Can Foreign Investors Build Solar and Wind Power Plants in Turkey? 2026 — Turkish Company Requirement (Law No. 6446, Art. 4), YEKA 2026 Competitions, Pre-Licence and Licence, Ban on Buying Pre-Licensed Projects, YEKDEM, Unlicensed Generation, Land, ÇED and Incentives

Türkçe sürüm: Yabancı Yatırımcı Türkiye’de GES ve RES Yatırımı

A foreign investor can build and operate solar (GES) and wind (RES) power plants in Turkey and hold a stake in a licensed project: the Electricity Market Law No. 6446 sets no nationality requirement for licence holders. The requirement is that the business is carried out through a joint stock company (anonim şirket) or limited company incorporated under the Turkish Commercial Code (Law No. 6446, Art. 4(3)). The real challenge for a foreign investor is the route into a project: the Ministry’s Renewable Energy Resource Area (YEKA) competitions (applications for the 2026 competitions will be received on 13 October 2026), the pre-licence process based on the grid capacity of the Turkish Electricity Transmission Corporation (TEİAŞ), buying an existing project (limited by the share transfer ban during the pre-licence period) and unlicensed generation, which only makes sense for one’s own consumption. This guide explains each route under Law No. 6446, Renewable Energy Law No. 5346, the Electricity Market Licensing Regulation, the YEKA Regulation and the 2025–2026 amendments, and covers the Renewable Energy Support Mechanism (YEKDEM) and YEKA prices, land, forest, pasture, agricultural land and environmental impact assessment (ÇED) rules, incentives, financing and investment treaty protection from a foreign investor’s perspective.

The Turkish company requirement and the pre-licence/licence system

Electricity Market Law No. 6446 requires legal entities that will operate in the electricity market to be incorporated as joint stock or limited companies under the Turkish Commercial Code; in joint stock companies the shares must be registered shares, except those traded on the stock exchange (Art. 4(3)). The Law contains no restriction on the nationality of a licence holder’s shareholders. A foreign investor can therefore hold a generation pre-licence and licence through a company it sets up or buys in Turkey. The steps for setting up the company are explained in our guide Company Formation in Turkey for Foreigners.

Licensed generation has two stages. First a pre-licence (önlisans) is obtained: a time-limited permit granted so that the company can obtain the approvals, permits, licences and similar documents needed to start the plant investment and secure ownership of or rights to use the land. Under the Law, the pre-licence term may not exceed twenty-four months except in cases of force majeure (Art. 6(5)); the EPDK Board (the Energy Market Regulatory Board) may extend this period by half, depending on the source type and installed capacity. Once the obligations of the pre-licence period are completed, a generation licence is granted; licences are granted for at most forty-nine years (Art. 5). Guarantees are required at the pre-licence and licence stages; the guarantee amounts are set by Board decisions and may be forfeited if the plant is not built on time.

The general framework of electricity generation licences is explained in our guide Elektrik Piyasasında Lisans Türleri (in Turkish), and the permitting process for a solar plant from application to acceptance in GES Kurulum İzinleri (in Turkish).

Four routes for a foreign investor into a solar or wind project

In Turkey, new licensed wind and solar capacity is not available on open application; it is allocated by distributing grid connection capacity through competitions or Board decisions. A foreign investor must therefore first decide which route it will use to enter a project. Each route has a different legal regime, price mechanism and transferability.

YEKA competitions: the 2025 results and the terms of the 2026 competitions

The Renewable Energy Resource Areas (YEKA) Regulation (Official Gazette 09.10.2016, No. 29852) governs the allocation of projects by competition in areas or connection capacities designated by the Ministry of Energy and Natural Resources. The Regulation was amended in Official Gazette No. 33102 of 9 December 2025. Under the amendment, the winner must apply to EPDK for a pre-licence within fifteen business days (Art. 12); changes in the direct shareholding of the winning company require the Minister’s approval until the entire plant has been commissioned, after which a notification to the Ministry is enough (Art. 16).

