Geothermal Energy Association (JED) Chairman of the Board

The geothermal energy sector, highlighting issues arising from the Renewable Energy Support Mechanism (YEKDEM) schedule, is requesting an extension of the incentive period until 2040. Ali Kindap, Chairman of the Board of the Geothermal Energy Association (JED), emphasized that the current regulations are not aligned with investment processes and stated that extending the period is critical for the development of geothermal projects.

Kindap recalled that, according to Presidential Decree No. 7189 published in the Official Gazette on May 1, 2023, electricity generation facilities with a Renewable Energy Certificate (YEK) that commence operations by December 31, 2030, will be eligible for YEKDEM. He pointed out that this regulation poses a major obstacle to geothermal investments.

“We request that the deadline for geothermal energy investments to benefit from YEKDEM be extended from 2030 to 2040,” said K?ndap, stressing that the regulation is essential for the realization of ongoing investment plans in the sector.

Geothermal has different dynamics from wind and solar

Kindap noted that geothermal energy has different dynamics compared to other renewable energy sources like wind and solar. He reminded that in the process known as the Third YEKDEM, the incentive period was extended from 10 to 15 years. However, for power plants to benefit from this incentive, they must be operational by December 31, 2030. Due to the long investment process of geothermal energy, Kindap emphasized that this timeline is not suitable for the sector:

“A geothermal investment process, which includes stages such as licensing, permits, site acquisition, environmental impact assessment (EIA), drilling, resource efficiency assessment, power plant construction, and commissioning, takes at least five years under the best circumstances. Many companies looking to invest today face the risk of not being able to complete their projects by 2030 due to existing regulations. This disrupts geothermal investments.”

By the end of 2025, 36% of installed geothermal capacity will be outside YEKDEM

Kindap stated that the sector has shared its concerns with the relevant public authorities and emphasized the need to balance power plants that have completed their YEKDEM periods with new investments. He also highlighted the key role of geothermal energy in Turkey’s 2053 Net Zero vision and stressed that it is essential to commission new investments of at least the same capacity to replace plants whose incentive periods have expired.

This demand was previously raised by the Geothermal Power Plant Investors Association (JESDER), with industry representatives emphasizing the need to remove structural barriers to geothermal investments. In past statements, JESDER argued that extending YEKDEM incentives would not only support existing projects but also help Turkey achieve its renewable energy targets.

Geothermal sector representatives stated that extending the period would both increase interest in the sector and be a critical step for Turkey’s energy security. They urged for the regulation to be implemented as soon as possible.