Report says renewables require different incentives

Turkey it needs to develop different incentive methods for different types of technologies in order to reach its established renewable energy power targets, according to a Deloitte report.Deloitte Turkey released a renewable energy report in late April to provide a thorough analysis of Turkey’s renewable energy policies and targets.The report underlines that the key factor in acquiring the set targets in renewable energy generation is the incentive mechanisms, adding the most successful countries in carbon capping energy types merge multiple mechanisms. The report elaborates on the road map Turkey needs to attain its goals, given that it currently is in the stage of infrastructure studies concerning the formation of incentive mechanisms.The Deloitte report analyses Turkey’s current regulations, either in effect or in draft, concerning the electricity generated out of renewable resources and provides an end-analysis to aid development of renewable energy in the country.Evaluating the report, Deloitte Turkey Energy and Resources Group Responsible Partner Sibel Çetinkaya said the report was the result of a study of the renewable energy targets and strategies of more than 100 countries and it showed that different countries needed to develop different strategies for different types of renewable resources.“The best solution seems to be preparing a portfolio standard in design and application of the incentives,” she said.The types of incentive mechanisms the report mentions are fixed price guarantee, premium guarantee, quota-based green certificate, bid incentives, investment incentives and tax exemption. The report elaborates on the application areas and specific uses of each mechanism, while referring to the best examples in the world.According to the Deloitte report, Spain and Germany offer higher incentives than production costs, while the incentives in Finland are way below production costs. According to Deloitte’s research, the report notes, incentives slightly higher than production costs are most successful.[HH] ‘Turkey can reach its renewable targets’Deloitte experts state that it is possible for Turkey to attain its goals in renewable energies.“Turkey can reach its green energy targets in the following term, provided that the overall conduction capacity is increased, network investments and ameliorations are made, a central estimation center particularly for solar and wind energies is established, and the technological platform to render the incentive mechanisms effective is developed,” the report states.Turkey also needs immediately to prepare the crucial infrastructure like market management integration and diversification of fund resources.“To that end, it is of utmost importance for the investors to take action on sound market analyses,” the report says.