The 2025 competitions show the price level for foreign investors. The YEKA GES-2025 solar competitions were held on 25 November 2025 for a total of 650 MW in eight areas; the purchase price settled at 3.25 euro cents/kWh for 20 years, and the contracts were signed on 6 January 2026. The YEKA RES-2025 wind competitions were held on 9 December 2025 for six projects totalling 1,150 MW; in every project the price fell to 3.50 euro cents/kWh and the competitions were decided by bidding on the contribution fee (katkı payı).

The 2026 competitions were announced in Official Gazette No. 33307 of 11 July 2026. There will be 21 competitions in total: 14 solar competitions (900 MWe in total) and 7 wind competitions (1,500 MWe in total). Applications will be received at the Ministry on 13 October 2026. The main rules under the YEKA GES-2026 Specification published by the Ministry are as follows:

These rules make YEKA both the most predictable route and the most capital-intensive one for a foreign investor: a price set in euros and a long-term purchase commitment reduce currency risk, while the contribution fee, high guarantees in euros and the local content requirement shape the project’s cost and procurement plan from the outset. Since the specification may change after the competition date and may contain separate provisions for each area, the current text for the relevant competition should be reviewed before applying. In the wind competitions, the floor price (3.50 euro cents) and the free-market period (72 months) are set differently; the Ministry is also preparing a separate YEKA for offshore wind.

TEİAŞ capacity, the TEİAŞ competition (tender) rules and storage-linked pre-licences

Licensed wind and solar projects outside YEKA depend on the connection capacity announced by TEİAŞ, the transmission system operator. Where there is more than one application for the same region, TEİAŞ holds a competition under the TEİAŞ Competition (Tender) Regulation on Pre-Licence Applications for Wind or Solar Generation Facilities (Official Gazette 13.05.2017, No. 30065); the lowest bid in US cents per kWh wins, and bids may be zero or negative.

Under the storage-linked generation facility model introduced in 2022, connection capacity was reserved for investors undertaking to build an electricity storage facility together with the generation plant, and many pre-licences were granted this way. An amendment to the Licensing Regulation in October 2023 suspended new storage-linked applications pending a Board decision and provided for capacity to be allocated by EPDK decision on the basis of TEİAŞ’s five- and ten-year capacity reports. According to press reports, by the end of 2025 only a small share of storage-linked pre-licences had moved to the licence stage, and by a decision announced on 12 December 2025 the pre-licences of five projects totalling 168 MW, whose extension requests were refused, were cancelled. In addition, Law No. 7501 (Official Gazette 11.05.2024) opened a two-month window to surrender pre-licences and licences or reduce capacity with a refund of guarantees; that window closed in July 2024. This picture shows that a new storage-linked application is not an open route today, and that buying existing storage-linked pre-licences also runs into the transfer ban during the pre-licence period. For the legal framework of energy storage facilities, see our guide Enerji Depolama Tesisleri (in Turkish).

Buying an existing solar or wind project

The question foreign investors ask most often is whether they can buy a fully permitted project by acquiring its project company. The answer depends on the project’s stage.

1. Projects at the pre-licence stage: A pre-licence holder may not change its direct or indirect shareholding structure or transfer its shares until it obtains a licence, and this prohibition must also be written into the articles of association (Licensing Regulation, Arts. 12 and 57(1)). The Regulation provides limited exceptions to this ban, including inheritance and bankruptcy, listed shares, privatisation, transfers between shareholders without a change of control, YEKA pre-licences, and indirect changes resulting from changes in the shareholding of shareholders incorporated abroad. Under the amendment of 25 July 2025, this last exception is limited to indirect changes that do not amount to a change of control. Acquisitions by foreign legal entities with foreign-sourced financing are also among the exceptions; however, this exception does not apply automatically and is subject to EPDK’s assessment. Under some exceptions, any direct share change, and any indirect change of 10% or more, requires Board approval each time (Art. 57(1)). A breach of the ban may lead to cancellation of the pre-licence.

