Energy Performance Agreements (EPC)
VAT ENERJI commits to energy saving in the projects it will implement. Energy performance agreements are a financial system created in terms of creating resources for efficiency- enhancing projects, depending on the amount of savings achieved within the scope of energy efficiency projects. In the EPC finance model, all risks that may occur in the project and affect the savings amount belong to VAT ENERJI, and a performance-based payment plan is issued to the customers. Thus, the performance of the system is guaranteed by VAT ENERJI.
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Energy Supply Contracts (ESC)
VAT ENERJI can meet the energy needs of industrial facilities such as electricity, steam, hot water, compressed air as a system and machine operation. With the energy supply agreement, the process until the establishment and commissioning of the project is under the control of VAT ENERJI. The produced energy is sold at the unit prices specified in the agreement. When the system fee is met as a result of the payments made, the system is completely transferred to the facility and all kinds of support are provided in the next process.
ENERGY MANAGEMENT
KOSGEB Energy Efficiency Support
Companies with less than 250 employees or a turnover of less than 50 million TL enter the SME status. KOSGEB provides grant support to SME companies in energy audits and energy efficiency investments. In order to benefit from the grant supports, the file to be prepared on energy efficiency is provided by VAT ENERJI, an Authorized Energy Efficiency Consultancy firm. Up to 5,000 TL in Preliminary audits, up to 20,000 TL in Detailed audits, up to 75,000 TL in Efficiency Project investments, up to 60% of the invoice amount is provided.
ANALYSIS
5th Region Energy Efficiency Investment Support
Investments of energy efficiency projects are included in the investment incentive program regardless of the region.
Regardless of where in Turkey, industrial facilities can benefit from the 5th region Incentives provided that the following conditions are met. With the Council of Ministers Decision No. 2014/6058, published in the Official Gazette dated May 9, 2014 and numbered 28995, it was decided to encourage some energy investments.
SUPPORT
Energy Investments to be Incentived;
– Investments for energy efficiency, which will be realized in existing manufacturing industry facilities with a minimum annual energy consumption of 500 TOE (tonne equivalent oil), saving at least 20% energy per project-based unit product and with a maximum return on investment of 5 years,
– Investments in electricity generation by recovery from waste heat in a facility (except for natural gas-based electricity generation facilities), originating from waste heat,
– In addition, within the scope of this decision; liquefied natural gas (LNG) investments and underground natural gas storage investments with a minimum amount of 50 million TL,
IT WILL BENEFIT FROM INCENTIVES GIVEN TO INVESTMENTS TO BE MADE IN REGION 5, regardless of the region where it will be made.
5th Region Incentives to Benefit
– Value Added Tax Exemption,
– Customs Duty Exemption,
– Tax reduction,
– Insurance premium employer share support,
– Interest Support
– Allocation of investment location,
Value Added Tax Exemption:
Non-payment of value added tax for investment goods, machinery and equipment to be procured from Turkey and abroad within the scope of the incentive certificate
Customs Duty Exemption:
Non-payment of customs duty for investment goods machinery and equipment to be procured from abroad within the scope of the incentive certificate
Tax Discount:
Implementation of income or corporate tax at a discount until it reaches the contribution amount foreseen for the investment (investment contribution rate 30% for the 5th Region; 70% corporate tax or income tax reduction rate)
Insurance Premium Employer Share Support:
The Ministry shall cover the portion of the employer’s share of the insurance premium, which must be paid for additional employment, corresponding to the minimum wage.
Interest Support:
Interest Support is a financial support provided for investment loans with a maturity of at least one year used within the scope of the incentive certificate. five points for Turkish Lira loans for regional investments, two points for foreign currency loans and foreign currency indexed loans),
Investment Place Allocation:
Allocating an investment location within the framework of the procedures and principles determined by the Ministry of Finance for investments for which Incentive Certificate has been issued.
In order to benefit from these incentives, an “Investment Incentive Certificate” must be obtained.
VAP (Efficiency Enhancing Project) Support
Up to 30% grant support is provided to energy efficiency projects by the General Directorate of Renewable Energy of the Ministry of Energy. Thus, companies can shorten the payback period of their energy efficiency project investments.
Support
Conditions applicable to VAP Projects;
- Total price excluding VAT is maximum 1 million Turkish Liras
Projects with a payback period of less than 5 years
- A maximum of 30% of the project cost is given as a grant..
It includes businesses operating under the chamber of commerce and industry, chamber of commerce or chamber of industry and producing all kinds of goods, with a total annual energy consumption of 1,000 TOE or more, excluding licensed legal entities operating in electricity generation. With the Efficiency Increasing Projects (VAP), businesses contribute to both their own and the country’s economy with the savings they make. Such projects have been supported by the state since 2009. Efficiency Increasing Project (VAP) support applications areaccepted by the General Directorate of Renewable Energy (YEGM) in January every year.
Voluntary Agreement (GA) Grants
Government support is given in the form of grants to enterprises that reduce their energy intensity by at least 10% on average at the end of the three-year monitoring period by committing in advance, according to the reference energy intensity, which is the average of the energy intensities of the enterprises for the past 5 years through Voluntary Agreements. Voluntary Agreement supports: 20% of the energy expenditure of a business that makes a voluntary agreement and fulfills its commitment is covered in cash, provided that it does not exceed 200,000 TL.
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It includes businesses operating under the chamber of commerce and industry, chamber of commerce or chamber of industry and producing all kinds of goods, with a total annual energy consumption of 1,000 toe or more, excluding licensed legal entities operating in electricity generation. Voluntary Agreement Supports started in 2009, and it is expected that the practices carried out by the enterprises will facilitate the achievement of the 2023 targets in a shorter time than determined. Voluntary Agreement applications are accepted by the General Directorate of Renewable Energy (YEGM) in October every year.
TURSEFF Energy Efficiency Credit Support
The loan amount should not exceed 5 million EUR. Firms applying for a TurSEFF loan must be financially fit. The investment should provide a reduction in energy consumption and the amount provided by TurSEFF can only be used for those projects where energy savings are measurable. Technical energy performance within the scope of the investment should provide an Energy Saving Rate equal to or higher than 20% when measured on an annual basis, or a reduction in greenhouse gas emissions measured in tons of CO2 equivalent at the same rate, considering the conditions have not changed. The minimum Internal Efficiency Ratio calculated from the financial value of the potential energy savings should be more than 7%.
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