Enerjisa wins biggest two wind power projects in Turkey’s auction

The winners of all five wind power projects in today’s auction in Turkey got a 20-year guaranteed price at the low end of the range, just USD 35 per MWh. Moreover, in the second phase of bidding they offered to pay one-off contribution shares of between USD 60,000 per MW and USD 148,000 per MW. Enerjisa Enerji won the right to build and operate the largest two facilities among the five that were available.

The Turkish Ministry of Energy and Natural Resources completed an auction for 1.2 GW of wind power. The winners are getting 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 auction mechanism is called Renewable Energy Zones (REZ), better known by its Turkish acronym YEKA. Companies competed for five wind farm projects in five designated areas.

Winners get at least USD 49.5 per MWh for six years after commissioning

Under the conditions for the REZ WPP-2024 – YEKA RES-2024 round, operators will sell electricity in the open market in the first six years after commissioning. However, they are guaranteed at least 4.95 United States dollar cents per kilowatt-hour. It translates to USD 49.5 per MWh (EUR 47.48 per MWh at the current exchange rate).

Participants had a range of 3.5 cents to 5.5 cents per kilowatt-hour for their initial financial bids for each zone, followed by a live auction. Amid fierce competition, all projects were awarded at the lowest possible guaranteed price, 3.5 cents, the results show.

Since there was more than one such bid for all YEKA wind power zones, the firms competed further by offering so-called contribution shares, starting at USD 10,000 per MW of the predetermined capacity.

Enerjisa must pay USD 55.9 million to build, operate two wind parks of 750 MW in total

Enerjisa Enerji Üretim, a subsidiary of Enerjisa Üretim, won the Edirne project in the province of the same name and Balkaya in the Vize district in neighboring Kırklareli. The capacities are envisaged at 410 MW and 340 MW, respectively. They were the biggest on offer.

Both provinces are in the European part of Turkey, in Thrace. For Edirne, Enerjisa would pay a one-off contribution share of USD 60,000 per MW. The sum for Balkaya is USD 92,000 per MW. In total – USD 55.9 million for the two projects.

Enerjisa Üretim is a joint venture between German E.ON and Turkey-based Sabanci

Enerjisa Üretim is a joint venture between German E.ON and Turkey-based Sabanci. At the end of 2023, it was the third in the country in overall electricity capacity, 3.79 GW, as well as in gas power (1.58 GW) and hydropower (1.35 GW), according to the annual MW100 Turkey report.

At the time, the company operated wind parks of 397 MW in total, ranking tenth in the segment. It was third in total electricity output in 2023, too, with 13.1 TWh.

Turkey awards one YEKA wind power zone each to RT Enerji, Efor Holding, ADY Akdeniz

Sergen, the other YEKA area in Kırklareli, is for 200 MW. RT Enerji snatched it by offering USD 140,000 per MW, or an overall USD 28 million. The site spreads across the districts of Vize and Demirköy.

Efor Holding won the auction for the Yellice zone, of 160 MW. Its contribution margin is also USD 140,000 per MW. The location is in the Kangal district of Central Anatolia, and so is the smallest area, Gürün. It was awarded to ADY Akdeniz. The company is obligated to pay USD 148,000 per MW for the facility in Gürün district.

The government so far held auctions for 7.05 GW through the YEKA wind and solar power scheme. Tenders for photovoltaics were held for 3 GW and the procedure is underway for another 800 MW. In the meantime, 1.5 GW was commissioned in the solar power segment, while projects for 630 MW in total were canceled, according to think tank Ember. The rest is under development.

The contract with the consortium that won the YEKA RES-1 wind power auction in 2017, of 1 GW, was canceled last year. Only 301 MW was commissioned by the end of 2024 from the capacity awarded in the three rounds held before the one today.

The country’s wind energy capacity grew by only 6.5% or 770 MW last year. Annual additions peaked at 1.7 GW in 2021. Total wind energy capacity reached 12.6 GW by the end of 2024.