2. Licensed or operating plants: In a licence holder, the direct or indirect acquisition of 10% (5% for publicly held companies) or more of the shares, and transfers resulting in a change of control, require prior approval of the EPDK Board (Art. 57(2)). For a transfer of the licence or the plant itself, the amendment of 29 December 2025 introduced a rule that the Board’s transfer approval lapses if the transaction is not completed within the period stated in the approval; for operating plants, this period may not be shorter than six months.

3. Other approvals: Buying the project company also requires Competition Board clearance if the thresholds are exceeded, the Land Registry Law Article 36 notification if the company owns real estate, and the Minister’s approval for a YEKA project. All of these approvals are set out in one table in our guide Buying a Turkish Company as a Foreign Investor: Which Approvals Do You Need?

Unlicensed generation: for foreign investors with a factory in Turkey

Article 14 of Law No. 6446 exempts certain generation activities from the licence and company-formation requirements. The Regulation on Unlicensed Electricity Generation in the Electricity Market (Official Gazette 12.05.2019, No. 30772) sets out the details of this exemption. Since the 2022 amendment, unlicensed renewable plants may be set up only linked to a consumption facility and limited to the contracted capacity (sözleşme gücü) in the connection agreement; the energy fed into the grid may not exceed the consumption of the linked facility, and any excess is treated as a free contribution to YEKDEM. Amendments in 2024 and on 25 November 2025 added further rules, such as priority for plants linked to consumption at the same metering point.

For this reason, unlicensed generation is not a suitable route for a foreign investor seeking income from selling electricity. A foreign-owned company with a factory or a large consumption facility in Turkey, however, can reduce its electricity costs by installing rooftop or ground-mounted solar to meet its own consumption. Presidential Decision No. 11415, published in Official Gazette No. 33279 of 13 June 2026, set out the procedures and principles for purchasing the surplus energy of unlicensed plants that have completed their ten-year period at 90% of the current YEKDEM price, capped at the hourly market clearing price. Connection and tariff rules for unlicensed generation are explained in our guides Lisanssız Elektrik Üretimi and Lisanssız Üretimde 10 Yıl Sonrası (in Turkish).

YEKDEM and selling electricity

Law No. 5346 on the Use of Renewable Energy Resources for Electricity Generation governs the Renewable Energy Support Mechanism (YEKDEM). For plants with a renewable energy (YEK) certificate commissioned between 1 July 2021 and 31 December 2030, prices were set by Presidential Decision No. 7189, published in Official Gazette No. 32177 of 1 May 2023. For this period, prices are in Turkish lira and are updated according to certain indices (producer and consumer prices, the US dollar and the euro exchange rates), with a floor and a ceiling in US dollars. The support period is ten years; plants using local equipment also receive a local content bonus for five years (ten years for storage-linked plants). According to the annex to the Decision, the US dollar floor and ceiling are 4.95–6.05 US cents/kWh for solar and onshore wind, 5.85–7.15 US cents/kWh for storage-linked solar and wind, and 6.75–8.25 US cents/kWh for offshore wind.

The YEKDEM Regulation was amended on 29 December 2025, with effect from 1 January 2026, and the rules on the support period and on support for capacity increases were reorganised. Plants outside YEKDEM or YEKA sell electricity on the free market, through bilateral agreements or on the markets operated by Energy Exchange Istanbul (EPİAŞ). For sales of renewable electricity to corporate buyers, the source is documented with YEK-G certificates, governed by the Regulation of 14 November 2020 and amended with effect from 1 January 2025. The history of YEKDEM and the YEK-G system are explained in our guides YEKDEM: Yenilenebilir Enerjinin Alım Garantisi and YEK-G Belgesi ve Yeşil Enerji Sertifikası (in Turkish).

