RENEWAL - A New Era of Competition in Renewable Energy Has Begun
Forex - A new competition period in renewable energy has begun. The announcement for the Renewable Energy Resource Area (YEKA) competition has been published in the Official Gazette.
The declaration concerning wind energy encompasses a total capacity of 1,200 megawatts, covering five projects in three provinces. Energy and Natural Resources Minister Alparslan Bayraktar stated that they aim to conduct at least 2,000 megawatts of YEKA tenders annually and will quickly bring these capacities online.
Minister Bayraktar had unveiled Turkey's roadmap for renewable energy by 2035 last week, indicating that the tender specifications related to YEKA would now be prepared by the ministry rather than through legislation.
Applications are set to commence on January 21. Following this announcement, the YEKA RES-2024 Competition Announcement for wind energy was published in the Official Gazette. According to this, five competitions will be organized for wind energy to allocate a total connection capacity of 1,200 MWe. Legal entities established as joint-stock or limited companies under the Turkish Commercial Code, as well as foreign companies with capital company status, can participate in the competition. Applications will be made on January 21, 2025. The location and date of the competitions will be published on the ministry's website.
Ceiling and Floor Prices Established The starting ceiling price for each competition has been set at $0.0550/kWh, while the floor price is set at $0.0350/kWh. If the floor price is reached, the initial contribution margin increase price will be $10,000 per MW. The 72-month period during which electricity produced is sold in the free market has been defined as the “Free Market Sales Period.” The “Electricity Purchase Period” will cover 20 years from the end of the Free Market Sales Period, where the produced electricity is transferred to the transmission system.
Target Installed Capacity of 120 Megawatts In his evaluations regarding the announcement published in the Official Gazette, Minister Bayraktar stated, “We have announced the 1,200-megawatt wind power tender. We will also announce the 800-megawatt solar power tender next week. We aim to conduct at least 2,000 megawatts of YEKA tenders annually, including by 2035. We will bring these capacities online quickly. Thus, by 2035, we will reach an installed capacity of 120,000 megawatts for wind and solar energy.”
The locations and connection capacities mentioned in the competition announcement published in the Official Gazette are as follows: Competition Name Connection Capacity (MWe) Edirne RES 410 Balkaya RES (Kırklareli) 340 Sergen RES (Kırklareli) 200 Yellice RES (Sivas) 160 Gürün RES (Sivas) 90