Share of Renewable Energy Production Reached 53 Percent

Eksim Energy CEO Arkın Akbay:
“YEKA and YEKDEM Support for Green Transformation in Energy is of Critical Importance”

Energy production from renewable energy sources continues to increase in Turkey. Noting that the contributions provided through YEKA and YEKDEM programs strengthen Turkey's energy supply security and reduce foreign dependency, Eksim Energy CEO Arkın Akbay said, “As a country, we rank 5th in the use of renewable energy in the European region. By the end of April 2024, the share of renewable energy in electricity production reached 53 percent. The support of public administration is critical for the development of the sector, and the support given returns as added value to the entire country. "While drawing attention to this reality in the energy sector, I also celebrate World Environment Day, and I believe that we will reach a green future together, where awareness of clean energy will increase even more."

Arkın Akbay, CEO of Eksim Energy, which makes significant contributions to Turkey's renewable energy portfolio; He made statements about the positive impact of incentive programs developed for renewable transformation on the rapid transformation in the energy supply composition. Akbay said, “As a country, we rank 5th in renewable energy use in the European region. At the end of April, the share of renewable energy in electricity generation was at 53 percent. The incentives of the public administration that accelerated the transformation and the contribution fee offered for the use of domestic equipment in energy production accelerated the green transformation in energy, expanded our industrial product range and contributed to exports. Turkey's adoption of sustainable and environmentally friendly policies in the energy sector has been an important step towards ensuring the country's energy security and supporting economic development. Renewable energy sources increase the competitiveness of our sectors that consume intensive electrical energy, with their economical long-term marginal costs compared to their alternatives, fossil fuels. In addition, it also contributes to the decrease in our country's average electrical energy costs. It strengthens the capital accumulation of our industry and enables it to increase its efficiency through its own transformation. Local contribution played an important role as a catalyst in this process. "The public administration's foresighted policies and support for implementation return to our country as added value," he said.

“Support to domestic equipment manufacturers is essential”

The domestic production contribution fee offered for equipment used in renewable energy production and the investment incentives provided to organizations implementing renewable energy projects accelerate the green transformation. Renewable Energy Resource Areas, in short the YEKA method, supported the development of the domestic industry by gradually increasing the domestic production rates of production equipment. Expressing that YEKA and YEKDEM programs also provide positive results for domestic equipment manufacturers, Akbay continued his words as follows: “Thanks to these programs, Turkey has gained important competencies in the field of renewable energy and has become a prominent player in the international arena with its production quality. However, there are also some difficulties. Changes in economic conditions such as high inflation and sudden unforeseen depreciation of the currency can negatively affect the efficiency of YEKA, YEKDEM domestic contribution incentives, which also reduces the effectiveness of the incentive mechanism and slows down investments. “Renewable energy and green transformation in industry are essential for sustainable growth and total development.” he said.

Eksim Energy CEO Akbay stated that the local contribution application in support programs such as YEKA and Renewed YEKDEM was determined on a TL basis, and that it could not provide the desired contribution due to the time lag of periodic adjustments depending on inflation indices and foreign currencies, and that financial institutions could not provide the desired contribution to project financing. He also emphasized that it caused them to keep their distance. Akbay said, “Our extraordinary rapid transition to renewable energy sources during the first YEKDEM period has enabled us to reduce our average energy costs today. In investments in electricity generation from renewable energy sources, it is essential to maintain the investment pace and eliminate investor losses based on the YEKDEM and YEKA price adjustment methodology so that the domestic equipment manufacturer can develop its production range and increase export volumes. For this reason, if the operating frequency of the formula is eliminated by adding the losses experienced during the monthly period to the next monthly period, as is the case at the monthly level, or based on the implementation in the first period of YEKDEM, the transformation will accelerate and the long-term competitiveness of our country will be secured. In this way, Turkey will be able to meet its own energy needs in a more sustainable way and will accelerate the formation of the ecosystem needed in the green transformation more effectively. In addition, our country's industry will remain free from the burden of carbon tax based on energy production. "The capital accumulation that our industrial enterprises will gain in this way will create resources for green transformation and efficiency increase investments in their fields." made his statements.

Green transformation is the recipe against price increases in energy

Stating that the Ministry of Energy and Natural Resources, EMRA and TEİAŞ have carried out exemplary work in terms of the global energy ecosystem, and that the support for energy production with domestic means continues, Akbay warned about energy prices: "We have not yet experienced its effects strongly, but the prices are high in the markets of developed countries with carbon emissions." increases are occurring. It is obvious that these increases are reflected in our industry and will be felt more in the future. The first recipe is rapid conversion to renewable energy. " he said.

Eksim Energy CEO Arkın Akbay, in addition to his evaluations about YEKA and YEKDEM, said: “We must once again underline that we all have great responsibilities for a sustainable clean future. We observe that the natural resources on Earth are not unlimited and that the seriousness of global problems such as climate change is increasing day by day. In 2023, renewable energy investments reached a record level, surpassing investments in fossil fuels. This rate will continue to increase in the coming years. I would like to share once again that, as Eksim Energy, we will continue our renewable energy production projects wherever needed, especially in our country, by incorporating energy efficiency-based Research and Development activities and developing technological applications into our investments focused on renewable energy. I celebrate World Environment Day and believe that we will reach a green future together, where clean energy awareness will increase even more.” he said.