Land: the project company, Treasury land, forest, pasture and agricultural land

1. Real estate acquisition by the project company: Land is acquired not in the foreign investor’s own name but in the name of the Turkish project company. A company in which foreigners hold 50% or more of the shares, or can appoint the majority of its managers, falls within Article 36 of the Land Registry Law and may acquire real estate only to carry out the business activity stated in its articles of association; acquisitions are assessed for national security and consistency with the business purpose. The project company’s articles of association must therefore expressly include electricity generation. Details are in our guide Buying Property in Turkey as a Foreign Investor: In Your Own Name or Through a Turkish Company?

2. Treasury land and expropriation: Under Article 19 of Law No. 6446, privately owned land needed for a generation plant may be expropriated by EPDK, with the expropriation compensation paid by the licence holder; for land in the Treasury’s private ownership or under the State’s jurisdiction and disposal (hüküm ve tasarruf), an easement (irtifak) is established or a use permit is granted for a period limited to the term of the pre-licence or licence. Article 8 of Law No. 5346, as amended by Law No. 7554 (Official Gazette 24.07.2025), provides an 85% discount on permit, rent, easement and use-permit fees for such land for ten years from the licence date, for renewable plants commissioned by 31 December 2030. Provisional Article 33, added to Law No. 6446 by the same Law No. 7554, allows EPDK to carry out urgent expropriation (acele kamulaştırma) of privately owned land for renewable investments on behalf of pre-licence or licence holders until 31 December 2030; the President may extend this period by five years. The general regime of urgent expropriation is explained in our guide Acele Kamulaştırma ve Özel Kanunlar (in Turkish).

3. Forest land: Energy facilities on land classified as forest are permitted under Article 17(3) of Forest Law No. 6831. The implementing regulation for this paragraph (Official Gazette 30.11.2021, No. 31675) was revised by the amendment of 15 February 2023 (No. 32105): licensed solar plants may be permitted on forest land that has no trees or shrubs, is in fact stony, rocky or unproductive, cannot be used for forestry and where planting a forest is technically impossible (Art. 4(8)). Unlicensed generation plants, by contrast, are not permitted on forest land; roofs and façades of tourism facilities and the water surfaces of dams and ponds are exceptions to this ban (Art. 4(7)). Wind plants may also be permitted against a permit fee; under Article 8 of Law No. 5346, plants commissioned by 31 December 2030 receive an 85% discount on permit fees, and the Forest Villagers Development Revenue and the Afforestation and Erosion Control Revenue are not charged. Under Law No. 7554, the forest permit is granted for the pre-licence term, extended to the licence term once the licence is obtained, and applications must be decided within sixty days. The details of forest permits are in our guide Orman Arazisinde İzin (in Turkish).

4. Pasture land: To build a plant on pasture, summer pasture or winter pasture land, a change of allocation purpose (tahsis amacı değişikliği) under Article 14 of Pasture Law No. 4342 is needed. Law No. 7554 added a new item to this Article allowing a change of allocation purpose for pasture land needed for YEKA areas designated under Law No. 5346. The practice is explained in our guide RES, GES ve Enerji Nakil Hatlarında Mera (in Turkish).

5. Agricultural land: The new Regulation on the Protection and Use of Agricultural Land, published in Official Gazette No. 33214 of 4 April 2026, repealed the 2017 regulation. Under Article 7(7) of the new Regulation, the site of a solar plant must be dry marginal agricultural land; applications for land outside this class are not placed on the agenda of the Soil Protection Board at all. The same requirement applies, in hybrid plants, to the area of any solar unit added to the main plant. The procedure for permits to use agricultural land for non-agricultural purposes is explained in our guide Tarım Dışı Kullanım İzni Nasıl Alınır? (in Turkish).

