Incentives for Energy Efficiency Investments
PGP refers to as “Productivity Growth Project”. It is a grant support program provided to the projects of businesses by the Ministry of Energy in order to reduce energy consumption which is a great burden on Turkish economy and to use energy resources in the most efficient way. As part of PGP, the goal is to prevent unnecessary consumption of energy, prevent or minimise waste energy, energy losses or leakages. The Ministry of Energy gives grants in processes such as equipment and system optimisation, repair and equipment renewal. The maximum amount of the grant is determined as 1,500,000 TL regardless of the project amount.
What Shall a Business Do to Apply for PGP?
Companies that would like to be granted the PGP support shall fulfil the following requirements:
- Companies shall be registered in the database of the Ministry of Energy.1
- Companies shall have ISO 50001 Energy Management System Certificate (or they shall have initiated the application process).2
- Companies shall be registered to the Chamber of Commerce or the Chamber of Industry.
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- The annual energy consumption of the company shall be 500 TOE (tonne of oil equivalent) or more.
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What is Energy Efficiency Consultancy (EEC)?
Energy efficiency consultancy companies, i.e., EECs provide consultancy services to organisations in their PGP project applications. Businesses that would like to get the grant support can make PGP applications through Enerjisa business partners.
All businesses with annual energy consumption of 500 TOE or more and that fulfil the requirements may benefit from the grants by applying with a PGP folder prepared by an Energy Efficiency Consultancy Company (EEC) authorised by the Ministry of Energy. PGP folder preparation and consultancy fees vary according to the type of the work to be performed.
For more information on PGP, please contact us.
What are Other Incentives?
In accordance with the legislation, businesses can also get the following supports as part of 5th Region Incentives, regardless of their regions, with their energy efficiency projects;
Customs tax exemption
VAT exemption
Tax reduction
Insurance premium employer’s share support
Investment place allocation
Interest support
Another incentive for grant is “Voluntary Agreements”. An industrial enterprise benefits from a Voluntary Agreement when it reduces its past five years reference energy intensity by 10% within 3 years following the execution of the agreement. Accordingly, the enterprise can get 30% of its total energy invoice for the year of agreement as a grant.
In order to apply for the incentive, annual energy consumption of the industrial enterprise shall be 500 TOE (tonne of oil equivalent) or more, and the enterprise shall be certified with ISO 50001 Energy Management System (or shall have initiated the application process).
