National Energy Efficiency Financing Mechanism Roadmap

Thematic Area:	Climate & Sustainable Energy Finance
Duration:	2019 – 2020
Client:	European Bank for Reconstruction and Development (EBRD)
Region:	Turkey, Caucasus & Central Asia
Country Coverage:	Turkey

Project Overview

Turkey has been experiencing rapid growth in demand across all segments of the energy market over the last decade. In response, Turkey has taken concrete actions to increase Energy Efficiency (EE) in efforts to decrease CO2 and Greenhouse Gas (GHG) emissions, secure its energy supply and create a more sustainable energy sector and efficient liberal energy market.

To this end, several legal and institutional reforms were initiated, amongst them the National Energy Efficiency Action Plan 2017-2023 (NEEAP) with the cooperation of EBRD. The objective of this Project is to support the Turkish Government implement the NEEAP by: (1) developing a roadmap for a national EE financing mechanism and (2) creating a competitive EE tender mechanism.

To support the implementation of the NEEAP, Frankfurt School experts have been advising the Turkish Government in the following areas, taking into account stakeholder views and international best practice:

Review of best practices of national/regional EE financing mechanisms in the EU and other countries to assess how such mechanisms could be applicable to Turkey;
Assessment of the main requirements to establish a sustainable EE fund in Turkey;
Proposal of alternative financing mechanisms, which could be implemented in Turkey accounting for the local EE market characteristics, economic scale and the EE targets outlined in the NEEAP;
Definition of Key Performance Indicators to monitor the effectiveness of the proposed financing mechanism;
Review the implementation of competitive EE tender mechanisms in the EU and other countries to recommend if/how such mechanisms could be applicable to Turkey and assess the lessons learned from previous experiences;
Proposal of a competitive EE tender mechanism; and
Capacity building for the staff of the Department of Energy Efficiency and Environment under the Ministry of Energy and Natural Resources.