ÇED (environmental impact assessment) and the changes made by Law No. 7554

The Environmental Impact Assessment (ÇED) Regulation (Official Gazette 29.07.2022, No. 31907), as amended on 26 June 2025 and 5 March 2026 (No. 33187), sets the following thresholds. Annex 1 lists wind plants with 15 or more turbines and offshore wind plants, ground-mounted solar plants with a project area of 25 hectares or more, and floating solar plants of 2 hectares or more; a full ÇED report is prepared for these projects. Annex 2 lists wind plants with 1 or more turbines, ground-mounted solar plants with a project area of 7.5 hectares or more, and floating solar plants of up to 2 hectares; these projects go through a screening process. Rooftop and façade systems are excluded. The amendment of 5 March 2026 abolished the “ÇED not required” (ÇED Gerekli Değildir) decision; screening now ends with either a “ÇED positive” (ÇED Olumlu) decision or a “ÇED report must be prepared” (ÇED Raporu Hazırlanmalıdır) decision.

The amendment to Article 10 of Environmental Law No. 2872 made by Law No. 7554 allows incentive, permit and licence applications to be filed before the ÇED decision, while keeping the rule that the project cannot be implemented without a ÇED decision. This allows a foreign investor to run permitting processes in parallel. In addition, under a regulation of the Ministry of Energy and Natural Resources published in Official Gazette No. 33319 of 24 July 2026, zoning plan, building permit, occupancy permit and business (workplace) opening licence procedures for wind and solar plants holding a pre-licence or licence were transferred to the Ministry, with thirty-day time limits for these procedures. The ÇED process for energy projects is explained in our guide Enerji Projelerinde ÇED Süreci ve Çevre İzinleri (in Turkish).

Incentives, VAT and local content requirements

The new incentive system that took effect in 2025 is governed by Presidential Decision No. 9903 on State Aid for Investments, published in Official Gazette No. 32915 of 30 May 2025. Under this system, electricity generation investments are excluded from certain supports such as tax reduction, interest or profit-share support and allocation of investment land; supports such as the VAT exemption and customs duty exemption may apply under an incentive certificate depending on the nature of the investment. Solar or wind investments made by manufacturing companies for their own consumption, limited to the contracted capacity (sözleşme gücü) in the connection agreement, are listed among priority investments; interest or profit-share support does not apply to them. Article 10 of the implementing Communiqué (No. 2025/1) requires, for solar investments, panels with cells produced in Turkey from the ingot-slicing stage or an earlier stage and domestic mounting structures; for wind investments, domestic blades and towers and, for applications made from 1 January 2026, also a domestic generator or nacelle generator. The general framework of the incentive system is explained in our guide Yatırım Teşvik Sistemi (2025) (in Turkish), and the taxation of energy investments in Enerji ve Madencilikte Vergilendirme (in Turkish).

Financing, profit transfers and investment protection

Financing: Project financing is usually provided as a shareholder loan from the parent company abroad or as loans from international banks. Articles 17 and 17/A of Decree No. 32 on the Protection of the Value of the Turkish Currency restrict the use of foreign currency loans by Turkish-resident companies with no foreign currency income; the exceptions include borrowers with a loan balance of USD 15 million or more, investments under an incentive certificate, winners of international tenders opened in Turkey and public-private partnership projects. The financing structure must be set up to fit one of these exceptions.

Profit transfers and arbitration: Law No. 4875 guarantees the free transfer through banks of net profits, dividends, sale and liquidation proceeds and loan repayments (Art. 3(c)), that there will be no expropriation without public interest and compensation (Art. 3(b)), and that disputes may be resolved by national or international arbitration where the conditions are met (Art. 3(e)). Turkey is a party to the Energy Charter Treaty, which entered into force for Turkey on 4 July 2001; its Article 26 gives investors a right to international arbitration against the state. Depending on the investor’s nationality, bilateral investment treaties may provide additional protection. In large energy investments, the country through which the investment is made should therefore be planned from the outset with treaty protection in mind. Details are in our guide Investment Arbitration and ICSID and in Enerji Şartı Anlaşması (ECT) m.26 (in Turkish); for transferring dividends abroad, see Dividend Repatriation from Turkey for Foreign Shareholders.

Staff: Foreign engineers and managers need work permits (Law No. 4875, Art. 3(g); International Labour Force Law No. 6735). For the assessment criteria and exemptions for work permits, see our guide Yabancıların Türkiye’de Çalışma İzni (in Turkish).

