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Turkey rolls out ambitious renewables plan: Turkey aims to achieve a total installed renewable energy capacity of 120 GW by 2035, marking a fourfold increase from current levels, according to its 2035 Renewable Energy Roadmap (pdf). The roadmap estimates the investments needed to reach the target to be around USD 80 bn. Key projects contributing to this goal include the YEKA 2024 projects, including the development of wind power plants (WPP) and solar power plants (SPP) across various regions, such as Edirne, Kütahya, Karapınar, and Antalya.
The YEKA tender model: The Designated Renewable Energy Resources Area (YEKA) is a special tenders system for renewable energy projects. Major YEKA auctions for solar and wind were awarded in 2017, with additional auctions held between 2019 and 2022. The awardees of the YEKA tenders receive subsidies under the Renewable Energy Support Mechanism (YEKDEM) that includes a feed-in tariff and locks in the purchase price of generated power for a period of time.
REMEMBER- YEKA had a few problems: Regulators have faced challenges for unutilized YEKA tenders, with some permit recipients not putting them to use. The program is credited with significantly boosting renewable energy’s share in Turkey’s electricity mix, reaching 42.3% in 2020.
But this may change: Traditionally, the existing permit process, from pre-licensing to zoning and building, took up between 6.5 and 12 years, according to the strategy. However, the strategy is proposing new regulatory changes that could compress this process to 3-4.5 years. Anticipated regulations include simplifying multiple permits into a single one, such as the multiple forest permits currently in place, exploring the possibility of streamlining expropriations, and improving the Environmental Impact Assessment (EIA) processes.
Big pricing assurances: Awardees of new YEKA tenders are slated to get pricing guarantees for around 26 years. For the first six years, developers will be able to directly sell their electricity in an open market with a minimum pricing guarantee of 49.5 MWh, followed by a 20-year period in which the government buys the generated power at a guaranteed pricing as well. The projects are then subjected to free market dynamics for the rest of the license duration.
ICYMI- Five wind farm projects totaling 1.2 GW will be up for tender applications in January, the government said earlier this week. Applications for these YEKA tenders will be accepted on 21 January, 2025, with the initial ceiling price set at USD 55 MWh and a floor price of USD 35 MWh.
Expect more YEKA tenders next week: More YEKA projects are expected to be announced next week, but this time around they will be solar. Applications for these 800 MW projects are scheduled for February, according to the published strategy.
REMEMBER- Turkey aims to add at least 2 GW of renewable energy capacity each year until 2035 through YEKA tenders.
