Photo: Colin C Murphy on Unsplash
The six winners from the latest round of wind power auctions under the YEKA state support mechanism in Turkey will have at least EUR 35 per MWh guaranteed from the sale of electricity in the first six years. It was the floor price in the bidding. After it was reached for each zone, the remaining participants had to compete by offering to pay for the right to sign the contract.
Delays and the lack of money for the construction of high-voltage, transmission lines is one of the main hurdles slowing the uptake of wind and solar power. Turkey’s approach has turned out to be successful, as it allows investors to compete to pay one-off fees for available predetermined projects in auctions. At the same time, the beneficiaries get guaranteed prices for the future sales of their electricity.
The country has earned EUR 530 million overall this year from two rounds for solar and two for wind power, Minister of Energy and Natural Resources Alparslan Bayraktar said. It includes EUR 208 million just from the latest bidding under the Renewable Energy Zones (REZ) state support mechanism, he claimed. It is better known by its Turkish acronym YEKA.
The winners are getting grid connections for 49 years
The ministry awarded zones for six projects for 1.15 GW in total connection capacity. The winners are getting grid connections for 49 years, a minimum price during the six-year open market sale period and power purchase agreements (PPAs) at the same level for another 20 years.
Entire capacity allocated at floor price
In the bidding in the REZ WPP 2025 (YEKA RES 2025) round, the ceiling price was EUR 55 per MWh. With 75 applications altogether, 30 companies participated – between six and 20 per zone.
In all cases, the bottom price of EUR 35 per MWh was reached, so the remaining bidders were switched to the second phase. The YEKA auctions are broadcast live.
The winners need to pay between EUR 56,000 per MW and a stunning EUR 312,000 per MW of capacity, or from EUR 23.8 million to EUR 34.3 million for each zone. Combined, the contribution fees amount to EUR 173 million, or some EUR 470 million for all auctions held this year.
Bayraktar estimated total investments in projects involved in the last wind power round at USD 1.1 billion.
Eksim, Polat among winners
The Kütahya zone of 120 MW went to İçdaş Elektrik Enerjisi, for EUR 222,000 per MW. Stone Enerji snatched the Aydın-Denizli project of 140 MW with a winning bid of EUR 170,000 per MW. The firm was a winner at the recent solar power auctions as well.
For the Sivas area, the largest of all (500 MW), Kanat Rüzgar Enerji will be required to pay EUR 56,000 per MW, which is the lowest level.
Three zones are in Balıkesir province. Eksim Energy (Enerji) committed the most of all winners, EUR 312,000 per MW, for the Balıkesir-3 project. It is for 110 MW. Balıkesir-2, of 120 MW, was won by Balıkesir Elektrik. It offered a contribution fee of EUR 218,000 per MW.
The Balıkesir-1 area is for 160 MW in connection capacity. Polat Enerji’s subsidiary Soma Enerji was the best bidder, with EUR 212,000 per MW.
Turkey hosts wind power plants of more than 14 GW combined, of more than 121 GW in total electricity capacity.
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