Photo: Camila Fernández León on Unsplash
Under the REZ WPP-2024 – YEKA RES-2024 round, companies will bid for five wind farm projects in Turkey at predetermined locations. The winners at the auctions get grid connections for 49 years, a minimum price during the six-year open market sale period and a guaranteed price for another 20 years.
The Ministry of Energy and Natural Resources of Turkey is receiving applications until January 21 for the next round of wind power auctions. Earlier it revealed that it plans the bidding for the 1.2 GW to be held on January 28. Minister Alparslan Bayraktar said the specifications for a solar power auction round would be published next week, for 800 MW in total.
The auction mechanism is called Renewable Energy Zones (REZ), better known by its Turkish acronym YEKA. Domestic and foreign companies will compete for five wind farm projects with 1.2 GW in overall capacity.
Under the REZ WPP-2024 – YEKA RES-2024 round, winners get grid connections for 49 years. They will compete for predetermined areas in the provinces of Edirne, Kırklareli and Sivas.
If more than one participant bids floor price, they must compete by offering contribution share payment
In the first six years after commissioning, operators sell electricity in the open market. However, they are guaranteed at least 4.95 United States dollar cents per kilowatt-hour. It translates to USD 49.5 per MWh (EUR 45.75 per MWh at the current exchange rate).
Companies can send financial bids ranging between 3.5 cents and 5.5 cents per kilowatt-hour. The lowest five proceed to the auction, though the list can be expanded if there are equal bids. The lowest bid is the basis level in the process.
The range for financial bids is 3.5 to 5.5 US dollar cents per kilowatt-hour
To participate, the applicants need to pay TRY 50,000 (EUR 1,348 or USD 1,458) and a letter of guarantee of USD 20,000 per MW.
If more than one bidder quotes the floor price of 3.5 cents, an auction will be held between them for a so-called contribution share. The minimum is USD 10,000 per MW and the highest bid wins.
Auction winners will be obligated to submit letters of guarantee worth USD 50,000 per MW.
Thrace area to host most wind power capacity
The largest project is for 410 MW in capacity. The zone, spanning 121.7 square kilometers, is in the districts of Enez and Keşan in Edirne. The province in eastern Thrace borders Greece and Bulgaria.
The Balkaya project of 340 MW is in the Vize district in the neighboring Kırklareli province, while the Sergen site spreads across both Vize and Demirköy. It is envisaged for 200 MW.
Sivas, in Central Anatolia, hosts two areas: Yellice in the Kangal district (160 MW) and Gürün in the eponymous district, for 90 MW.
Storage allowed but for internal use
The operator can install an electricity storage unit within the site of the wind farm and at the same metering point. Its capacity can’t be higher than the power plant’s.
During the open market sale period, the storage facility can only store electricity from its wind farm.
Construction deadline is three years
Auction winners are eligible for a preliminary license. It enables them up to two years to obtain all permits. When it meets all the conditions, the company gets a license, after which it has three years to build its wind farm, according to the propositions.
The license can be extended, by a maximum of one year, only if the facility is at least 70% complete. In that case, the company would pay a penalty of USD 10,000 per each day of delay.
Strict domestic content requirements
Wind turbines will have to be manufactured in Turkey. All components must have a domestic content rate of at least 51% to be awarded a score.
The wind turbine domestic content rate is the sum of the domestic content scores of the components, which are listed in the call.
Turbine towers and rotor blades have a higher threshold, 65%, together with tower fittings, 70%.
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