ELECTRIC VEHICLE REGULATION AND LAW IN TURKEY

Turkiye only has a small percentage of EV vehicles today, but its interest in EV developments is increasing rapidly. Recently, the Turkish government announced an action plan to encourage the use of EVs – including extending the current tax incentives and planned new legislation.

1. What EVs have been deployed in your jurisdiction to date?

In 2017, 77 full EVs and 4,451 hybrid vehicles were registered in Turkiye – a total of 4,528 vehicles.

In 2016, only 44 EVs and 950 hybrid vehicles were registered. Due to the tax incentives offered by the government in 2017, the registered number of EVs (especially hybrids) has quadrupled.

2. Is there any specific legislation for/regulation of EVs in your jurisdiction?

Currently, Turkiye does not have all-inclusive legislation for EVs. However, in order to prepare the infrastructure to be able to support the widespread use of EVs, a draft of the rules and procedures?1??regarding Charging Stations for EVs was released for public opinion by EMRA (the Energy Market Regulatory Authority) at the end of 2017. The draft sets out the procedures and principles regarding the instalment and operation of charging stations and the supply of electricity to EVs through these countrywide stations. The draft law is expected to come into force in 2018.

The other items of sub-legislation regarding EVs are:

• Under the Regulation on Parking Areas?2?, at least one (1) of every fifty (50) parking spaces must have charging stations for EVs at paid parking lots on the street sides and at shopping malls.
• Similarly, under the Regulation on Planned Landscape Regulations?3?,?EV-charging facilities will be installed at the parking lots, fuel stations and other suitable locations with the affirmative consent of the affiliated electric distribution company.

3. What measures promote EVs in your jurisdiction?

Tax?– For EVs and hybrid vehicles, the special consumption tax (?TV) has been reduced for two classes of EVs: (i) from 90% to 45% for automobiles with a cylinder volume not exceeding 1,800 cm3 and an electric motor power not exceeding 50kW; (ii) from 180% to 90% for automobiles with a cylinder volume not exceeding 2,500 cm3 and electric motor power not exceeding 100kW.

Under the National Energy Efficiency Action Plan (2017 – 2023)?4?,?it is reported that a differentiating tax regime based on fuel consumption and carbon dioxide emission will be developed. The current motor vehicle tax system will be amended so that vehicles with low carbon dioxide emissions will receive tax advantages. The system will be implemented so that vehicles with excessive service years will pay a higher tax rate, with the balance between purchase power and environmental impact taken into consideration.

Charging stations?– The number of charging stations is increasing every year. In 2017, ten (10) private companies had procured charging stations, with more than 1,500 charging stations in total. In addition, the infrastructure and standards required to build charging stations for hybrid and electricity powered vehicles will be determined in upcoming legislation.

Public transportation?– Turkiye has started producing EVs for public transportation. TEMSA, part of Sabanc? Holding, and ASELSAN, Turkiye’s leading defence industry company and part of the Turkish Armed Forces Foundation, have jointly developed the first hundred (100) domestic EVs for public transportation.

4. Who are the main entities (e.g. developers, government, System Operator) and what are their roles in the deployment of EVs in your jurisdiction?

Government authorities?– The Ministry of Energy and Natural Resources (MENR) and EMRA are the authorities that formulate and implement policies to support energy markets.

EMRA is authorised to: grant electricity generation licences, including but not limited to the licences for electricity; supervise implementation of the related rules; and ensure the electricity generation licence holders comply with the rules. EMRA also sets the procedures involved in the implementation of EV charging stations – the installation, operation and supply of electricity to EVs through these stations.

Electricity Distribution Companies?(regionally-based and private companies, 21 in total), are liable or will act as system operators to authorise the supply of electricity for EV charging facilities, which will be installed at locations such as parking lots and fuel stations.

Universities?play a huge role by designing and developing projects to promote EVs. For example, the students at one Turkish university designed an EV which is a completely domestic design with a six (6) kilowatt battery. The vehicle could reach speeds of 110 kilometers per hour (km/h).

5. What are the main challenges to further deployment of EVs in your jurisdiction? How have EV developers sought to overcome these challenges to date?

From the customer’s perspective, the obstacles to EV ownership include:

• Charging stations?– Even though the number of charging stations is increasing in major cities, they are still not very common in small cities or on the long-distance roads between major cities.
• Legislation?– EVs are encouraged in Turkiye, however there are still uncertainties regarding the implementation of the regulations regarding EVs.
• Tax?– Even though there are tax incentives for EVs, it is still not favourable for customers to engage with the EV market while the purchase prices and overall maintenance costs of EVs are still higher than gas-based vehicles.
• Promotion?– For Turkish customers it is still difficult to keep informed about the new EV market, e.g. which cars and other vehicles are available on the market as electric vehicles.