Step by step: a solar and wind roadmap for foreign investors

Common mistakes by foreign investors in energy projects

Frequently asked questions

Can a foreign investor build a solar or wind plant in Turkey?

Yes. Electricity Market Law No. 6446 sets no nationality requirement for pre-licence and licence holders; however, the business is carried out through a joint stock or limited company incorporated under the Turkish Commercial Code, and shares in a joint stock company must be registered (Art. 4(3)). All of the company’s shareholders may be foreign.

Can a foreign company hold a generation licence in its own name?

No. Licences are granted to joint stock or limited companies incorporated in Turkey. Foreign companies may also apply to YEKA competitions, but if they win they must set up a company in Turkey, with the same shareholding structure or as a 100% subsidiary, before signing the contract (YEKA GES-2026 Specification).

When can you apply for the YEKA 2026 competitions?

Applications for the 21 competitions (14 solar, 7 wind) announced in the Official Gazette of 11 July 2026 will be received at the Ministry on 13 October 2026. The current specification for the relevant competition should be reviewed before applying.

At what price is electricity sold under YEKA?

Under the YEKA GES-2026 Specification, the ceiling price is 5.50 euro cents/kWh and the floor is 3.25 euro cents/kWh; in the wind competitions the floor is 3.50 euro cents. If the floor is reached, the competition continues on a contribution fee per MW. The winner sells on the free market for the first 60 months for solar (72 months for wind); then, for 20 years, the bid price in euro cents is paid under YEKDEM, with no price escalation and no local content bonus (yerli katkı ilavesi) under Law No. 5346.

What prices resulted from the 2025 YEKA competitions?

In the YEKA GES-2025 solar competitions, the price for 650 MW settled at 3.25 euro cents/kWh and the contracts were signed on 6 January 2026. In the YEKA RES-2025 wind competitions, the price fell to 3.50 euro cents/kWh in all projects (1,150 MW in total), and the competitions were decided by bidding on the contribution fee.

Is there a local content requirement in YEKA?

Yes. The YEKA GES-2026 Specification requires at least 75% local content for modules, with the solar cells in the module produced in Turkey at least from the raw (grey) wafer stage, and at least 51% each for DC cable, mounting structure or tracker, and inverter.

Can I buy a pre-licensed project together with its company?

As a rule, no. A pre-licence holder may not change its shareholding structure or transfer its shares until it obtains a licence (Licensing Regulation, Arts. 12, 57(1)). There are limited exceptions such as inheritance, bankruptcy, listed shares, YEKA pre-licences and indirect changes resulting from changes in the shareholding of shareholders incorporated abroad that do not amount to a change of control; a breach may lead to cancellation of the pre-licence.

What approval is needed to buy a licensed or operating plant?

In a licence holder, the direct or indirect acquisition of 10% (5% for publicly held companies) or more of the shares, and a change of control, require prior approval of the EPDK Board (Licensing Regulation, Art. 57(2)). Depending on the size of the deal, Competition Board clearance, the Minister’s approval for a YEKA project and the Land Registry Law Article 36 notification for real estate may also be required.

How long are pre-licences and licences granted for?

The pre-licence term may not exceed twenty-four months except for force majeure; the Board may extend it by half depending on the source type and installed capacity (Law No. 6446, Art. 6(5)). A generation licence is granted for at most forty-nine years (Art. 5).

Can I set up an unlicensed solar plant and sell electricity?

An unlicensed renewable plant is set up linked to a consumption facility, and the energy fed into the grid may not exceed the linked consumption; any excess is treated as a free contribution to YEKDEM (Unlicensed Generation Regulation). Unlicensed generation is therefore suitable not for sales but for a factory’s own consumption.

How are YEKDEM prices set?

For plants commissioned between 1 July 2021 and 31 December 2030, prices were set by Presidential Decision No. 7189 in Turkish lira, with a US dollar floor and ceiling, and are updated according to indices. The support period is ten years; plants using local equipment also receive a local content bonus.

