Turkey is largely dependent on imports of fossil fuels, particularly supplies of oil and gas from Russia and Azerbaijan, in order to meet its energy needs. The country's current energy policy focuses on the key priorities of independence, security of supply and climate protection. Under the national energy plan (the Solar Energy Action Plan 2011), the Turkish government has set a target of increasing the share of renewable energies in end-use energy consumption to 30 per cent by 2023, to coincide with the 100th anniversary of Turkey's foundation. The government photovoltaic subsidy programme with a guaranteed feed-in tariff is initially restricted to 600 MW. Once this level has been reached, the government will assess the extent to which it is prepared to make additional funds available.
The Turkish electricity and gas markets are among the largest in Eurasia. Turkey is an attractive market for investments in renewable energies for numerous reasons. With a stable and growing economy and an associated continuous increase in demand for electricity, highly profitable solar electricity generation offers an exceptional alternative to the current imports of fossil fuels. In addition to the government funding through the 600 MW programme, falling PV module prices coupled with the very high insolation rates in Turkey provide the basis for a second, profitable business model:
Direct marketing of solar power generated by large-scale solar plants (50 MW), also known as the PPA model (Power Purchase Agreement).