for each year past this date.
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