Can a plant be built on Treasury land?

Yes. For land in the Treasury’s private ownership or under the State’s jurisdiction and disposal, an easement or use permit is granted for a period limited to the pre-licence or licence term (Law No. 6446, Art. 19). Under Law No. 7554, plants commissioned by 31 December 2030 receive an 85% discount on these fees for ten years from the licence date (Law No. 5346, Art. 8).

Can solar or wind plants be built on forest land?

Wind plants may be permitted against a permit fee under Article 17(3) of Law No. 6831. Under the amendment of 15 February 2023 to the implementing regulation, licensed solar plants may be permitted only on land with no trees or shrubs that is stony, rocky or unproductive and where planting a forest is technically impossible (Art. 4(8)). Unlicensed plants are not permitted on forest land; roofs and façades of tourism facilities and the water surfaces of dams and ponds are exceptions (Art. 4(7)).

Can a solar plant be built on agricultural land?

Under Article 7 of the Regulation on the Protection and Use of Agricultural Land, in force since 4 April 2026, the site of a solar plant must be dry marginal agricultural land; applications for land outside this class are not placed on the Soil Protection Board’s agenda. The same requirement applies to the additional solar area in hybrid plants.

Is an environmental impact assessment (ÇED) report needed for solar and wind plants?

Under the amendments of 26 June 2025 and 5 March 2026 to the ÇED Regulation, Annex 1 lists wind plants with 15 or more turbines and offshore wind plants, ground-mounted solar plants of 25 hectares or more and floating solar plants of 2 hectares or more; Annex 2 covers wind plants with 1 or more turbines, ground-mounted solar plants of 7.5 hectares or more and floating solar plants of up to 2 hectares, which go through screening. Screening ends with a “ÇED positive” or “ÇED report must be prepared” decision; rooftop and façade systems are excluded.

Are there incentives for energy investments?

Under Presidential Decision No. 9903 on State Aid for Investments, electricity generation investments are excluded from certain supports such as tax reduction, interest support and investment land allocation; supports such as the VAT exemption and customs duty exemption are assessed according to the nature of the investment. The implementing Communiqué requires panels with domestically produced cells and domestic mounting structures for solar, domestic blades and towers for wind, and, for applications made from 1 January 2026, a domestic generator or nacelle generator.

Can a foreign investor bring international arbitration against Turkey?

Turkey is a party to the Energy Charter Treaty, which entered into force for Turkey on 4 July 2001; Article 26 gives energy investors a right to arbitration against the state. Law No. 4875 also allows international arbitration where the conditions are met (Art. 3(e)), and bilateral investment treaties may provide additional protection.

Can foreign currency loans be used for project finance?

Articles 17 and 17/A of Decree No. 32 restrict the use of foreign currency loans by Turkish-resident companies with no foreign currency income; exceptions include borrowers with a loan balance of USD 15 million or more, investments under an incentive certificate, winners of international tenders opened in Turkey and public-private partnership projects. The financing structure should be set up according to these exceptions.

Related guides

• Legal Guide for Foreign Investors in Turkey — company, stock exchange, mining, real estate, tax and arbitration
• Buying a Turkish Company as a Foreign Investor: Which Approvals Do You Need? — Competition Board, EPDK and Land Registry Law Art. 36 when buying a project company
• Can a Foreign Company Get a Mining License in Turkey? — a similar Turkish company structure in mining
• Company Formation in Turkey for Foreigners — setting up the project company
• Investment Arbitration and ICSID — treaty protection against the host state
• Enerji Hukuku Rehberi — EPDK, licences and energy disputes (in Turkish)
• Doğrudan Yabancı Yatırımlar Kanunu (4875) — transfer, expropriation and arbitration guarantees (in Turkish)
• Can Foreigners Explore for and Produce Oil and Gas in Turkey? — Petroleum Law No. 6491, State share, change-of-control permission and EPDK licences
• Yabancı Yatırımcı Türkiye’de GES ve RES Yatırımı — Turkish version of this article