Market Based Energy Efficiency Policy Mechanism Instruments for Enhancing Turkey’s Energy Project

Developments in energy security, energy efficiency, and carbon management are essential inputs for economic, technological, and social development. Increasing energy efficiency efforts and strengthening the market is an essential priority for countries that want to achieve sustainable development and green agreement goals, especially in energy policy. However, failures in the implementation of market-based policies may hinder the acquisition of existing and utilizable energy efficiency potentials. For these reasons, markets need to be developed with different policy tools to evaluate cost-effective efficiency potentials and reduce the need for direct government support mechanisms. Market-based policy tools create a policy framework to set goals (e.g., energy savings, cost-effectiveness) desired by market actors. In energy efficiency, two types of mechanisms meet this definition; Energy Efficiency Obligations and Energy Efficiency Auctions. Energy Efficiency Obligations (energy saving obligations, energy efficiency resource standards, energy efficiency performance standards, or white certificates) are legally binding. It sets the obligation to implement energy efficiency practices on these users and sets quantitative energy saving targets for companies that sell energy to final consumption sectors (industry, building).

On the other hand, Energy Efficiency Competitions are tenders where market actors bid within a framework that offers cost-effective solutions to achieve one unit of energy efficiency. More than 50 (increased four times since 2005) Obligation and Competition programs are implemented worldwide (USA, EU, Australia, Brazil, Canada, China, Korea, South Africa, and Uruguay). Market-based instruments allow policymakers to meet their energy efficiency targets. All energy efficiency policy instruments interact with the market by influencing investment decisions or the energy consumption profile. The point that distinguishes market-based tools from other tools is that they aim to find the most cost-effective way for the market to achieve the determined targets by giving market actors the freedom to choose the most appropriate measures. This way, energy, and economic efficiency are achieved (IEA - Market-Based Instruments for Energy Efficiency).

A better understanding of market-based tools is needed to increase energy efficiency practices in Turkey's energy transition. Actions Y3 and Y11 in Turkey's National Energy Efficiency Action Plan, which entered into force at the end of 2017 and aims to achieve a final energy saving of 14% by 2023, are related to the Energy Efficiency Competitions and the implementation of Energy Efficiency Obligations in Turkey, respectively. These actions, which will be under the responsibility of the Ministry of Energy and Natural Resources and will be implemented until 2023, aim to increase energy efficiency in Turkey by focusing on all actors of the energy systems and final consumption sectors.

Energy Efficiency Obligations and Competitions for Turkey are relatively new topics. In the current literature, some studies evaluate the applicability of the White Certificates system in Turkey introduce the system in all its aspects, and suggest a possible system structure for Turkey based on experts' opinions also suggested the requirements for the implementation of the Energy Efficiency Obligations system. Studies examining the incentive and punishment system with two models. On the subject of Energy Efficiency Competitions, there is no study specific to Turkey. In this respect, there is a need for more comprehensive studies to be conducted in Turkey so that both policymakers and relevant sector stakeholders have more information about these tools.

This project aims to reveal the most suitable designs for Turkey and prepare a roadmap for applications by examining the Obligations and Competitions being implemented worldwide by analyzing the design criteria and financial instruments. The implementation roadmap, which will be prepared both by evaluating international experiences and benchmarking with Turkey and by taking the opinions of sector stakeholders in Turkey, will form a basis for all stages, from the design of the vehicles in question to the pilot and market applications.

Energy potential in İTU

  1. "Pre-feasibility studies on ""Energy Efficiency in Public Buildings Project"" have been carried out for the selected buildings in ITU Ayazaga campus. These buildings include:
  2. Molecular Biology and Genetic Research Center
  3. Mustafa İnan Library
  4. 75th Year Student Social Center
  5. Altan Edige Dormitory For Girls
  6. Ali İhsan Aldoğan Dormitory For Girls


    The analyzes obtained as a result of the study. Potential power is calculated."