75 Percent Grant Support for Renewable Energy Investments under the IPARD Program

Minister of Agriculture and Forestry İbrahim Yumaklı stated that within the scope of the IPARD Program, which is jointly financed by Turkey and the European Union (EU) and implemented for 13 years by the Agriculture and Rural Development Support Institution (TKDK) within the Ministry, the installation of environmentally friendly and economical renewable energy sources is encouraged in order to reduce the energy costs of agricultural enterprises, and that up to 75 percent grant support is provided for such projects.

Yumaklı stated that minimizing energy costs in agricultural production and ensuring that producers can meet their own electricity needs are important in terms of energy saving and efficiency, and that TKDK within the Ministry is one of the leading institutions in energy saving in agricultural production, and made the following assessments:

“Within the scope of the IPARD Program, which is jointly financed by Turkey and the EU and implemented by TKDK within our Ministry, grant support of up to 75 percent is provided for the installation of renewable energy sources. In this context, with the support provided within the scope of the IPARD Program, while agricultural production is increased on the one hand, the installation of environmentally friendly and economical renewable energy sources is encouraged to reduce the energy costs of agricultural enterprises on the other hand. Entrepreneurs can produce the energy they need by preparing their projects.”

Minister Yumaklı emphasized that real and legal persons can apply for these supports provided by the IPARD Program’s Diversification of Farm Activities and Business Development Measure and said, “A 60 percent grant is given for renewable energy facilities to be established within the scope of the Regulation on Unlicensed Electricity Production in the Electricity Market. The grant amount increases up to 70 percent for investments made by young farmers or organic certified farmers. An additional 10 percent public contribution is given for wastewater and waste management, renewable energy and circular economy type investments. The maximum grant rate provided to the project cannot exceed 75 percent in total. If the entrepreneur/producer wants to include a renewable energy facility in their project in addition to their current investments in the livestock and food processing sector, an additional 10 points are given for these projects.”

Yumaklı, who pointed out that while the maximum eligible expenditure amount in the renewable energy sector within the scope of the IPARD Program is 500 thousand euros, grant support can be provided for up to 75 percent of this figure, provided the following information:

“The grant amount to be paid to the project is determined by evaluating the total eligible expenditures requested within the scope of TKDK procedures and taking their final form. While machinery and equipment purchase, construction works, service purchase (general expenditures) and visibility expenditures stand out as eligible expenditures that form the basis for determining the support amount; construction, modernization and expansion of renewable energy facilities, fixed machinery and equipment purchase and hardware and software in the field of information technologies for the operation of the facilities are included in the eligible expenditure headings. All kinds of renewable energy investments (except hydroelectric) that can be established for the purpose of electricity and/or heat production such as photovoltaic solar power plants, biomass power plants, wind power plants, geothermal power plants, concentrated solar power plants and microcogeneration systems are evaluated within the scope of support. Again, support can be provided to modern agricultural solar irrigation systems in order to meet the energy needed for irrigation in places where there is no grid electricity. In addition to these, energy monitoring and analysis systems in all sectors, air quality control systems and modular max. control systems are also included in the scope of support within the scope of energy efficiency.”

IT IS PLANNED TO PUBLISH AN APPLICATION CALL IN 2025

Minister Yumaklı reminded that the renewable energy supports within the scope of the IPARD Program were first given in 2017 and said, “A total of 294 billion TL grant support has been provided to 2,9 projects to date and 5,8 billion TL investment has been realized thanks to these grants.”

Yumaklı stated that with the expansion of the IPARD Program to all 81 provinces, renewable energy investments in all provinces are expected to increase further, and noted the following:

“A total of 438 thousand 419 kW (kilowatt) of renewable energy facilities have been supported by TKDK to date. Thanks to these facilities, a total of approximately 1 billion 800 million kWh (kilowatt hours), in other words, approximately 1,8 million MWh (megawatt hours) of energy has been produced to date. Our farmers and entrepreneurs continue to contribute to the country's agriculture on the one hand, and on the other hand, to produce their own energy needed in their agricultural enterprises thanks to the grants they receive from TKDK. It is planned to announce a call for applications in 2025 for the IPARD Program Farm Activities Diversification and Business Development Measure, which includes grant supports in the field of renewable energy. As the Ministry, we will continue to support our producers and encourage the installation and use of renewable energy resources with an understanding that prioritizes the protection of the environment and our natural resources.”