Wind Energy Investment in Turkey – Legal Guide for Foreign Investors

Wind energy investment in Turkey is rapidly becoming one of the most attractive opportunities for foreign investors seeking sustainable and profitable projects. With abundant wind resources, strategic geographical positioning, and government-backed incentives, Turkey offers a favorable environment for developing wind power plants. This comprehensive legal guide explains each step of the process, from feasibility studies to commercial operation, ensuring that investors understand the regulatory framework and potential challenges.


1. Why Turkey Is a Prime Destination for Wind Energy Investment

Turkey’s energy demand has been growing steadily due to population growth, industrial development, and increasing urbanization. Wind energy provides a clean, renewable solution that aligns with the government’s sustainability targets and energy diversification strategy. Regions such as the Aegean, Marmara, and Central Anatolia stand out for their high average wind speeds, making them ideal for large-scale wind farms. For international investors, the combination of natural resources, state incentives, and a secure legal environment makes wind energy investment in Turkey highly appealing.


2. Legal Framework and Regulatory Authorities

Wind energy projects are regulated by several key authorities:

The main legal basis for wind projects includes the Law No. 5346 on the Use of Renewable Energy Sources and the Electricity Market Law No. 6446. Foreign investors must comply with these laws to ensure smooth project execution.


3. Pre-Investment Stage: Feasibility and Land Acquisition

Before starting the licensing process, investors must conduct thorough feasibility studies:

  1. Wind Measurement – At least one year of wind speed and direction data must be collected at the proposed site. This is essential for project financing and technical design.
  2. Land Selection – The investor must secure land through purchase, long-term lease, or government allocation for public land. Due diligence should confirm there are no mortgages, liens, or legal disputes.

These early steps are crucial because they determine the technical and financial viability of the wind energy investment in Turkey.


4. Licensing and Permit Process

4.1. EPDK Generation License

Most wind energy projects require a generation license from EPDK. The application must include:

  • Company incorporation documents (foreign investors must establish a Turkish legal entity).
  • Technical feasibility report.
  • Financial plan.
  • Wind measurement report.
  • Proof of land rights.

Licenses are typically granted for up to 49 years, providing long-term investment security.

4.2. Unlicensed Generation

Projects with a capacity of up to 5 MW may operate without a license. However, they still require grid connection approval and must meet all technical and safety standards.


5. Grid Connection and System Use

After obtaining the generation license, the investor must sign a grid connection agreement with TEİAŞ or the relevant distribution company. This determines the connection point, capacity, and technical requirements for integrating the wind farm into the national grid.


6. Environmental Approvals

6.1. Environmental Impact Assessment (EIA)

Projects of 25 MW or more require an EIA Positive Decision. Smaller projects may obtain an EIA Not Required Certificate. The EIA evaluates potential environmental effects and outlines mitigation measures.

6.2. Special Land Permissions

  • Forestry land requires permission from the General Directorate of Forestry.
  • Agricultural land requires approval from the Ministry of Agriculture for non-agricultural use.

Environmental compliance is critical for maintaining both legal and community support for the project.


7. Zoning and Construction Permits

Before construction begins, the investor must secure:

  • Zoning plan approval from the municipality or provincial administration.
  • Construction permit in line with approved project designs.

Failure to obtain proper permits can lead to costly delays or even project suspension.


8. Construction, Installation, and Pre-Operation

Wind turbines, generators, and supporting infrastructure must be installed according to international engineering and safety standards. After installation:

  • Conduct pre-commissioning tests.
  • Sign the system usage agreement with TEİAŞ or the distribution company.

This ensures that the wind farm operates efficiently and meets all grid compliance standards.


9. Commercial Operation and Energy Sales

Once operational, the investor has two primary sales options:

  1. Sell electricity directly in the free market.
  2. Participate in the Renewable Energy Support Mechanism (YEKDEM) for guaranteed purchase prices.

YEKDEM also offers additional incentives for projects using locally manufactured components, which can significantly improve profitability for wind energy investment in Turkey.


10. Incentives for Foreign Investors

10.1. Investment Incentive Certificate

Offered by the Ministry of Industry and Technology, this certificate provides:

  • VAT exemption.
  • Customs duty exemption.
  • Corporate tax reduction.
  • Interest rate support.

10.2. Double Taxation Agreements

Turkey has signed treaties with many countries to prevent double taxation, allowing investors to repatriate profits efficiently.


11. Legal Considerations and Risk Management

  • All contracts should comply with Turkish energy law and international private law.
  • Land due diligence is essential to avoid disputes.
  • Environmental approvals must be fully secured before construction.
  • Engage experienced legal counsel for licensing, contract drafting, and project financing to minimize risks.

12. Conclusion

Wind energy investment in Turkey offers foreign investors a combination of high returns, long-term stability, and strong legal protections. By following a structured process—feasibility studies, licensing, grid connection, environmental compliance, and commercial operation—investors can build profitable, sustainable energy projects that contribute to Turkey’s renewable energy goals. With proper legal guidance and strategic planning, wind power can be a cornerstone of any international renewable energy portfolio.

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