More Obstacles to the Growth of ESCOs in Turkey

Abstract

Sustainable and clean sources of energy is an issue of financial challenges for developing countries. Turkey has a considerable potential for a sustainable and cheap form of energy. As a developing country, Turkey implemented policies to improve renewables and energy efficiency in line with EU requirements. But there is incompetence of policy making and practice in which lack of familiarity with infrastructure investment and financing methods challenge renewable energy utilization in Turkey. The weak rule of law does not help to obtain culture, awareness, and consciousness of energy efficiency in Turkey. The enactment of raising awareness of energy saving projects and companies for reducing costs of energy efficiency should be the first priority of government. Beyond infrastructural problems, the key failure of ESCOs is lack of risk culture and poor risk management. Nowadays, the ongoing economic obstacles enhanced and ESCOs are facing financial distress and corporate debt restructuring which will affect the growth of energy savings in Turkey.